89(1)Upon a winding-up, the liquidator may, without the consent of the policyholders, arrange for the reinsurance of contracts in some other licensed insurer, and for the purpose of securing the reinsurance, the entire assets of the insurer in the Province shall be available, except the amount required to pay the claims of the preferred creditors, the costs of liquidation, and the claims accrued under contracts, of which the insurer has received notice prior to the date of the reinsurance; all such payments are a first charge upon the assets of the insurer, and its other creditors shall be entitled to a dividend on their claims only if the assets are more than sufficient to provide for such payments and the reinsurance.

89(2)If the assets of the insurer are insufficient to provide for such payments, and the reinsurance in full, the liquidator may effect reinsurance of such a percentage of the several contracts as the available assets provide.

89(3)No contract of reinsurance made in pursuance of this section shall become effective until approved by the Superintendent and the court.

89(4)If the liquidator fails to secure reinsurance, the assets shall, subject to the payment of the costs of liquidation and the preferred claims, be available to pay the claims of the policyholders, calculated as at the date of winding-up, in the manner provided in the case of the administration of a deposit.

89(5)Nothing in this section shall prejudice or affect the priority of any security interest in, or any mortgage, lien, charge or other encumbrance on, the property of the insurer.