  This paper investigates dividend optimization of an insurance corporation
under a more realistic model which takes into consideration refinancing or
capital injections. The model follows the compound Poisson framework with
credit interest for positive reserve, and debit interest for negative reserve.
Ruin occurs when the reserve drops below the critical value. The company
controls the dividend pay-out dynamically with the objective to maximize the
expected total discounted dividends until ruin. We show that that the optimal
strategy is a band strategy and it is optimal to pay no dividends when the
reserve is negative.
