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PARRIS N. GLENDENING, Governor
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S.B. 763
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(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
TRANSACTION DATE AT LEAST EQUAL TO 102% OF THE MARKET VALUE OF THE
SECURITIES LOANED BY THE INSURER IN THE TRANSACTION AS OF THAT DATE.
(II) IF AT ANY TIME THE MARKET VALUE OF THE ACCEPTABLE
COLLATERAL IS LESS THAN THE MARKET VALUE OF THE LOANED SECURITIES, THE
BUSINESS ENTITY COUNTERPARTY SHALL BE OBLIGATED TO DELIVER ADDITIONAL
ACCEPTABLE COLLATERAL, THE MARKET VALUE OF WHICH, TOGETHER WITH THE
MARKET VALUE OF ALL ACCEPTABLE COLLATERAL THEN HELD IN CONNECTION
WITH THE TRANSACTION, AT LEAST EQUALS 102% OF THE MARKET VALUE OF THE
LOANED SECURITIES.
(7) (I) IN A REVERSE REPURCHASE TRANSACTION, OTHER THAN A
DOLLAR ROLL TRANSACTION, THE INSURER SHALL RECEIVE ACCEPTABLE
COLLATERAL HAVING A MARKET VALUE AS OF THE TRANSACTION DATE AT LEAST
EQUAL TO 95% OF THE MARKET VALUE OF THE SECURITIES TRANSFERRED BY THE
INSURER IN THE TRANSACTION AS OF THAT DATE.
(II) IF AT ANY TIME THE MARKET VALUE OF THE ACCEPTABLE
COLLATERAL IS LESS THAN 95% OF THE MARKET VALUE OF THE SECURITIES SO
TRANSFERRED, THE BUSINESS ENTITY COUNTERPARTY SHALL BE OBLIGATED TO
DELIVER ADDITIONAL ACCEPTABLE COLLATERAL, THE MARKET VALUE OF WHICH,
TOGETHER WITH THE MARKET VALUE OF ALL ACCEPTABLE COLLATERAL THEN
HELD IN CONNECTION WITH THE TRANSACTION, AT LEAST EQUALS 95% OF THE
MARKET VALUE OF THE TRANSFERRED SECURITIES.
(8) IN A DOLLAR ROLL TRANSACTION, THE INSURER SHALL RECEIVE
CASH IN AN AMOUNT AT LEAST EQUAL TO THE MARKET VALUE OF THE SECURITIES
TRANSFERRED BY THE INSURER IN THE TRANSACTION AS OF THE TRANSACTION
DATE.
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- 4139 -
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