40-1007. Deposit notes.
40-1007
40-1007. Deposit notes.In companies organized under the provisions of this article, if depositnotes be given, all such notes taken by them in consideration of premiumson their policies shall be assessable and collectible in part or in wholefor the purpose of paying any losses which have accrued or may accrueduring the continuance of the policy, and to defray expenses as provided inthe charter and bylaws of the company; and all such notes shall haveinserted on their face the following words, to wit: "It is herebyunderstood and agreed that this note is not transferable." The directorsshall have the right to determine the amount of the deposit note to begiven and the part of the premium to be paid in cash, and endorsed thereon;but in no case shall the face of the note be more than five times theamount of the cash payment endorsed thereon. Nor shall the cash payment inany case be less than one annual rate.
History: L. 1927, ch. 231, 40-1007; June 1.