Sec. 38a-92i. Net liability. Kinds of obligations.
Sec. 38a-92i. Net liability. Kinds of obligations. (a) At least ninety-five per cent
of a financial guaranty insurance corporation's outstanding total net liability on the kinds
of obligations enumerated in subdivisions (1) to (3), inclusive, of subsection (b) of
section 38a-92g shall be investment grade.
(b) The financial guaranty insurance corporation shall at all times maintain capital,
surplus and contingency reserve in the aggregate no less than the sum of the following:
(1) 0.3333 per cent of the total net liability under guaranties of municipal bonds
and utility first mortgage obligations;
(2) 0.6666 per cent of the total net liability under guaranties of investment grade
asset-backed securities;
(3) 1.0 per cent of the total net liability under guaranties secured by collateral or
having a term of seven years or less of: (A) Investment grade industrial development
bonds, and (B) other investment grade obligations;
(4) 1.5 per cent of the total net liability under guaranties of other investment grade
obligations;
(5) 2.0 per cent of the total net liability under guaranties of: (A) Noninvestment
grade consumer debt obligations, and (B) noninvestment grade asset-backed securities;
(6) 3.0 per cent of the total net liability under guaranties of noninvestment grade
obligations secured by first mortgages on commercial real estate and having loan-to-value ratios of eighty per cent or less;
(7) 5.0 per cent of the total net liability under guaranties of other noninvestment
grade obligations;
(8) If the amount of collateral required by subdivision (3) of this subsection is no
longer maintained, that proportion of the obligation insured which is not so collateralized
shall be subject to the aggregate limits specified in subdivision (4) of this subsection; and
(9) Additional surplus determined by the commissioner to be adequate to support
the writing of surety insurance if the financial guaranty insurance corporation has been
licensed to transact surety insurance.
(P.A. 93-136, S. 10.)