James C. Lutterell, C. W. Charlton, R. M. McPherson, John Fouche, Joseph A. Mabry, Thomas C. Lyon, M. B. McMahon, Wm. Homer, J. A. Rayl, W. B. Edelen, W. G. Brownlow, Robert West, John H. Crozier, Thos. W. Humes, Wm. Lackey, George W. Harris, Robert J. McKinney, Horace Maynard, Wm. H. Eckel, Samuel T. Atkin, John Baxter, John Parker, Wm. A. Spencer, J. S. Vangilder, and James Rodgers, and all and every other person or persons who may become associated with them as hereinafter prescribed, their successors and assigns be, and they are hereby created a body politic and corporate, by the name and style of " The East Ten nessee Mutual Insurance and Trust Company," to be lo cated in the city of Knoxville, at such place as may be assigned by a majority of the company present at any regular meeting, and by their corporate name, they and their successors, for the period of thirty years, shall have succession and a common seal, and shall be capable of sveing and being sued; pleading and being impleaded; answering and being answered unto; defending and being defended in all matter and cause whatsoever.

SEC. 14. Be it further enacted, That said company shall have power to ordain, establish and put in execution such by laws, ordinances, and regulations as may be necessary and convenient for the the government of said corporation and the transaction of its business; and by its corporate name said company shall have power to purchase, receive, have, hold, and enjoy, and enjoy to them and their successors lands, tenements, hereditaments, goods and chattels, of what nature, kind or quality soever, real, personal, or mixed, and the same from time to time, to sell, demise, grant, alien or dispose of: Provided, That the said real estate shall be only such as shall be necessary to accommodate the said corporation in the transaction of its business, or shall be taken and held as security for the payment of debts due that corporation, and that the yearly income of said real estate, shall not, at any time, exceed twenty thousand dollars.

SEC 15 Be it further enacted, That said corporation may insure their respective lives, and make all and every insurance appertaining to, or connected with life risks, of whatever kind or nature, as well of the sound in health, as the infirm and invalid; and to insure their respective dwellings, houses, stores, shops, and other buildings, household furniture, merchandise and other property against loss or damage by fire.

SEC. 16 Be it further enacted, That the affairs of the company shall be managed by a board of directors, to

be elected by the corporators upon the organization of the company, and such other officers and agents as the directors may from time to time appoint, for the first twelve months after its organization, and thereafter by such directors, officers and agents as shall be elected and appointed in pursuance of the by-laws of the company; and all vacancies happening in said board of directors. shall be filled as the company may prescribe; a majori ty of the directors shall constitute a quorum for the transaction of business.

SEC. 17. Be it further enacted, That all elections of directors shall be made by ballot, and by a plurality of members or their proxies then present, allowing each member one vote for every hundred dollars insured in said company, provided notice of such election shall have been previously given for twenty days or more, in some newspaper, printed in Knoxville, of the time and place at which said election shall be held.

SEC. 18. Be it further enacted, That the directors may determine the rates of insurance, the amount to be insured, and the sum to be deposited for the same.

SEC. 19. Be it further enacted, That every person who shall become a member of said corporation, by effecting insurance therein, shall, before he receives his policy, deposit his promissory note for such a sum of money as shall be determined by the di ectors; a part not exceeding ten per cent. of said note, shall be immediately paid, and the remainder of said deposit note shall be payable in part or in whole, at any time when the directors shall deem the same requisite for the payment of losses and such incidental expenses as may be necessary for the transaction of the business of the company; and at the expiration of the time of insurance, the said note, or such part thereof as shall remain unpaid after deducting all losses and expense accruing during said time; shall be relinquished and given up to the maker thereof, or if he or she be dead, to his or her personal representative.

SEC. 20. Be it further enacted, That when any property insured with this corporation shall be alienated by sale or otherwise, the policy shall be void and surrendered to the company and cancelled, and upon such surrender the assured shall be entitled to receive his deposit note upon the payment of his proportion of all losses and expense that shall have accrued prior to such surrender, but the grantee or alienee having the policy assigned to him, may have the same ratified and confirmed to him for his own proper use and benefit, upon application to the directors and with their consent, on giving satisfac

tory security for such portion of the deposit note as may remain unpaid, which shall entitle the party to all the rights and privileges, and subject him to all the liabili ties to which the original party, to whom the policy issued was entitled and subjected under this act.

SEC. 21. Be it further enacted, That every member of said company shall be bound to pay for losses and neces-ary expenses, in proportion to the amount of his deposit note.

