Section 1178 Of Article 3. General Investments From California Insurance Code >> Division 1. >> Part 2. >> Chapter 2. >> Article 3.
1178
. Such insurers may invest in collateral trust bonds or notes,
secured by any of the following:
(a) A deposit of obligations authorized for investment by this
article or Articles 4, 5, or 6 of this chapter having a market value
at least fifteen per cent in excess of the par value of the
collateral trust bonds or notes issued.
(b) A deposit of obligations authorized for investment by this
article or Articles 4, 5, or 6 of this chapter, together with other
securities, the combined market value of the deposit being at least
twenty per cent in excess of the par value of the collateral trust
bonds or notes issued, with the par value of the collateral trust
bonds or notes not exceeding the market value of the deposited
obligations which are authorized for investment by this article or
Articles 4, 5, or 6 of this chapter.
(c) A deposit of obligations authorized for investment by this
article, or Articles 4, 5, or 6 of this chapter, together with other
securities, and conforming to the following requirements:
(1) The combined market value of the deposit is at least thirty
per cent in excess of the par value of the collateral trust bonds or
notes issued.
(2) The par value of such collateral trust bonds or notes issued
does not exceed the market value of deposited obligations authorized
for investment by this article.
(3) The deposited collateral consists of obligations authorized
for investment by this article, or Articles 4, 5, or 6 of this
chapter, having a market value of at least seventy-five per cent of
the par value of such collateral trust bonds or notes issued.