New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter I - GENERAL PROVISIONS
Part 18 - New York Insurance Exchange, Inc
Subpart 18-2 - Investments In Underwriting Members, Broker Members And Associate Brokers
Section 18-2.1 - Definitions

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 18-2.1

Current through Register Vol. 46, No. 39, September 25, 2024

(a) Exchange means the New York Insurance Exchange, Inc.

(b) Constitution means the constitution and bylaws of the exchange.

(c) Board means the board of governors of the New York Insurance Exchange, Inc. then in office.

(d) Initial board means the initial board of governors as described in article XVII, section 1 of the constitution.

(e) Superintendent means the Superintendent of Insurance of the State of New York.

(f) Insurance Law means the Insurance Law of the State of New York.

(g) Underwriting member shall have the meaning as set forth in paragraph (a), section 1, article VII of the constitution.

(h) Broker member shall have the meaning as set forth in paragraph (b), section 1, article VII of the constitution.

(i) Associate broker shall have the meaning as set forth in section 2, article VII of the constitution.

(j) Person shall, for purposes of this Subpart, mean and include an individual, a partnership, a corporation, a trust, a joint venture, an unincorporated organization, and a government or any agency or department thereof.

(k) Indebtedness shall, for purposes of this Subpart, mean and include all obligations of such person which would, in accordance with applicable accounting principles, be classified upon a balance sheet of such person as liabilities of such person, and in any event shall include:

(1) all indebtedness guaranteed, directly or indirectly, in any manner by such person or endorsed (otherwise than for collection or deposit in the ordinary course of business) or discounted with recourse;

(2) all indebtedness in effect guaranteed, directly or indirectly, by such person through an agreement, contingent or otherwise:
(i) to purchase such indebtedness or to advance or supply funds for the payment or purchase of such indebtedness; or

(ii) to purchase, sell or lease (as lessee or lessor) property, products, materials or supplies; or to purchase or sell transportation or services, primarily for the purpose of enabling the debtor to make payment of such indebtedness or to assure the owner of such indebtedness against loss, regardless of the delivery or nondelivery for any reason of the property, products, materials or supplies, or the furnishing or nonfurnishing for any reason of the transportation or services; or

(iii) to make any loan, advance, capital contribution or other investment in the debtor for the purpose of assuring a minimum equity, asset base, working capital or other balance sheet condition for any date, or to provide funds for the payment of any liability, dividend or stock liquidation payment, or otherwise to supply funds to or in any manner invest in the debtor;

(3) indebtedness of any joint venture, partnership or other person for which such person is liable;

(4) all indebtedness of such person created or arising under any conditional sale agreement or other title retention agreement, even though the rights and remedies of the seller or lender or lessor under such agreement or lease in the event of default are limited to repossession or sale of property; and

(5) all indebtedness secured by any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in property owned by such person, even though such person has not assumed or become liable for the payment of such indebtedness.

For the purpose of computing the indebtedness of any person, there shall be excluded any particular indebtedness if, upon or prior to the maturity thereof, there shall have been irrevocably deposited with the proper depository in trust the necessary funds (or evidences of such indebtedness, or other securities, if permitted by the instrument creating such indebtedness) for the payment, redemption or satisfaction of such indebtedness; and thereafter such funds, evidences of indebtedness and securities so deposited shall not be included in any computation of the assets of such person.

(l) The term indebtedness for money borrowed of any person shall, for purposes of the foregoing, mean and include:

(1) all indebtedness of such person, current or funded, secured or unsecured, incurred in connection with borrowings (including the sale of debt securities);

(2) all indebtedness of such person issued, incurred or assumed in respect of the purchase price of property, except for trade accounts payable incurred in the ordinary course of business; and

(3) any guarantee or other obligation specified in paragraph (k)(1) or (2) of this section in respect of indebtedness of any other person of any of the types specified in paragraphs (1) and (2) of this subdivision.

Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.