Cedar Falls gazette. [volume] (Cedar Falls, Iowa) 1860-1895, 1868-06-19

legal Representatives, subject to such
restrictions tie directors shall frUm
time % time establish In their by.
laws, except as hereinafter provided.
Sec. IL Whenever alay comnany
organized under this act, with les,
than tho maximum capital limited
In section three hereof. shall, I'm the
opinion Of the directors thereof. re-
Qulre an Increased amount Of capital.
they shall, IL authorized by the hold
crs Of a majority OF the stock TO do
80, flic with the Auditor Of State a
certificate setting forth tho amount
Of such desired increase, not excoctl-
Ing said maximum, and thereafter
such company shall DO entitled to
hav0sthc Increased ainountof capital
fixed by said certificate, md tlc'Vx-
animation Of securities com posing
the capital Htock thus Increased, shall
DO made in the Bame manner as pro-
visicd In section seven Of this act. for
the capital stock first paid In. p
SIC. 10. IL shall NOT bc lawful for
the directors, trustees, or managers
or any insurance company organized
under this net, or Incorporated, under
any law OF tliiR State, to make any
dividends. except from the surplus
profit arising from their bwsiness !;
and I'm estimating such profita, there
shall be reserved therefruM 4 sum
equal to forty per cent. Of the amount
rcceivcd as premiums ON uncxpircd
risks and policies, which amount 90
preserved Is hereby declared 10 bo un-
earned premiums; and thcrc shaIi
alsO be reserved all sums duo the COR
poratiOn on bonds and mortgages.
bonds, stocks, and book accounts, OF
which no part Of the principal or in-
tercst thereon has been paid during
the year preceding such estimate OF
profits, and upon which suit for fore
closure or collection has not been
commenced, or which, after judg-
ment hns been obtained thereon,
shall have remained moro than two
years unsatisfied and ON which In
terest shall not have been paid and
in case Of any such Judgment tie In
tcrcdt duo or accrued thereon, aud re-
maining unpaid, shall also be reserv-
et. Any dividends made contrary
to these provisions shall subject the
company making 1t to forfeiture Of
their charter. a
SEc. 10. No company organized
under this act shall purchase, hold,
or convey any real estate save for the
purposes and In tho manner herein
set forth, t0-wit: Flrst-such as shall
be requisite for its convenient ac-
commodation In tho transaction of
its business Sccolld--such as shall
have been m0rtgagcd TO 10 In good
faith, by way of security for loans
previously contracted, or for money
due; or, Third such as shall have
been conveyed to it In satisfaction of
debts previously contracted In tho To-
gitimato business OF the company, oil
for money due; or, Fourth-such az
shall have been purchased at sales
upon Judgments, decrecs, or mort
cages obtained or made FOE sucll
debt aid II shall not be law fui for
any such company ta purchase, hold,
or convey real cstatc I'm any other
case or for any. other purpose, or ac-
quired In any other manner, except
TINT IL may convey real estate which
shalt bo found, Ia the course OF Its
business, mot necessary for Its c0nvc-
nient accommodation In the transac-
tfOn thereof; and all such last mon
toned real estate shall be sold and
conveyed within three years after
the same shall be sold and conveyed
within three years after the Same
shall have been deemed by the Audi.
tor of State unnecessary for such nc.
commotiation, unless tho company
shall procure q certificate from the
said Auditor that tho Interests oi
said company will materially suffer
by a forced sale, In which event the
sale may be postponed for such pc.
riod as tho said Auditor shall direct
In said certificate.
Sec. IL. AL notes deposited will,
any mutual insurance company al
the Time Of Its organization, as pro.
vided i'm section three hereof, shall
remain rs security for all losses and
claims until tho aceumulatlons oi
the profits invested rs required by The
sixth section OF this net shall equal
the amount Of cash capital required
to be posessesi by stock companies
Organized under this act, the liability
of each note decreasing proportion
ately rs the profits are accumulated
but any note which may havc beer
deposited with any mutual insurance
company Subsequent to its organiza.
tion, In addition 10 tho cash prcmi-
ums on any ~jnsurancc effected With
such company, may, mt tho cxpira-
tiOn Of the time of such insurance,
or upon the cancellation by the com
paDy Of tho policy, be srelinqtiisled
ansi given up to the maker thereof,
or Ibis legal representatives, upon his
paying bis proportion of losses and
expenses which may have accrued
thereon during such term. Tho dl-
rcct0rs or trustees Of any such COM
papy shall have tho right to deter
mine tho amount OF the note to be
given In addition to tho cash prcmI-
um by any person insured In such
company, nid every person e0ecting
Insurance. In any mutual company
and also their heirs, executors, ad-
ministratofs, aud bnssigsis, continuing
10 be 30 insured, shall thereby become
members of said company during the
period Of insurance, aHd shall be
bound 10 pay for losses and such
necessary expenses rs aforesaid, &C.
cruiny TO said company, In proportion
to the amount of l,is or their deposit
note OF notes; Provided, That any
person insured In any mutual com
pany. except In case Of notes required
by this net to bc deposited ut the
time Of Its organization, may ut any
unie return his policy for caiicella-
lion, and upon payment OF the
amount duo mt such time upon lais
premiums note, shall be DISCHARGED
from further liability thereon.
Sec. Is. Tho directors shall, m
often as they sleenl necessary, after
receiving notice OF any l0ss or JdaDl-
agc, settle and dcterU. inc the sums Ia
be paid by the several members
thereof as their respective portion ot
such loss, and publish the same In
such manner as they shall deem
proper, or the hy-laws shall have pre-
scribed but the sum to be paid by
cnch nlcInber shalt always be I'm pro-
portion to the original amCunt Of Ills
deposit note or notes, and shall he
paid 10. the officers Of the company
within thirty days after the publica-
tion Of said notice; and II any mem-
Der shall for tho space 0f thirty days
after personal demand or by letter for
payment shall llnve l,oen mallc, neg
lect or refuse 10 pay the SUM assessed
upon him as his proportion OF any
loss aforesaid, tho directors mny sue
for aud recover the whole amount Of
his deposit nOto or notes, with costs
Of. suit; but execution shall issue for
assessments and costs as they aoorue
only, and every such execution shall
be accompanied " . list Of l0sscs f0T
Which tho asScseIrlent was made. III
the wilUl0 amount Of deposit notes