§ 1401. Definitions and rules of general application. (a) In this\narticle: (1) "Invested assets" means the admitted assets of an insurer\nthat conform to the requirements of paragraphs one and two of subsection\n(a) of section one thousand three hundred one of this chapter, but\nexcluding the income due or accrued thereon.\n (2) "Mortgage-related security" means an obligation that is rated AA\nor higher (or the equivalent thereto) by a nationally recognized\nsecurities rating agency and either:\n (A) represents ownership of one or more promissory notes or\ncertificates of interest or participation in such notes (including any\nrights designed to assure servicing of, or the receipt or timeliness of\nreceipt by the holders of such notes, certificates, or participation of\namounts payable under, such notes, certificates, or participation),\nwhich notes:\n (i) are directly secured by a first lien on a single parcel of real\nestate, including stock allocated to a dwelling unit in a residential\ncooperative housing corporation, upon which is located a dwelling or\nmixed residential and commercial structure, or on a residential\nmanufactured home as defined in section 5402(6) of Title 42 of the\nU.S.C.A., whether such manufactured home is considered real or personal\nproperty under the laws of the state in which it is to be located; and\n (ii) were originated by a savings and loan association, savings bank,\ncommercial bank, credit union, insurance company, or similar institution\nwhich is supervised and examined by a federal or state authority, or by\na mortgage approved by the secretary of housing and urban development\npursuant to sections 1709 and 1715-b of Title 12 of the U.S.C.A., or,\nwhere such notes involve a lien on the manufactured home, by any such\ninstitution or by any financial institution approved for insurance by\nthe secretary of housing and urban development pursuant to section 1703\nof Title 12 of the U.S.C.A.; or\n (B) is secured by one or more promissory notes or certificates of\ninterest or participations in such notes (with or without recourse to\nthe issuer thereof) and, by its terms, provides for payments of\nprincipal in relation to payments, or reasonable projections of\npayments, or notes meeting the requirements of items (i) and (ii) of\nsubparagraph (A) of this paragraph or certificates of interest or\nparticipation in promissory notes meeting such requirements.\n For the purpose of this paragraph the term "promissory note", when\nused in connection with a manufactured home, shall also include a loan,\nadvance or credit sale as evidence by a retail installment sales\ncontract or other instrument.\n (3) "Partnership interests" when used in connection with the\npermissible types of investments made by any domestic insurer, other\nthan a domestic life insurer, means, an interest as a limited partner in\na limited partnership. A "limited partnership" means a partnership\nformed by two or more persons pursuant to the provisions of the\napplicable law, having as members one or more general partners and one\nor more limited partners. The limited partners as such shall not be\nbound by the obligations of the partnership.\n (4) "United States" means, when used to signify place, only the states\nof the United States, the Commonwealth of Puerto Rico, the District of\nColumbia and includes lands and waters adjacent to the foregoing and\nunder the jurisdiction of the United States.\n (5) "Cap" means an agreement obligating the seller to make payments to\nthe buyer with each payment based on the amount by which a reference\nprice or level or the performance or value of one or more underlying\ninterests exceeds a predetermined number, sometimes called the strike\nrate or strike price.\n (6) "Collar" means an agreement to receive payments as the buyer of an\noption, cap or floor and to make payments as the seller of a different\noption, cap or floor.\n (7) "Derivative instrument" means an agreement, option,
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