(Section scheduled to be repealed on January 1, 2027) Sec. 123C-19. Letters of credit. A. Any letter of credit used to meet the requirements set forth in Sections 123C-3 and 123C-4:
(2)may not be allowed to expire without the prior written approval of the Director and shall provide for 30 days' advance written notice to the Director of the proposed expiration of the letter of credit; and (3) must be provided pursuant to arrangements, acceptable to the Director, wherein all funds obtained by the company under the letter of credit are free of claims of any party which may arise on account of the company's resort to the letter of credit. B. If letters of credit are used to provide surplus in excess of the amounts required in Section 123C-4:
(1)the aggregate amount of all such l
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(Section scheduled to be repealed on January 1, 2027) Sec. 123C-19. Letters of credit. A. Any letter of credit used to meet the requirements set forth in Sections 123C-3 and 123C-4: (1) (blank); (2) may not be allowed to expire without the prior written approval of the Director and shall provide for 30 days' advance written notice to the Director of the proposed expiration of the letter of credit; and (3) must be provided pursuant to arrangements, acceptable to the Director, wherein all funds obtained by the company under the letter of credit are free of claims of any party which may arise on account of the company's resort to the letter of credit. B. If letters of credit are used to provide surplus in excess of the amounts required in Section 123C-4: (1) the aggregate amount of all such letters of credit shall not exceed the policyholder surplus of the company; (2) without the prior written approval of the Director, no such letter of credit may be allowed to expire, in any period of 12 consecutive months ending on the date of such expiration, in an amount greater than the greater of (a) 10% of the company's surplus as regards policyholders as of the 31st day of December next preceding, or (b) the net income of the company for the 12 month period ending the 31st day of December next preceding. For purposes of this Section, net income includes net realized capital gains in an amount not to exceed 20% of net unrealized capital gains; and (3) each such letter of credit shall provide for 30 days' advance written notice to the Director of the proposed expiration of the letter of credit. C. (Blank). D. (Blank).