Insurance Ordinance

(1)
An
                authorized insurer may, instead of maintaining assets in Hong Kong
                as required by
section
                    25A
or
25B
, substitute, in whole or in part,
                a letter of credit or other commitment from a bank, as defined in the Banking
                Ordinance (
Cap. 155
), in favour of the
                Authority,
                but the terms and conditions attached to such a letter of credit or other commitment
                are subject to the approval of the Authority.
(Amended
20 of 2023 s. 47
)
(2)
The
                Authority
                may, if in
                its
                opinion it would appropriately safeguard the interests of policy holders or
                potential policy holders, exercise
                its
                right to payment pursuant to a letter of credit or other commitment referred to in
                subsection (1).
(3)
Any payment made to the
                Authority
                pursuant to a letter of credit or other commitment shall be held in trust for the
                insurer as if it were a deposit made by
                an
                authorized insurer under
section 35A(1)
.
(4)
Nothing in this section shall limit the powers of the
                Authority
                to require a deposit under
section 35A(1)
.
(5)
In subsection (1
)—
assets in Hong Kong
(
在港資產
) has the meaning given by
section
                    25A(12)
.
(Added
20 of 2023 s. 47
)