| (a) Financial guarantees. The Board will consider accepting
surety bonds in lieu of required cash reserve deposits and insurance
policies for political subdivision bonds. At the time of loan commitment
and at loan closing, only those financial guarantors that have been
approved by the Board are authorized to underwrite financial guarantee
policies on political subdivision bonds approved by the Board.
(b) Criteria for authorized list. The Board will maintain
a list of authorized financial guarantors. In order to be considered
for placement on the list, a guarantor must meet the following minimum
criteria:
(1) the financial guarantor must be a nationally-recognized
provider of municipal bond insurance and must have a triple-A stable
insurer financial strength rating with Standard & Poor's, Moody's
Investors Service, Inc. and Fitch, Inc.; and
(2) the financial guarantor must have a triple-A insurer
financial enhancement rating with Standard & Poor's.
(c) Review of policies. The executive administrator
shall review all policies of insurance submitted by authorized financial
guarantors and may reject any policy of insurance or surety bond that
does not protect the interests of the Board's financial program or
that subrogates the Board's rights.
(d) Removal from authorized list. The executive administrator
may remove a financial guarantor from the authorized list at any time
that a change in status would cause the financial guarantor to fail
to meet the minimum criteria.
|
| Source Note: The provisions of this §375.19 adopted to be effective September 8, 2010, 35 TexReg 8126; amended to be effective July 30, 2012, 37 TexReg 5615; amended to be effective July 4, 2016, 41 TexReg 4853 |
