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Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-63-842. Asset-backed securities--Definitions

Current as of March 28, 2024 | Updated by Findlaw Staff

(a) As used in this section:

(1)(A) “Asset-backed security” means any security or other instrument representing or evidencing an interest in, a loan to, a participation in a loan to, or any other right to receive payments from a borrower included in a pool of obligations held by an issuer that has a primary business activity of the acquisition and holding of financial assets, directly or through a trustee, for the benefit of the issuer.

(B) “Asset-backed security” does not include an investment authorized by any other provision of this subchapter; and

(2) “Financial asset” means a single asset or a pool of assets consisting of interest-bearing obligations or other contractual obligations representing or constituting the right to receive payment from the asset or pool of assets.

(b)(1) An insurer may invest in asset-backed securities if the investment in any one (1) issue of asset-backed securities does not exceed two percent (2%) of the admitted assets of the investing insurance company as shown by the insurer's last annual statement or a recent quarterly financial statement filed with the Insurance Commissioner.

(2) Each issue secured by a unique pool of assets shall constitute a single issue regardless of any other obligations or securities issued by the same or any affiliated issuer.

(c) Investments in asset-backed securities under subsection (b) of this section shall not exceed twenty percent (20%) of the insurer's admitted assets.

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Cite this article: FindLaw.com - Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-63-842. Asset-backed securities--Definitions - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-23-public-utilities-and-regulated-industries/ar-code-sect-23-63-842/

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