WILLIAM DONALD SCHAEFER, Governor                            Ch. 617

claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary
proceedings as provided in this subtitle, or if it has been adjudicated by a court of competent
jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to
be heard, such amounts shall be conclusive; otherwise the amount shall be determined in the
delinquency proceeding in the domiciliary state.

(5) (I) ANY CURRENT FINANCING MONEYS PROVIDED BY AN INSURER, A
NONPROFIT HEALTH SERVICE PLAN, OR A HEALTH MAINTENANCE ORGANIZATION TO A
HOSPITAL, IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE HEALTH SERVICES
COST REVIEW COMMISSION, IN RETURN FOR A DISCOUNT IN RATES CHARGED BY THE
HOSPITAL SHALL BE DEEMED TO BE SECURITY FOR THE AMOUNT OF OUTSTANDING
CHARGES OWED BY THE INSURER, A NONPROFIT HEALTH SERVICE PLAN, OR A HEALTH
MAINTENANCE ORGANIZATION TO THE HOSPITAL FOR BILLS OR CLAIMS FOR SERVICES
PROVIDED BY THE HOSPITAL PRIOR TO THE DELINQUENCY PROCEEDING.

(II) A HOSPITAL RETAINING ANY CURRENT FINANCING MONEYS AS
SECURITY UNDER THIS PARAGRAPH SHALL BE DEEMED THE OWNER OF A SECURED
CLAIM AGAINST THE INSURER, A NONPROFIT HEALTH SERVICE PLAN, OR A HEALTH
MAINTENANCE ORGANIZATION FOR WHICH A RECEIVER HAS BEEN APPOINTED AND MAY
DISCHARGE ITS CLAIM AGAINST THE INSURER, A NONPROFIT HEALTH SERVICE PLAN, OR
A HEALTH MAINTENANCE ORGANIZATION AS PROVIDED UNDER SUBSECTION (4) OF THIS
SUBSECTION.

503A.

(A)     A PERSON SHALL COMPLY WITH THE PROCEDURES REQUIRED BY
ARTICLE 48A, §§ 494 AND 494A TO THE EXTENT APPLICABLE BEFORE:

(1)      THAT PERSON MAY MAKE A TENDER FOR OR A REQUEST OR
INVITATION FOR TENDERS OF OR ENTER INTO AN AGREEMENT TO EXCHANGE
SECURITIES FOR OR ACQUIRE IN THE OPEN MARKET OR OTHERWISE, ANY VOTING
SECURITY OF A FOREIGN NONPROFIT HEALTH SERVICE PLAN THAT IS AUTHORIZED
UNDER SUBTITLE 2 TO DO BUSINESS IN THIS STATE OR ENTER INTO ANY OTHER
SUCH AGREEMENT IF, AFTER THE CONSUMMATION THEREOF, THAT PERSON
WOULD, DIRECTLY OR INDIRECTLY, OR BY CONVERSION OR BY EXERCISE OF ANY
RIGHT TO ACQUIRE BE IN CONTROL OF THE FOREIGN HEALTH INSURER OR
NONPROFIT HEALTH SERVICE PLAN THAT IS AUTHORIZED TO DO BUSINESS IN THIS
STATE; OR

(2)      THAT PERSON MAY ENTER INTO AN AGREEMENT TO MERGE OR
CONSOLIDATE WITH, OR OTHERWISE TO ACQUIRE CONTROL OF, A FOREIGN
HEALTH INSURER OR NONPROFIT HEALTH SERVICE PLAN THAT IS AUTHORIZED TO
DO BUSINESS IN THIS STATE.

(B)      APPROVAL BY THE INSURANCE COMMISSIONER SHALL BE GOVERNED BY
ARTICLE 48A, § 494(E).

(C)     THE PROVISIONS OF THIS SECTION MAY NOT APPLY:

(1) TO ANY TRANSACTION PREEMPTED BY FEDERAL LAW; OR

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