§ 44-120 — Domestic company; capital stock; impairment; notice to shareholders

Nebraska § 44-120

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

Whenever it appears to the Department of Insurance from any proper showing or from any examination made that the capital stock of any domestic stock insurance company is impaired or that its assets are insufficient to justify its continuance in business, the department, in lieu of proceeding immediately in the manner authorized by the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, may at once determine the amount of such impairment or deficiency and thereupon issue a written notice to the company requiring its shareholders to make good the amount of the impairment or deficiency with cash or authorized investments or to reduce its capital stock, not below statutory requirements, within a reasonable time not to exceed ninety days from the service of the notice.

Legislative History

Source: Laws 1913, c. 154, § 9, p. 400; R.S.1913, § 3145; Laws 1919, c. 190, tit. V, art. III, § 2, p. 577; C.S.1922, § 7746; C.S.1929, § 44-202; R.S.1943, § 44-120; Laws 1967, c. 259, § 1, p. 682; Laws 1989, LB 92, § 14; Laws 1989, LB 319, § 62. Cross References: Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862. Annotations: This section is remedial, and provides the first step toward replacement where impairment of capital stock of a stock company has taken place. Clark v. Lincoln Liberty Life Ins. Co., 139 Neb. 65, 296 N.W. 449 (1941). Where court of competent jurisdiction has by appropriate proceedings taken property into its possession, such property is thereby withdrawn from the jurisdiction of all other courts. Motlow v. Southern Holding & Securities Corp., 95 F.2d 721 (8th Cir. 1938). Statute is cited as showing legislative intent that city was not entitled to preferred claim for money loaned or deposited with insolvent trust company. City of Lincoln v. Ricketts, 84 F.2d 795 (8th Cir. 1936).