House Journal: Page 1372: Monday, April 23, 2001
Page 51
1 by the law, whichever is less. A transfer to secure a
2 future loan, if a loan is actually made, or a transfer
3 which becomes security for a future loan, shall have
4 the same effect as a transfer for or on account of a
5 new and contemporaneous consideration.
6 e. If a lien which is voidable under paragraph
7 "a", subparagraph (2), has been dissolved by the
8 furnishing of a bond or other obligation, the surety
9 of which has been indemnified directly or indirectly
10 by the transfer or the creation of a lien upon
11 property of an establishment before the filing of a
12 petition under this chapter which results in the
13 liquidation order, the indemnifying transfer or lien
14 is also voidable.
15 f. The property affected by a lien voidable under
16 paragraphs "a" and "e" is discharged from the lien.
17 The property and any of the indemnifying property
18 transferred to or for the benefit of a surety shall
19 pass to the liquidator. However, the court may on due
20 notice order a lien to be preserved for the benefit of
21 the estate and the court may direct that the
22 conveyance be executed to evidence the title of the
23 liquidator.
24 g. The court shall have summary jurisdiction of a
25 proceeding by a liquidator to hear and determine the
26 rights of the parties under this section. Reasonable
27 notice of hearing in the proceeding shall be given to
28 all parties in interest, including the obligee of a
29 releasing bond or other like obligation. Where an
30 order is entered for the recovery of indemnifying
31 property in kind or for the avoidance of an
32 indemnifying lien, upon application of any party in
33 interest, the court shall in the same proceeding
34 ascertain the value of the property or lien. If the
35 value is less than the amount for which the property
36 is indemnified or less than the amount of the lien,
37 the transferee or lienholder may elect to retain the
38 property or lien upon payment of its value, as
39 ascertained by the court, to the liquidator within the
40 time as fixed by the court.
41 h. The liability of a surety under a releasing
42 bond or other like obligation is discharged to the
43 extent of the value of the indemnifying property
44 recovered or the indemnifying lien nullified and
45 avoided by the liquidator. Where the property is
46 retained under paragraph "g", the liability of the
47 surety is discharged to the extent of the amount paid
48 to the liquidator.
49 i. If a creditor has been preferred for property
50 which becomes a part of the establishment's estate,
© 2001 Cornell College and
League of Women Voters of Iowa
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