The SPRV may not declare or pay dividends in any form to its owners unless the dividends do not decrease the capital of the SPRV below five thousand dollars and, after giving effect to the dividends, the assets of the SPRV, including assets held in trust pursuant to the terms of the insurance securitization, must be sufficient to meet its obligations. The dividends may be declared by the board of directors of the SPRV if the dividends would not violate the provisions of this chapter or jeopardize the fulfillment of the obligations of the SPRV or the trustee pursuant to the SPRV insurance securitization, the SPRV contract, or any related transaction. The provisions of Chapter 21 pertaining to dividends do not apply to such dividends.
HISTORY: 2002 Act No. 259, Section 1, eff May 20, 2002.
Structure South Carolina Code of Laws
Chapter 14 - Special Purpose Reinsurance Vehicle Model Act
Section 38-14-10. Purpose of chapter.
Section 38-14-20. Other sections applicable.
Section 38-14-30. Definitions.
Section 38-14-50. Purpose of SPRVs.
Section 38-14-70. Powers; bylaws.
Section 38-14-80. Relationship to ceding insurer.
Section 38-14-90. Capital requirements.
Section 38-14-100. Declaration and payment of dividends.
Section 38-14-110. Records and filing requirements.
Section 38-14-120. Election and removal of officers; loans.
Section 38-14-130. Reimbursement of formation and operation expenses and costs.
Section 38-14-140. Dissolution procedure.
Section 38-14-150. Rehabilitation and liquidation.
Section 38-14-160. Exemption from guaranty fund contributions or guaranty associations.
Section 38-14-170. Trust asset requirements; swap agreements.
Section 38-14-180. Reinsurance credit.
Section 38-14-190. Purchase of SPRV securities as transacting insurance business.