2012 New York Consolidated Laws
ISC - Insurance
Article 64 - (6401 - 6411) TITLE INSURANCE CORPORATIONS
6407 - Restrictions on dividends.

 
    §  6407. Restrictions on dividends. (a) No title insurance corporation
  shall declare or pay any  cash  or  property  dividend  on  its  capital
  shares,  or  declare or distribute a stock dividend except out of earned
  surplus,  meaning,  for  the  purpose  of  this  section,  surplus   not
  attributable  to  contributions  made  to surplus within five years next
  preceding or to  appreciation  in  value  of  investments  not  sold  or
  otherwise disposed of.
    (b)  No  such  corporation  shall  declare or pay any cash or property
  dividend  to  shareholders  which,  together  with  all  such  dividends
  declared  or paid by it during the next preceding twelve months, exceeds
  ten percent  of  its  then  outstanding  capital  shares  unless,  after
  deducting  such  dividends,  it  has a surplus to policyholders at least
  equal to fifty percent of its reinsurance reserve or a surplus at  least
  equal  to  fifty percent of the minimum capital required of such insurer
  to transact the business of title insurance, whichever shall be greater.
  For the purpose of this section,  "surplus"  means  the  amount  of  the
  insurer's  admitted  assets  in  excess  of  (i) all of its liabilities,
  including its reinsurance reserve,  and  (ii)  its  outstanding  capital
  shares.
    (c) No such corporation shall declare or distribute any stock dividend
  which  shall  reduce surplus to an amount less than fifty percent of its
  then outstanding capital shares.