LD 1553
pg. 22
Page 21 of 25 An Act To Permit Special Purpose Reinsurance Vehicles Page 23 of 25
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LR 1915
Item 1

 
A.__Notwithstanding the provisions of chapter 57, an
application or petition in any delinquency proceeding
relating to a ceding insurer or any temporary restraining
order or injunction issued in any such proceeding may not
prohibit the transaction of any business by a reinsurance
vehicle, including any payment by a reinsurance vehicle made
pursuant to a special purpose reinsurance vehicle security
or any action or proceeding against a reinsurance vehicle or
its assets.

 
B.__Notwithstanding the provisions of chapter 57, subchapter
2, the commencement of a summary proceeding or other interim
proceeding commenced prior to a formal delinquency
proceeding with respect to a reinsurance vehicle and any
order issued by the court in such proceeding may not
prohibit a reinsurance vehicle from making a payment
pursuant to a special purpose reinsurance vehicle security
or contract or from taking any action required to make the
payment.

 
5.__Nonfraudulent transfer.__Notwithstanding any other
provision of chapter 57 or other state law:

 
A.__A receiver of a ceding insurer may not avoid a
nonfraudulent transfer by a ceding insurer to a special
purpose reinsurance vehicle of money or other property made
pursuant to a special purpose reinsurance vehicle contract;
and

 
B.__A receiver of a special purpose reinsurance vehicle may
not void a nonfraudulent transfer by the reinsurance vehicle
of money or other property made to a ceding insurer pursuant
to a special purpose reinsurance vehicle contract or made to
or for the benefit of any holder of a special purpose
reinsurance vehicle security on account of the special
purpose reinsurance vehicle security.

 
6.__Fulfillment of obligations.__With the exception of the
fulfillment of the obligations under a special purpose
reinsurance vehicle contract and notwithstanding any other
provisions of this subchapter or other law of this State to the
contrary the assets of a special purpose reinsurance vehicle
including assets held in trust may not be consolidated with or
included in the estate of a ceding insurer in any delinquency
proceeding against the ceding insurer under this subchapter for
any purpose, including, without limitation, distribution to
creditors of the ceding insurer.

 
7.__Domiciliary receiver.__Notwithstanding any other provision
of this subchapter:


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