38.2-1225 - Contributions. - Virginia Statutes

§ 38.2-1225. Contributions.

The attorney or other interested persons may advance to a domestic reciprocalany funds required in its operations. No repayment of the principal, or anypayment of interest thereon, in whole or in part, shall be made without theapproval of the Commission. The principal advanced and any interest accruedthereon shall not be treated as a liability of the reciprocal until therepayment of principal or payment of interest is approved by the Commission;nonetheless, all statements published or filed shall show accrued interestand the amount of principal remaining unpaid. In the event of a liquidationor dissolution, all claims under the instrument shall be subordinated tosubscriber, claimant and beneficiary claims as well as debts owed to allother classes of creditors. The principal advanced shall not be withdrawn orrepaid and no payments of interest thereon shall be made unless thereciprocal has sufficient earned surplus in excess of its minimum requiredsurplus. No commission or brokerage shall be paid in acquiring the funds.Interest on the principal advanced shall be at a rate not exceeding theone-year treasury bill interest rate plus three percentage points at the timethe loan is made or renewed.

(1952, c. 317, § 38.1-713; 1986, c. 562; 1994, c. 503.)