SECTION 7.4. Admissible Assets

The portion of any asset not qualifying as a legal investment shall not be admitted. The companies shall dispose of such inadmissible assets or take such action as is necessary to bring the investment into legal compliance. Companies will not be required to dispose of inadmissible contributed assets. After notice and hearing, the commissioner of insurance may order a company to dispose of assets (other than contributed assets) not qualifying as a legal investment. Any commissioner's order requiring disposition of assets shall, however, provide in such order for the company to have a reasonable period of time (taking into account the nature, complexity and size of the inadmissible assets, the then prevailing economic conditions, and the effect of the disposal of such assets relative to the going concern solvency of the company) to dispose of the inadmissible assets.

Source Note: The provisions of §7.4 adopted to be effective August 19, 1976, 1 TexReg 2214; amended to be effective January 17, 1984, 9 TexReg 279; amended to be effective September 30, 1993, 18 TexReg 6324.