§ 7504. The guaranty fund.
(a)The corporation shall provide a\nguaranty fund from which all corporate administrative costs may be paid\nas well as such payments and advances as may be made in connection with\nany assumption, reinsurance or guaranty agreement. Such fund shall be\nraised by assessments which may be made from time to time by the\ncorporation upon all member companies in proportion to their admitted\nassets as shown by their annual statements required by this chapter for\nthe year next preceding the date of such assessment. The net realized\ngains and income from investments of the fund shall belong, and be\nrefunded, to the contributors in proportion to the amounts contributed\nby them. The corporation may provide by resolution or by-law the\nnecessary procedure for making
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§ 7504. The guaranty fund. (a) The corporation shall provide a\nguaranty fund from which all corporate administrative costs may be paid\nas well as such payments and advances as may be made in connection with\nany assumption, reinsurance or guaranty agreement. Such fund shall be\nraised by assessments which may be made from time to time by the\ncorporation upon all member companies in proportion to their admitted\nassets as shown by their annual statements required by this chapter for\nthe year next preceding the date of such assessment. The net realized\ngains and income from investments of the fund shall belong, and be\nrefunded, to the contributors in proportion to the amounts contributed\nby them. The corporation may provide by resolution or by-law the\nnecessary procedure for making assessments, the payment thereof, and the\nrefund of any net realized gains and income from investments of the\nfund.\n (b) The amount of the fund shall be kept at such a sum as will enable\nthe corporation to meet its immediate obligations and liabilities.\n (c) Upon payment of assessments the corporation shall issue to the\ncontributors certificates showing the dates and amounts of such\npayments, and any other matters deemed proper. All outstanding\ncertificates shall be of equal dignity and priority irrespective of\namounts or dates of issue. Such certificates may be carried by member\ncompanies as admitted assets to the extent authorized by the\nsuperintendent.\n (d) Whenever the amount of the fund exceeds the immediate requirements\nof the corporation, with the approval of the superintendent, the\ncorporation may distribute such excess by retirement of the aforesaid\ncertificates previously issued or any part thereof. Such distribution\nshall be made pro rata upon the basis of outstanding certificates,\nexcept that by unanimous consent of all the directors and with the\napproval of the superintendent any other method of retirement of the\ncertificates may be adopted.\n (e) Upon dissolution of the fund by the repeal of this article or\notherwise, the fund shall be distributed in the manner provided for the\nrepayment or retirement of certificates. If the amount of the fund at\nthe time of dissolution exceeds the outstanding certificates, the excess\nshall be paid in such equitable manner as shall be approved by the\nsuperintendent.\n (f) The aggregate of the outstanding certificates shall at no time\nexceed fifty million dollars.\n