<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".07" citation="COMAR 31.10.22.07" title_num="31" subtitle_num="10" chapter_num="22" heading="Deposit of Securities.">
  <paragraph num="A.">
    <text>Deposit Required. The Commissioner may not issue or renew a certificate of authority for a provider-sponsored organization unless it has deposited and maintains in trust with the State Treasurer, for the protection of its members or its members and creditors, cash or government securities of the type described in Health-General Article, §19-710, Annotated Code of Maryland, in the market value amount of $100,000.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Assets.</text>
    <paragraph num="(1)">
      <text>For purposes of determining net worth, the deposit is an admitted asset of the provider-sponsored organization.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>All income from deposits is an asset of the provider-sponsored organization.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>Withdrawal of Deposit. A provider-sponsored organization that has made a securities deposit may withdraw that deposit, or any part of the deposit, after making a substitute deposit of cash, securities, or any combination of these, or other measures of equal amount and value.</text>
  </paragraph>
  <paragraph num="D.">
    <text>Approval of Commissioner. Securities shall be approved by the Commissioner before being deposited or substituted.</text>
  </paragraph>
  <paragraph num="E.">
    <text>Use of Deposit. The deposit shall be used to:</text>
    <paragraph num="(1)">
      <text>Protect the interests of the provider-sponsored organization's enrollees; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Assure continuation of health care services to enrollees of a provider-sponsored organization that is in rehabilitation, conservation, or liquidation.</text>
    </paragraph>
  </paragraph>
</regulation>