Ch. 11                                          1996 LAWS OF MARYLAND

(III) PROVIDE MONEYS, PLEDGES, NOTES, GUARANTEES, OR OTHER
MEANS REASONABLY NECESSARY TO CARRY OUT THIS PARAGRAPH.

(2) IF THE CORPORATION FAILS TO ACT WITHIN A REASONABLE
PERIOD OF TIME WITH RESPECT TO THE DOMESTIC IMPAIRED INSURER, THE
COMMISSIONER SHALL HAVE THE POWERS AND DUTIES OF THE CORPORATION
UNDER THIS SUBTITLE.

(D)     FOREIGN OR ALIEN IMPAIRED INSURER - UNDER ORDER OF
LIQUIDATION, REHABILITATION, OR CONSERVATION.

(1)      FOR A FOREIGN INSURER OR ALIEN INSURER THAT IS AN IMPAIRED
INSURER UNDER AN ORDER OF LIQUIDATION, REHABILITATION, OR
CONSERVATION, IF THE COMMISSIONER APPROVES, THE CORPORATION SHALL:

(I)       GUARANTEE, ASSUME, OR REINSURE, OR CAUSE TO BE
GUARANTEED, ASSUMED, OR REINSURED, THE IMPAIRED INSURER'S COVERED
POLICIES OF RESIDENTS;

(II)     ENSURE PAYMENT OF THE CONTRACTUAL OBLIGATIONS OF
THE IMPAIRED INSURER TO RESIDENTS; AND

(III)    PROVIDE MONEYS, PLEDGES, NOTES,. GUARANTEES, OR OTHER
MEANS REASONABLY NECESSARY TO CARRY OUT THIS PARAGRAPH.

(2)      IF THE CORPORATION FAILS TO ACT WITHIN A REASONABLE
PERIOD OF TIME WITH RESPECT TO THE FOREIGN OR ALIEN IMPAIRED INSURER,
THE COMMISSIONER SHALL HAVE THE POWERS AND DUTIES OF THE CORPORATION
UNDER THIS SUBTITLE.

(E)      LIENS AND MORATORIUMS.

(1)      IN CARRYING OUT ITS DUTIES UNDER SUBSECTIONS (C) AND (D) OF
THIS SECTION, THE CORPORATION MAY REQUEST THAT POLICY LIENS, CONTRACT
LIENS, MORATORIUMS ON PAYMENTS, OR OTHER SIMILAR MEANS BE IMPOSED.

(2)      POLICY LIENS, CONTRACT LIENS, MORATORIUMS ON PAYMENTS, OR
OTHER SIMILAR MEANS MAY BE IMPOSED IF THE COMMISSIONER APPROVES THE
SPECIFIC POLICY LIENS, CONTRACT LIENS, MORATORIUMS ON PAYMENTS, OR
OTHER SIMILAR MEANS AFTER FINDING THAT:

(I)       THE AMOUNTS THAT CAN BE ASSESSED UNDER THIS SUBTITLE
ARE LESS THAN THE AMOUNTS NEEDED TO ENSURE FULL AND PROMPT
PERFORMANCE OF THE IMPAIRED INSURER'S CONTRACTUAL OBLIGATIONS; OR

(II)     THE ECONOMIC OR FINANCIAL CONDITIONS, AS THEY AFFECT
MEMBER INSURERS, ARE SUFFICIENTLY ADVERSE TO RENDER THE IMPOSITION OF
POLICY LIENS, CONTRACT LIENS, MORATORIUMS ON PAYMENTS, OR OTHER
SIMILAR MEANS TO BE IN THE PUBLIC INTEREST.

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