§ 28-5-1-13 — Certificates of indebtedness or investment; reserve balance

Every company issuing any such certificates
of indebtedness or investment shall at all times maintain a reserve
balance equal to at least three percent (3%) of the total amount paid in
on all of its outstanding certificates of indebtedness or investment,
which said reserve balance shall consist of cash on hand or on demand
deposit with a solvent and going bank or trust company. If at any time
such reserve balance shall be reduced below the amount prescribed in
this section, such company shall not issue any additional certificates of
indebtedness or investment nor make any new loans or pay any
dividends until such reserve balance shall have been fully restored to
the amount prescribed in this section. All of the officers and such of the
directors as participate in violating any of the provisions of this section
shall be jointly and severally liable to the holder or holders of any
certificates of indebtedness or investment issued when such reserve
balance is below the amount prescribed in this section for any loss
suffered or sustained by them accruing by reason of such violation. Any
such company which maintains federal deposit insurance as authorized
in section 6(a)(17) of this chapter and which maintains the reserves
required by the Federal Reserve Act shall be considered to have
complied fully with this section.
Formerly: Acts 1935, c.181, s.13; Acts 1947, c.135, s.3; Acts
1955, c.20, s.6; Acts 1971, P.L.399, SEC.5. As amended by
P.L.269-1983, SEC.3; P.L.136-2018, SEC.211.