Fund Insufficient to Discharge Obligations; Liquidation

  1. Law
  2. Georgia Code
  3. Education
  4. Elementary and Secondary Education
  5. Interlocal Risk Management Agency
  6. Fund Insufficient to Discharge Obligations; Liquidation

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  1. If the assets of a fund are at any time insufficient to enable a fund to discharge its legal liabilities and other obligations and to maintain the reserves and surplus required of it under this article, the agency shall forthwith make up the deficiency or levy an assessment upon the members of the fund for the amount needed to make up the deficiency.
  2. If the agency fails to make up the deficiency or to make the required assessment of the fund members within 30 days after the Commissioner orders it to do so or if the deficiency is not fully made up within 60 days after the date on which any such assessment is made or within such longer period of time as may be specified by the Commissioner, the fund shall be deemed to be insolvent and shall be proceeded against in the same manner as are domestic insurers under Chapter 37 of Title 33; and the Commissioner shall have the same powers and limitations in such proceedings as are provided under Chapter 37 of Title 33, except as otherwise provided for in this article.
  3. If the liquidation of a fund is ordered, an assessment shall be levied upon its members for such an amount as the Commissioner determines to be necessary to discharge all liabilities of the fund, including the reasonable costs of liquidation.

(Code 1981, §20-2-2015, enacted by Ga. L. 1986, p. 1172, § 1.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1986, the second reference to "Chapter 37 of Title 33" was substituted for "that chapter" in subsection (b).


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