PARRIS N. GLENDENING, Governor                               Ch. 36

(2)     THE TREASURER MAY DESIGNATE AS A DEPOSITORY ANY SOLVENT
TRUST COMPANY OR OTHER SOLVENT FINANCIAL INSTITUTION THAT HAS TRUST
POWERS AND IS DOMICILED IN THE STATE.

(3)     THE TREASURER MAY MAKE AN APPROPRIATE AGREEMENT WITH A
DEPOSITORY TO ENSURE THE RECEIPT, SAFEKEEPING, AND RELEASE OF THE CASH
OR GOVERNMENT SECURITIES DEPOSITED UNDER THIS SECTION.

(4)     A DEPOSIT MADE UNDER THIS SECTION SHALL BE HELD AT THE
EXPENSE OF THE INSURER.

(B) RESPONSIBILITY OF STATE.

THE STATE IS RESPONSIBLE FOR THE SAFEKEEPING AND RETURN OF ALL CASH
AND GOVERNMENT SECURITIES DEPOSITED UNDER THIS SECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 111.

In subsections (a)(1) and (3) and (b) of this section, the references to
"government securities" are substituted for the former references to
"securities" for clarity and consistency throughout this subtitle.

In subsection (a)(1) and (3) of this section, the references to "cash" are added
to clarify that, under this section, the Treasurer may require an insurer to
deposit cash as well as government securities with a depository designated by
the Treasurer.

In subsection (a)(1) of this section, the phrase "of the kinds described in §
5-701(a) of this subtitle" is added for clarity.

In subsection (a)(3) of this section, the reference to cash and government
securities "deposited under this subsection" is added for clarity.

In subsection (b) of this section, the reference to "cash" is substituted for the
former reference to "funds" for clarity and consistency throughout this
subtitle.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101

5-703. PURPOSE OF DEPOSITS.

DEPOSITS MADE UNDER THIS SUBTITLE SHALL BE HELD FOR THE FOLLOWING
PURPOSES:

(1) DEPOSITS REQUIRED UNDER THIS ARTICLE FOR A CERTIFICATE OF
AUTHORITY TO ENGAGE IN THE INSURANCE BUSINESS IN THE STATE SHALL BE
HELD FOR THE PROTECTION OF THE INSURER'S POLICYHOLDERS AND CREDITORS;

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