PARRIS N. GLENDENING, Governor

Ch. 11

(2)      DISBURSEMENTS OF THE ASSETS MARSHALLED TO DATE AND
SUBSEQUENT DISBURSEMENTS OF ASSETS AS THEY BECOME AVAILABLE;

(3)      EQUITABLE ALLOCATION OF DISBURSEMENTS TO EACH OF THE
ASSOCIATIONS THAT IS ENTITLED TO DISBURSEMENTS; AND

(4)      THE SECURING BY THE COMMISSIONER FROM EACH ASSOCIATION
ENTITLED TO DISBURSEMENTS UNDER THIS SECTION AN AGREEMENT TO RETURN
TO THE COMMISSIONER ANY ASSETS PREVIOUSLY DISBURSED THAT MAY BE
REQUIRED TO PAY:

(I)       CLAIMS OF SECURED CREDITORS; AND

(II)     CLAIMS THAT FALL WITHIN THE PRIORITIES SPECIFIED IN §
9-227(B) OF THIS SUBTITLE IN ACCORDANCE WITH THOSE PRIORITIES.

(D)     BOND PROHIBITED.

AN ASSOCIATION MAY NOT BE REQUIRED TO OBTAIN A BOND.

(E)     AMOUNT OF DISBURSEMENT.

THE PROPOSAL FOR DISBURSEMENT SHALL REQUIRE THAT DISBURSEMENT BE
MADE TO THE ASSOCIATION:

(1)      IN AN AMOUNT AT LEAST EQUAL TO THE PAYMENTS MADE OR TO
BE MADE BY THE ASSOCIATION FOR WHICH THE ASSOCIATION COULD ASSERT
CLAIMS AGAINST THE COMMISSIONER; AND

(2)      IN THE AMOUNT OF AVAILABLE ASSETS, IF THE ASSETS AVAILABLE
FOR DISBURSEMENT DO NOT EQUAL OR EXCEED THE AMOUNT OF THE PAYMENTS
MADE OR TO BE MADE BY THE ASSOCIATION.

(F)      NOTICE OF APPLICATION; ACTION BY COURT.

(1)      NOTICE OF THE APPLICATION FOR APPROVAL OF THE PROPOSAL
FOR DISBURSEMENT SHALL BE GIVEN TO THE ASSOCIATIONS AND INSURANCE
COMMISSIONERS OF EACH STATE.

(2)      NOTICE IS DEEMED TO HAVE BEEN GIVEN IF SENT BY CERTIFIED
MAIL AT LEAST 30 DAYS BEFORE SUBMISSION OF THE APPLICATION TO THE COURT.

(3)      THE COURT MAY APPROVE THE PROPOSAL IF:

(I)      THE REQUIRED NOTICE HAS BEEN GIVEN UNDER THIS
SUBSECTION; AND

(II)     THE PROPOSAL COMPLIES WITH SUBSECTION (C)(1) AND (4) OF
THIS SECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 162A.

- 275 -