§ 23-63-842 — Asset-backed securities - Definitions

(a) As used in this section: (1) (A) "Asset-backed security" means any security or other instrument representing or evidencing an interest in, a loan to, a participation in a loan to, or any other right to receive payments from a borrower included in a pool of obligations held by an issuer that has a primary business activity of the acquisition and holding of financial assets, directly or through a trustee, for the benefit of the issuer. (B) "Asset-backed security" does not include an investment authorized by any other provision of this subchapter; and (2) "Financial asset" means a single asset or a pool of assets consisting of interest-bearing obligations or other contractual obligations representing or constituting the right to receive payment from the asset or pool of assets. (b) (1) An insurer may invest in asset-backed securities if the investment in any one (1) issue of asset-backed securities does not exceed two percent (2%) of the admitted assets of the investing insurance company as shown by the insurer's last annual statement or a recent quarterly financial statement filed with the Insurance Commissioner. (2) Each issue secured by a unique pool of assets shall constitute a single issue regardless of any other obligations or securities issued by the same or any affiliated issuer. (c) Investments in asset-backed securities under subsection (b) of this section shall not exceed twenty percent (20%) of the insurer's admitted assets.

Legislative History

Added by Act 2015, No. 1223,§ 19, eff. 7/22/2015.