6656

(a) An SPFC initially shall possess and after that maintain minimum capitalization of not less than $250,000. All of the minimum initial capitalization must be in cash. All other funds of the SPFC in excess of its minimum initial capitalization must be in the form of cash, cash equivalent, or securities invested as provided in section 6665 of this subchapter and approved by the SAM.\n(b) Additional capitalization for the SPFC must be determined, if so required, by the SAM after giving due consideration to the SPFC's business plan, feasibility study, pro-formas, and the nature of the risks being insured or reinsured, which may be prescribed in formulas approved by the SAM.\n(c) All of the minimum capitalization must be held in a bank or financial institution licensed and doing business in the Territory.