Current with changes from the 2024 Legislative Session
Section 10-487 - Voidable transfers(a) A transfer of or lien on the property of a provider is voidable if the transfer or lien is: (1) made or created within 4 months before the issuance of a show-cause order under this subtitle;(2) made or created with the intent to give a creditor a preference or to enable the creditor to obtain a greater percentage of the debt than another creditor of the same class; and(3) accepted by the creditor having reasonable cause to believe that the preference will occur.(b) Each director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of a provider that is concerned in a voidable transfer under subsection (a) of this section and each person that, as a result of the voidable transfer, receives any property of the provider or benefits from the voidable transfer: (1) is personally liable; and(2) shall account to the Secretary.(c) The Secretary as receiver in a delinquency proceeding may:(1) avoid a transfer of or lien on the property of a provider that a creditor, stockholder, subscriber, or member of the provider might have avoided; and(2) recover the transferred property or its value from the person that received it unless that person was a bona fide holder for value before the date of issuance of a show-cause order under this subtitle.