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The DC Code: § 31-2502.17 Power of domestic mutual companies to borrow or assume liability.

Index31 Insurance and Securities. (Refs & Annos)

A domestic mutual company may borrow or assume liability for the repayment of a sum of money sufficient to defray the reasonable expenses of its organization or to enable it to comply with any requirement of law or as a surplus fund upon agreement which shall first be submitted to and approved by the Commissioner that such loan or advance with interest at a rate not exceeding 6% per annum shall be repaid only with the approval of the Commissioner whenever in his judgment the company shall be in possession of sufficient surplus in excess of a surplus equal to the amount required by this chapter. Any such loan or advance shall not form a part of the legal liabilities of the company, but until such loan or advance has been repaid all statements published by such company or filed with the Commissioner shall show the amount thereof then remaining unpaid.

Historical and Statutory

Prior Codifications 1981 Ed., § 35-1520. 1973 Ed., § 35-1320. Legislative History of Laws For legislative history of D.C. Law 11-268, see Historical and Statutory Notes following § 31-2501.03. Miscellaneous Notes Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03. DC CODE § 31-2502.17 Current through December 11, 2012

Credits

(Oct. 9, 1940, 54 Stat. 1071, ch. 792, ch. II, § 17; May 21, 1997, D.C. Law 11-268, § 10(r)(2), 44 DCR 1730.)