Texas Insurance Code

§ 424.156 — PERCENTAGE LIMITATIONS

IN § 424.156Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 424. INVESTMENTS FOR CERTAIN INSURERS · Art. D. DOLLAR ROLL, REPURCHASE, REVERSE REPURCHASE,

Statute text

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(a)An insurer may not enter into a transaction under this subchapter if, as a result of and after making the transaction, the aggregate amount of securities loaned or sold to or purchased from:

(1)a single business entity counterparty under this subchapter would exceed five percent of the insurer's assets; or

(2)all business entities under this subchapter would exceed 40 percent of the insurer's assets.

(b)In computing the amount sold to or purchased from a business entity counterparty under a repurchase or reverse repurchase transaction, effect may be given to netting provisions under a master written agreement.

Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.