The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1895-05-21
CHAPTER CLxxxIv.
An Act relative to the formation of surety compa-
MES and regulating surety companies doing bus
mess in this state


MES and regulating surety companies doing bus
mess in this state
l. Be it enacted by the Senate and General As
sembly of the State of New Jersey, That it shall
be lawful for seven or more persons to associate
themselves into a company to carry on the bust
ness of indemnity and suretyship upon making
and filing certificate in writing of their organi-
cation in manner hereinafter mentioned, anc
every company so formed shall, besides the power
all powers and be subject to all restrictions there.
on contained in the general act entitled Gan ac
concerning corporations" far as the same are
consistent with this act, and be subject to the pro-
visions and regulations of the act entitled HAr
act to provide for the reguation and incorporation
OF insurance companies" approved April ninth
one thousand eight hundred and seventy FIVE.
2. And be it enacted, That such certificate il
writing shall set forth
1. The name assumed to designate such compa.
ny and to be used in its business and dealings:
Ii The place or places in this state or elsewhere
where the business of the company is to be con
Quoted. and the place in this state where its prin-
cipa office is to be located and the place where Ii.
principal Office and place of business, if any, out
of this state it is to be located;
Ill. The objects for which the company shall BIZ
formed;
~. The amount of capital stock of any compa-
ny, which shall not be less than one hundred thou
sand dollars the amount with which they will
fifty thousand dollars, and the number of shares
into which the same is divided and the par value
OF each share which certificate shall be proved Of
acknowledged and recorded as required of deedi
of real estate in book to be kept for that purpose
in the Office of the clerk of the county where the
principal office of the company in this state shall
be established and after being SO recorded. shall
be filed in the Office of the secretary OF state anc
said certificate, or copy thereof duly certified
by said clerk or secretary, shall be evidence in al
courts and places, and from the filing of such Ger.
tihcate said persons assocating their successor
and assigns, shall be incorporated into a company
by the name mentioned in said certificate.
8. And be it enacted, That whenever any bond
undertaking, recOgnizance or other obligation is
by law. the charter ordinances rules or regula-
mnnipinalifu ha<Ju ire
tion, court or public officer, required or permitted
to be made given, rendered fled with surety OF
sureties, and whenever the performance of any
act, duty or obligation, or the refraning from any
act is required or permitted to be guaranteed
such, bond Undertaking, obligation, recognizanee
or guarantee may be executed by such surety COM
pany qualified to act as surety or guarantor as
hereinafter provided and such execution by such
company Of such bond, undertaking. obligation,
recOgnizance or guarantee shall be- in all respects
q full and complete compliance with eyery re-
Quirement of every law, charter ordinance, rule
or regulation that such bond, undertaking, Obli-
CATION, recognizance of guarantee shah be execu-
ted by one surety or by one or more sureties, or
that such sureties shall be residents or household
ers or freeholders or either BOTH possess any
other qualification and all courts, Judges heads
of departments, boards, bodies, municipalities and
public officers of every character shall accept and
treat accordingly such bond, undertaking, obliga-
ton, recognizance or guarantee, when so executed
by such company, as conforming to and fully and
completely complying with such law charter or
dinance rule or regulation.
