Code of the District of Columbia

§ 31–4405. Formation — Disposition of sums paid upon stock subscriptions.

Every subscription to the capital stock of a stock company shall contain the stipulation that no sum shall be used for commission, promotion, or organization expenses in excess of a percentage of the amount paid upon the stock subscriptions, to be named in such stipulation and proved by the Commissioner, and the remainder of sums so paid to the company shall be invested in securities in which a life insurance company is authorized to invest, or deposited in a bank or trust company in the District until the company has duly procured a certificate of authority from the Commissioner.

(June 19, 1934, 48 Stat. 1145, ch. 672, ch. III, § 5; May 21, 1997, D.C. Law 11-268, § 10(k), 44 DCR 1730.)

Prior Codifications

1981 Ed., § 35-605.

1973 Ed., § 35-505.

Editor's Notes

Department of Insurance abolished: See Historical and Statutory Notes following § 31-4402.