507C.58 - INTERSTATE PRIORITIES.

        507C.58  INTERSTATE PRIORITIES.         1.  In a liquidation proceeding in this state involving one or      more reciprocal states, the order of distribution of the domiciliary      state shall control as to claims of residents of this and reciprocal      states.  Claims of residents of reciprocal states shall be given      equal priority of payment from general assets regardless of where the      assets are located.         2.  The owners of special deposit claims against an insurer for      which a liquidator is appointed in this or any other state is given      priority against the special deposits in accordance with the statutes      governing the creation and maintenance of the deposits.  If there is      a deficiency in a deposit so that the claims secured by it are not      fully discharged from it, the claimants may share in the general      assets.  However, the sharing shall be deferred until general      creditors and claimants against other special deposits who have      received smaller percentages from their respective special deposits      have been paid percentages of their claims equal to the percentage      paid from the special deposit.         3.  The owner of a secured claim against an insurer for which a      liquidator has been appointed in this or any other state may      surrender the security and file the claim as a general creditor, or      the claim may be discharged by resort to the security in accordance      with section 507C.41, in which case the deficiency shall be treated      as a claim against the general assets of the insurer on the same      basis as claims of unsecured creditors.  
         Section History: Recent Form
         84 Acts, ch 1175, § 58