31A-5-208. Deposit of proceeds of subscriptions.
(1) All funds, and the securities and documents representing interests in property,
received by a stock corporation for stock subscriptions or by a mutual for applications for
insurance policies or for mutual bond or contribution note subscriptions, shall be deposited in the
name of the corporation with a custodian financial institution qualified under Subsection
31A-2-206 (1). This deposit is subject to an escrow agreement approved by the commissioner
under which withdrawals may be made only in accordance with conditions specified in the
agreement, and with the commissioner's approval. Securities may be held as authorized in
Subsection 31A-2-206 (2) and must be approved by the commissioner.
(2) This section does not apply to stock or mutual insurance corporations already in
existence on July 1, 1986.
Amended by Chapter 5, 1991 General Session
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Last revised: Thursday, May 28, 2009