§ 657 — Payments to the fund

New York § 657

• Jurisdiction: New York
• Law BNK: Banking
• Art. 13-C: State Transmitter of Money Insurance Fund

Text

§ 657. Payments to the fund. In the event the fund has borrowed any\nmonies from the property and liability insurance security fund pursuant\nto the provisions of section six hundred fifty-eight of this chapter,\nand has any debt outstanding thereto, or in the event an uninsured\ntransmitter of money is declared, or declares itself, insolvent or\ndefaults on its New York instruments, the fund shall levy an assessment\nupon each uninsured transmitter of money. The amount of such assessment\nshall be determined by the superintendent provided, however, that each\nuninsured transmitter of money shall be assessed ratably, in proportion\nto the average of the dollar amounts of the New York instruments issued\nby such uninsured transmitter of money outstanding at the end of each\ncalendar quarter for the calendar year preceding that in which the\nassessment is made, and provided, further, that no such assessments\nshall be levied once the net value of the fund shall equal such amount\nas the superintendent shall have determined to be necessary to protect\nthe interests of the purchasers and holders of New York instruments. In\nmaking his determination, the superintendent shall consider the scope of\nthe risk covered by the fund, the expenses incurred or expected to be\nincurred by the fund, the amount of any loans and advances to the fund,\nand the interest thereon.\n In no event shall the total amount so assessed in any one year against\nany uninsured transmitter of money pursuant to this section exceed two\nper centum of the New York instruments of such uninsured transmitter of\nmoney which were outstanding at the end of the calendar year preceding\nthat in which such assessments are made or one hundred twenty-five\nthousand dollars, whichever is less. The net value of the fund shall be\ndetermined by deducting from the value of the assets of the fund the\naggregate actual and estimated liabilities of the fund as determined by\nthe superintendent.\n