OAR 836-027-0310: Definitions

As used in OAR 836-027-0300 to 836-027-0360: (1) “Acceptable collateral” means, as to securities lending transactions, cash, cash equivalents, letters of credit, direct obligations of, or securities that are fully guaranteed as to principal and interest by the government of the United States or any agency of the United States, or by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. “Acceptable collateral” also means, with respect to lending foreign securities, sovereign debt rated 1 by the Securities Valuation Office of the National Association of Insurance Commissioners or any successor office established by the National Association of Insurance Commissioners. (2) “Equivalent securities” means, in a securities lending transaction, securities that are identical to the loaned securities in all features including the amount of the loaned securities, except as to certificate number if held in physical form. In addition, for purposes of this definition, when a different security is exchanged for a loaned security by recapitalization, merger, consolidation or other corporate action, the different security is considered to be the loaned security. (3) “Securities lending transaction” means a transaction in which securities are loaned by an insurer to a business entity that is obligated to return the loaned securities or equivalent securities to the insurer, either within a specified period of time or upon demand.