A. And be it enacted, That such company, to be
quall1ed 70 so act as surety or guarantor, must
comply with the requirements of every law of this
state applicable to such company in doing business
therein; must have good available assets exceed
ing its liabilities, which liabilities for the purposes
of this act, shall be taken TO be its capital stock
outstanding debts and premium reserve at the
rate of fifty per centum Of the annual premiums
on all outstanding bonds, undertakings, recognize
ances and obligations Of like character in force
must have on deposit with the comptroller of this
state at least fifty thousand dollars in good securi-
ties, worth at par and market value at least that
sum, and held for the benefit of the holders of the
obligations of such company; must file with the
commissioner Of banking and insurance a certified
copy of its certificate of Incorporation. a written
application to be authorized to do business under
each year thereafter in January. statement sign
ed and sworn to by its president or vice president
and its secretary or assistant secretary, made up
to December thirty-frst preceding, stating the
amount Of its paid-up cash capital, particulariz-
ing each item of Investment, the amount of pre-
MUM or existing bonds upon which it is surety,
the amount of liability for unearned portion there
Of estimated at the rate of fifty per centum Of the
annual premium on all outstanding obligations,
stating also the amount of its outstanding debts Of
all kinds and such further statement similarly
verified as may be by the laws of this state re-
quired of such company in transacting business
therein said securities deposited with said comp
troler shall remain with him In trust to answer
any default of such company surety upon any
such bond, undertaking, recognizance or other
obligation established by final Judgment upon
which execution may lawfully be issued against
said company, said comptroller and his successors
thereafter retain such deposit under this act in
trust for the purposes hereof; such company, how
ever. at all times to have the right to collect the
interest dividends and profits upon such securi-
ties and from time to time to withdraw said secur-
tiles portions thereof substituting therefor 9TH
ers of equally good character and value to the
satisfaction OF the comptroller and such securi-
ties and substitutes therefor shall be at all times
exempt from and not subject to levy under any
writ or process Of attachment and, further, shall
pany without at least thirty days notice to said
company specifying the time, place and manner
of such sale and the process under which and pur-
of such process; provided, however, that foreign
CORPORATION having not less than one hundred
thousand dollars in good securities deposited with
state officer of the state where it is incorporated
and held for the benefit Of the holders of its obli-
cations as hereinafter provided, and not engaging
in the business of executing or guaranteeing
bonds undertakings, recognzances or other obli-
cations, in actions or proceedings, legal, equitable
OF otherwise or which required BY law by
the charter ordinances, rules regulations of any
county, municipality, township. town, village or
borough commission for the performance of any
written contract for work or supplies or for the
enforcement Of any penalty Of forfeiture provided
for in such contract shall not be required to make
deposit of fifty thousand dollars with the comp
troller as in this section provided.
8. And be 1t enacted, That surety company
shall hereafter be formed in this state except in
pursuance of this act.
s. And be it enacted, That any corporation of
another state which is by the laws of the state
where it was incorporated and under its charter
authorized to become surety upon such bonds and
undertakings as are in this act mentioned, may
engage in the business of suretyship and indem-
nifty in this state in the same manner and to the
same extent as allowed by corporations created
under this act; provided, that said foreign cor
poration shall comply with all the requirements of
the fourth section of this act, except therein
otherwise provided concerning foreign corpora
ton and in addition thereto shall establish that
it has on deposit with the superintendent of in
surance or other state officer of the state where in
corporated in good securities worth at par and al
market value at least one hundred thousand dol
lars held for the security of its obligations and
has a fully paid-up, safely-invested and unim-
paired capital of at least two hundred and fifty
thousand dollars; and also appoint an attorney in
this state upon whom process of law can be served
and file in the Office of the commissioner of bank
ing and insurance a written instrument, duly
signed and sealed, certifying such appointment
torney within this state, which appointment shall
continue until another attorney be substituted.
7. And be 1t enacted That whenever any such
company, domestic or foreign, has been engaged
ness as contemplated by this act and has made de-
posit in this state in trust otherwise, Of securt
ties to answer any default of such company upon
any bond, undertaking, recognzance, guarantees
or obligation, such securities deposited shall be
by the trustee or custodian thereof transferred
and delivered to said comptroller in trust for the
same purposes, under and subject to all the rights
and equities of all parties interested and to the
terms and provisions of this act, and thereupor
such deposit shall remain in trust under and sub.
ject to the terms and provisions Of this act and
whenever snch deposit has been made with a
trustee by order of any court 1t shall be the duty
of such court by order otherwise, to direct sucf
transfer to said comptroller; in such deposit
Is less than the of fifty thousand dollars, theI
such company must deposit with SAID comptroller
securities sufficient to increase said deposit to sale
sum of fifty thousand dollars as required by thu
act.
81 And be it enacted, That the commissioner O.