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Ch. 660
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2000 LAWS OF MARYLAND
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(4) (D CASH RECEIVED IN A TRANSACTION UNDER THIS SUBSECTION
SHALL BE INVESTED IN ACCORDANCE WITH THIS SUBTITLE AND IN A MANNER THAT
RECOGNIZES THE LIQUIDITY NEEDS OF THE TRANSACTION OR USED BY THE
INSURER FOR ITS GENERAL CORPORATE PURPOSES.
(II) FOR SO LONG AS THE TRANSACTION REMAINS OUTSTANDING,
THE INSURER, ITS AGENT, OR CUSTODIAN SHALL MAINTAIN, AS TO ACCEPTABLE
COLLATERAL RECEIVED IN A TRANSACTION UNDER THIS SUBSECTION, EITHER
PHYSICALLY OR THROUGH THE BOOK ENTRY SYSTEMS OF THE FEDERAL RESERVE,
DEPOSITORY TRUST COMPANY, PARTICIPANTS TRUST COMPANY, OR OTHER
SECURITIES DEPOSITORIES APPROVED BY THE COMMISSIONER:
1. POSSESSION OF THE ACCEPTABLE COLLATERAL;
2. A PERFECTED SECURITY INTEREST IN THE ACCEPTABLE
COLLATERAL; OR
3. IN THE CASE OF A JURISDICTION OUTSIDE THE UNITED
STATES, TITLE TO, OR RIGHTS OF A SECURED CREDITOR TO, THE ACCEPTABLE
COLLATERAL.
(5) (I) THE LIMITATIONS OF § 5-507 OF THIS SUBTITLE DO NOT APPLY
TO THE BUSINESS ENTITY COUNTERPARTY EXPOSURE CREATED BY TRANSACTIONS
UNDER THIS SUBSECTION.
(II) FOR PURPOSES OF CALCULATIONS MADE TO DETERMINE
COMPLIANCE WITH THIS SUBSECTION, NO EFFECT WILL BE GIVEN TO THE
INSURER'S FUTURE OBLIGATION TO RESELL SECURITIES, IN THE CASE OF A
REPURCHASE TRANSACTION, OR TO REPURCHASE SECURITIES, IN THE CASE OF A
REVERSE REPURCHASE TRANSACTION.
(III) AN INSURER MAY NOT ENTER INTO A TRANSACTION UNDER
THIS SUBSECTION IF, AS A RESULT OF AND AFTER GIVING EFFECT TO THE
TRANSACTION:
1. A. THE AGGREGATE AMOUNT OF SECURITIES THEN
LOANED, SOLD TO, OR PURCHASED FROM ANY ONE BUSINESS ENTITY
COUNTERPARTY UNDER THIS SUBSECTION WOULD EXCEED 5% OF ITS ADMITTED
ASSETS; AND
B. IN CALCULATING THE AMOUNT SOLD TO OR PURCHASED
FROM A BUSINESS ENTITY COUNTERPARTY UNDER REPURCHASE OR REVERSE
REPURCHASE TRANSACTIONS, EFFECT MAY BE GIVEN TO MEETING NETTING
PROVISIONS UNDER A MASTER WRITTEN AGREEMENT; OR
2. THE AGGREGATE AMOUNT OF ALL SECURITIES THEN
LOANED, SOLD TO, OR PURCHASED FROM ALL BUSINESS ENTITIES UNDER THIS
SUBSECTION WOULD EXCEED 40% OF ITS ADMITTED ASSETS.
(6) (I) IN A SECURITIES LENDING TRANSACTION, THE INSURER SHALL
RECEIVE ACCEPTABLE COLLATERAL HAVING A MARKET VALUE AS OF THE
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- 3380 -
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