§ 6402. Organization; financial requirements. A title insurance
corporation may be organized and licensed in the manner prescribed in
subsection (e) of section one thousand one hundred two and section one
thousand two hundred one of this chapter, except as hereinafter
prescribed, to do the kind of insurance business, and with the
incidental powers, specified in section six thousand four hundred three
of this article, with a paid-in capital of at least five hundred
thousand dollars and a paid-in initial surplus at least equal to fifty
percent of its paid-in capital, and it shall at all times thereafter
maintain a capital at least equal to five hundred thousand dollars,
except that any such corporation organized before July first, nineteen
hundred eighty-two, shall at all times maintain a minimum capital of two
hundred fifty thousand dollars. In the organization of any such
corporation the provisions of section one thousand two hundred one of
this chapter shall be superseded or supplemented by the following
provisions:

(a) The duration of such corporation shall be perpetual.

(b) Its principal office shall be located in this state.

(c) The purposes for which such corporation shall be organized shall
only be such as are specified in section six thousand four hundred three
of this article.

(d) Its incorporators shall be natural persons, not less than seven in
number, and shall possess the qualifications of directors prescribed in
subsection (e) hereof.

(e) Its directors shall be natural persons, not less than seven in
number, all citizens of the United States, a majority of whom shall be
citizens and residents of this state at the time of their election and
during their continuance in office.

(f) Before a license to do business shall be issued to such
corporation a list of its shareholders shall be filed in the office of
the superintendent, subscribed and affirmed as true under the penalties
of perjury by two of its principal officers, giving the name, residence
and post-office address of, and number of shares held by, each
shareholder.

(g) No foreign or alien insurer shall be granted a license or renewal
of a license to do in this state the kind of business specified in
paragraph eighteen of subsection (a) of section one thousand one hundred
thirteen of this chapter if it may exercise any powers or conduct any
business without this state not authorized by such paragraph, or unless
its surplus to policyholders, of which not more than five percent of its
admitted assets shall be represented by title plant or plants, is at the
time of initial licensing not less than the sum of (i) the minimum
capital and initial surplus required of a similar domestic insurer, and
(ii) an amount by which reserves computed in accordance with paragraphs
one and two of subsection (a) of section six thousand four hundred five
of this article on business within and without the state exceed its
reserves of a comparable nature, whether statutory or voluntary, and
unless such insurer at all times thereafter maintains a surplus to
policyholders, similarly limited as to value of title plant or plants,
at least equal to the sum of such minimum capital and reserves
determined as hereinabove set forth, or if it fails to meet any other
requirements of this chapter applicable to a domestic title insurance
corporation except that any such insurer initially licensed on or after
July first, nineteen hundred eighty-two, shall have a surplus to
policyholders at least equal to the sum of (i) minimum capital and
initial surplus required of a like domestic insurer initially licensed
on or after July first, nineteen hundred eighty-two, and (ii) reserves
as hereinabove required; and shall maintain a surplus to policyholders
at least equal to the sum of (i) the reserves hereinabove required and
(ii) the minimum capital required of a domestic insurer initially
licensed on or after July first, nineteen hundred eighty-two.