{"data":{"id":"us-dc/d.c.-code-31-4434","jurisdiction":"us-dc","citation":"D.C. Code § 31-4434","heading":"Power of mutual company to borrow or assume liability.","body":"(a)\n(1)\nIn addition to the general power and authority to borrow money for its regular business purposes, if a domestic insurance company obtains prior written approval for a stated maximum amount, it may borrow money by the issuance of notes to:\n(A)\nPay the reasonable expenses of its organization;\n(B)\nProvide contingency loss funds;\n(C)\nProvide additional surplus funds;\n(D)\nSatisfy a deficiency; or\n(E)\nProvide the amount of required minimum surplus.\n(2)\nThe notes issued for the purposes stated in paragraph (1) of this subsection shall be known as surplus notes and shall fully recite the purpose for which the money was borrowed. The amount of the outstanding principal and unpaid interest of the surplus notes shall be stated in each annual report.\n\n(b)\nThe principal indebtedness of surplus notes issued on or after October 21, 2000, shall not be a liability or claim against any of the assets of the company. The principal of, and interest on, the notes may be paid from time to time, either in full or in part, from available surplus funds of the company only if the amount of the surplus of the company is twice the amount of principal and interest being paid. The company may make such payments whenever it is able to do so if it receives the prior written approval of the Commissioner. The Commissioner shall use the standards set forth in subchapter I of Chapter 7 of this title, relating to adequacy of surplus in determining whether or not to approve the payments. Upon a dissolution of the company, the principal and accrued and unpaid interest of the surplus notes shall be payable from surplus.","path":["Title 31. Insurance and Securities.","Chapter 44. Domestic Life Companies."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/31-4434","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"630a0fcb910df9d972c6f69cd906df60810527c2bddd16741e842a7a8d658cad","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-31-4433","next":"us-dc/d.c.-code-31-4435"},"notice":"GroundRules: Original legal text. Not legal advice."}