| (a) To obtain approval for the issuance of class 2
or class 3 public securities paid from contingent surcharges, the
association must first submit a written request to the commissioner.
(b) In its request to the commissioner under subsection
(a) of this section, the association must include:
(1) a determination from TPFA that TPFA is unable to
issue class 2 or class 3 public securities paid as provided by Insurance
Code §2210.613 or §2210.6131, as applicable; or
(2) the following information:
(A) the association's estimated net premium and other
revenues;
(B) the association's best estimate of the terms and
conditions necessary to issue marketable class 2 or class 3 public
securities payable under Insurance Code §2210.613 or §2210.6131,
as applicable, including:
(i) the estimated annual payments for principal and
interest;
(ii) the estimated contractual coverage amount;
(iii) estimated reserve requirements;
(iv) the estimated amount of any other required payments
for debt service;
(v) the estimated public security administrative expenses;
and
(vi) any other conditions likely necessary to issue
marketable public securities payable under Insurance Code §2210.613
or §2210.6131, as applicable, that the association determines
will impact its operations; and
(C) the association's best estimate of the association
surcharges needed to pay the debt service required to issue marketable
public securities payable under Insurance Code §2210.613 or §2210.6131.
(c) When providing information required under subsection
(b)(2) of this section, the association may rely on information and
advice provided by TPFA, TPFA consultants, TPFA legal counsel, and
third parties retained by the association for this purpose.
(d) The commissioner, after consultation with TPFA,
may order that class 2 or class 3 public securities be paid as provided
by Insurance Code §2210.6132 if either:
(1) TPFA is unable to issue public securities payable
under Insurance Code §2210.613 or §2210.6131, as applicable;
or
(2) the issuance of public securities payable under
Insurance Code §2210.613 or §2210.6131, as applicable, is
financially unreasonable for the association.
|
