New York Laws
Article 13 - Assets and Deposits
1307 - Contingent Liability for Borrowings.

(1) conduct its business,
(2) enable it to comply with any surplus requirement or make good any
impairment or deficiency or other requirement of this chapter,
(3) defray the reasonable expenses of its organization,
(4) provide any fund to be voluntarily contributed to surplus, or
(5) organize, acquire or invest in any subsidiaries authorized by this
chapter.
(b) Such borrowing may only be made upon an agreement that such moneys
and such interest thereon as may be agreed upon, at a rate not exceeding
the maximum rate provided in section 5-501 of the general obligations
law, in effect at the time the agreement is executed, shall be repaid
only out of free and divisible surplus of such insurer with the approval
of the superintendent whenever, in his judgment, the financial condition
of such insurer warrants. In the event of insolvency of a mutual or
co-operative insurance company unearned premiums shall be deemed to be
part of its free and divisible surplus.
(c) Any sum so advanced or borrowed shall not be part of the legal
liabilities of such insurer and shall not be a basis of any set-off but
until repaid all statements published by such insurer or filed with the
superintendent shall show, as a footnote, the amount then remaining
unpaid.
(d) No such insurance company or reciprocal insurer shall directly or
indirectly make any agreement for any advance or borrowing pursuant to
this section unless such agreement is in writing and shall have been
approved by the superintendent as not unfair, misleading or contrary to
law.