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This entry was published on 2014-09-22
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Surplus, obligations and depositories
§ 217. Surplus, obligations and depositories. 1. Such corporation
shall set apart as an earned surplus all of its net earnings in each and
every year until such earned surplus shall equal the total of the
paid-in capital and paid-in surplus then outstanding. Said earned
surplus shall be held in cash, invested in United States government
bonds, or as provided in such corporation's by-laws, and shall be kept
and used to meet losses and contingencies of such corporation and,
whenever the amount of earned surplus shall become impaired, it shall be
built up again to the required amount in the manner provided for its
original accumulation.

2. At no time shall the total obligations of such corporation exceed
ten times the amount of its paid-in capital and surplus, not including
therein the earned surplus, or two hundred fifty million dollars,
whichever is greater.

3. Such corporation shall not deposit any of its funds in any banking
organization unless such banking organization has been designated as a
depository by a vote of the majority of all of the directors of such
corporation, exclusive of any director who is an officer or director of
the depository so designated. Such corporation shall not receive money
on deposit. Such corporation shall not make any loans directly or
indirectly to any of its officers or to any firms in which any of its
officers is a member or officer.