Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1880-05-14
lOuArrER 474.]
CORPORATIONS.
AN ACT

To repeal section two hundred and nineteen Of
article twenty-sx of the Code of Public Gene
raj Laws, title Corporations" subtitle "Co-
operative Stores, &c, as the same was re-
enacted by the act of eighteen hundred and
sixty-eight chapter four hundred and seventy
one, aud to re-enact the same with amend
ments.
SEoTIoN |. Be IL 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
enacted by the act of eighteen hundred and
sixty. Eight, chapter four hundred and seventy
one, entitled Corporations" relating to pre-
ferred stock, be, and the is hereby, repealed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 10 cure the same by mortgage Of the
property Of ouch corporation, or which has the
power to obtain such money upon mortgage,
may whenever in the judgment Of said corpora
ton II ID 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
bonds, or for any amount which the said corpo-
ration may be authorized to obtain upon mort
gage of its property, and may dispose Of the
said stock by sale, on such terms as ii 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 ackno wledged as eonyeyances 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
scrbers to such preferred stock, perpetual
dividend Of six per centum per annum, out Of
the profits Of the said poraion, pay able yearly
or balf-yearly as said corporation shall deter
mine before any dividend is distributed to any
Of the stockholders ofthe said corporation other
than the holders Of said preferred stock so cree
ated and the holders thereof shall have all the
incidents, rights, privileges and immunlties 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 sucn preferred
stock shall be authorized by general meeting
Of the stockholders Of such corporation, and the
said preferred stock shall he and constitute n
lien on the franchises and property Of such cor
poration, and have priority over any subse-
quently created mortgage or other incumbrance.
Sec. 2. And be II enacted, That this act shall
take effect from the date Of it's passage.
HERMAN STUMP,
President Of the Senate
HIRAM MCCULLOUGH,
Speaker OF the House Of Delegates.
Approved April 10, 1880.
WIN. 7. HAMILTON.
Governor Of Maryland.
We hereby certify tina, the sforegoing is cor
rect copy Of al act Of the General Assembly
Of Maryland, passed at the January session,
lsse.
EssEEE HIssIu,
Secretary Of the Senate.
MIIF1S Y KIDp,
Chief CLERK VI The House Of Delegates.