§ 27-5-25 - Use of special reserve fund to replace capital stock. - Rhode Island Statutes

SECTION 27-5-25

   § 27-5-25  Use of special reserve fund toreplace capital stock. – If any amount greater than a sum equal to one half ( 1/2) of its capital stockshall have been deposited with the commissioner by a fire insurance companyunder the provisions of this chapter, the commissioner shall retain of thosesecurities an amount equal to one half ( 1/2) of what amount he or she shallhold in excess of a sum equal to one half ( 1/2) of the capital stock, and thecommissioner shall transfer the balance to the company, and the amounttransferred to the company shall from the time of the transfer, provided theamount shall not be less than two hundred thousand dollars ($200,000),constitute the capital stock of the company for the further conduct of itsbusiness, and the retained securities shall be regarded as the special reservefund of the company, to which additions may be made, and shall be held in thesame manner, and for the same purpose, and under the same conditions as theoriginal special reserve fund of the company was held.