215 ILCS 5/179E-75
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XIE - Special Purpose Reinsurance Vehicle Law

Sec. 179E-75.     Conservation, rehabilitation, or liquidation.(a) The provisions of Articles XIII and XIII 1/2 apply to an SPRV, except  to  the  extent modified in this Section.(b) Notwithstanding the provisions of Section 188 of this Code, the Director  may  apply by petition to the Circuit Court of Cook County, the Circuit Court of  Sangamon  County, or the circuit court of the county in which an SPRV has or last had its  principal  office for an order authorizing the Director to conserve, rehabilitate or  liquidate an  SPRV domiciled in  this State solely on one or more of the following grounds:(1) there has been embezzlement, wrongful     sequestration, dissipation, or diversion of the assets of the SPRV intended to be used to pay amounts owed to the ceding insurer or the holders of SPRV securities; or(2) the SPRV is insolvent and the holders of a     majority in outstanding principal amount of each class of SPRV securities request or consent to conservation, rehabilitation, or liquidation under this Article.The court shall not grant relief under item (1) of this subsection  unless, after notice  and a hearing, the Director, who has the burden of proof, establishes by clear  and  convincing evidence that the relief should be granted.(c) Notwithstanding any contrary provision in this Code, the rules  promulgated  under this Code, or any other applicable law or rule, upon any order of  conservation,  rehabilitation, or liquidation of the SPRV, the receiver shall be bound to deal  with the  SPRV's assets and liabilities, in accordance with the requirements set forth in  this Article.(d) With respect to amounts recoverable under an SPRV contract, the amount  recoverable by the receiver may not be reduced or diminished as a result of the  entry of an  order of conservation, rehabilitation, or liquidation with respect to the  ceding insurer  notwithstanding any provisions to the contrary in the contracts or other  documentation  governing the SPRV insurance securitization.(e) Notwithstanding the provisions of Article XIII and XIII 1/2 of this  Code, any  application, petition, or temporary restraining order or injunction issued  under those  Articles, with respect to a ceding insurer shall not prohibit the transaction  of any business by  an SPRV, including any payment by an SPRV made pursuant to an SPRV security, or  any  action or proceeding against an SPRV or its assets.(f) Notwithstanding the provisions of Articles XIII and XIII 1/2 of this  Code, the  commencement of a summary proceeding or other interim proceeding commenced  before a  formal delinquency proceeding with respect to an SPRV, and any order issued by  the court  thereunder, shall not prohibit:(1) the payment by an SPRV made pursuant to an SPRV     security or SPRV contract; or(2) the SPRV from taking any action required to make     the payment.(g) Notwithstanding any other provision of Articles XIII and XIII 1/2 of  this Code or  other State law:(1) a receiver of a ceding insurer may not avoid a     non-fraudulent transfer by a ceding insurer to an SPRV of money or other property made pursuant to an SPRV contract; and(2) a receiver of an SPRV may not void a     non-fraudulent transfer by the SPRV of money or other property made to a ceding insurer pursuant to an SPRV contract or made to or for the benefit of any holder of an SPRV security on account of the SPRV security.(h) With the exception of the fulfillment of the obligations under an SPRV  contract,  and notwithstanding any other provisions of this Article or other law of this  State to the  contrary, the assets of an SPRV, including assets held in trust, may not be  consolidated with  or included in the estate of a ceding insurer in any delinquency proceeding  against the  ceding insurer under this Article for any purpose, including, without  limitation, distribution  to creditors of the ceding insurer.(i) Notwithstanding any other provision of this Article:(1) A domiciliary receiver of an SPRV domiciled in     another state shall be vested by operation of law with the title to all of the assets, property, contracts, and rights of action, and all of the books, accounts, and other records of the SPRV located in this State.  The domiciliary receiver shall have the immediate right to recover all of the vested property, assets, and causes of action of the SPRV located in this State.(2) An ancillary proceeding may not be commenced or     prosecuted in this State against an SPRV domiciled in another state.   (Source: P.A. 92-124, eff. 7-20-01.)