The Republican. [volume] (Oakland, Md.) 1877-current, 1898-06-02
PUBLIC GENERAL LAWS.
CHAPTER 3O2.

AN ACT TO ADD CERTAIN NEW SEC
TONS 70 ARTICLE % OF THE CODE OF
PUBLIC GENERAL LAW S. TITLE COR
PORATIONS,' UNDER THE NEW SUB
TITLE"SURETY AND FIDELITY COM
PANIES,' - TO FOLLOW SECTION 244, TO
BE DESIGNATED AS SECTIONS 244A,
24B AND pa
Section l. Be it enacted by the General As
sembly of Maryland, That three new sections
be, and the same are, hereby added to article
q of the Code of Public General Laws, title,
Corporations, under the new subtitle,
surety and Fidelity Companies" to follow
Section PA, to be designated as Sections 244A,
244B and FAC, and to read as follows;
2AA.-Whenever any bond undertaking,
recogniZance or other obligation is by law or
the charter, ordinances, rules or regulations
of any municipality, board, BODY, organlza-
ton. court, judge or other public officer re
quired or permitted to be made, given ten
dered or filed, with a surety or sureties and
whenever the performance OF any act, duty
or obligation. or the refraining from any act
is required or permitted to be guaranteed,
such bond, undertaking, obligation, recogni-
zance or guaranty, may be executed by
surety company qualified as hereinafter pro-
vided; and such execution by said company
of such bond, undertaking, obligation, recog-
nizance or guaranty, shall be III all respects a
full and complete compliance with every re
quirement of every law, charter, ordinance,
rule or regulation that such bond, undertak-
ing, obligation, recogniZance or guaranty
shall be executed by one surety or by one or
more suretieS, or that such suretieS shall be
residents or houSeholders or freeholderS, or
either or both, or possess any other quallilca-
ton; and all courts judges, heads of depart
mentS, boards, bodies, municipalities ana
public officers of every character shall accept
and treat such bond, undertaking, Obligation
recogniZance or guaranty, when so executed
by such company, as conforming to and fully
and completely complying with every such
requirement of any such law, charter, ordf-
nance rule or regulation.
2HB.-Such company or companies to be so
qualified as to act as such surety or guaran-
tor, must comply with the requirements of
every law of this state, applicable to such
company or companies doing business there
in, must be authorized under the laws of the
state where incorporated and underi its char
ter, to become surety upon such bond, under
taking, obligation, recognlZance or guaranty;
must have fully paid-up and safely invested
and unimpared capital of at least $25O,OOO
must have good available assets exceeding
liabilities which liabilities for the purpose of
this act shall be taken to be its outstanding
debts, and premium reserve at the rate or
fifty per centum of the current annual prem
iums on each outstanding bond, undertaking,
recogniZance and obligation of like charac-
ter in force; must file with the State Tax
Commissioner a certified copy of its certid-
cate of incorporation, written application
to be authorized to do business under this
act, and also with such application and in
each year thereafter, a statement, verified
under oath made up to Decemqer 3lst pre-
ceding, stating the amount gifts paid-up cash
capital, particulariZing each item of invest
ment, the amount of premiums upon existing
bonds, undertaking, recognizances and obli-
cations of like character i'll force upon which
it is surety, the amount of liability for I'M
earned portion thereof estimated at the rate
of fifty per centum of the current annual pre-
MUM on each such bond, undertaking, recog-
niZanceS and obligations in force, stating also
the amount of its outstanding obligations of
all kinds, and such further facts as may be by
the laws of this state required of such COM
pany tranSacting business therein: and if such
company be organized under the laws of any
other state than this state, it must have on
deposit with state officer of one of the states
of the United States not less than SlOO,OOO in
good securities, deposited with and held by
such officer for the benefit of the holders of
its obligations, must also appoint an attorney
in this state upon whom process of law can
be served, which appointment shall continue
until revoked or another attorney substitute
ed, and must file with the State Tax Commits
sioner evidence of such appointment, which
shall state the residence and office of such at
torney.
244C.-Tne State Tax Commissioner, upon
due proof by any such company Of its possess
ing the qualifications of this act specified,
shall issue to such company certificate set
ting forth that such company has qualii1ed
and is authorized for the ensuing year to do
business under this act, which said certificate
shall be evidence ofsuch qualification of such
company and of its authorization TO become
and be accepted as sole surety on all bonds,
undertakings, recognizances, Obligations re
quired or permitted by law, Tin the charter,
ordinances. rules or regulations of any mu-
nicipality board, body, organization or pub
lie officer, and the Solvency and credit of such
company for all purposes, and its sufiiciency
as such surety.
Section 2. And be it further enacted, That
all acts or parts OF acts inconsistent with the
provision of this act be, and the same are,
hereby repealed so far as thus inconsistent.
Section 3. And be it further enacted That
this act shall take eject from the date OF its
passage.
Approved, April 9th, 1898
LLOYD LOWNDES, Governor.
JOHN WRIT RANDALL,
President of the Senate.
LOUIS SCHAEFER.
GDa9 EaI Of the HouSn of DELEGATES.