Tex. Ins. Code Section 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 (Subordinated Liability Permitted) or Subchapter C, Chapter 823 (Insurance Holding Company Systems), 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 (Subordinated Liability Permitted) or Subchapter C, Chapter 823 (Insurance Holding Company Systems); 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 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Source: Section 427.055 — Payment of Principal or Interest on Certain Liabilities, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­427.­htm#427.­055 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 427.055’s source at texas​.gov