(1) An undertaking which is the holder of an authorisation shall establish and maintain technical reserves, calculated in accordance with regulations, in respect of underwriting liabilities assumed by it.
(2) Assets of an amount equivalent to the amount of the technical reserves shall be localised in the State by an undertaking in accordance with regulations.
(3) Pending the making of regulations, an undertaking shall maintain in the State assets equal to the amount which it would have had to maintain with the Court under section 22 of the Insurance Act, 1936, if the total underwriting liabilities of the undertaking in the State were higher than that amount, and, if these underwriting liabilities are lower than that amount, only assets representing such underwriting liabilities must be maintained in the State.
(4) Section 22 of the Insurance Act, 1936, shall not apply to an undertaking which complies with this Article.
(5) For the purposes of applying the first subparagraph of Art