The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1880-05-07
[CHA.TER 414.l
CORP ORA TIOYS.
AN ACT


To repeal section two hundred and nineteen of
article twenty-six of the Code of Public Gene
raj Laws, title ''Corporations," subtitle 60
operative Stores, &C., as the same was re-
enacted by the act of eighteen hundred and
sixty-eight, chapter four hundred and seventy
one, and to re-enact the same with amend
mcnts.
SECTION |. Be it enacted by the General As
sembly of Maryland, That section two hundred
and nineteen of article twenty-six of the Code
of Public General Laws, as the same was re-
enacted by the act of eighteen hundred and
sxty-eight, chapter four hundred and seventy
one, entitled "Corporations,' relating to pre-
ferred stock be, and the same is hereby, repealed
and the following substituted in lieu thereof:
Section 2l9. Every corporation incorporated
under the laws Of this State, which has the
power to issue bonds as evidences of indebted
ness, and TO cure the same by mortgage of the
property of such CORPORATION, or which has the
power to obtain such money upon mortgage,
may whenever in the Judgment of said corpora
ton it is expedient to do so, in place of issuing
such bonds and securing the same by mortgage
of the property of the said corporation, or in
stead OF obtaining money upon mortgage, issue
preferred stock for any amount for which the
said corporation may be authorized to issue its
bonds, or for any amount which the said corpo-
ration may be authorized 10 obtain upon mort
gage of its property, and may dispose of the
said stock by sale, on such terms as it may pre-
scribe, or by permitting the same to be cub
scribed for, as In the judgment of said corpo-
ration may be deemed expedient, and every
corporation creating such preferred stock as
aforesaid may execute an agreement under seal,
to be acknowledged as conveyances Of land are
required to be acknowledged and recorded in
the office of the Clerk Of the Circuit Court for
the county where the principal office Of such
corporation shall be situated, or in the Office of
the Clerk of the Superior Court of Baltimore
city in case such Office shall be situated in said
city, guaranteeing to the purchasers of, or sub
scribers to such preferred stock, a perpetual
dividend of six per centum per annum, out of
the profits of the said corr Grafton, pay able yearly
or halfyearly as said corporation shall deter
mine, before any dividend is distributed to any
of the stockholders of the said corporation other
than the holders of said preferred stock so Gre
ated, and the holders thereof shall have all the
incidents, rights, privileges and immunitits and
liabilities 10 which the capital stock OF said
corporation or the holders thereof may he en-
titled or subject; provided, however, that no
corporation shall exercise any power under this
section unless the creation of such preferred
stock shall be authorized by general meeting
OF the stockholders oil such corporation, ana the
said preferred stock shall he and constitute a
lien on the franchises and property Of such cor
poration, and have priority over any subse-
quentIy created mortgage or other membranes.
Sec. Q. And be it enacted, That this act shall
take effect from the date of its passage.
HERMAN STUMP,
President Of the Senate.
HIRAM MCCULLOUGH,
Speaker of the House of Delegates.
Approved April 10, 1880.
WIN. T. HAMILTON,
Governor of Maryland.
We hereby certify that the aforegoing is a cor
rect copy of an act of the General Assembly
of Maryland, passed at the January session,
1880.
EUGENE HIGGINs,
Secretary Of the Senate.
MILTON Y. KIDD,
Chief Clerk of the House of Delegates,