§ 7504. The guaranty fund. (a) The corporation shall provide a
guaranty fund from which all corporate administrative costs may be paid
as well as such payments and advances as may be made in connection with
any assumption, reinsurance or guaranty agreement. Such fund shall be
raised by assessments which may be made from time to time by the
corporation upon all member companies in proportion to their admitted
assets as shown by their annual statements required by this chapter for
the year next preceding the date of such assessment. The net realized
gains and income from investments of the fund shall belong, and be
refunded, to the contributors in proportion to the amounts contributed
by them. The corporation may provide by resolution or by-law the
necessary procedure for making assessments, the payment thereof, and the
refund of any net realized gains and income from investments of the
fund.

(b) The amount of the fund shall be kept at such a sum as will enable
the corporation to meet its immediate obligations and liabilities.

(c) Upon payment of assessments the corporation shall issue to the
contributors certificates showing the dates and amounts of such
payments, and any other matters deemed proper. All outstanding
certificates shall be of equal dignity and priority irrespective of
amounts or dates of issue. Such certificates may be carried by member
companies as admitted assets to the extent authorized by the
superintendent.

(d) Whenever the amount of the fund exceeds the immediate requirements
of the corporation, with the approval of the superintendent, the
corporation may distribute such excess by retirement of the aforesaid
certificates previously issued or any part thereof. Such distribution
shall be made pro rata upon the basis of outstanding certificates,
except that by unanimous consent of all the directors and with the
approval of the superintendent any other method of retirement of the
certificates may be adopted.

(e) Upon dissolution of the fund by the repeal of this article or
otherwise, the fund shall be distributed in the manner provided for the
repayment or retirement of certificates. If the amount of the fund at
the time of dissolution exceeds the outstanding certificates, the excess
shall be paid in such equitable manner as shall be approved by the
superintendent.

(f) The aggregate of the outstanding certificates shall at no time
exceed fifty million dollars.