PARRIS N. GLENDENING, Governor                                 Ch. 421

(i) shall keep in the State its entire assets as required by paragraph
(1)(ii) of this subsection; and

(ii) may keep its general ledger accounting records outside the State if
it makes those records available in the State to the Commissioner within 2 business days
after being requested to do so by the Commissioner.

[(c)](D) Unless approved by the Commissioner, a domestic insurer may not keep
more than 15% of the domestic insurer's admitted assets outside of the State under this
section.

[(d)](E) This section does not prohibit the holding of funds or transmission of
securities outside of the State to:

(1)     secure or record title to the securities; or

(2)     sell, lend, buy, redeem, or exchange the securities or alter the provisions
of the securities.

[(e)](F) The Commissioner may modify or waive the requirements of this section
to the extent that the Commissioner considers justified and not adverse to public interest.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall
take effect July 1, 1995.

SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect October 1, 1997.

Approved May 18, 1995.

CHAPTER 421
(Senate Bill 540)

AN ACT concerning

Risk Retention Groups and, Financial Guaranty Reinsurance Companies, and Financial
Guaranty Insurance Companies - Location of Office, Assets, and Records

FOR the purpose of eliminating the exemption of certain risk retention groups from
certain requirements as to the location of the office, assets, and records of those risk
retention groups; exempting certain financial guaranty reinsurance companies and
certain financial guaranty insurance companies from the requirement of having an
office in the State; requiring certain financial guaranty reinsurance companies and
certain financial guaranty insurance companies to keep certain assets in the State;
allowing certain financial guaranty reinsurance companies and certain financial
guaranty insurance companies to keep certain accounting records outside the State in
certain situations; defining a certain term certain terms; repealing the authority of the
State Insurance Commissioner of Maryland to modify or waive certain requirements
relating to the location of offices, assets, and records of certain insurers under certain
circumstances; providing for the effective date of certain provisions of this Act;

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