If Radian Guaranty is not in compliance with a state’ s applicable Statutory RBC Requirement, it may be prohibited from  writing new business in that state until it is back in compliance or it receives a waiver of, or similar relief from, the requirement,  as discussed in more detail below. In those states that do not have a Statutory RBC Requirement, it is not clear what actions the  applicable state regulators would take if a mortgage insurer fails to meet the Statutory RBC Requirement established by another  state. Accordingly, if Radian Guaranty fails to meet the Statutory RBC Requirement in one or more states, it could be required  to suspend writing business in some or all of the states in which it does business. In addition, the GSEs and our mortgage  lending customers may decide not to conduct new business with Radian Guaranty (or may reduce current business levels) or  impose restrictions on Radian Guaranty while its capital position remained at such levels.  The franchise value of our mortgage  insurance business would likely be significantly diminished if we were prohibited from writing new business or restricted in the  amount of new business we could write in one or more states. Radian Guaranty’s capital position also is dependent on the performance of our financial guaranty portfolio. During the  third quarter of 2008, we contributed our ownership interest in Radian  Asset Assurance to Radian Guaranty . While this  reorganization provided Radian Guaranty with substantial regulatory capital and dividends, it also makes the capital adequacy  of our mortgage insurance business dependent, to a significant degree, on the successful run-of f of our financial guaranty  business. As of December 31, 2012, Radian Guaranty’ s statutory surplus was $926.0 million, which included Radian  Asset  Assurance’s statutory surplus of $1.1 billion as of the same date. Any decrease in the statutory capital in our financial guaranty  business would therefore have a negative impact on Radian Guaranty’ s capital position and its ability to remain in compliance  with the Statutory RBC Requirements. If our financial guaranty portfolio performs worse than anticipated, including if we are  required to establish (or increase) statutory reserves on defaulted obligations that we have insured, or if we make net  commutation payments to terminate insured financial guaranty obligations in excess of the then established statutory reserves  for such obligations, the statutory capital of Radian Guaranty also would be negatively impacted. See “ Deterioration in our  financial guaranty portfolio could reduce Radian Asset Assurance’s statutory surplus and negatively impact its ability to pay  dividends to Radian Guaranty .” We actively manage Radian Guaranty’ s capital position in various ways, including: (1) through internal and external  reinsurance arrangements; (2) by seeking opportunities to reduce our risk exposure through commutations or other negotiated  transactions; (3) by contributing additional capital from Radian Group to our mortgage insurance subsidiaries; and (4) by  realizing gains in our investment portfolio through open market sales of securities. Radian Group had unrestricted cash and  liquid investments of $375.6 million as of December 31, 2012, which amount includes approximately $39.4 million of future  expected corporate expenses and interest payments that have been accrued for and paid by certain subsidiaries to Radian Group  as of that date. Of these funds, $79.4 million was used to repay the remaining principal amount outstanding on our 2013 Notes  that matured on February 15, 2013. Radian Group currently has outstanding $54.8 million of debt due in 2015, $195.2 million  of debt due in June 2017 and an additional $450 million of convertible debt due in November 2017.  Depending on the extent of  our future statutory incurred losses in our mortgage insurance subsidiaries and in Radian  Asset Assurance, as well as the level  of NIW and other factors, the amount of capital contributions required for Radian Guaranty to remain in compliance with the  Statutory RBC Requirements could be substantial and could exceed amounts available at Radian Group. We use reinsurance from af filiated companies to support Radian Guaranty’ s risk-to-capital ratio. In order to improve its  capital position, in the fourth quarter of 2012, Radian Guaranty entered into an excess-of-loss reinsurance transaction with  Radian Mortgage Insurance under which Radian Guaranty transferred approximately $2.5 billion of RIF to Radian Mortgage  Insurance. In 2011 and 2010, Radian Guaranty entered into excess-of-loss reinsurance agreements with Radian Insurance under  which Radian Guaranty initially transferred a total of approximately $6.1 billion of RIF to Radian Insurance. Our ability to  continue to reduce Radian Guaranty’ s risk through similar affiliated reinsurance arrangements may be limited.  These  arrangements are subject to regulation by state insurance regulators who could decide to limit, or require the termination of,  such arrangements.  Certain of these affiliated reinsurance companies currently are operating at or near minimum capital levels and have  required, and may continue to require, additional capital contributions from Radian Group in the future. Radian Mortgage  Insurance and Radian Insurance are each required to maintain a minimum statutory surplus of $20 million to remain authorized  reinsurers, and in 2012, Radian Guaranty made a capital contribution to Radian Mortgage Insurance totaling approximately $60  million. CMAC of Texas, which provides reinsurance to Radian Guaranty for coverage in excess of 25% of certain loans  insured by Radian Guaranty , is a sister company of Radian Guaranty , and therefore, any contributions to this insurer would not  be consolidated with Radian Guaranty’ s capital for purposes of calculating Radian Guaranty’ s risk-to-capital position. In  addition, we must obtain prior approval from one or both of the GSEs to enter into new , or to modify existing, reinsurance  arrangements. If we are limited in, or prohibited from, using reinsurance arrangements to reduce Radian Guaranty’ s risk, it  would adversely affect Radian Guaranty’ s risk-to-capital position. 60