The Sunday morning news. [volume] (Jersey City [N.J.]) 1886-1891, 1889-09-08
CHAPTER xxi.

A Supplement to an act entitled can act
concerning corporations" approved
April seventh, one thousand eight hun
bred and seventy-flve.
/. Be it enacted by the Senate and Gen
eral Assembly of the State of New Jersey,
That it shall be lawful for any ten or
more persons to associate themselves into
a company to carry on any business
which has for its object the selling of
credit, or the limiting, insuring or guar
anteeing of the losses of wholesale
dealers, manufacturers and jobbers, arts
ing by reason of bad debts, upon making
and filing a certificate in writing of their
organization in the manner hereafter
mentioned; such certificates shall set
forth, first, the name assumed to desig-
nate such company and to be used in its
business and dealings; second, the place
or places in this State where the central
office of said company is to be located:
third, the object for which said company
shall be formed; fourth, the total amount
of capital stock of such company, which
shall not be less than fifty thousand dol
lars; the amount with which such COM
pany will commence business, which
shall not be less than ten thousand dol
lars paid into the said company In cash,
and the number of shares into which the
said capital stock is divided, and the par
value Of each share; fifth, the names and
residences of the stockholders, the num-
Der of shares held by each; sixth, the
period at which said company shall COM
mence and terminate, not exceeding fifty
years; said certificate shall be approved
or acknowledged and recorded, as re-
quired in deeds of real estate, in a book
to be kept for that purpose, in the office
of the clerk of the county where the prin-
cipal Office or place of business of such
company in this State shall be located,
II L.
in the office of the Secretary of State: the
said certificate or copy thereof, duly certi-
fled by such clerk or Secretary, shall be
evidence in all courts and places
2. And be 1t enacted, That said COM
pany, before it shall commence the trans
action of any business, or the making of
any contracts or other engagements. shall
deposit with the Comptroller of this State
first bond and mortgage security, or other
security, which shall be approved by the
Insurance Commissioner of this State. to
a not less amount than ten thousand dol
lars, and the said Insurance Commits
sioner shall be authorized, whenever, in
his Judgment, for the safety of the obliga-
lions of such company it shall be neces-
sary to so do, to call upon and direct the
said company, within sixty days after the
date of such notice, to deposit additional
securities of like character to an addi-
tional amount not to exceed ten thousand
dollars, which securities shall be and re-
main in the custody of said Comptroller,
subject to change or reinvestment, with
like approval of the said Insurance Com
missioner, as guarantee Tor the fulfill
ment of the obligations and undertakings
of the said company.
Q. And be it enacted, That no company
organized under the provisions of this act
shall be authorized to act as q collection
agency or employ attorneys for that pur-
H. 1r,.-
company, when so organized, to give GER
tificates or pass upon the credit of any in
dividual partnership or company engaged
in any retail business, which said indi-
yidual, partnership or company shall be
dealing with, or proposing to deal with,
any wholesaler or jobber having, or pro-
posing to have, any agreement with the
company for the limiting or guaranteeing
of such wholesaler or j0bber against
losses in business; nor shall it be lawful
for any company organized under this act
to receive, by assignment, or otherwise,
from any person, partnership or corpora
ton to whom they may give a guarantee,
the bad debts or claims which shall have
been the cause of the loss sustained by
the party or parties who may have been
insured or guaranteed by them.
4. And be it enacted, That it shall aot
be lawful for any company organized
under the provisions of this act to insure
or guarantee any person or corporation
against losses or damage on any single
sale or transaction, or in any other way
than upon basis Of the average loss on
the business OF the person guaranteed,
sustained by such person or corporation
within period OF not less than one year;
nor shall any company, organized
under the provisions hereof re-
quire OF any person, partnership
or company, whose loss may
have been limited or guaranteed by them,
that they shall make proof OF any loss or
losses sustained by them. to the company
so guaranteeing or limiting, wiehin q less
period than six months after the eTpirtion