|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ch. 498 2005 LAWS OF MARYLAND
|
|
|
|
|
|
|
|
|
(C) (1) THE INTEREST RATE USED TO DETERMINE THE MINIMUM
NONFORFEITURE AMOUNTS UNDER SUBSECTION (B) OF THIS SECTION SHALL BE AN
ANNUAL RATE OF INTEREST THAT IS EQUAL TO THE LESSER OF:
(I) 3% PER YEAR; OR
(II) NOT LONGER THAN 15 MONTHS BEFORE THE CONTRACT ISSUE
DATE OR THE REDETERMINATION DATE UNDER PARAGRAPH (3) OF THIS
SUBSECTION, THE 5 YEAR TREASURY CONSTANT MATURITY RATE REPORTED BY THE
FEDERAL RESERVE BOARD AS OF A CERTAIN DATE, OR AN AVERAGE OVER A PERIOD,
ROUNDED TO THE NEAREST ONE TWENTIETH OF 1%, REDUCED BY 125 BASIS POINTS
THE 5-YEAR CONSTANT MATURITY TREASURY RATE REPORTED BY THE FEDERAL
RESERVE BOARD.
(2) THE 5-YEAR CONSTANT MATURITY TREASURY RATE UNDER
PARAGRAPH (1)(II) OF THIS SUBSECTION SHALL BE:
(I) 1. AS OF A DATE NOT MORE THAN 15 MONTHS BEFORE
EITHER THE CONTRACT ISSUE DATE OR REDETERMINATION DATE; OR
2. AVERAGED OVER A PERIOD OF NOT MORE THAN 15
MONTHS BEFORE THE CONTRACT ISSUE DATE OR REDETERMINATION DATE; AND
(II) ROUNDED TO THE NEAREST ONE-TWENTIETH OF 1% AND THEN
REDUCED BY 125 BASIS POINTS.
(2) (3) THE INTEREST RATE CALCULATED UNDER PARAGRAPH (1)(II)
PARAGRAPHS (1) AND (2) OF THIS SUBSECTION MAY NOT BE LESS THAN 1%.
(3) (4) (I) THE INTEREST RATE CALCULATED UNDER PARAGRAPH (1)
PARAGRAPHS (1) AND (2) OF THIS SUBSECTION:
1. SHALL APPLY TO THE INITIAL CONTRACT PERIOD; AND
2. MAY BE REDETERMINED FOR ADDITIONAL PERIODS.
(II) THE CONTRACT SHALL PROVIDE STATE:
1. THE INTEREST RATE AS REDETERMINED UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH;
2. THE VALUE OF THE REDETERMINED INTEREST RATE, IF
ANY;
3. WHETHER THE INTEREST RATE WILL BE REDETERMINED;
AND
2. THE INTEREST RATE REDETERMINATION DATE, BASIS,
AND PERIOD, IF ANY; AND
4. THE BASIS FOR THE DATE, OR THE AVERAGE OVER A
PERIOD, THAT PRODUCED THE INTEREST RATE VALUE BASED ON THE 5 YEAR
TREASURY CONSTANT MATURITY RATE.
- 2908 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
