Colorado § 10-3-113 - Increase of capital.
Full text of Colorado Colorado Revised Statutes § 10-3-113 — Increase of capital., with citation guidance and answers to common questions.
§ 10-3-113. Increase of capital.
(1) Any such corporation organized and duly licensed by the commissioner to conduct an insurance business may sell additional stock or increase its capital for the purpose, in the manner, and to the extent prescribed by law, but the expense incurred in connection with such sale shall not exceed twenty percent of the amount realized from the sale of its capital stock, whether in cash or notes, and said expense shall be paid from surplus funds of the corporation.
(2) The provisions of this title (except article 15) and article 14 of title 24, C.R.S., also apply in the formation and authorization of domestic insurance companies formed upon the mutual plan, and to associations formed upon the assessment plan, that are organized with a guaranty fund in lieu of capital as provided in said references.
Source: L. 13: p. 346, § 2. L. 15: p. 270, § 1. L. 21: p. 457, § 5. C.L. § 2503. CSA: C. 87, § 30. L. 41: p. 502, § 2. CRS 53: § 72-1-44. L. 57: p. 758, § 9. C.R.S. 1963: § 72-1-44. L. 92: (2) amended, p. 1538, § 29, effective May 20. L. 2004: (2) amended, p. 898, § 10, effective May 21. L. 2012: (2) amended, (HB 12-1266), ch. 280, p. 1503, § 23, effective July 1.
ANNOTATION
Law reviews. For article, "The Colorado Securities Law", see 35 Dicta 271 (1958).
Contract to pay 20 percent commission is valid. A contract to pay 20 percent commission for the sale of the stock of a newly organized insurance company is not invalid as a violation of this section. Colo. Life Ins. Co. v. Madden, 73 Colo. 504, 216 P. 551 (1923).
More than 20 percent cannot be used for organization. It cannot appear that more than 20 percent of the total amount realized on the sale of stock was used in organization expenses. Colo. Life Ins. Co. v. Madden, 73 Colo. 504, 216 P. 551 (1923).
Promoters of a corporation cannot deduct 20 percent of a subscription for expenses unless they actually complete enterprise and raise the necessary capital and surplus. Alderman v. Thimgan, 76 Colo. 268, 230 P. 620 (1924).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 10-3-113
What does Colorado Revised Statutes § 10-3-113 cover?
Section 10-3-113 ("Increase of capital.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 10-3-113?
A common citation format is "Colorado Revised Statutes § 10-3-113" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 10-3-113 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.