6671

An SPFC contract meeting the provisions of this subchapter must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer for the benefit of the counterparty, provided and only to the extent:\n(a) of the fair value of the assets held in trust for, or irrevocable letters of credit issued by a bank chartered by this Territory or a member bank of the Federal Reserve System or as approved by the SAM, for the benefit of the counterparty under the SPFC contract;\n(b) the assets are held in trust pursuant to the provisions of this subchapter;\n(c) the assets are administered in the manner and pursuant to arrangements as provided in this subchapter; and\n(d) the assets are held or invested in one or more of the forms allowed in section 6665 of this Title.