PARRIS N. GLENDENING, Governor

Ch. 11

(V)     SHALL REIMBURSE EACH SERVICING FACILITY FOR
OBLIGATIONS OF THE CORPORATION PAID BY THE FACILITY AND FOR EXPENSES
INCURRED BY THE FACILITY WHILE HANDLING CLAIMS ON BEHALF OF THE
CORPORATION; AND

(VI)   SHALL PAY OTHER EXPENSES OF THE CORPORATION THAT
ARE AUTHORIZED BY THIS SUBTITLE.

(2) (I) DESIGNATION OF A SERVICING FACILITY BY THE
CORPORATION IS SUBJECT TO THE APPROVAL OF THE COMMISSIONER.

(II) A MEMBER INSURER MAY DECLINE DESIGNATION AS A
SERVICING FACILITY.

(F) POWERS OF CORPORATION.

THE CORPORATION MAY:

(1)      EMPLOY OR RETAIN PERSONS NECESSARY TO HANDLE CLAIMS AND
PERFORM OTHER DUTIES OF THE CORPORATION;

(2)     BORROW MONEY NECESSARY TO CARRY OUT THE PURPOSES OF
THIS SUBTITLE IN ACCORDANCE WITH THE PLAN OF OPERATION;

(3)      SUE OR BE SUED;

(4)     NEGOTIATE AND BECOME A PARTY TO CONTRACTS NECESSARY TO
CARRY OUT THE PURPOSES OF THIS SUBTITLE;

(5)     PERFORM ANY OTHER ACT NECESSARY OR PROPER TO CARRY OUT
THE PURPOSES OF THIS SUBTITLE; AND

(6)      REFUND TO THE MEMBER INSURERS IN PROPORTION TO THE
CONTRIBUTION OF EACH MEMBER INSURER TO AN ACCOUNT, THE AMOUNT BY
WHICH THE ASSETS OF THE ACCOUNT AT THE END OF ANY CALENDAR YEAR
EXCEED THE LIABILITIES OF THAT ACCOUNT AS ESTIMATED BY THE BOARD OF
DIRECTORS FOR THE COMING YEAR.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 508.

In subsection (b)(3) and (4) of this section, the references to a "surety" bond
are added for clarity and to use the defined term.

Subsection (d)(2) and (3) of this section is revised in the active voice to clarify
that the Corporation makes assessments and gives notice of assessments.

In subsection (d)(6) of this section, the reference to transacting insurance
"business" is added for clarity and consistency throughout this subtitle.

In subsection (f)(2) and (5) of this section, the references to "carry[ing] out"
the purposes of this subtitle are substituted for the former references to
"effect[ing]" and "effectuat[ing]" the purposes of this subtitle for consistency
throughout this subtitle.

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