Sec. 424.156. PERCENTAGE LIMITATIONS. (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.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Subtitle B - Reserves and Investments
Chapter 424 - Investments for Certain Insurers
Subchapter D. Dollar Roll, Repurchase, Reverse Repurchase,
Section 424.152. Transactions Authorized
Section 424.153. Period of Transaction
Section 424.154. Cash Requirements
Section 424.155. Collateral Requirements