Source: https://development.code.dccouncil.us/dc/council/code/sections/31-1373.09.html
Timestamp: 2019-04-21 00:39:34+00:00

Document:
D.C. Law Library - § 31–1373.09. Securities lending, repurchase, reverse repurchase and dollar roll transactions.
↪ Subchapter III. Fire, Casualty, and Marine Insurers.
↪ § 31–1373.09. Securities lending, repurchase, reverse repurchase and dollar roll transactions.
§ 31–1373.08. Mortgage loans and real estate.
§ 31–1373.10. Foreign investments and foreign currency exposure.
§ 31–1373.09. Securities lending, repurchase, reverse repurchase and dollar roll transactions.
(a) An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions with business entities, subject to the requirements of this section.
(3) The extent to which the insurer may engage in these transactions.
(B) Prohibits securities lending transactions under the agreement with the agent or its affiliates.
(3) In the case of a jurisdiction outside of the United States, title, or rights of a secured creditor, to the acceptable collateral.
(2) The aggregate amount of all securities then loaned to, sold to, or purchased from all business entities under this section would exceed 40% of its admitted assets; provided, that the limitation of this subsection shall not apply to reverse repurchase transactions if the borrowing is used to meet operational liquidity requirements resulting from an officially declared catastrophe and subject to a plan approved by the Commissioner.
(f) 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. 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 held in connection with the transaction, at least equals 102% of the market value of the loaned securities.
(g) 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. If at any time the market value of the acceptable collateral is less than 95% of the market value of the securities 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 held in connection with the transaction, equals at least 95% of the market value of the transferred securities.
(h) 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.
(i) In a repurchase transaction, the insurer shall receive as acceptable collateral transferred securities having a market value at least equal to 102% of the purchase price paid by the insurer for the securities. If at any time the market value of the acceptable collateral is less than 100% of the purchase price paid by the insurer, the business entity counterparty shall be obligated to provide additional acceptable collateral, the market value of which, together with the market value of all acceptable collateral held in connection with the transaction, equals at least 102% of the purchase price. Securities acquired by an insurer in a repurchase transaction shall not be sold in a reverse repurchase transaction, loaned in a securities lending transaction, or otherwise pledged.
This section is referenced in § 31-1371.02, § 31-1371.03, and § 31-1373.05.

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