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Texas Insurance Code - INS § 424.112. Withdrawals and Distributions

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A pool participant must be able to make withdrawals on demand without penalty or other assessment on any business day, and settlement of funds must occur within a reasonable and customary period that does not exceed five business days after a withdrawal.

(b) The pooling agreement must provide that the pool manager shall make a distribution to a pool participant, at the manager's discretion:

(1) in cash in an amount equal to the fair market value at the time of the distribution of the participant's pro rata share of each of the pool's underlying assets;

(2) in kind in an amount equal to a pro rata share of each underlying asset; or

(3) in a combination of cash and in-kind distributions in an amount equal to a pro rata share of each underlying asset.

(c) A distribution under Subsection (b) must be computed after subtracting all the investment pool's applicable fees and expenses.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 424.112. Withdrawals and Distributions - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-424-112/

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