2023 New York Laws › ISC - Insurance › Article 80 - Mutual Holding Company › 8015 - Limitations of Actions; Security.

§  8015.  Limitations  of  actions;  security. (a) Notwithstanding any
other provision of law to the contrary and except as otherwise  provided
in  subsection (c) or (d) of this section, actions concerning or arising
out of any plan of reorganization, proposed plan of reorganization, plan
amendment or proposed plan amendment under  this  article  or  any  acts
taken  or  proposed  to  be  taken  under this article must be commenced
within  eighteen  months  after  the  plan  of  reorganization  or  plan
amendment  is filed pursuant to subsection (a) of section eight thousand
nine of this article or the charter is filed pursuant to subsection  (c)
of section eight thousand seventeen of this article, as the case may be,
in  the office of the superintendent or one year from the effective date
of the plan of reorganization, whichever is later, or  if  the  plan  of
reorganization  or plan amendment is withdrawn, within one year from the
date the board of directors approves a resolution to withdraw the  plan.
Where  an  action concerns or arises out of a plan amendment or proposed
plan amendment made under section eight thousand five of  this  article,
the  applicable  time period is measured from the filing, effective date
or approval of withdrawal of the plan amendment, as  the  case  may  be.
Where  the  action  arises  out  of  either  a  transfer of subsidiaries
pursuant to section eight thousand twenty of this article or a  sale  of
securities  of  the  reorganized  insurer  or  any stock holding company
pursuant to section eight  thousand  eighteen  of  this  article,  which
transfer  or  sale  is not contemplated by the plan, then the applicable
time period shall be measured from the effective date of  such  transfer
or sale, as the case may be. Where the action arises out of the terms or
proposed  terms  for  the  establishment  of  the  closed  block or such
alternative provision  pursuant  to  subsection  (b)  of  section  eight
thousand three of this article, then the applicable time period shall be
measured  from  the  implementation date as defined in subsection (e) of
section eight thousand three of this article. Where the action  concerns
or  arises  out  of a plan of reorganization adopted pursuant to section
eight thousand nineteen of this article, then the applicable time period
shall be measured from the effective date of the plan of reorganization.
(b) In any action referred to in subsection (a) of this  section,  the
plaintiff  or  plaintiffs shall be required, upon a motion of the mutual
holding company, reorganizing insurer  or  reorganized  insurer  or  any
stock  holding  company  which  establishes  to  the satisfaction of the
court, that a substantial likelihood exists that such action is  brought
without merit and with an intention to delay or harass, to give adequate
security  for  the damages and reasonable expenses, including attorneys'
fees, which may be incurred as a result of, or in connection with,  such
action by such company and by any other defendants in such action or for
which  such  company  may  become  liable,  to which security the mutual
holding company, reorganizing insurer  or  reorganized  insurer  or  any
stock  holding  company  shall have recourse in such amount as the court
determines upon the termination of such action. The amount  of  security
may from time to time be increased or decreased in the discretion of the
court  upon  a  showing  that  the  security  provided has or may become
inadequate or excessive.
(c) Notwithstanding any other provision of law to  the  contrary,  any
action  seeking  a stay, restraining order, injunction or similar remedy
to prevent or delay the closing of  any  transaction  pursuant  to  this
article  or  of  any transaction described in the plan of reorganization
must be commenced within one hundred twenty days after,  as  applicable:
(1)  the  approval  of  a  plan  of reorganization by the superintendent
pursuant to section eight thousand seven or eight thousand  nineteen  of
this  article,  as  the  case  may  be;  or  (2)  the  approval  of  the

superintendent  pursuant  to  section  eight  thousand  twenty  of  this
article.
(d)  Any  action or proceeding against the superintendent or any other
governmental body or officer in connection with any act taken or  order,
regulation  or  rule  issued  pursuant to this article must be commenced
within one hundred twenty days from the date of such act or  signing  of
such order, regulation or rule.
(e) Any person aggrieved by any act taken or order, regulation or rule
issued  pursuant to this article may petition for judicial review in the
manner provided by article seventy-eight of the civil practice  law  and
rules,  pursuant  to the limitations period prescribed in subsection (d)
of  this  section.  The  petition  shall  be  brought  in  the  judicial
department  embracing the county wherein the act was taken or the order,
regulation or rule was issued. All such proceedings shall be  heard  and
determined  as expeditiously as possible and with lawful precedence over
other matters.  Acts  taken  or  orders,  regulations  or  rules  issued
pursuant  to  this  article  shall not be stayed or enjoined except upon
application after notice to  the  superintendent  and  to  the  attorney
general  and  upon  a  showing  that  the  petitioner  has a substantial
likelihood of success and will suffer irreparable harm if  the  stay  or
injunction is not granted.