There shall at all times be maintained as a reserve a sum in cash, or in securities of the character permitted by the laws of the State under which the exchange is organized for the investment of the capital and funds of an insurance company, equal to fifty per centum (50%) of the aggregate net annual deposits collected and credited to the account of the subscribers on policies having one year or less to run, and pro rata on those for longer periods. Net annual deposits shall be construed to mean the advance payments of subscriber, after deducting therefrom the amounts specifically provided in the subscribers' agreements for expenses. If said reserves at any time do not amount to one hundred thousand ($100,000) dollars, then there shall be maintained on deposit at the exchange at all times additional funds in cash or such securities which together with said reserves will equal one hundred thousand ($100,000) dollars. In calculating the foregoing reserves, the funds or amounts provided for in sub-section (g) section one thousand four,¹ shall be included as part thereof. There shall also be maintained as a claim or loss reserve, cash or such securities, as authorized, sufficient to discharge all liabilities on all outstanding losses arising under policies issued. If at any time the amounts on hand are less than the foregoing requirements the subscribers or their attorney for them shall make up the deficiency under penalty of a revocation of the license. Such advances shall be repaid only out of the surplus funds of the exchange.