Ch. 11

1996 LAWS OF MARYLAND

(2) THE COMMISSIONER MAY ISSUE A SPECIAL PERMIT TO A
COMMUNITY FOUNDATION THAT HAS BEEN IN EXISTENCE FOR AT LEAST 5 YEARS
BUT LESS THAN 10 YEARS IF THE COMMUNITY FOUNDATION MAINTAINS ADMITTED
ASSETS IN AN AMOUNT UP TO 100% OF THE CONTRIBUTIONS MADE TO THE
COMMUNITY FOUNDATION, AS DETERMINED BY THE COMMISSIONER.

(D)     SAME — ADMITTED ASSETS; ANNUAL REPORTS.

(1)      EACH SPECIAL PERMIT HOLDER SHALL HAVE AND MAINTAIN
ADMITTED ASSETS AT LEAST EQUAL TO ADEQUATE RESERVES ON ITS
OUTSTANDING AGREEMENTS FOR ANNUITY PAYMENTS WITH DONORS AS
INDICATED BY ITS ANNUAL REPORT.

(2)      IN DETERMINING THE RESERVES OF A SPECIAL PERMIT HOLDER ON
OUTSTANDING AGREEMENTS FOR ANNUITY PAYMENTS WITH DONORS, A
DEDUCTION SHALL BE MADE FOR ALL OR PART OF AN ANNUITY RISK THAT IS
REINSURED BY AN AUTHORIZED LIFE INSURER.

(3)      A SPECIAL PERMIT HOLDER SHALL SUBMIT AN ANNUAL REPORT TO
THE COMMISSIONER WITHIN 90 DAYS AFTER THE END OF THE SPECIAL PERMIT
HOLDER'S FISCAL YEAR.

(4)      THE ANNUAL REPORTS SHALL BE TREATED AS CONFIDENTIAL BY
THE COMMISSIONER AND ARE NOT AVAILABLE FOR PUBLIC INSPECTION.

(E)     SAME — SCOPE.

A SPECIAL PERMIT ISSUED UNDER THIS SECTION AUTHORIZES THE SPECIAL
PERMIT HOLDER TO RECEIVE GIFTS OF MONEY OR OTHER PROPERTY
CONDITIONAL ON, OR IN CONSIDERATION OF, THE SPECIAL PERMIT HOLDER'S
AGREEMENT TO PAY AN ANNUITY TO THE DONOR OR THE DONOR'S NOMINEE AND
TO MAKE AND CARRY OUT AGREEMENTS FOR ANNUITY PAYMENTS WITH DONORS.

(F)      SAME — DURATION.

A SPECIAL PERMIT IS IN EFFECT ONLY AS LONG AS THE SPECIAL PERMIT
HOLDER IS EXEMPT FROM FEDERAL INCOME TAXATION UNDER § 501 OF THE
INTERNAL REVENUE CODE.

(G)     SAME — SUSPENSION OR REVOCATION; STOP ORDER.

(1) IF THE COMMISSIONER FINDS, AFTER NOTICE AND HEARING, THAT
A SPECIAL PERMIT HOLDER HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF
THIS SECTION OR IS NOT EXEMPT FROM FEDERAL INCOME TAXATION UNDER § 501
OF THE INTERNAL REVENUE CODE, THE COMMISSIONER MAY:

(I)       REVOKE OR SUSPEND THE SPECIAL PERMIT; OR

(II)     ORDER THE SPECIAL PERMIT HOLDER TO STOP MAKING NEW
AGREEMENTS FOR ANNUITY PAYMENTS WITH DONORS UNTIL THE REQUIREMENTS
HAVE BEEN SATISFIED.

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