83-27-9 - Liability limited to one tenth of capital and surplus.
§ 83-27-9. Liability limited to one tenth of capital and surplus.
No company shall be accepted as surety on any bond for an amount larger than one tenth (1/10) of the company's paid-up capital and surplus as reflected in its last annual statement, unless it shall be secured from loss beyond such amount by reinsurance in an authorized company or by the amount of any cosuretyship, provided such reinsurance or cosurety shall not exceed the limits set forth herein for the prime surety, or by the value of any security deposited, pledged, or held subject to the company's consent and for its protection.
Sources: Codes, 1906, § 2673; Hemingway's 1917, § 5139; 1930, § 5229; 1942, § 5743; Laws, 1970, ch. 453, § 1, eff from and after passage (approved March 24, 1970).