§ 97-135. Insolvency. - North Carolina Statutes

§ 97‑135.  Insolvency.

A member self‑insurershall be insolvent for the purposes of this Article under any of the followingcircumstances:

(1)        Determination ofinsolvency by a court of competent jurisdiction.

(2)        Institution ofbankruptcy proceedings by or regarding the member self‑insurer.

(3)        The Board determinesthat the member self‑insurer's total liabilities exceed its total assetsor the member self‑insurer is unable or ceases to pay its debts as theyfall due or in the ordinary course of business.

(4)        A member self‑insureris deemed to be insolvent, bankrupt, or in default as defined by the terms ofany security instrument created pursuant to the Association Aggregate SecuritySystem. (1985(Reg. Sess., 1986), c. 1013, s. 1; 1987, c. 528, s. 12; 2005‑400, s.6.1.)