7504 - The guaranty fund.

§  7504.  The  guaranty  fund.  (a)  The  corporation  shall provide a  guaranty fund from which all corporate administrative costs may be  paid  as  well as such payments and advances as may be made in connection with  any assumption, reinsurance or guaranty agreement. Such  fund  shall  be  raised  by  assessments  which  may  be  made  from  time to time by the  corporation upon all member companies in proportion  to  their  admitted  assets  as shown by their annual statements required by this chapter for  the year next preceding the date of such assessment.  The  net  realized  gains  and  income  from  investments  of  the fund shall belong, and be  refunded, to the contributors in proportion to the  amounts  contributed  by  them.  The  corporation  may  provide  by  resolution  or by-law the  necessary procedure for making assessments, the payment thereof, and the  refund of any net realized gains and  income  from  investments  of  the  fund.    (b)  The amount of the fund shall be kept at such a sum as will enable  the corporation to meet its immediate obligations and liabilities.    (c) Upon payment of assessments the corporation  shall  issue  to  the  contributors   certificates  showing  the  dates  and  amounts  of  such  payments,  and  any  other  matters  deemed  proper.   All   outstanding  certificates  shall  be  of  equal  dignity and priority irrespective of  amounts or dates of issue. Such certificates may be  carried  by  member  companies   as   admitted   assets  to  the  extent  authorized  by  the  superintendent.    (d) Whenever the amount of the fund exceeds the immediate requirements  of the  corporation,  with  the  approval  of  the  superintendent,  the  corporation  may  distribute  such excess by retirement of the aforesaid  certificates previously issued or any part  thereof.  Such  distribution  shall  be  made  pro  rata  upon  the basis of outstanding certificates,  except that by unanimous consent of  all  the  directors  and  with  the  approval  of  the  superintendent  any other method of retirement of the  certificates may be adopted.    (e) Upon dissolution of the fund by the  repeal  of  this  article  or  otherwise,  the fund shall be distributed in the manner provided for the  repayment or retirement of certificates. If the amount of  the  fund  at  the time of dissolution exceeds the outstanding certificates, the excess  shall  be  paid  in  such  equitable  manner as shall be approved by the  superintendent.    (f) The aggregate of the outstanding certificates  shall  at  no  time  exceed fifty million dollars.