33-27-119. Termination of independent liability fund. (1) When a small business with an independent liability fund ceases its operations, either voluntarily or involuntarily, it shall provide a trust to administer any principal remaining in its fund and to pay any outstanding claims for the longest of the following applicable periods:
     (a) any statute of limitations applicable to operations of that particular small business;
     (b) any legally required period of insurance coverage; or
     (c) 15 years.
     (2) The principal of an independent liability fund must remain inviolate, except as it is needed to pay just claims, for the full applicable termination period. However, income from the principal not needed for administrative costs may be paid during the termination period to the person or persons who are designated to ultimately receive the principal of the fund, and such income is taxable to that person or persons.

     History: En. Sec. 17, Ch. 564, L. 1987.