N.Y. Insurance Law § 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.