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PARRIS N. GLENDENING, Governor
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Ch. 660
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(ii) 75% of the current book value of that limited partnership
interest.
(7) (i) Interests in limited partnerships under this subsection shall be
valued at the actual cost of the investment adjusted by any additional capital
contributions or capital withdrawals.
(ii) The valuation of a limited partnership interest may not exceed
the life insurer's proportionate share of the equity of the real estate asset owned by
the limited partnership.
(M) THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE THOSE
INVESTMENTS PERMITTED UNDER § 5-509 OF THIS SUBTITLE.
(N) (1) THE RESERVE INVESTMENTS OF A LIFE INSURER MAY INCLUDE
SECURITIES LENDING, REPURCHASE, REVERSE REPURCHASE, AND DOLLAR ROLL
TRANSACTIONS WITH BUSINESS ENTITIES, SUBJECT TO THE REQUIREMENTS OF
PARAGRAPHS (2) THROUGH (9) OF THIS SUBSECTION.
(2) THE INSURER'S BOARD OF DIRECTORS SHALL ADOPT A WRITTEN
PLAN THAT SPECIFIES GUIDELINES AND OBJECTIVES TO BE FOLLOWED, SUCH AS:
(I) A DESCRIPTION OF HOW CASH RECEIVED WILL BE INVESTED
OR USED FOR GENERAL CORPORATE PURPOSES OF THE INSURER;
(II) OPERATIONAL PROCEDURES TO MANAGE INTEREST RATE RISK,
COUNTERPARTY DEFAULT RISK, THE CONDITIONS UNDER WHICH PROCEEDS FROM
REVERSE REPURCHASE TRANSACTIONS MAY BE USED IN THE ORDINARY COURSE OF
BUSINESS, AND THE USE OF ACCEPTABLE COLLATERAL IN A MANNER THAT
REFLECTS THE LIQUIDITY NEEDS OF THE TRANSACTION; AND
(III) THE EXTENT TO WHICH THE INSURER MAY ENGAGE IN THESE
TRANSACTIONS.
(3) (I) THE INSURER SHALL ENTER INTO A WRITTEN AGREEMENT FOR
ALL TRANSACTIONS AUTHORIZED UNDER THIS SUBSECTION OTHER THAN DOLLAR
ROLL TRANSACTIONS.
(II) THE WRITTEN AGREEMENT SHALL REQUIRE THAT EACH
TRANSACTION TERMINATE NO MORE THAN 1 YEAR FROM ITS INCEPTION OR ON THE
EARLIER DEMAND OF THE INSURER
(III) THE AGREEMENT SHALL BE WITH THE BUSINESS ENTITY
COUNTERPARTY, BUT FOR SECURITIES LENDING TRANSACTIONS, THE AGREEMENT
MAY BE WITH AN AGENT ACTING ON BEHALF OF THE INSURER, IF THE AGENT IS A
QUALIFIED BUSINESS ENTITY, AND IF THE AGREEMENT:
1. REQUIRES THE AGENT TO ENTER INTO SEPARATE
AGREEMENTS WITH EACH COUNTERPARTY THAT ARE CONSISTENT WITH THE
REQUIREMENTS OF THIS SECTION; AND
2. PROHIBITS SECURITIES LENDING TRANSACTIONS UNDER
THE AGREEMENT WITH THE AGENT OR ITS AFFILIATES.
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- 3379 -
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