Section 42.08 - Minimum Financial Responsibility and Net Worth(1) The financial responsibility and net worth requirements set out in 209 CMR 42.03(2)(a), 42.05(2)(a) and 42.11A are minimum acceptable standards for a Licensee whose overall financial condition is fundamentally sound, which is well managed and which has no material or significant financial weaknesses. Thus, the Commissioner is not precluded from requiring a Licensee to maintain a higher net worth based on the Licensee's particular risk profile. Where the Commissioner reasonably determines, as a result of an examination under M.G.L. c. 255E, § 8, the financial history or condition, managerial resources and/or active earnings prospects of a Licensee are not adequate, or where a Licensee has sizeable off- balance sheet or funding risks, excessive interest rate risk exposure, or a significant volume of classified or criticized assets, the Commissioner may prescribe a minimum net worth for a Licensee that is greater than the minimums specified in 209 CMR 42.03(2)(a), 42.05(2)(a) and 42.11A.(2) The amount and time frames for attaining a higher net worth prescribed under 209 CMR 42.08 shall be set forth in either: (a) a corporate resolution executed by the Licensee and approved by the Commissioner;(b) a written Memorandum of Understanding or other agreement between the licensee and the Commissioner; or(c) as a provision in a temporary or permanent Cease and Desist Order issued pursuant to M.G.L. c. 255E, § 7.(3) The maintenance of the minimum financial responsibility and net worth standards specified under 209 CMR 42.08 shall be a requirement for continued licensure under M.G.L. c. 255E, § 2 and 209 CMR 42.00. Failure to meet and maintain such minimum standards may constitute grounds for the issuance of a cease and desist order under M.G.L. c. 255E, § 7 and may also constitute grounds for license suspension or revocation under M.G.L. c. 255E, § 6.Amended by Mass Register Issue 1320, eff. 8/26/2016.Amended by Mass Register Issue 1470, eff. 5/27/2022.