NY Ins L § 1705 (2021)
2021 New York Laws ISC - Insurance Article 17 - Subsidiaries of Domestic Life Insurance Companies and Certain Other Entities 1705 - Quantitative Limitations.

§  1705.  Quantitative limitations. * (a)(1) Unless the superintendent shall have given prior written approval, a parent corporation shall  not make  an  investment  for  its own account in any subsidiary (not at the time exempt from the provisions of this section) if, after giving effect to such investment, the aggregate investment value of  all  subsidiaries then   directly   invested  in  by  the  parent  corporation  (excluding investments in subsidiaries at the time exempted from  this  subsection) would  be  in excess of thirty percent (but not more than twenty percent with respect to subsidiaries not having their  principal  operations  in this  state,  and,  in  the  case  of  a  parent corporation of the type described in subsection (b) of section one thousand seven hundred one of this article, not more than ten percent)  of  the  parent  corporation's admitted assets.  (2) Unless the superintendent shall have given prior written approval, neither the parent corporation nor any subsidiary (other than a separate account  subsidiary  or  any subsidiary referred to in subsection (c) of section one thousand seven hundred four of this article)  may  make  any investment  in  any  subsidiary  (not  at  the  time  exempt  from  this paragraph), if, after giving effect to such investment,  the  investment value  of such subsidiary would aggregate more than fifteen percent (but not more than two percent in the case of a  parent  corporation  of  the type  described  in subsection (b) of section one thousand seven hundred one of this article) of the parent corporation's admitted assets.   * NB See other sub§ (a) (Sep. amended - cannot be put together)   * (a)(1) Unless the superintendent  shall  have  given  prior  written approval,  a parent corporation shall not make an investment for its own account in any subsidiary (not at the time exempt from the provisions of this section) if, after giving effect to such investment, the  aggregate investment  value  of  all subsidiaries then directly invested in by the parent corporation (excluding investments in subsidiaries  at  the  time exempted from this subsection) would be in excess of thirty percent (but not  more  than  twenty  percent with respect to subsidiaries not having their principal operations in this state and, in the case  of  a  parent corporation  of  the  type  described  in  subsection (b) of section one thousand seven hundred one of this article, not more than  ten  percent) of the parent corporation's admitted assets.  (2) Unless the superintendent shall have given prior written approval, neither the parent corporation nor any subsidiary (other than a separate account  subsidiary  or  any subsidiary referred to in subsection (c) of section one thousand seven hundred four of this article)  may  make  any investment  in  any  subsidiary  (not  at  the  time  exempt  from  this paragraph), if, after giving effect to such investment,  the  investment value  of such subsidiary would aggregate more than fifteen percent (but not more than two percent in the case of the parent corporation  of  the type  described  in subsection (b) of section one thousand seven hundred one of this article) of the parent corporation's admitted assets.   * NB See other sub§ (a) (Sep. amended - cannot be put together)  (b) "Admitted assets," for the  purposes  of  this  section,  has  the meaning  ascribed  to  it  by  subparagraph  (B)  of  paragraph  one  of subsection (b) of  section  one  thousand  four  hundred  five  of  this chapter.  (c)  (1)  For  the  purposes  of  computations  under paragraph one of subsection (a) of this section, the aggregate investment  value  of  all subsidiaries  at any time directly invested in by the parent corporation (excluding  investments  in  subsidiaries  at  the  time  exempted  from subsection  (a)  of  this section) shall mean the sum of (i) the minimum value of each such subsidiary  of  which  equity  securities  (including partnership interests) are directly held by the parent corporation, (ii)  indebtedness  of  such  subsidiaries  then  outstanding  to  the  extent guaranteed by the parent corporation, and  (iii)  the  unpaid  principal amount  of  loans  and  advances  to  such  subsidiaries  by  the parent corporation  or  by  any investment subsidiary of the parent corporation then outstanding (including the unpaid principal amount of bonds,  notes or  other  evidences  of  indebtedness  of such subsidiaries held by the parent corporation or by any such investment  subsidiary).  The  minimum value of a subsidiary as of any date shall be the greater of (i) the net cost  of  the  equity  investment  in  such  subsidiary  by  the  parent corporation or (ii) the pro rata interest of the parent  corporation  in the net worth of such subsidiary.  (2) For purposes of computations under paragraph two of subsection (a) of  this section, the investment value of a subsidiary at any time shall be an amount equal  to  the  sum  of  (i)  the  minimum  value  of  such subsidiary, (ii) indebtedness of such subsidiary then outstanding to the extent  guaranteed  by  the  parent  corporation,  and  (iii) the unpaid principal amount of loans and advances to the subsidiary by  the  parent corporation  or  by  any investment subsidiary of the parent corporation then outstanding (including the unpaid principal amount of bonds,  notes or  other evidences of indebtedness of the subsidiary held by the parent corporation or by any such investment subsidiary). The minimum value  of a  subsidiary as of any date shall be the greater of (i) the net cost of the equity investment in such subsidiary by the parent  corporation  and its subsidiaries or (ii) the pro rata interest of the parent corporation and its subsidiaries in the net worth of such subsidiary.  (3)  For  purposes  of  this  subsection,  the "net cost of the equity investment" by any person in a subsidiary at any  time  shall  mean  the aggregate  amount of contributions to and purchases of equity securities (including partnership interests) and other  equity  interests  of  such subsidiary  (less repurchases of such equity securities and other equity interests) by such person  at  such  time  and  the  "net  worth"  of  a subsidiary  shall  mean  the  net  worth of the subsidiary determined in accordance with generally accepted accounting principles, as of the  end of  its  most  recent fiscal year. In determining the minimum value of a holding company operating subsidiary, there shall be taken into  account the  greater  of  the  net  cost of the equity investment of the holding company operating subsidiary in each subsidiary or the pro rata interest of the holding company operating subsidiary in the  net  worth  of  such subsidiary.  The  superintendent may require, by regulation, that parent corporations submit reports annually to the  superintendent  as  to  the aggregate  investment  value  of  all  subsidiaries  held  by the parent corporation  determined  in  accordance  with  paragraph  one  of   this subsection or the investment value of any particular subsidiary or class of  subsidiaries held by the parent corporation determined in accordance with paragraph two of this subsection, which values may be  required  to be  audited  by  an  independent  public  accountant  in accordance with generally accepted auditing standards.