§431:4-110  Bond or cash deposit.  (a) The commissioner shall not issue a solicitation permit until the personapplying therefor files with the commissioner a corporate surety bond in thepenalty sum of $150,000, in favor of this State and for the use and benefit ofthis State and of subscribers and creditors of the proposed organization.  Thebond shall be conditioned upon the payment of costs incurred by this State inthe event of any legal proceedings for liquidation or dissolution of theproposed organization before completion of organization or in the event acertificate of authority is not granted; upon a full accounting for fundsreceived until the proposed insurer has been granted its certificate ofauthority; or until the proposed corporation has completed its organization asdefined in the solicitation permit.

(b)  In lieu of filing the bond described insubsection (a), the person may deposit with the director of finance through thecommissioner $150,000 in cash or in United States government bonds at parvalue, to be held in trust upon the same conditions as required for the bond.

(c)  The commissioner may waive the requirementfor a bond or deposit in lieu thereof if the permit provides that:

(1)  The proposed securities are to be distributed solelyand finally to those few persons who are the active promoters intimate to theformation of the insurer or other corporation, or to the formation of theinsurer or other corporation; or

(2)  The securities are to be issued in connectionwith subsequent financing as provided in section 431:4-120, and distributionthereof is not to be made to the general public.

(d)  Any bond filed, or any deposit orremaining portion thereof held under this section shall be released anddischarged upon settlement or termination of all liabilities against it. [L1987, c 347, pt of §2; am L 1993, c 205, §8]