General Laws of Massachusetts - Chapter 175 Insurance - Section 69 Impaired capital; assessment; effect of non-compliance with commissioner; order

Section 69. If the net assets of the company do not amount to more than three fourths of its capital, it may make good its capital by assessment of its stock.

Shares on which such assessment is not paid within sixty days after demand shall be forfeitable, and may be cancelled by a vote of the directors, and new shares issued to make up the deficiency.

If such company shall not, within three months after notice from the commissioner, make good its capital as aforesaid, or reduce the same as provided in section seventy-one, its authority to transact new business shall cease.

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Last modified: September 11, 2015