or county where the principal place of business of such corporation is located. Such sale must be made at auction, under the direction of the secretary of the company. The corporation may be a bidder, and the shares must be disposed of to the highest bidder for cash. No defect, informality, or irregularity in the proceedings respecting the sale invalidates it, if notice is given as herein provided. After the sale is made, the secretary must, on receipt of the purchase money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all installments then due, and all expenses and charges of sale, must hold the residue subject to the order of the delinquent subscriber.

By-Laws Must Specify Effect of Default in Payment of Dues.

C. C. Sec. 558. Such corporations must specify in their by-laws the times when the installments of the capital stock are payable, the amount thereof, and the fines, penalties, or forfeitures incurred in case of default. A printed copy of the articles of incorporation and by-laws must be furnished to any shareholder on demand.

Annual Report to be Published.

C. C. Sec. 565. The actual financial condition of all homestead corporations must, by the directors thereof, be published annually in [a] newspaper published at the principal place of business of the corporation, for four weeks, if published in a weekly, and two weeks, if published in a daily. The statement must be made up to the end of each year, and must be verified by the oath of the president and secretary, showing the items of property and the liabilities.

C. C. Sec. 566. In any case in which a publication is required, and no newspaper is published at the principal place of business, the publication may be made in a paper published in an adjoining county.

Insurance Corporations.

IN GENERAL.

Selection of Name.

Amount of Subscribed Capital Stock Re-
quired.

Penalties for Failure to Secure Certificate of
Authority to do Business.

Fees of Insurance Commissioner.

Visitorial Power of Insurance Commissioner.
Fines by Commissioner.

Power of Commissioner to Subpoena Wit

nesses.

Insolvent Companies to Discontinue.
Compelling Discontinuance.

Funds In What May be Invested.
Policies-Mode of Issuance.

Life Insurance Policies May be Registered
With Insurance Commissioner.
Power to Take and Hold Realty.

Capital Stock to be Kaised by Subscription.
Amount of Capital Stock Required.

Dividends-From What Made.
Phrase "Net Profits" Defined.

To Cease Business When Total Capital Stock
Has Been Lost.

Charter to be Filed With Commissioner.
Annual and Other Reports to be Filed and
Published.

Foreign Insurance Companies-Right to do
Business.

Penalty for Failure to Comply with the Laws
of This State.

Must Designate a Resident Agent.

Fines for Failure to File Reports.

Retaliatory Provisions.

Bond From Agents of Foreign Insurance Corporations.

Charter to be Filed.

Agent's Power of Attorney to be Filed.

Selection of Name.

Pol. C. Sec. 609. The commissioner must require the name under which any corporation hereafter proposes to be formed or organized under the laws of this state for the transaction of insurance business, to be submitted to him before the commencement of such business; and he may reject any name or title so submitted when the same is an interference with or too similar to one already apropriated, or likely to mislead the public in any respect; and in such a case a name not liable to such objection must be chosen.

Amount of Subscribed Capital Stock Required. C. C. Sec. 419. Every company, corporation, or association herealer formed or organized under the laws of this state for the transaction of business in fire, marine, inland navigation, or life insurance, must have a subscribed capital stock equal to at least two hundred thousand dollars, twenty-five per cent of which must be paid in previous to the issuance of any policy, and the residue within twelve months from the day of filing the certificate of incorporation. No person, nor any company, corporation, or association, or ganized or formed under the laws of any other state or country, must transact any such insur ance business in this state, unless such person company, corporation, or association possesse available cash assets equal to at least two hundre thousand dollars over and above all liabilities fo losses reported, expenses, taxes, and reinsuranc of all outstanding risks, as provided in sectio six hundred and two of the Political Code.

Penalties for Failure to Secure Certificate of Authority to do Business.

Pol. C. Sec. 596. No person or company must transact insurance business in this state without first procuring from the insurance commissioner | a certificate of authority, as in this chapter provided; and all policies issued or renewed and all

nsurances taken before obtaining such certificate of authority, are null and void; and any person who is agent or pretended agent of any insurance company, or other person, shall, without ne possession of such certificate of authority, solicit, issue or procure to be issued in this state any policy of insurance, shall forfeit to the people of this state the sum of two hundred dollars for each and every policy so issued, or procured to be issued. But any company or corporation belonging to any other state or country, having policies of life insurance outstanding in this state, and that were issued in accordance with the laws have the right to maintain a

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32

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ory evidence on is authorbusiness in ngs. And any insured or inemiums, must, iary, annually, tement, under of such annual the year endmber, next pre-e commissioner coin of the United

ceding, and pay into the office u the sum of twenty dollars, gold States. Failing to make such statement and payment within the time named, such person shall forfeit to the people of the state of California the sum of one hundred dollars for each and every policy so renewed by the payment to him of such renewal premium. All penalties and forfeitures under this section must be collected by the in

surance commissioner, and for the purposes of such collections, suits may be instituted by him, in the name of the people of the state of California, in any court of competent jurisdiction.

Fees of Insurance Commissioner.

Pol. C. Sec. 605. The commissioner, must require in advance, in United States gold coin, the following fees:

1. For filing the articles of incorporation, or certified copy of articles, or other certificate required to be filed in his office, thirty dollars;

2. For filing the annual statement required to be filed, twenty dollars;

3. For filing any other papers required by this chapter to be filed, five dollars;

4. For furnishing copies of papers filed in his office, twenty cents per folio;

5. For certifying copies, one dollar each;

6. For each certificate issued as provided in section 619, the sum of five dollars.

Visitorial Power of Insurance Commissioner.

Pol. C. Sec. 597. The commissioner, whenever necessary, or whenever he is requested by verified petition, signed by three persons interested, either as stockholders, policy holders, or creditors of any person engaged in insurance business, showing that such person is insolvent under the laws of this state, must make examination of the business and affairs relating to the insurance business of such person; and for such purpose has free access to all the books and papers of such person and must thoroughly inspect and examine all his affairs, and ascertain his condition and ability to fulfill his engagements, and whether he has complied with all the provisions of the law applicable to his insurance transactions. Such person and his officers and agents must open his books and papers for the inspection of the commissioner, and otherwise facilitate such examination; and the commissioner may administer oaths and examine under oath, any persons relative to