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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 5PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER ETEXAS WINDSTORM INSURANCE ASSOCIATION
DIVISION 3LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
RULE §5.4141Obligation Revenue Fund for the Payment of Class 1 Public Security Obligations and Operating Reserve Fund

(a) While class 1 public securities are outstanding, the association must deposit net premium and other revenue in the obligation revenue fund at periods and in amounts as required by the class 1 public security agreements to fund the class 1 payment obligation.

(b) Without limiting other options, the class 1 public security agreements may include an operating reserve fund. If the class 1 public securities obligation revenue fund does not contain sufficient money to pay debt service on the class 1 public securities, administrative expenses on the class 1 public securities, or other class 1 public security obligations, the association must transfer sufficient money from any operating reserve fund or other association held funds to the obligation revenue fund to make the payment.


Source Note: The provisions of this §5.4141 adopted to be effective February 3, 2011, 36 TexReg 551; amended to be effective June 12, 2014, 39 TexReg 4435

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