Section 58-5-116 - Assessment of stockholders to cure impairment of capital or surplus--Enforcement. - South-dakota Statutes

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58-5-116. Assessment of stockholders to cure impairment of capital or surplus--Enforcement. A stock insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide for a reasonable amount of surplus. If a stockholder fails to pay such assessment after notice, the insurer may require the return of the original certificate of stock, deduct such assessment, and issue a new certificate for such stockholder's remaining interest. The insurer may pay for or reissue fractional shares under this section.

Source: SL 1966, ch 111, ch 16, § 36 (1).

State Codes and Statutes

Statutes > South-dakota > Title-58 > Chapter-05 > Statute-58-5-116

58-5-116. Assessment of stockholders to cure impairment of capital or surplus--Enforcement. A stock insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide for a reasonable amount of surplus. If a stockholder fails to pay such assessment after notice, the insurer may require the return of the original certificate of stock, deduct such assessment, and issue a new certificate for such stockholder's remaining interest. The insurer may pay for or reissue fractional shares under this section.

Source: SL 1966, ch 111, ch 16, § 36 (1).

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State Codes and Statutes

Statutes > South-dakota > Title-58 > Chapter-05 > Statute-58-5-116

58-5-116. Assessment of stockholders to cure impairment of capital or surplus--Enforcement. A stock insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide for a reasonable amount of surplus. If a stockholder fails to pay such assessment after notice, the insurer may require the return of the original certificate of stock, deduct such assessment, and issue a new certificate for such stockholder's remaining interest. The insurer may pay for or reissue fractional shares under this section.

Source: SL 1966, ch 111, ch 16, § 36 (1).