{"data":{"id":"us-ky/krs-299.050","jurisdiction":"us-ky","citation":"KRS 299.050","heading":"Guaranty fund -- Creation -- Investments -- Deposit of securities -- Use of","body":"fund -- Rights of holders of certificates.\n(1) The guaranty fund required by KRS 299.040 may be raised by the issue and sale of\nguaranty fund certificates in denomination of n ot less than five dollars ($5) nor\nmore than one thousand dollars ($1,000) each, to be sold for not less than the par\nvalue thereof, which shall be fully paid in when issued. The sum realized from the\nsale of the certificates shall be invested in securitie s in which insurance companies\nare allowed by law to invest their capital or funds, and the securities shall be\ndeposited with the custodian of insurance securities, to be held in trust for the\nbenefit and protection of the members or policyholders of the company.\n(2) The holders of guaranty fund certificates shall be entitled to receive annual\ndividends not exceeding eight percent (8%) but dividends shall be payable only out\nof the company's accumulated surplus fund, and no surplus fund shall be deemed to\nexist for the purpose of paying dividends unless the company's emergency fund is\nintact. Guaranty fund certificates shall be issued with a proviso thereto specifying\nthat the company reserves the right at any dividend -paying period to redeem the\ncertificates at their par value, but the company may use only its surplus funds to\nredeem guaranty fund certificates, and no part of the emergency fund shall be used\nfor that purpose.\n(3) The guaranty fund certificates shall contain a printed notice giving the fixed  date of\nthe annual meeting of the members or policyholders of the company, and each\ncertificate issued shall entitle the holder to one (1) vote on any business matter at\nany meeting of the members or policyholders, but the company shall only issue\nguaranty fund certificates in such denomination and number that the total votes\nrepresented by all such certificates shall not exceed one-third (1/3) of the total votes\nof all members or policyholders.","path":["KRS Chapter 299"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15826","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:26Z","sha256":"6862d89ee245ce1f19d9f314c6426ae6864df722ae036f28bf434425c874ca57","source_id":"us-ky","stale":false,"prev":"us-ky/krs-299.045","next":"us-ky/krs-299.060"},"notice":"GroundRules: Original legal text. Not legal advice."}