Ch. 564                                       LAWS OF MARYLAND

(a)  Guarantee or reinsure, or cause to be
guaranteed, assumed, or reinsured, all the covered policies of
residents of the impaired insurer;

(b)  Provide such moneys, pledges, notes,
guarantees, or other means as are proper to effectuate paragraph
(a), and assure payment of the contractual obligations of the
impaired insurer pending action under paragraph (a); and

(c)  Loan money to the impaired insurer.

(2)   If a foreign or alien insurer is an impaired
insurer, the [Association] CORPORATION may, prior to an order of
liquidation, rehabilitation, or conservation, with respect to the
covered policies of residents and subject to any conditions
imposed by the [Association] CORPORATION other than those which
impair the contractual obligations of the impaired insurer, and
approved by the impaired insurer and the Commissioner[,] :

(a)  Guarantee or reinsure, or cause to be
guaranteed, assumed, or reinsured, the impaired insurer's covered
policies of residents;

(b)  Provide such moneys, pledges, notes,
guarantees or other means as are proper to effectuate paragraph
(a), and assure payment of the impaired insurer's contractual
obligations to residents pending action under paragraph (a); and

(c)  Loan money to the impaired insurer.

(3)  (A) If a domestic insurer is an impaired insurer
under an order of liquidation or rehabilitation, the
[Association] CORPORATION shall, subject to the approval of the
Commissioner[,]:

[(a)] (I) Guarantee, assume, or reinsure, or
cause to be guaranteed, assumed, or reinsured, the covered
policies of residents of the impaired insurer;

[(b)] (II) Assure payment of the contractual
obligations of the impaired insurer; and

[(c)] (III) Provide such moneys, pledges,
notes, guarantees, or other means as are reasonably necessary to
discharge such duties.

(B) If the [Association] CORPORATION fails to
act within a reasonable period of time, the Commissioner shall
have the powers and duties of the [Association] CORPORATION under
this subtitle with respect to such domestic impaired insurer.

(4)  (A) If a foreign or alien insurer is an impaired
insurer under an order of liquidation, rehabilitation, or

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