CHAPTER 291

An Act to amend the Code of Virginia by adding a section numbered
88.1-92.1, to provide a method whereby certain mutual insurance com-
panies may effect a voluntary increase in guaranty funds. rH 597]

5

Approved March 15, 1960

Be it enacted by the General Assembly of Virginia: |
l. That the Code of Virginia be amended by adding a section numbered
38.1-92.1 as follows:

§ 38.1-92.1. Any domestic mutual insurance company licensed to
‘ransact insurance in this State may, in order to increase its guaranty fund
when it deems such increase desirable, borrow, with the consent of the
Commission first obtained, such funds as are sufficient for the purpose
ipon an agreement that such sum, with interest at a rate not exceeding
31x per centum per annum, shall be repaid only out of the company’s
2arned surplus in excess of its minimum surplus required by Chapter 2 of
his title. Such agreement shall provide that the company may make such
repayment of the advances or loans or any part thereof whenever it shall
be able to do so in accordance with the requirements of this article. No
commission or brokerage shall be paid in acquiring such funds, and no
repayment thereof, either in whole or in part, shall be made without the
approval of the Commission. Any such sum or sums so advanced or
borrowed shall not form a part of the legal liabilities of the company, but
until repaid all statements published or filed by the company shall show
the amount thereof then remaining unpaid.