Examples of SAC Act in a sentence
As noted above, the Company is also registered under the SAC Act.
Under the SAC Act, only the assets of a specific Segregated Account may be applied to the liabilities of that account.
Bermuda was a pioneer in developing ring-fenced cell or “segregated account” structures, which were initially created by means of private acts in the 1990s and later, given increased demand, by registration pursuant to the Segregated Accounts Companies Act 2000 (the SAC Act).The SAC Act has served industry well and the robustness of the statutory ring-fencing of assets and liabilities linked to a segregated account (SA) of an SAC has been upheld by the Bermuda courts.
Any company to which the Companies Act applies (including a company registered under the SAC Act) may apply to be registered as an ISAC.
In contrast, the obligation to inform the BMA of a likely insolvency situation applies to the account representative of an SAC regardless if it is a financial institution or not.The SAC Act imposes similar duties on the representative, however, the ISAC Act goes further by empowering the representative to compel the ISAC to provide him or her with information and documentation necessary for the representative to perform his or her duties.
Any risks (that might otherwise have arisen) in the event of failure to observe such a technicality are eliminated when the counter party is an ISA.While there is specific statutory provision in the SAC Act that “internal transactions” are valid, notwithstanding that they technically involve the SAC contracting with itself, such transactions may cause confusion, particularly in jurisdictions that are not familiar with cellular structures.
The assets and property standing to the credit of a Segregated Account shall be held subject to the laws of Bermuda and the SAC Act for the benefit of the holders of the class of Participating Shares Linked to that account in accordance with the Governing Instruments and no other person shall have any right or interest in the assets forming part of that Segregated Account.
Each party acknowledges that the Subscribing Reinsurer is a segregated accounts company under the SAC Act and agrees that its rights and obligations under this Agreement are subject to the provisions of the SAC Act.
The Reinsurer is a Bermuda licensed Class 3 reinsurance company, registered as a segregated accounts company under the SAC Act, through which the Master Fund accesses all of its reinsurance risk exposure.
A Private Act Insur ance Company, typically operates in the same manner as a SAC except that it is not subject to the SAC Act.