Section 6615. Annual assessments; borrowed money

(a) (1) Every assessment
  corporation may, if so directed  by  its  board  of  directors  levy  an
  assessment  upon all of its members. Such assessment shall be sufficient
  to provide for the payment of losses, expenses, and  other  obligations,
  incurred,  or likely to be incurred during the fiscal year for which the
  assessment is levied.
    (2) If issuing policies on but one class of property, such  assessment
  shall  be in proportion to the several amounts of insurance held by each
  member.
    (3) If issuing policies on more than one class of property,  rates  of
  assessment  shall  be  in proportion to the several amounts of insurance
  held by each member and on the basis of classifications adopted  by  its
  board  of  directors  to  express the relative hazards of the properties
  insured.
    (b) (1) Every such corporation may borrow money, except by means of  a
  mortgage, to pay incurred losses and expenses; but in the calculation of
  its  next  assessment following the time, or times, at which such a loan
  or loans were effected, due provision shall be made for the  liquidation
  of such loan or loans.
    (2)  An  assessment  corporation may borrow money for a period of more
  than one year with the written approval of the superintendent and  under
  such conditions as he may prescribe.
    (c)  (1) Every such corporation may levy annual assessments in advance
  sufficient to discharge its estimated losses, expenses, and other  valid
  obligations  for  which  it  may reasonably be expected to become liable
  during the period prior to the end of its fiscal year.
    (2) At any time after the institution of such assessments, new members
  may be admitted to any such corporation upon paying such fees and  other
  sums as may be provided for by the corporation's by-laws and upon paying
  their proportionate shares of the last preceding assessment.
    (d)  On  and  after  the  effective  date  of any change from the post
  assessment basis to the advance assessment basis  as  permitted  herein,
  every  assessment corporation may collect advance assessments, as herein
  provided, from each person applying for or renewing a policy or policies
  and only those persons who were  admitted  as  new  members  during  the
  period prior to such effective date and subsequent to the levying of the
  final  post  assessment  shall  be  assessed on a pro rata basis for the
  losses, expenses, and  other  valid  obligations  incurred  during  such
  period.