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This entry was published on 2014-09-22
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Payments to the fund
§ 657. Payments to the fund. In the event the fund has borrowed any
monies from the property and liability insurance security fund pursuant
to the provisions of section six hundred fifty-eight of this chapter,
and has any debt outstanding thereto, or in the event an uninsured
transmitter of money is declared, or declares itself, insolvent or
defaults on its New York instruments, the fund shall levy an assessment
upon each uninsured transmitter of money. The amount of such assessment
shall be determined by the superintendent provided, however, that each
uninsured transmitter of money shall be assessed ratably, in proportion
to the average of the dollar amounts of the New York instruments issued
by such uninsured transmitter of money outstanding at the end of each
calendar quarter for the calendar year preceding that in which the
assessment is made, and provided, further, that no such assessments
shall be levied once the net value of the fund shall equal such amount
as the superintendent shall have determined to be necessary to protect
the interests of the purchasers and holders of New York instruments. In
making his determination, the superintendent shall consider the scope of
the risk covered by the fund, the expenses incurred or expected to be
incurred by the fund, the amount of any loans and advances to the fund,
and the interest thereon.

In no event shall the total amount so assessed in any one year against
any uninsured transmitter of money pursuant to this section exceed two
per centum of the New York instruments of such uninsured transmitter of
money which were outstanding at the end of the calendar year preceding
that in which such assessments are made or one hundred twenty-five
thousand dollars, whichever is less. The net value of the fund shall be
determined by deducting from the value of the assets of the fund the
aggregate actual and estimated liabilities of the fund as determined by
the superintendent.