District Of Columbia § 31-1372.06 - Tangible personal property under lease.
Full text of District Of Columbia D.C. Code § 31-1372.06 — Tangible personal property under lease., with citation guidance and answers to common questions.
§ 31-1372.06. Tangible personal property under lease.
31-1372.06Subject to the limitations of , an insurer may acquire tangible personal property or equity interests therein, which property or interests are located or used wholly or in part within a domestic jurisdiction, directly or indirectly through:
Limited partnership interests and general partnership interests not otherwise prohibited ;
Joint ventures;
Stock of an investment subsidiary;
Membership interests in a limited liability company;
Trust certificates; or
Other similar instruments.
Investments acquired under paragraph (1) of this subsection shall be eligible only if:
The property is subject to a lease or other agreement with a person whose rated credit instruments the insurer could acquire under for a price equal to the purchase price of the personal property; and
The lease or other agreement provides the insurer the right to receive rental, purchase, or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, shall be adequate to return the cost of the insurer’s investment in the property, plus a return considered adequate by the insurer.
The insurer shall compute the amount of each investment under this section on the basis of the cash purchase price and applicable related expenses paid by the insurer for the investment, net of each borrowing made to finance the purchase price and expenses to the extent the borrowing is nonrecourse to the insurer.
An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of all investments held by the insurer under this section would exceed:
Two percent of its admitted assets; or
One half of one percent of its admitted assets as to any single item of tangible personal property.
For purposes of determining compliance with the limitations of :
Investments acquired by an insurer under this section shall be aggregated with those acquired under ; and
Each lessee of the property under a lease referred to in this section shall be deemed the issuer of an obligation in the amount of the investment of the insurer in the property determined as provided under subsection (b) of this section.
This section shall not be applicable to a lease of tangible personal property between an insurer and its subsidiaries or affiliates under a cost sharing arrangement or agreement permitted under .
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 31-1372.06
What does D.C. Code § 31-1372.06 cover?
Section 31-1372.06 ("Tangible personal property under lease.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 31-1372.06?
A common citation format is "D.C. Code § 31-1372.06" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 31-1372.06 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.