Colorado § 10-3-228 Collateral loans

Colorado Statutes

§ 10-3-228 — Collateral loans

Colorado·Title 10 Insurance·Art. Regulation of Insurance Companies

(1)Domestic insurance companies may invest in collateral loans secured by the pledge of any one or more investments allowed for collateral loans, as provided by nationally recognized insurance statutory accounting principles, subject to the following provisions:

(a)The collateral pledged shall be legally assignable and validly assigned to the lending company.

(b)As at date made, no such loan shall exceed in amount seventy-five percent of the value of the collateral pledged.

(c)At no time shall the admitted value of a collateral loan be in excess of the actual market value of the collateral pledged.

(d)If any of the collateral pledged and taken into account to qualify a loan as an admitted asset under this section is of a category which, if invested in directly, would be su

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(1) Domestic insurance companies may invest in
collateral loans secured by the pledge of any one or more investments allowed for
collateral loans, as provided by nationally recognized insurance statutory
accounting principles, subject to the following provisions:

(a) The collateral pledged shall be legally assignable and validly assigned to
the lending company.

(b) As at date made, no such loan shall exceed in amount seventy-five
percent of the value of the collateral pledged.

(c) At no time shall the admitted value of a collateral loan be in excess of the
actual market value of the collateral pledged.

(d) If any of the collateral pledged and taken into account to qualify a loan as
an admitted asset under this section is of a category which, if invested in directly,
would be subject to a limitation expressed as a percentage of the investing
company's admitted assets, then, for the purpose of such limitation, so much of the
loan as is so qualified by such collateral will be deemed to be a direct investment in
such category.

(e) No loan shall qualify as an admitted asset under this section unless
limited to a term not exceeding five years or, if less, the maturity date, if any, of any
of the collateral taken into account in qualifying the loan as an admitted asset
under this section.

Colorado § 10-3-228 (Collateral loans) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 69: p. 496, � 5. C.R.S. 1963: � 72-2-35. L. 2002: IP(1) amended, p. 1012, � 5, effective June 1. L. 2004: IP(1) amended, p. 1063, � 10, effective July 1.