Texas Insurance Code - Section 427.055. Payment Of Principal Or Interest On Certain Liabilities
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§ 427.055. PAYMENT OF PRINCIPAL OR INTEREST ON CERTAIN
LIABILITIES. (a) An insurer or health maintenance organization
may not pay principal or interest on a subordinated liability
assumed under Section 427.052 or Subchapter C, Chapter 823, on or
after September 1, 1995, unless:
(1) the payment complies with a schedule of payments
contained in the agreement approved by the commissioner in
accordance with Section 427.052 or Subchapter C, Chapter 823; or
(2) if the payment does not comply with the schedule of
payments contained in the agreement or the agreement does not
contain a payment schedule, the insurer or health maintenance
organization provides written notice to the commissioner not later
than the 15th day before the scheduled payment date.
(b) A loan, debenture, revenue bond, or advance agreement
issued to an insurer or health maintenance organization before
September 1, 1995, and any subsequent payment of principal or
interest on the indebtedness are governed by the law in effect on
the date of issuance.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 426.003 427.001 427.002 427.051 427.052 427.053 427.054 427.055 441.001 441.002 441.003 441.004 441.005 441.006 441.007
Last modified: August 10, 2007
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