§ 4530 — Optional Investment Authority

§ 4530. Optional Investment Authority. (a) An authorized society\nmeeting the requirements set forth in this section is authorized to\ninvest its funds in, or otherwise acquire, or loan upon, the types of\ninvestments specified in sections one thousand four hundred two, one\nthousand four hundred three, one thousand four hundred five, one\nthousand four hundred six, one thousand four hundred ten, and four\nthousand two hundred forty of this chapter, subject to the limitations\ncontained therein. The provisions of section one thousand four hundred\nfour of this chapter shall not have any application to investments of\nsuch societies, except to the extent provided in paragraph four of\nsubsection (b) of section one thousand four hundred two of this chapter.\n (b) In addition to other requirements of this article, an authorized\nsociety investing pursuant to this section shall meet the following\nrequirements:\n (1) Prior to investing pursuant to this section, the society shall\nsubmit notice to the superintendent that the board of directors of the\nsociety has approved investment pursuant to this section and that the\nsociety meets the requirements of this section and intends to invest\nhereunder;\n (2) The society shall: (A) have been in continuous operation for a\nminimum of five years; and (B) have total admitted assets of at least\ntwo billion dollars for a period of five continuous years as of the\nimmediately preceding calendar year; and\n (3) For each calendar year during which this section applies to the\nsociety, the society shall have, as of the end of the immediately\npreceding calendar year:\n (A) had a risk based capital level of at least six times authorized\ncontrol level RBC as defined by the provisions of section one thousand\nthree hundred twenty-two of this chapter; and\n (B) maintained a minimum claims-paying, financial strength or\nequivalent rating from at least one nationally recognized statistical\nrating organization in one of the organization's three highest rating\ncategories for the time period during which this section applies to the\nsociety provided that the rating shall not depend on a guarantee or\nother credit enhancement from another entity; and shall not be modified\nor otherwise qualified to show dependence of the rating on the\nperformance or a contractual obligation of, or the society's affiliation\nwith, another society.\n (c) Whenever a society fails to meet the requirements set forth in\nthis section, the superintendent may, in his or her discretion, prohibit\nor limit the society from engaging in new investments under this\nsection.\n