# S.C. Code Ann. § 38-21-50: SECTION 38-21-50. Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary

> South Carolina · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-50

## Section

- **Citation:** S.C. Code Ann. § 38-21-50
- **Heading:** SECTION 38-21-50. Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary
- **Jurisdiction:** South Carolina
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SC Code / Title 38 / Chapter 21 / Section 38-21-50

## Text

Whether an investment meets the applicable requirements of Section 38-21-30 is to be determined before the investment is made by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends. If an insurer ceases to control a subsidiary, it must dispose of any investment made pursuant to Section 38-21-30 within three years from the time of the cessation of control or within such further time that the director or his designee may prescribe unless, at any time after the investment has been made, the investment has met the requirements for investment under any other section of this title and the insurer has notified the director or his designee.

## Nearby sections

- [S.C. Code Ann. § 38-21-10 SECTION 38-21-10. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-10.md)
- [S.C. Code Ann. § 38-21-20 SECTION 38-21-20. Authority of insurers to organize or acquire subsidiaries.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-20.md)
- [S.C. Code Ann. § 38-21-30 SECTION 38-21-30. Authority of insurers to invest in securities of subsidiaries.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-30.md)
- [S.C. Code Ann. § 38-21-40 SECTION 38-21-40. Investments in securities of subsidiaries are not subject to other restrictions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-40.md)
- [S.C. Code Ann. § 38-21-50 SECTION 38-21-50. Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-50.md)
- [S.C. Code Ann. § 38-21-60 SECTION 38-21-60. Statement required by person seeking to acquire control of insurer; notice to director.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-60.md)
- [S.C. Code Ann. § 38-21-70 SECTION 38-21-70. Contents of statement; amendment.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-70.md)
- [S.C. Code Ann. § 38-21-80 SECTION 38-21-80. Use of certain documents required by other laws in furnishing information called for in statement.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-80.md)
- [S.C. Code Ann. § 38-21-90 SECTION 38-21-90. Approval of Commissioner of acquisition of control; hearing.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-90.md)
- [S.C. Code Ann. § 38-21-95 SECTION 38-21-95. Approval for acquisition of domestic insurer by controlling producer; conditions and requirements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-95.md)
- [S.C. Code Ann. § 38-21-100 SECTION 38-21-100. Certain transactions exempt from Sections 38-21-60 to 38-21-120.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-100.md)
- [S.C. Code Ann. § 38-21-110 SECTION 38-21-110. Violations of Sections 38-21-60 to 38-21-120.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-110.md)
- [S.C. Code Ann. § 38-21-120 SECTION 38-21-120. Jurisdiction of courts; service of process.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-120.md)
- [S.C. Code Ann. § 38-21-125 SECTION 38-21-125. Acquisitions of insurers not covered by the Insurance Holding Company Regulatory Act.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-125.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-50. Check the current official text before relying on it. Not legal advice.