Notice of material transactions. An LPS
shall not take any of the following actions unless the LPS provides the
commissioner at least 30 days' prior written notice and the commissioner
expressly approves the action:
a. The
dissolution of the LPS.
b. Any
sale, exchange, lease, mortgage, assignment, pledge or other transfer or
granting of a security interest in over 30 percent of the assets of the
LPS.
c. Any incurrence of material
indebtedness by the LPS.
d. Any
making of a material loan or other material extension of credit by the
LPS.
e. Any
material payment out of
capital and surplus other than dividends or distributions paid in accordance
with rule
191-99.8 (505,508).
f.Any
merger or consolidation to which the LPS is a constituent party.
g. Any transfer to or redomestication in any
jurisdiction by the LPS.
h. The
termination of all or any part of an LPS's business.
This subrule shall not apply when an LPS takes any action
described in paragraph"b " or"e " in
accordance with the LPS's plan of operation.
Prior approval of certain payments. An LPS
shall submit for prior approval of the commissioner periodic written requests
for authorization to make payments of interest on and repayments of principal
of surplus notes and other debt obligations issued by the LPS, provided that
the commissioner shall not approve such payment if the commissioner determines
that such payment would jeopardize the ability of the LPS or any other person
to fulfill the person's respective obligations.
