We intend to maintain Radian Guaranty’ s risk-to-capital below 25 to 1 throughout 2013, including if necessary , by making  contributions to Radian Guaranty from Radian Group’ s remaining available liquidity. Based on our current projections, in the  absence of these contributions or other risk-to-capital support, we anticipate that Radian Guaranty will exceed the 25 to 1 risk- to-capital ratio requirement during 2013. In some of the RBC States, Radian Guaranty is required to maintain a minimum  policyholder position (previously defined as the “MPP  Requirement”). Unless an RBC State grants a waiver or other form of  relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of an RBC State, it may be prohibited  from writing new mortgage insurance business in that state. Radian Guaranty had exceeded the MPP  Requirement in two states  as of December 31, 2012. Each of these RBC States has issued to Radian Guaranty a waiver of its MPP  Requirement that  allows Radian Guaranty to continue writing new business in these states regardless of whether the MPP  Requirement has been  met. One of the waivers expires at the end of 2013 and the other has no prescribed expiration date but could be revoked at any  time. See “Part II. Item 1A. Risk Factors— Losses in our mortgage insurance and financial guaranty businesses have reduced  Radian Guaranty’s statutory surplus and increased Radian Guaranty’s risk-to-capital ratio; additional losses in these  businesses, without a corresponding increase in new capital or capital relief, would further negatively impact this ratio, which  could limit Radian Guaranty’s ability to write new insurance and increase restrictions and requirements placed on Radian  Guaranty.” Radian Group also could be required to provide capital support for Radian Guaranty and our other mortgage insurance  subsidiaries if additional capital is required pursuant to insurance laws and regulations. Certain of our mortgage insurance  subsidiaries that provide reinsurance to Radian Guaranty have operated at or near minimum capital levels and have required,  and in the future may again require, additional capital contributions from Radian Group. Radian Group and CMAC of Texas are parties to an Assumption and Indemnification  Agreement with regard to certain  proposed tax adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years.  Through this  agreement, Radian Group agreed to indemnify CMAC of  Texas for the amount of any tax payments ultimately due to the IRS  for the proposed adjustments, which relate to the recognition of certain tax losses and deductions that were generated through  our investment in a portfolio of non-economic REMIC residual interests currently held by CMAC of  Texas. This  indemnification agreement was made in lieu of an immediate capital contribution to CMAC of  Texas that otherwise may have  been required as a result of our remeasurement of uncertain tax positions related to these residual interests.  We can provide no  assurance regarding the outcome of this IRS matter , which is likely to take several years in order to resolve.As such, there  remains significant uncertainty with regard to the amount and timing of any potential payments under the indemnity agreement  described above. See “Part I. Item 1A. Risk Factors— The IRS is examining our tax returns for the years 2000 through 2007. ” Dividends . Our quarterly common stock dividend is $0.0025 per share and, based on our current outstanding common  stock, we would require approximately $1.3 million in the aggregate to pay our quarterly dividends for the next 12 months.  Radian Group is not subject to any limitations on its ability to pay dividends except those generally applicable to corporations,  such as Radian Group, that are incorporated in Delaware. Delaware corporation law provides that dividends are only payable  out of a corporation’s capital surplus or (subject to certain limitations) recent net profits.  As of December 31, 2012, our capital  surplus was $734.8 million, representing our dividend limitation under Delaware law . Tax Payments. Under our current tax-sharing agreement between Radian Group and its subsidiaries, our subsidiaries are  required to pay to Radian Group, on a quarterly basis, amounts representing their estimated separate company tax liability for  the current tax year. Radian Group is required to refund to each subsidiary any amount that such subsidiary overpaid to Radian  Group for a taxable year, as well as any amount that the subsidiary could utilize through existing carryback provisions of the  Internal Revenue Code had such subsidiary filed its federal tax return on a separate company basis.  Any payments that we  expect to make during the next twelve months under the tax-sharing agreement are not expected to have a material impact on  Radian Group’s available liquidity. Our tax-sharing agreement may not be changed without the pre-approval of the applicable  state insurance departments for certain of the insurance subsidiaries that are parties to the agreement. In addition, pursuant to  the GSE Approvals, the consent of the GSEs is required to modify or amend the tax-sharing agreement. 139