House Journal: Page 1373: Monday, April 23, 2001
Page 52
1 and afterward in good faith gives the establishment
2 further credit without security of any kind, the
3 amount of the new credit remaining unpaid at the time
4 of the petition may be set off against the preference
5 which would otherwise be recoverable from the
6 creditor.
7 j. If within four months before the filing of a
8 successful petition for liquidation under this
9 chapter, or at any time in contemplation of a
10 proceeding to liquidate, an establishment, directly or
11 indirectly, pays money or transfers property to an
12 attorney for services rendered or to be rendered, the
13 transaction may be examined by the court on its own
14 motion or shall be examined by the court on petition
15 of the liquidator. The payment or transfer shall be
16 held valid only to the extent of a reasonable amount
17 to be determined by the court. The excess may be
18 recovered by the liquidator for the benefit of the
19 estate. However, where the attorney is in a position
20 of influence in the establishment or an affiliate,
21 payment of any money or the transfer of any property
22 to the attorney for services rendered or to be
23 rendered shall be governed by the provisions of
24 paragraph "a", subparagraph (2), subparagraph
25 subdivision (d).
26 k. (1) An officer, manager, employee,
27 shareholder, subscriber, attorney, or other person
28 acting on behalf of the establishment who knowingly
29 participates in giving any preference when the person
30 has reasonable cause to believe the establishment is
31 or is about to become insolvent at the time of the
32 preference is personally liable to the liquidator for
33 the amount of the preference. There is an inference
34 that reasonable cause exists if the transfer was made
35 within four months before the date of filing of this
36 successful petition for liquidation.
37 (2) A person receiving property from the
38 establishment or the benefit of the property of the
39 establishment as a preference voidable under paragraph
40 "a" is personally liable for the property and shall
41 account to the liquidator.
42 (3) This subsection shall not prejudice any other
43 claim by the liquidator against any person.
44 10. CLAIMS OF HOLDER OF VOID OR VOIDABLE RIGHTS.
45 a. A claim of a creditor who has received or
46 acquired a preference, lien, conveyance, transfer,
47 assignment, or encumbrance, voidable under this
48 chapter, shall not be allowed unless the creditor
49 surrenders the preference, lien, conveyance, transfer,
50 assignment, or encumbrance. If the avoidance is
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