Sec. 823.257. DETERMINATION REQUIRED BEFORE INVESTMENT. (a) Whether an investment meets an applicable requirement of this subchapter shall be determined before the investment is made by applying that requirement as if the investment had been made.
(b) In making the determination under Subsection (a):
(1) the amount to be used for the total of previous investments in debt obligations is the principal balance outstanding on all of those obligations at the time of the determination;
(2) the amount to be used for previous investments in equity securities is the sum of values of each previous investment as of the day the previous investment was made; and
(3) any return of capital invested, not including dividends, shall be subtracted.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 823 - Insurance Holding Company Systems
Subchapter F. Insurer's Loans to or Investment in Affiliate
Section 823.252. General Authority Relating to Affiliates
Section 823.253. General Standard for Investment in Affiliate
Section 823.254. Standard for Investment in Affiliate by Insurer With Low Total Liabilities
Section 823.255. Agreement of Affiliate to Limit Certain Investments
Section 823.256. Commissioner's Approval of Investment
Section 823.257. Determination Required Before Investment
Section 823.258. Disposition of Investment in Subsidiary After Cessation of Control
Section 823.259. Exemption From Certain Limitations; Investment Authority Cumulative of Other Law