Ch. 36

1995 LAWS OF MARYLAND

THE TRUST AGREEMENT MAY PROVIDE THAT TRUSTEED ASSETS MAY BE
WITHDRAWN AND, AT THE SAME TIME, ASSETS OF EQUIVALENT OR GREATER
VALUE TO THOSE TRUSTEED ASSETS BEING WITHDRAWN MAY BE SUBSTITUTED IF:

(1)      THE SUBSTITUTED ASSETS ARE ELIGIBLE FOR INVESTMENT OF THE
FUNDS OF DOMESTIC INSURERS UNDER SUBTITLE 5 OR 6 OF THIS TITLE;

(2)      THE UNITED STATES MANAGER OF THE ALIEN INSURER REQUESTS
THE WITHDRAWAL IN WRITING IN ACCORDANCE WITH WRITTEN AUTHORITY
PREVIOUSLY GIVEN OR DELEGATED BY THE BOARD OF DIRECTORS OR OTHER
SIMILAR GOVERNING BODY OF THE ALIEN INSURER; AND

(3)      A COPY OF THAT AUTHORITY HAS BEEN FILED WITH THE TRUSTEE.

(D)     SAME — DEPOSITS REQUIRED BY LAW.
THE TRUST AGREEMENT MAY PROVIDE THAT:

(1)      TRUSTEED ASSETS MAY BE WITHDRAWN TO MAKE A DEPOSIT THAT
IS REQUIRED BY LAW IN A STATE IN WHICH THE ALIEN INSURER IS OR BECOMES
AUTHORIZED TO ENGAGE IN THE INSURANCE BUSINESS, FOR THE PROTECTION OF
THE ALIEN INSURER'S POLICYHOLDERS AND CREDITORS IN THAT STATE OR IN THE
UNITED STATES, TO THE EXTENT THAT THE WITHDRAWAL DOES NOT REDUCE THE
ALIEN INSURER'S DEPOSIT IN THIS STATE TO AN AMOUNT LESS THAN THE MINIMUM
DEPOSIT REQUIRED UNDER § 4-106(C) OF THIS ARTICLE; AND

(2)      IF A WITHDRAWAL IS AUTHORIZED UNDER ITEM (1) OF THIS
SUBSECTION, THE TRUSTEE SHALL TRANSFER DIRECTLY TO THE DEPOSITORY
REQUIRED TO RECEIVE THE DEPOSIT IN THE OTHER STATE THE ASSETS
WITHDRAWN IN THE AMOUNT REQUIRED TO BE DEPOSITED IN THE OTHER STATE,
AS CERTIFIED IN WRITING BY THE INSURANCE SUPERVISORY OFFICIAL OF THE
OTHER STATE.

(E)     SAME — TRANSFER UNDER COURT ORDER.

THE TRUST AGREEMENT MAY PROVIDE THAT TRUSTEED ASSETS MAY BE
TRANSFERRED TO A LIQUIDATOR, CONSERVATOR, OR REHABILITATOR UNDER AN
ORDER OF A COURT OF COMPETENT JURISDICTION.

(F)      AMOUNT OF WITHDRAWAL.

THE COMMISSIONER MAY AUTHORIZE WITHDRAWAL OF ONLY THOSE
TRUSTEED ASSETS THAT EXCEED THE AMOUNT REQUIRED BY THIS SUBTITLE.

(G)     SUSPENSION OF RIGHT OF WITHDRAWAL.

(1) IF THE COMMISSIONER DETERMINES THAT AN ALIEN INSURER IS
INSOLVENT OR THAT AN ALIEN INSURER'S ASSETS IN THE UNITED STATES ARE LESS
THAN REQUIRED UNDER § 4-106(C) OF THIS ARTICLE, THE COMMISSIONER IN
WRITING SHALL ORDER THE TRUSTEE TO SUSPEND THE RIGHT OF THE ALIEN
INSURER OR ANY OTHER PERSON TO WITHDRAW THE TRUSTEED ASSETS OF THE
ALIEN INSURER.

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