The Providence news. (Providence [R.I.]) 1891-1906, 1895-02-12

any increase in the capital to be duly
given the Secretary OF State within ten
days after said increase; and the board OF
directors for the time being may In their
discretion open books OF subscription
under such management as they may NIX
upon for such original stock, and for such
additional stock as may be voted by said
corporation, or cause he same to he taken
and distributed In such way and manner
as may be determined in the bylaws OF
the corporation.
SEC. 8. This corporation shall at all
times keep on deposit with the Treasurer
OF State sum OF money in United States
bonds or other proper securities, equal TO
10 per cent. OF its capital stock paid In,
and If said corporation shall neglect for
80 days 10 satisfy any judgment recovered
against il in any court of this State upon
any certificate issued by it, the said treas
urer shall apply the money and invest
ments so in his hands to the satisfaction
OF said judgment and said corporation
shall not transact any further business
until said deposit is made up. This COR
poration shall annually on or before the
first day OF February deposit with the
Treasurer OF State, as reserve fund FOR
the protection OF its certificate and bond
holders, cash or securities in which saw
ings banks are required TO invest at an
amount equal TO 10 per cent. OF its total
income received from its guarantee bus
iness during the year ended, until said
reserve fund so accumulated shall amount
to one hundred thousand dollars.
SEC z. After deducting from the earn
ings of the company (no part of the pre-
miums received on risks not terminated
being considered earnings), and from the
income of its invested funds, such an
amount as shall be required for the cost
OF management, and for such dividends
not exceeding six per centum per annum
n N 4 IN IN pitaI ~ n q dirQQfnrg
determine upon, the residue less the losses
incurred during the year, if any, shall be
annually set apart for the purpose OF con-
stituting reserved fund for
the payment OF losses, until
the said reserved fund-including the
percentage of earnings deposited with
the State Treasurer shall equal one
quarter the amount OF the capital stock
paid in; and In case the reserved fund
shall ever be impaired, 1t shall be made
up TO the full amount in the manner
originally provided; and the said capital
stock shall in no case be impaired, or
diminished until said reserved fund shall
have been exhausted; provided that
whenever the said reserved fund shall
equal one quarter the amount OF the cap
ital stock paid in, the earnings OF the
company, over and above the Aforesaid,
diviaends OF six per centum per annum
and the contributions required to keep
after be divided among the stockholders
in the same manner as is provided for
Joint stock insurance companies; and
provides, also, that in closing up the
affairs of the said company the amount
then standing TO the credit OF the said
reserved fund shall be divided among the
stockholders in proportion to their re-
spective shares.
SEC. s. Said corporation shall be SUBJ
ject to examination by the insurance
commissioner who shall make such an ex-
animation as he regards necessary for the
safety OF the public and the holders of its
guarantee bonds and certificates. He may
require the officers to produce for exam
ination all books and papers OF the COM
pany, and to answer on oath all questions
propounded TO them in relation to its
condition of affairs.
SEC. .. The commissioner at his annual
examination, il he finds hat the company
has complied with the provisions of Sec
tion 8, of this act, shall issue TO 1t his
certificate of that fact. For making such
examination he shall receive from it go
and all travelling expenses.
SEC. 10. IL this company fails to COM
ply with any OF the provisions of this act.
or il on examination the commissioner
thinks that IL is in such a condition as to
render its further proceeding hazardous
to the public or its certificate holders, he
shall cause proceedings TO bc instituted
against the company as are provided in
section 81 of Chapter 40 OF the Revised
Statutes, so far as the same are applicable,
and the funds in the hands of the Treas
urer of State shall be disposed Of in ac-
cordance with the provisions OF this act,
and the provisions OF this act, and the
provisions of Sections 81 to 63 of Chapter
40 of the Revised Statutes.
SEC IL. Within 80 days after the or
ganization of this corporation the clerk or
assistant clerk thereof shall forward TO
the Secretary OF State certified copy of
it's records so far as they pertain to its or
ganization.
SEC IL. Anyone of the persons named
in this act may call the first meeting OF
this corporation by personal notice, either
writted or printed, delivered or mailed
to each corporator at least seven days be-
fore the time of meeting.