N.Y. ISC Law § 7409 — New York Code / Act ISC / Article 74 / Section 7409
Conduct of delinquency proceedings against insurers domiciled in this state
Status: in_force

§ 7409. Conduct of delinquency proceedings against insurers domiciled\nin this state. (a) Whenever under the laws of this state a receiver is\nto be appointed in delinquency proceedings for an insurer domiciled in\nthis state, the court shall appoint the superintendent as such receiver\nand direct the superintendent forthwith to take possession of the assets\nof the insurer and to administer the same under the orders of the court.\n  (b) As domiciliary receiver the superintendent and his successors in\noffice shall be vested by operation of law with the title to all\nproperty, contracts, and rights of action, and all books and records of\nthe insurer wherever located, as of the date of entry of the order\ndirecting him to liquidate a domestic insurer or the United States\nbranch of an alien insurer domiciled in this state, and he shall have\nthe right to recover the same and reduce the same to possession; except\nthat ancillary receivers in reciprocal states shall have, as to assets\nlocated in their respective states, the rights and powers hereinafter\nprescribed for ancillary receivers appointed in this state as to assets\nlocated in this state. The filing or recording of the order directing\npossession to be taken, or a certified copy thereof, in the office where\ninstruments affecting title to property are required to be filed or\nrecorded shall impart the same notice as would be imparted by a deed,\nbill of sale, or other evidence of title duly filed or recorded. The\nsuperintendent as domiciliary receiver shall be responsible for the\nproper administration of all assets coming into his possession or\ncontrol. The court may at any time require bond from him or his deputies\nif deemed desirable for the protection of the assets.\n  (c) Upon taking possession of the assets of a delinquent insurer the\ndomiciliary receiver shall, subject to the direction of the court,\nimmediately proceed to conduct the business of the insurer or to take\nsuch steps as are authorized by the laws of this state for the purpose\nof liquidating, rehabilitating, reorganizing, or conserving the affairs\nof the insurer. In connection with delinquency proceedings he may\nappoint special deputy superintendents, and employ such counsel, clerks,\nand assistants as he deems necessary. Their compensation and all\nexpenses of taking possession of the insurer and of conducting the\ndelinquency proceedings shall be fixed by the receiver, subject to the\napproval of the court, and shall be paid out of the funds or assets of\nthe insurer. Within the limits of the duties imposed upon them special\ndeputies shall possess all the powers given to, and, in the exercise of\nthose powers, shall be subject to all duties imposed upon, the receiver\nwith respect to delinquency proceedings.\n  (d) Notwithstanding subsections (a), (b) and (c) of this section, or\nany other provision of this article, the receiver shall not disavow,\nreject, or repudiate a federal home loan bank security agreement or any\npledge agreement, security agreement, collateral agreement, guarantee\nagreement, or other similar arrangement or credit enhancement relating\nto a security agreement to which a federal home loan bank is a party.\n