South Dakota Codified Laws 58-29B-87. Setoff or counterclaim not allowed
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No setoff or counterclaim may be allowed in favor of any person if:
(1) The obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer; or
Terms Used In South Dakota Codified Laws 58-29B-87
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Counterclaim: A claim that a defendant makes against a plaintiff.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
(2) The obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff; or
(3) The obligation of the person is to pay an assessment levied against the members or subscribers of the insurer, or is to pay a balance upon a subscription to the capital stock of the insurer, or is in any other way in the nature of a capital contribution.
Source: SL 1989, ch 436, § 87; SL 1995, ch 288, § 1.