New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter I - GENERAL PROVISIONS › Part 18 - New York Insurance Exchange, Inc › Subpart 18-2 - Investments In Underwriting Members, Broker Members And Associate Brokers › Section 18-2.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Exchange means
				  the New York Insurance Exchange, Inc.
(b) Constitution means the constitution and
				  bylaws of the exchange.
(c) Board
				  means the board of governors of the New York Insurance Exchange, Inc. then in
				  office.
(d) Initial board means the
				  initial board of governors as described in article XVII, section 1 of the
				  constitution.
(e) Superintendent
				  means the Superintendent of Insurance of the State of New York.
(f) Insurance Law means the Insurance Law of
				  the State of New York.
(g)
				  Underwriting member shall have the meaning as set forth in paragraph (a),
				  section 1, article VII of the constitution.
(h) Broker member shall have the meaning as
				  set forth in paragraph (b), section 1, article VII of the
				  constitution.
(i) Associate broker
				  shall have the meaning as set forth in section 2, article VII of the
				  constitution.
(j) Person shall, for
				  purposes of this Subpart, mean and include an individual, a partnership, a
				  corporation, a trust, a joint venture, an unincorporated organization, and a
				  government or any agency or department thereof.
(k) Indebtedness shall, for purposes of this
				  Subpart, mean and include all obligations of such person which would, in
				  accordance with applicable accounting principles, be classified upon a balance
				  sheet of such person as liabilities of such person, and in any event shall
				  include:
(1) all indebtedness guaranteed,
				  directly or indirectly, in any manner by such person or endorsed (otherwise
				  than for collection or deposit in the ordinary course of business) or
				  discounted with recourse;
(2) all
				  indebtedness in effect guaranteed, directly or indirectly, by such person
				  through an agreement, contingent or otherwise:
(i) to purchase such indebtedness or to
				  advance or supply funds for the payment or purchase of such indebtedness;
				  or
(ii) to purchase, sell or lease
				  (as lessee or lessor) property, products, materials or supplies; or to purchase
				  or sell transportation or services, primarily for the purpose of enabling the
				  debtor to make payment of such indebtedness or to assure the owner of such
				  indebtedness against loss, regardless of the delivery or nondelivery for any
				  reason of the property, products, materials or supplies, or the furnishing or
				  nonfurnishing for any reason of the transportation or services; or
(iii) to make any loan, advance, capital
				  contribution or other investment in the debtor for the purpose of assuring a
				  minimum equity, asset base, working capital or other balance sheet condition
				  for any date, or to provide funds for the payment of any liability, dividend or
				  stock liquidation payment, or otherwise to supply funds to or in any manner
				  invest in the debtor;
(3) indebtedness of any joint venture,
				  partnership or other person for which such person is liable;
(4) all indebtedness of such person created
				  or arising under any conditional sale agreement or other title retention
				  agreement, even though the rights and remedies of the seller or lender or
				  lessor under such agreement or lease in the event of default are limited to
				  repossession or sale of property; and
(5) all indebtedness secured by any mortgage,
				  lien, pledge, charge, security interest or other encumbrance upon or in
				  property owned by such person, even though such person has not assumed or
				  become liable for the payment of such indebtedness.
For the purpose of computing the indebtedness of any
					 person, there shall be excluded any particular indebtedness if, upon or prior
					 to the maturity thereof, there shall have been irrevocably deposited with the
					 proper depository in trust the necessary funds (or evidences of such
					 indebtedness, or other securities, if permitted by the instrument creating such
					 indebtedness) for the payment, redemption or satisfaction of such indebtedness;
					 and thereafter such funds, evidences of indebtedness and securities so
					 deposited shall not be included in any computation of the assets of such
					 person.