MARVIN MANDEL, Governor

1881

payment..." is deleted as unnecessary since
failure to receive it at all would not be a
defense.

The only other changes are in style.

For the definition of the word "mailed," see
§1-101.

6-512. LOANS TO AND GUARANTEES OF OBLIGATIONS OF
DIRECTORS AND EXECUTIVE OFFICERS.

(A)   LOANS.

(1)    EXCEPT AS PROVIDED IN SUBSECTION (D) OF
THIS SECTION, AN INSURER AUTHORIZED TO DO BUSINESS IN THE
STATE OR ITS SUBSIDIARY MAY NOT MAKE A LOAN TO A DIRECTOR
OR EXECUTIVE OFFICER OF THE INSURER, DIRECTLY OR
INDIRECTLY, UNLESS IT IS A BONA FIDE MORTGAGE LOAN MADE
ON A RESIDENCE USED FOR HIS HABITATION AND APPROVED OR
RATIFIED BY THE BOARD OF DIRECTORS.

(2)    A DIRECTOR OR EXECUTIVE OFFICER MAY NOT
ACCEPT DIRECTLY OR INDIRECTLY ANY LOAN PROHIBITED BY
PARAGRAPH (1) OF THIS SUBSECTION.

(B)   ADVANCES FOR FUTURE SERVICES.

AN INSURER AUTHORIZED TO DO BUSINESS IN THIS STATE
MAY NOT MAKE AN ADVANCE TO ANY DIRECTOR OR EXECUTIVE
OFFICER OF THE INSURER FOR FUTURE SERVICES TO BE
PERFORMED AFTER ONE YEAR FROM THE DATE OF MAKING THE
ADVANCE.

(C)   GUARANTEES OF FINANCIAL OBLIGATIONS.

(1)    AN INSURER AUTHORIZED TO DO BUSINESS IN
THE STATE OR ITS AFFILIATE OR SUBSIDIARY MAY NOT
GUARANTEE DIRECTLY OR INDIRECTLY THE FINANCIAL OBLIGATION
OF ANY DIRECTOR OR EXECUTIVE OFFICER OF THE INSURER,
AFFILIATE, OR SUBSIDIARY.

(2)   A GUARANTEE MADE IN VIOLATION OF THIS
SUBSECTION IS VOID.

(3)    NOTHING CONTAINED IN THIS SUBSECTION
PROHIBITS AN INSURER FROM MAKING OR ENTERING INTO A
CONTRACT OF INSURANCE OR SURETY BOND THAT IS AUTHORIZED
BY ITS ARTICLES OF INCORPORATION FOR A DIRECTOR OR
EXECUTIVE OFFICER.

(D)   EXCEPTION.

NOTHING IN THIS SECTION PROHIBITS A LIFE INSURER