§ 7719. Resolution facility. (a) The corporation may incorporate one
or more not-for-profit corporations, known as a resolution facility, in
connection with the liquidation of an insolvent domestic life insurance
company, health insurance company, or property/casualty insurance
company under article seventy-four of this chapter for the purpose of
administering and disposing of the business of the insolvent insurance
company.

(b) To the extent that the provisions of the not-for-profit
corporation law do not conflict with the provisions of this section or
the plan of operation of the resolution facility hereunder, the
not-for-profit corporation law shall apply to the resolution facility
and the resolution facility shall be a non-charitable corporation
pursuant to the not-for-profit corporation law. If an applicable
provision of this section or the plan of operation of the resolution
facility hereunder relates to a matter embraced in a provision of the
not-for-profit corporation law but is not in conflict therewith, then
both provisions shall apply. The corporation shall be a member of the
resolution facility, and other persons, including the life insurance
guaranty corporation continued under article seventy-five of this
chapter and guaranty entities of other states, may become members of the
resolution facility in accordance with the resolution facility's
certificate of incorporation and plan of operation.

(c) In addition to its certificate of incorporation, a resolution
facility shall submit to the superintendent a plan of operation, and
amendments thereto, necessary or suitable to assure the fair,
reasonable, and equitable administration of the resolution facility. The
plan of operation, and any amendments thereto, shall become effective
upon approval in writing by the superintendent. The plan of operation
shall constitute the bylaws of the resolution facility.

(d) A resolution facility may:

(1) guarantee, assume, or reinsure, or cause to be guaranteed,
assumed, or reinsured, the covered policies, or arrange for replacement
by policies found by the superintendent to be substantially similar to
the covered policies;

(2) exercise, for the purposes of this article and to the extent
approved by the superintendent, the powers of a domestic life insurance
company, health insurance company, or property/casualty insurance
company but in no case may the resolution facility issue insurance
policies, annuity contracts, funding agreements, or supplemental
contracts other than those issued to perform the contractual obligations
of the impaired or insolvent insurer;

(3) assure payment of the contractual obligations of the insolvent
insurer; and

(4) provide such moneys, pledges, notes, guarantees, or other means as
are reasonably necessary to discharge its duties.

(e) A resolution facility shall not be subject to any provisions of
this chapter or the financial services law except:

(1) this section; and

(2) sections seven thousand seven hundred fourteen, seven thousand
seven hundred fifteen, and seven thousand seven hundred sixteen of this
article, which shall apply in the same manner as they apply to the
corporation.

(f) Notwithstanding subsection (e) of this section, the superintendent
may address to the resolution facility any inquiry in relation to its
transactions or condition or any matter connected therewith pursuant to
section three hundred eight of this chapter.

(g) (1) If the superintendent determines that the resolution facility
is not administering and disposing of the business of an insolvent
domestic life insurance company, health insurance company, or
property/casualty insurance company consistent with the resolution
facility's certificate of incorporation, plan of operation, or this
section, then the superintendent shall provide notice to the resolution
facility and the resolution facility shall have thirty days to respond
to the superintendent and cure the defect.

(2) If, after thirty days, the superintendent continues to believe
that the resolution facility is not administering and disposing of the
business of an insolvent domestic life insurance company, health
insurance company, or property/casualty insurance company consistent
with the resolution facility's certificate of incorporation, plan of
operation, or this section, then the superintendent may apply to the
court for an order directing the resolution facility to correct the
defect or take other appropriate actions.