Illinois Administrative Code
Title 50 - INSURANCE
Part 201 - SUBORDINATED INDEBTEDNESS
Section 201.20 - Approval of Debenture Form by Director Prior to Shareholder Approval
Universal Citation: 50 IL Admin Code ยง 201.20
Current through Register Vol. 48, No. 12, March 22, 2024
The subordinated indebtedness agreement (debenture) shall be submitted for the approval of the Illinois Director of Insurance (Director) as required by Section 34.1 of the Illinois Insurance Code [215 ILCS 5/34.1 ].
a) The agreement must state that:
1) All payments of principal and/or interest
must be approved by the Director, and
2) The obligation of the company under such
debenture may not be offset or be subject to recoupment with respect to any
liability or obligation owed to the company, and
3) No agreement or interest securing such
debentures, whether existing on the date of such debenture or subsequently
entered into, applies to the obligation under such debenture.
b) The following shall be submitted for the Director's approval prior to submission to the shareholders of the company:
1) Duplicate copies of the
entire debenture.
2) Certified copy
of the resolution of the board of directors or proper company body or committee
which is empowered to authorize such agreements. This resolution shall
stipulate the maximum amount of subordinated indebtedness authorized.
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