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



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



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



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



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



(d)  Any bond filed, or any deposit or
remaining portion thereof held under this section shall be released and
discharged upon settlement or termination of all liabilities against it. [L
1987, c 347, pt of §2; am L 1993, c 205, §8]