Texas Insurance Code - Not Codified - Article 4.68. Pro Rata Allocation Of Credits
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Art. 4.68. PRO RATA ALLOCATION OF CREDITS. (a) If the total
premium tax credits claimed by all certified investors exceeds the
total limits on premium tax credits established by Article 4.67(a)
of this code, the comptroller shall allocate the total amount of
premium tax credits allowed under this subchapter to certified
investors in certified capital companies on a pro rata basis in
accordance with this article.
(b) The pro rata allocation for each certified investor
shall be the product of:
(1) a fraction, the numerator of which is the amount of the
premium tax credit allocation claim filed on behalf of the investor
and the denominator of which is the total amount of all premium tax
credit allocation claims filed on behalf of all certified
investors; and
(2) the total amount of certified capital for which premium
tax credits may be allowed under this subchapter.
(c) Not later than the 15th day after the date on which the
comptroller accepts premium tax credit allocation claims on behalf
of certified investors under rules adopted under Article 4.52(2) of
this code, the comptroller shall notify each certified capital
company of the amount of tax credits allocated to each certified
investor. Each certified capital company shall notify each
certified investor of their premium tax credit allocation.
(d) If a certified capital company does not receive an
investment of certified capital equaling the amount of premium tax
credits allocated to a certified investor for which it filed a
premium tax credit allocation claim before the end of the 10th
business day after the date of receipt of notice of allocation, the
company shall notify the comptroller by overnight common carrier
delivery service and that portion of capital allocated to the
certified investor shall be forfeited. The comptroller shall
reallocate the forfeited capital among the certified investors in
the other certified capital companies that originally received an
allocation so that the result after reallocation is the same as if
the initial allocation under this article had been performed
without considering the premium tax credit allocation claims that
were subsequently forfeited.
(e) The maximum amount of certified capital for which
premium tax credit allocation may be allowed on behalf of any one
certified investor and its affiliates, whether by one or more
certified capital companies, may not exceed the greater of:
(1) $10 million; or
(2) 15 percent of the maximum aggregate amount available
under Article 4.67(a) of this code.
Added by Acts 2001, 77th Leg., ch. 437, Sec. 1, eff. May 28, 2001.
Subsec. (c) amended by Acts 2003, 78th Leg., ch. 1310, Sec. 74, eff.
June 20, 2003.
Article: 4.61 4.62 4.63 4.64 4.65 4.66 4.67 4.68 4.69 4.70 4.71 4.72 4.73 5.01 5.01B
Last modified: August 11, 2007
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