California Insurance Code

§ 12115

INS § 12115 Effective Jan 1, 2006Div. 2 · Part 4 · Ch. 1 · Art. 5

Statute text

A financial guaranty insurance corporation admitted to transact financial guaranty insurance in this state shall limit its exposure to loss, net of collateral and reinsurance, as follows:

(a)For municipal obligation bonds and special revenue bonds:

(1)The insured average annual debt service with respect to any one entity and backed by a single revenue source may not exceed 10 percent of the aggregate of the financial guaranty insurance corporation’s capital, surplus, and contingency reserve.

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Legislative history

Amended by Stats. 2005, Ch. 412, Sec. 8. Effective January 1, 2006.