§ 27-1-3 - Stock assessments to meet deficits.
SECTION 27-1-3
§ 27-1-3 Stock assessments to meetdeficits. – Whenever the capital stock of any insurance company is diminished by reason oflosses or from any other cause, the stockholders of the company, at any legalmeeting called for the purpose, may, after making due allowance from the assetsof the company of the amount as may be required to reinsure its outstandingrisks, assess on the several stockholders a further sum as may be necessary tofill up the capital stock to its original amount in proportion to the amount ofstock owned by each, and the stock of every stockholder shall be pledged andliable for the assessment. In case any stockholder refuses to pay theassessment, the stock standing in the name of the delinquent stockholder may besold at public auction after thirty (30) days' notice, in a manner as may beprovided in the bylaws of the company.