SEC. 22. Be it further enacted, That suits at law and equity may be instituted and maintained by said corporation against any of its members, for the collection of deposit notes, or any assessment thereon, or for any other cause relating to the business of said corporation in the Circuit or Chancery Court of Knox county, and to this end all the necessary process shall issue to bring the proper parties before the Courts; and suits may likewise be prosecuted and maintained by any member of said company against the corporation for losses, if payment is withheld for more than two months after the loss is sustained and the com. pany is duly notified thereof, and no member of the corporation, not being in his individual capacity a party to such suit, shall be incompetent as a witness in any such case on account of his being a member of said company, and the books of said company shall be evidence for either party in all such suits

SEC. 23. Be it further enacted, That the directors shall, after receiving notice of any loss or damage sustained by any member, and ascertaining the same, or after the rendition of any judgment against the company for loss or damage, settle and determine the sums to be paid by the several members of said company as their respective portions of said loss or damage, and shall have the same published for thirty days, as the by-laws may prescribe, and if any member shall neglect or refuse to pay the same for the period of thirty days after the publication of said notice, then, in that case, the directors shall sue for and recover the whole amount of the deposit note or notes of the defaulting stockholder or stockholders, with the costs of suit, and the amount thus collected shall remain in the treasury of the company, subject to the payment of such losses and expenses as have or may thereafter accrue, and the balance, if any, shall be returned to the party from which it was collected, on demand, within threemonths from the expiration of the term for which insurance was made.

SEC. 24. Be it further enacted, That if the whole amount of the deposit notes shall be insufficient to pay

Union Insurance

the losses occasioned by any fires or deaths, in such case the sufferers insured by said company or their representatives, shall receive towards making good their losses, his proportion of the deposit notes according to the sum by him insured, and in addition thereto, a sum to be assessed on all the members of said company, on the same principle as regulated the amounts of their respective deposit notes, but not exceeding one dollar on every hundred dollars by them insured; and any member may at any time, upon the payment of and the surrender of his policy, shall be discharged from all liability subsequently accruing against the company.

SEC. 25. Be it enacted, That a lien to the amount of each deposit note on the buildings insured, and the right, title and interest of the assured to the lands on which they are erected, shall continue and be a subsisting lien or mort gage, so as to enable the company to recover thereby any losses and expenses sustained by the company in propertion to the deposit note: Provided, The same accrued previous to the termination of his or her policy; And, provided further, It shall be expressed in the policy that insurance is made subject to such lien.

SEC. 26. Be it further enacted, That any married woman may, by herself or trustee, insure for her own use the life of her husband, for a definite period, or for the term of his natural life, and in case she survives him the amount insured and becoming due and payable according to the policy of insurance, shall be paid to her for her own use free from the claims of the representatives of her husband or any of his creditors.

SEC. 27. Be it enacted, That any husband may insure his own life for the sole and separate use and benefit of his wife or for his wife and children, and in case of his death, the amount thus insured shall be paid over according to the policy to the wife, or to the wife and children, free from the claims of his representatives, and any and all of his creditors.

SEC. 28. Be it further enacted, That no policy shall be issued by this corporation until application shall be made for the insurance of forty thousand dollars at least.

SEC. 29 Be it further enacted, That this act shall take effect and be in force from and after its passage

SEC. 30. Be it further enacted, That John S. Van Gilder, Francis McClung, Joseph A. Mabry, Joseph H. Walker, Columbus Powell, Thomas G. Rawlings, Wm. Co. of Knoxville. B. Rogers, John Jackson, Sam B. Boyd, and William Francisco, and the subscribers to the stock of the company and thei. successors, shall be, and they are hereby

declared to be a body politic and corporate, by the name and style of t.e Union Insurance Company, of Knoxville, Tennessee, and by that name shall so continue forward during the full time of ninetv nine years, from and after the passage of this act, and be capable in law to sue and be sued, plead and be impleaded, answer and be answered, defend and be defended in all courts of law or equity, or elsewhere, and to make and use a common seal, and the same to alter or renew at their pleasure, and generally to do and perform all things relative to the objects of this institution, which now is or shall be lawful for any individual or body politic or corporate to do.

SEC. 31. Be it enacted, That the capital stock of this company shall be one hundred thousand dollars, to be increased at the pleasure of the stockholders to two hundred thousand dollars, divided into shares of one hundred dollars each; ten dollars shall be paid on each share at the time of subscribing, and ten dollars on each share shall at the same time and place be secured by negotiable notes, with security, to be approved by the president and directors and company of said "Union Insurance Company;" the balance of said stock shall be secured by notes not having more than twelve months to run, with personal security, to be approved by the president and directors, or by pledge of bank stocks, State bonds or county bonds, or mortgages upon real estate, to the sat isfaction of the president and directors aforesaid, and the endorsers of said stock notes shall have a lien upon the stock for which said notes were given to secure them against loss by reason of their endorsements; and should it at any time be deemed advisable to increase said capital stock by said corporation; the directors may open said books, and the stock may be taken and subscribed for, and be paid up on the same conditions and restric tions as the first subscription of said capital stock.

SEC. 32. Be it enacted, That as soon as two hundred and fifty shares are subscribed for and paid, or secured to be paid. the company shall be competent to transact all kinds of business for which it is established; and it shall be lawful for the stockholders to meet as hereinafter directed, and choose their directors by ballot, and a plurality of votes given shall elect, and the persons so elected, shall, at their first meeting elect one of themselves president of the board, who, with the said directors, and any three incorporators may open said books for subscription to said stock.

SEC. 33. Be it enacted, That the real and personal estate, business, property and funds of said company, and