Reinsurance and Other Financing

(a) The Association may cede or purchase reinsurance in the name of the Association or on behalf of member insurers on eligible risks written through the Association.

(b) The Association may not assume reinsurance without the prior consent of the Commissioner.

(c) The Association is authorized to arrange for and consummate a taxable or tax-exempt borrowing or borrowings of money or lines of credit for the Association to meet its anticipated financial obligations, including, the funding of Association claims in the event of a catastrophe.

Source Note: The provisions of this §5.9924 adopted to be effective May 28, 2003, 28 TexReg 4153.