§ 27-1-7-17 — Restrictions on dividend payments

No domestic company shall make any
payments in form of dividends or otherwise to its shareholders, for or
on account of any interest in or relation to the company as
shareholders, unless it possesses assets in the amount of such payment,
in excess of its liabilities, including its capital stock: Provided, That in
no instance shall such dividend reduce the surplus below an amount
equal to fifty per cent (50%) of the capital stock of such company; and
no domestic company shall make any payments to its members or
policyholders for or on account of any interest in or relation to the
company as members or policyholders, except for matured claims or
other policy obligations and in the purchase of surrender values, unless
it possesses assets in the amount of such payments in excess of its
liabilities.
Formerly: Acts 1935, c.162, s.95.