An association may convert to a stock legal reserve life insurance company if the association:

1. (1) has at least $100,000 in the association's mortuary fund at the time of conversion; and

2. (2) except as provided by Section 887.508, possesses:

   1. (A) capital in an amount equal to at least $700,000 cash; and
   2. (B) surplus in an amount equal to at least $700,000 cash.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.