Sec. 179E-85. Asset and investment limitations.

148 words·~1 min read·/il/chapter-215/act-5/179e-85

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Assets of the SPRV held in trust to secure obligations under the SPRV contract must at all times be held in:

(1)cash and cash equivalents;

(2)securities listed by the Securities Valuation Office of the NAIC and qualifying as

admitted assets under statutory accounting convention in its state of domicile; and

(3)any other form of security acceptable to the Director.

(b)An SPRV may enter into swap agreements or other transactions that have the objective of leveling timing differences in funding of up-front or ongoing transaction expenses or managing credit or interest rate risk of the investments in the trust to ensure that the investments are sufficient to assure payment or repayment of:

(1)the securities (and related interest or principal payments) issued pursuant to an

SPRV insurance securitization transaction; or

(2)the SPRV's obligations under the SPRV contract.