Funds borrowed by HMOs will be considered surplus notes if guaranteed by the United States government, or its agents, or if such borrowed funds result from a written instrument which includes the following:
    (1) The effective date, amount, interest and parties involved are clearly set forth;
    (2) The principal sum and/or any interest accrued thereon are subject to and subordinate to all other liabilities of the HMO, and upon dissolution or liquidation, no payment of any kind shall be made until all other liabilities of the HMO have been paid or otherwise discharged;
    (3) The instrument states that the parties agree that all claims of subscribers and general creditors of the organization have been paid or otherwise discharged prior to any payment of interest or repayment of principal, unless specifically approved by the Office;
    (4) The instrument is executed by both parties and a certified copy of the instrument is filed with the Office of Insurance Regulation;
    (5) The parties agree not to modify, terminate or cancel the surplus note without the prior approval of the Office.
Rulemaking Authority 641.36 FS. Law Implemented Florida Statutes § 641.35. History-New 2-22-88, Amended 10-25-89, Formerly 4-31.088, 4-191.088.