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2005 LAWS OF MARYLAND
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Ch. 568
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(C) (1) NOTWITHSTANDING A PROVISION IN A NETTING AGREEMENT THAT
THE NONDEFAULTING PARTY IS NOT REQUIRED TO PAY ANY NET OR SETTLEMENT
AMOUNT DUE TO THE DEFAULTING PARTY, ON TERMINATION OF THE NETTING
AGREEMENT, THE NET OR SETTLEMENT AMOUNT, IF ANY, OWED BY A
NONDEFAULTING PARTY TO AN INSURER AGAINST WHICH AN APPLICATION OR
PETITION HAS BEEN FILED UNDER THIS SUBTITLE, SHALL BE TRANSFERRED TO OR
ON THE ORDER OF THE RECEIVER FOR THE INSURER, EVEN IF THE INSURER IS THE
DEFAULTING PARTY.
(2) ANY LIMITED TWO-WAY PAYMENT PROVISION IN A NETTING
AGREEMENT WITH AN INSURER THAT HAS DEFAULTED SHALL BE DEEMED TO BE A
FULL TWO-WAY PAYMENT PROVISION AS AGAINST THE DEFAULTING INSURER
(3) ANY SUCH NET OR SETTLEMENT AMOUNT SHALL BE A GENERAL
ASSET OF THE INSURER, EXCEPT TO THE EXTENT SUCH NET OR SETTLEMENT
AMOUNT IS SUBJECT TO ONE OR MORE SECONDARY LIENS OR ENCUMBRANCES.
(D) IN MAKING A TRANSFER OF A NETTING AGREEMENT OR QUALIFIED
FINANCIAL CONTRACT OF AN INSURER SUBJECT TO A DELINQUENCY PROCEEDING
UNDER THIS SUBTITLE, THE RECEIVER SHALL:
(1) TRANSFER TO ONE PARTY, OTHER THAN AN INSURER SUBJECT TO A
DELINQUENCY PROCEEDING UNDER THIS SUBTITLE, ALL NETTING AGREEMENTS
AND QUALIFIED FINANCIAL CONTRACTS BETWEEN A COUNTERPARTY OR AN
AFFILIATE OF A COUNTERPARTY AND THE INSURER THAT IS THE SUBJECT OF THE
DELINQUENCY PROCEEDING, INCLUDING:
(I) ALL RIGHTS AND OBLIGATIONS OF EACH PARTY UNDER EACH
NETTING AGREEMENT AND QUALIFIED FINANCIAL CONTRACT; AND
(II) ALL PROPERTY, INCLUDING ANY GUARANTEES OR CREDIT
SUPPORT DOCUMENTS, SECURING ANY CLAIMS OF EACH PARTY UNDER EACH
NETTING AGREEMENT AND QUALIFIED FINANCIAL CONTRACT; OR
(2) TRANSFER NONE OF THE NETTING AGREEMENTS, QUALIFIED
FINANCIAL CONTRACTS, RIGHTS, OBLIGATIONS, OR PROPERTY REFERRED TO IN
ITEM (1) OF THIS SUBSECTION, WITH RESPECT TO THE COUNTERPARTY AND ANY
AFFILIATE OF THE COUNTERPARTY.
(E) (1) IF A RECEIVER FOR AN INSURER MAKES A TRANSFER OF ONE OR
MORE NETTING AGREEMENTS OR QUALIFIED FINANCIAL CONTRACTS, THE
RECEIVER SHALL USE ITS BEST EFFORTS TO NOTIFY ANY PERSON WHO IS PARTY TO
THE NETTING AGREEMENTS OR QUALIFIED FINANCIAL CONTRACTS OF THE
TRANSFER BY 12:00 P.M., THE RECEIVER'S LOCAL TIME, ON THE BUSINESS DAY
FOLLOWING THE TRANSFER.
(2) IN THIS SUBSECTION, "BUSINESS DAY" MEANS A DAY OTHER THAN A
SATURDAY, A SUNDAY, OR ANY DAY ON WHICH EITHER THE NEW YORK STOCK
EXCHANGE OR THE FEDERAL RESERVE BANK OF NEW YORK IS CLOSED.
(F) (1) NOTWITHSTANDING ANY PROVISION OF THIS SUBTITLE OTHER
THAN PARAGRAPH (2). OF THIS SUBSECTION, A RECEIVER MAY NOT AVOID A
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