District of Columbia § 31-3932.06 Securities of SPFCs.

District of Columbia Statutes

§ 31-3932.06 — Securities of SPFCs.

District of Columbia § 31-3932.06

Title 31Insurance and Securities.

Ch. 39ACaptive Insurance Companies (2004).

Subch. IISpecial Purpose Financial Captive Insurance Companies.

This text of District of Columbia § 31-3932.06 (Securities of SPFCs.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

D.C. Code § 31-3932.06 (2026).

Text

(a)An SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved strategic business plan, and its organizational documents.

(b)An SPFC, in connection with the issuance of securities, may enter into and perform all of its obligations under any required contracts to facilitate the issuance of such securities.

(c)Subject to the approval of the Commissioner, an SPFC may:

(1)Account for the proceeds of surplus notes as surplus and not as debt for purposes of statutory accounting;

(2)Submit for prior approval of the Commissioner periodic written requests for payments of interest on and repayments of principal of surplus notes.

(d)Surplus notes issued by an SPFC constitute surplus or co

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(a) An SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved strategic business plan, and its organizational documents.

(b) An SPFC, in connection with the issuance of securities, may enter into and perform all of its obligations under any required contracts to facilitate the issuance of such securities.

(c) Subject to the approval of the Commissioner, an SPFC may:

(1) Account for the proceeds of surplus notes as surplus and not as debt for purposes of statutory accounting;

(2) Submit for prior approval of the Commissioner periodic written requests for payments of interest on and repayments of principal of surplus notes.

(d) Surplus notes issued by an SPFC constitute surplus or contribution notes of the type described in § 31-1340(7) .

(e) The Commissioner may approve formulas for an ongoing plan of interest payments or principal repayments, or both, to provide guidance in connection with his ongoing reviews of requests to approve the payments on and principal repayments of the surplus notes.

(f) The obligation to repay principal or interest, or both, on the securities issued by the SPFC shall reflect the risk associated with the obligations of the SPFC to the counterparty under the SPFC contract.