| | | (3)__Furnish to the reinsurance vehicle, the | | superintendent and the ceding insurer a statement of | | all assets in the trust account referred to in | | paragraph E reported at fair value upon its inception | | and at intervals no less frequent than the end of each | | calendar quarter; |
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| | | (4)__Notify the reinsurance vehicle and the ceding | | insurer within 10 days of any deposits to or | | withdrawals from the trust account referred to in | | paragraph E; |
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| | | (5)__Upon written demand of the ceding insurer, | | immediately take steps necessary to transfer absolutely | | all right, title and interest in the assets held in the | | trust account referred to in paragraph E to the ceding | | insurer and deliver physical custody of the assets to | | the ceding insurer; and |
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| | | (6)__Allow no substitutions or withdrawals of assets | | from the trust account referred to in paragraph E | | except on written instructions from the ceding insurer. |
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| | | I.__The trust agreement described in paragraph E must | | provide that at least 30 days but not more than 45 days | | before termination of the trust account written notification | | of termination must be delivered by the 3rd party to the | | ceding insurer. |
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| | | J.__The trust agreement described in paragraph E may be made | | subject to and governed by the laws of any state in addition | | to the requirements for the trust as provided in this | | subchapter as long as the state is disclosed in the plan of | | operation filed with and approved by the superintendent. |
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| | | K.__The trust agreement described in paragraph E must | | prohibit invasion of the trust account referred to in | | paragraph E for the purpose of paying compensation to or | | reimbursing the expenses of the trustee. |
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| | | L.__The trust agreement described in paragraph E must | | provide that the trustee be liable for the trustee's own | | negligence, willful misconduct or lack of good faith. |
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| | | (1)__Notwithstanding the provisions of paragraph F, subparagraphs | | (3) to (5) and paragraph M, subparagraph (5), when a trust | | agreement described in paragraph E is established in conjunction | | with a contract, then the trust agreement may provide that the | | ceding insurer shall undertake to use and apply any amounts drawn | | upon |
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