SENATE AMENDMENT
    Bill No. CS/HB 385, 1st Eng.
    Amendment No. ___   Barcode 692624
                            CHAMBER ACTION
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11  Senator Garcia moved the following amendment to amendment
12  (822970):
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14         Senate Amendment (with title amendment) 
15         On page 10, between lines 21 and 22,
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17  insert:  
18         Section 11.  Effective July 1, 2002, and contingent
19  upon SB 1418 becoming a law, paragraph (k) of subsection (6)
20  of section 627.351, Florida Statutes, is amended and paragraph
21  (p) is added to that subsection, to read:
22         (6)  CITIZENS RESIDENTIAL PROPERTY INSURANCE
23  CORPORATION AND CASUALTY JOINT UNDERWRITING ASSOCIATION.--
24         (k)  Upon a determination by the department board of
25  governors that the conditions giving rise to the establishment
26  and activation of the corporation association no longer exist,
27  and upon the consent thereto by order of the department, the
28  corporation association is dissolved. Upon dissolution, the
29  assets of the association shall be applied first to pay all
30  debts, liabilities, and obligations of the corporation
31  association, including the establishment of reasonable
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    8:49 AM   03/22/02                              h0385c1c-39e0a

SENATE AMENDMENT Bill No. CS/HB 385, 1st Eng. Amendment No. ___ Barcode 692624 1 reserves for any contingent liabilities or obligations, and 2 all remaining assets of the corporation association shall 3 become property of the state and deposited in the Florida 4 Hurricane Catastrophe Fund. However, no dissolution shall take 5 effect as long as the corporation has bonds or other financial 6 obligations outstanding unless adequate provision has been 7 made for the payment of the bonds or other financial 8 obligations pursuant to the documents authorizing the issuance 9 of the bonds or other financial obligations. 10 (p) In enacting the provisions of this section, the 11 Legislature recognizes that both the Florida Windstorm 12 Underwriting Association and the Residential Property and 13 Casualty Joint Underwriting Association have entered into 14 financing arrangements that obligate each entity to service 15 its debts and maintain the capacity to repay funds secured 16 under these financing arrangements. It is the intent of the 17 Legislature that nothing in this section be construed to 18 compromise, diminish, or interfere with the rights of 19 creditors under such financing arrangements. It is further the 20 intent of the Legislature to preserve the obligations of the 21 Florida Windstorm Underwriting Association and Residential 22 Property and Casualty Joint Underwriting Association with 23 regard to outstanding financing arrangements, with such 24 obligations passing entirely and unchanged to the corporation 25 and, specifically, to the applicable account of the 26 corporation. So long as any bonds, notes, indebtedness, or 27 other financing obligations of the Florida Windstorm 28 Underwriting Association or the Residential Property and 29 Casualty Joint Underwriting Association are outstanding, under 30 the terms of the financing documents pertaining to them, the 31 governing board of the corporation shall have and shall 2 8:49 AM 03/22/02 h0385c1c-39e0a
SENATE AMENDMENT Bill No. CS/HB 385, 1st Eng. Amendment No. ___ Barcode 692624 1 exercise the authority to levy, charge, collect, and receive 2 all premiums, assessments, surcharges, charges, revenues and 3 receipts that the associations had authority to levy, charge, 4 collect, or receive under the provisions of subsection (2) and 5 subsection (6), respectively, as they existed on January 1, 6 2002, to provide moneys, without exercise of the authority 7 provided by this subsection, in at least the amounts, and by 8 the times, as would be provided under those former provisions 9 of subsection (2) or subsection (6), respectively, so that the 10 value, amount, and collectability of any assets, revenues, or 11 revenue source pledged or committed to, or any lien thereon 12 securing such outstanding bonds, notes, indebtedness, or other 13 financing obligations will not be diminished, impaired, or 14 adversely affected by the amendments made by this act and to 15 permit compliance with all provisions of financing documents 16 pertaining to such bonds, notes, indebtedness, or other 17 financing obligations, or the security or credit enhancement 18 for them, and any reference in this subsection to bonds, 19 notes, indebtedness, financing obligations, or similar 20 obligations, of the corporation shall include like instruments 21 or contracts of the Florida Windstorm Underwriting Association 22 and the Residential Property and Casualty Joint Underwriting 23 Association to the extent not inconsistent with the provisions 24 of the financing documents pertaining to them. 25 Section 12. The amendments to section 627.351, Florida 26 Statutes, in this act prevail over any conflicting amendments 27 to that section contained in SB 1418. 28 29 (Redesignate subsequent sections.) 30 31 3 8:49 AM 03/22/02 h0385c1c-39e0a
SENATE AMENDMENT Bill No. CS/HB 385, 1st Eng. Amendment No. ___ Barcode 692624 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 12, line 3, after the semicolon 4 5 insert: 6 amending s. 627.351, F.S.; revising provisions 7 governing financing arrangements and 8 dissolutions; providing legislative intent; 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4 8:49 AM 03/22/02 h0385c1c-39e0a