Sec. 917a.
(1) As used in this section:
(a) "Asset-backed securities" means securities, other than those governed by section 917, representing loans to, participations in loans to, or equity interests in a person that has as its primary activity the acquisition and holding of assets, directly or through a trustee, for the benefit of its debt or equity holders and includes, but is not limited to, structured securities, pass-through certificates, and other securitized obligations.
(b) "Assets" means pools of assets consisting of either interest bearing obligations or contractual obligations representing the right to receive payment from the assets.
(c) "Structured securities" means asset-backed securities that have been divided into 2 or more classes where the payment of interest on or principal of any class of the securities has been allocated in a manner that may not be directly proportional to interest or principal received by the issuer of the securities on the underlying assets.
(d) "Pass-through certificate" means an asset-backed security, whether or not mortgage-related, where the payment of interest or principal on the security is directly proportional to interest or principal received by the issuer of the security on the underlying assets.
(2) Qualified assets for purposes of section 901 include asset-backed securities that are rated investment grade by a securities rating organization approved by the commissioner. Asset-backed securities that are secured by or represent an undivided interest in a single asset or pool of assets or in the cash flows generated by those assets, including without limitation, structured securities and pass-through certificates, are subject to all the limitations prescribed by this chapter for investments not guaranteed by the full faith and credit of the United States.
History: Add. 1994, Act 226, Imd. Eff. June 27, 1994 ;-- Am. 2002, Act 462, Imd. Eff. June 21, 2002 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-9 - Chapter 9 Investments (500.900...500.960)
Section 500.900 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.901 - Asset Requirements for Insurers.
Section 500.902 - Investments by Domestic Insurer; Amount in Qualified Asset Required; Definition.
Section 500.904 - Repealed. 1957, Act 91, Eff. Sept. 27, 1957.
Section 500.906, 500.908 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.910 - Certificates of Deposit or Depository Receipts; Construction as Deposits of Cash.
Section 500.912 - Qualified Assets; Description; Limitation on Governmental Securities.
Section 500.914 - Qualified Assets as Guaranteed Interest Bonds.
Section 500.916 - Qualified Assets as Federal Financing Agency Stock.
Section 500.917a - Definitions; Asset-Backed Securities.
Section 500.920 - Net Earnings Available for Fixed Charges; Definition.
Section 500.924 - Qualified Assets in Preferred Stock; Conditions.
Section 500.926-500.931 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.932 - Qualified Assets in Shares of Savings and Loan Associations.
Section 500.933 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.938 - Qualified Assets.
Section 500.943 - Qualified Assets; Derivative Instruments and Transactions.
Section 500.944 - Accounts Receivable; Includable as Qualified Assets.
Section 500.945 - Repealed. 1994, Act 226, Imd. Eff. June 27, 1994.
Section 500.946 - Home Office, Lands, and Buildings; Includable as Qualified Assets.
Section 500.947 - Income Producing Real Estate and Housing Projects; Includable as Qualified Assets.
Section 500.948 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.950, 500.951 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Section 500.960 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.