§431:4-203  Decrease of capital.  (a)  Adomestic stock insurer may decrease its capital stock by:

(1)  Vote of not less than seventy-five per cent ofthe holders of the shares of stock outstanding and entitled to vote; and

(2)  Filing a certificate executed in the same manneras provided in section 414-11, that such vote occurred, upon which filing thedecrease in capital is effective.

(b)  No such decrease shall be made whichresults in capital stock less in amount than the minimum required by this codefor the classes of insurance thereafter to be transacted by the insurer.

(c)  No surplus funds of the insurer resultingfrom a decrease of its capital stock shall be distributed to shareholders,except:

(1)  As a stock dividend on a subsequent increase ofcapital stock;

(2)  Upon dissolution of the insurer; or

(3)  Upon approval of the commissioner, provided thecommissioner has received satisfactory proof that the distribution will notimpair the interests of policyholders or the solvency of the insurer.

(d)  Upon a decrease of capital stock, theinsurer's directors shall call in any outstanding stock certificates requiredto be changed pursuant thereto and shall issue proper certificates in theirstead. [L 1987, c 347, pt of §2; am L 1989, c 195, §14; am L 2004, c 122, §15]