§ 7713. Miscellaneous provisions. (a) Nothing in this article shall be
construed to reduce the liability for unpaid assessments of the insureds
of an impaired or insolvent insurer operating under a plan with
assessment liability.

(b) The corporation shall maintain records of all negotiations and
meetings in which the corporation or its representatives are involved to
discuss the activities of the corporation in carrying out its powers and
duties under section seven thousand seven hundred eight of this article,
except to the extent otherwise provided by or pursuant to the plan of
operation. Records of such negotiations or meetings shall be made public
only upon the termination of a liquidation, rehabilitation or
conservation proceeding involving the impaired or insolvent insurer,
upon the termination of the impairment or insolvency of the insurer, or
upon the order of a court of competent jurisdiction. Nothing in this
subsection shall limit the duty of the corporation to render a report of
its activities under section seven thousand seven hundred fourteen of
this article.

(c) (1) During an article seventy-four rehabilitation proceeding,
assets of the impaired or insolvent insurer which are determined by the
superintendent to be currently available may be used to continue all
covered policies, and pay all contractual obligations, of the impaired
or insolvent insurer that would otherwise be covered by the corporation
under section seven thousand seven hundred eight of this article. The
corporation shall, subsequent to the termination of the article
seventy-four rehabilitation proceeding and within a reasonable time
after the commencement of a liquidation proceeding under article
seventy-four of this chapter reimburse the estate of the impaired or
insolvent insurer for such portion of the amount of assets so used to
the extent necessary to pay class one, two and three claims pursuant to
paragraph one, two or three of subsection (a) of section seven thousand
four hundred thirty-five of this chapter. The corporation shall have a
claim against the estate of the impaired or insolvent insurer equal to
the full amount of such reimbursement, consistent with the provisions of
paragraph four of subsection (a) of section seven thousand four hundred
thirty-five of this chapter.

(2) During an article seventy-four rehabilitation proceeding, assets
of the impaired or insolvent insurer which are determined by the
superintendent to be currently available may be used to continue covered
policies, and pay contractual obligations, of the impaired or insolvent
insurer, other than the covered policies and contractual obligations
that are covered by the corporation under section seven thousand seven
hundred eight of this article, if a corporation, association or other
organization which performs or will perform functions similar to those
of the corporation enters into an agreement satisfactory to the
superintendent prior to such use of such assets to repay the amount of
such assets subsequent to the termination of the article seventy-four
rehabilitation proceeding and within a reasonable time after the
commencement of a liquidation proceeding under article seventy-four of
this chapter.

(d) In addition to the duties and powers enumerated elsewhere in this
chapter, and subject to the limitations and exclusions contained in this
and other sections of this chapter, upon the commencement of a
proceeding under article seventy-four of this chapter with respect to
any impaired or insolvent domestic insurer, the superintendent may
request and receive from the corporation, and the corporation shall lend
to the superintendent upon such request, an amount not to exceed five
hundred thousand dollars as determined by the superintendent to be
necessary on an emergency basis for use by the superintendent, as
liquidator or rehabilitator, in the administration of the affairs of
such impaired or insolvent insurer. To the extent it deems necessary or
appropriate to carry out its duties under this section, the corporation
may borrow such amount in accordance with subsection (h) of section
seven thousand seven hundred eight of this article and may assess member
insurers for the purpose of repaying such borrowing. Such assessments
against each member insurer shall be in the proportion that the premiums
received by such insurer on business in this state in all accounts for
the calendar year preceding the assessment bear to such premiums
received on business in this state in all accounts for such calendar
year by all assessable member insurers. The corporation shall have a
claim against the estate of such impaired or insolvent insurer equal to
the amount loaned to the superintendent in accordance with this
subsection, together with interest thereon at the maximum rate allowed
by subdivision one of section 5-501 of the general obligations law, and
such claim shall be treated as a class one claim under section seven
thousand four hundred thirty-five of this chapter.

(e) The corporation shall have a claim against the impaired or
insolvent insurer for all amounts expended by the corporation for the
purposes of carrying out its obligations under this article.

(f) (1) Prior to the termination of any proceeding under article
seventy-four of this chapter, the court may take into consideration the
contributions of the respective parties, including the corporation, the
shareholders and policyholders of the impaired or insolvent insurer, and
any other party with a bona fide interest, in making an equitable
distribution of the ownership rights of such impaired or insolvent
insurer. In such a determination, consideration shall be given to the
welfare of the policyholders of the continuing or successor insurer.

(2) No distribution to shareholders, if any, of an impaired or
insolvent insurer shall be made, and no rehabilitation proceeding shall
be terminated (except by a final order of liquidation), until and unless
the total amount of valid claims of the corporation for all funds
expended in carrying out its powers and duties under section seven
thousand seven hundred eight of this article with respect to such
insurer, together with interest thereon, have been fully recovered by
the corporation or an arrangement satisfactory to the corporation has
been made for their recovery. Such interest shall be at a rate which, in
the opinion of the court, fairly compensates the corporation for the use
of such funds, but in no event shall such rate be in excess of the
maximum rate allowed by subdivision one of section 5-501 of the general
obligations law at the time such funds were expended.

(g) (1) If an order for liquidation or rehabilitation of an insurer
domiciled in this state has been entered, the receiver appointed under
such order shall have a right to recover on behalf of the insurer, from
any parent corporation or holding company or person who otherwise
controlled the insurer, the amount of distributions (other than
distributions of shares of the same class of stock) paid by the insurer
on its capital stock, made at any time during the five years preceding
the petition for liquidation, conservation or rehabilitation, as the
case may be, subject to the limitations of paragraphs two, three and
four of this subsection.

(2) No such distribution shall be recoverable if the insurer shows
that when paid, such distribution was reasonable and that the insurer
did not know and could not reasonably have known that such distribution
might adversely affect the ability of the insurer to fulfill its
contractual obligations. Notice to the superintendent pursuant to
subsection (a) of section four thousand two hundred seven of this
chapter and the lack of a prior objection by the superintendent to such
distributions shall not constitute evidence to support the showing of
reasonableness which would prevent the recovery of such distribution.

(3) Any person who was a parent corporation or holding company or a
person who otherwise controlled the insurer at the time such
distributions were paid shall be liable up to the amount of
distributions such persons received. Any person who was a parent
corporation or holding company or a person who otherwise controlled the
insurer at the time such distributions were declared shall be liable up
to the amount of distributions he would have received if they had been
paid immediately. If two or more persons are liable with respect to the
same distribution, they shall be jointly and severally liable.

(4) The maximum amount recoverable under this subsection shall be the
amount needed in excess of all other available assets of the impaired or
insolvent insurer to pay the contractual obligations of the impaired or
insolvent insurer and to reimburse the corporation for such payments and
for all other claims the corporation may have pursuant to subsection (c)
of this section.

(5) To the extent that any person liable under paragraph three of this
subsection is insolvent or otherwise fails to pay claims due from it
pursuant to such paragraph, its parent corporation or holding company or
person who otherwise controlled it at the time the distribution was
paid, shall be jointly and severally liable for any resulting deficiency
in the amount recovered from such parent corporation or holding company
or person who otherwise controlled it.