nished by the insurance commissioner to each such person on or before the first day of December, in each year. From the sum so ascertained each such person may deduct (1) the amount of all payments on said pending suits on injuries reported prior to eighteen months, including all payments made on account or in consequence of the injury from which the suit arose, whether prior to or later than the date at which the suit was brought, and (2) the amount of all payments made on account or in consequence of said injuries reported within eighteen months; both of the above amounts to be taken as of the date at which thestatement is made. En. Stats. 1905, 380.

TAX ON FOREIGN INSURANCE COMPANIES; SECTION 622 CONTINUED IN FORCE.

Sec. 622a, Pol. C. Every insurance company or association other than life, not organized or incorporated under the laws of California, and doing business in this state, and every other insurance company other than life, whose charter may be owned, or a majority of whose stock may be controlled, or whose business may be carried on in the interest, or for the benefit of any insurance company or association not organized or incorporated under the laws of California, shall annually pay to the insurance commissioner, for the state, a tax of two (2) per cent upon the amount of the gross premiums received upon its business done in the state, during the year ending on the preceding thirty-first day of December, less return premiums, reinsurance in companies or associations authorized to do business in this state, and losses actually paid on its business in this state, and every life insurance company or association not organized or incorporated under the laws of California, which does business or collects premiums or assessments in the state, shall annually pay to the insurance commissioner for the state, a tax of one per cent upon the amount of the gross premiums received upon its business done in this state during the year ending on the preceding thirty-first day of December. This section shall not be held or construed so as to relieve any company or organization from any tax, fee or other obligation or charge imposed upon it by the provisions of section six hundred and twenty-two of this code, and whenever the taxes imposed

by the application of section six hundred and twenty-two exceed those imposed by the application of this section the provisions of the former section shall prevail. En. Stats. 1903, 359. Amd. 1905, 136.

Legislative History.

This section is enacted in 1883 is to be found at page 545 of "Corporation Laws of California.”

INSURANCE COMMISSIONER; REGISTRATION OF POLICIES OF LIFE INSURANCE COMPANIES WITH; DEPOSIT OF SECURITIES WITH.

Sec. 634, Pol. C. It shall be lawful for any company or corporation, transacting the business of life insurance in this state, to register with the insurance commissioner, such of its policies as may be agreed upon by the company and the insured; such registration to consist in a written or printed list of such policies filed with the commissioner, showing the name and age of the insured, number and date of the policy and the kind and amount of insurance in each case. Such list must be filed with the commissioner within thirty days after the issuance of the first registered policy, and must contain all such policies issued up to date of filing. After that date, the company must, within three days after the first day of each calendar month, file a statement embracing all its registered policies issued since the filing of its last preceding list. Upon filing such lists of policies, from time to time, the company must deposit with the commissioner, as a special deposit for the benefit of such registered policies, securities of the denominations stated in section four hundred twenty-one of the Civil Code as permissible for the investment of the capital and accumulations of insurance companies. Such deposits must be in an amount equal to the full net value of all policies registered up to the time of making the deposit, and must, at all times, be equal to such net value of all registered policies. Upon receipt of such securities the commissioner must immediately deposit them in the state treasury, in accordance with the provisions of section six hundred and eighteen of the Political Code, where they must remain as a special security for the benefit of such regis

tered policies. Such company may, at any time, withdraw any excess of securities above the net present value hereinbefore specified, upon satisfying said commissioner by written proof that such excess exists, and shall be allowed to receive the interest on all securities deposited and to exchange such securities by substituting other securities of the character in which, by the laws of this state, it may invest its funds. En. Stats. 1877-78, 20. Amd. 1905, 151.

Legislative History.

This section as originally enacted is to be found at page 551 of "Corporation Laws of California."

INVESTMENT COMPANY DEFINED.

Sec. 635a, Pol. C. Every person, corporation, company, association, copartnership or individual in the State of California now engaged in or that shall hereafter engage in the business of placing or selling bonds, debentures or certificates of investment, by whatsoever name said bonds, debentures or certificates of investment may be known or designated, when such business is conducted on the partial payment or installment payment plan, or in placing or selling any species of bonds, debentures or certificates of investment, on the partial payment or installment plan, wherein or whereby the holder or holders of said bond, debentures or certificates of investment are or may become entitled to claim and receive from such person, corporation, company or association a return, either at a definite or indefinite time, in cash, or in merchandise, or any property, for the partial payments or installments of money so paid, and wherein or whereby the holder may be subject to a fine or forfeiture as a penalty for nonpayment of said partial payments or installments, is hereby declared to be an investment company under the provisions of this act. En. Stats. 1905, 156.

INVESTMENT COMPANIES NOT LICENSED BY BANK OR OTHER COMMISSIONERS; DEPOSIT WITH STATE TREASURER CASH OR SECURITIES.

Sec. 635b, Pol. C. Every corporation, company, association, copartnership or individual now engaged in, or that shall

hereafter engage in business in this state as an investment company, as hereinbefore defined and not licensed by nor under the supervision of the bank commissioners, building and loan commissioners or insurance commissioner, that shall place or sell any bond or bonds, debenture or debentures, certificate or certificates of investment on the partial payment plan, whereby the holder or holders of such bond, or bonds, debenture or debentures, or certificate or certificates of investment are or may become entitled to claim and receive from such corporation, company or association, a return, either at a definite or indefinite time, in cash, or in merchandise, or in property, for the partial payments or installments of money so paid, and wherein or whereby the holder may be subject to a fine, or penalty of forfeiture for nonpayment of said partial payments or installments, is hereby required to deposit within sixty days after the passage of this act, in cases of corporations, persons, companies or associations now existing and doing business, or before commencing business in cases of persons, corporations, companies or associations not now engaged in business, for the security of the holder or holders of the bonds, debentures or certificates issued by it, with the treasurer of the State of California, in cash, or in securities to be approved by said treasurer, the sum of five thousand dollars ($5,000), and in addition thereto sha!! deposit semi-annually, with the treasurer of the State of California, in cash, or securities to be approved by said officer, in the manner aforesaid, ten per cent of all premiums received on the sale of such bonds, debentures or certificates, until the sum so deposited shall amount to the sum of one hundred thousand dollars. En. Stats. 1905, 157.

ARTICLES OF INCORPORATION TO BE FILED WITH SECRETARY OF STATE; FEES TO BE PAID; ACCOMPANIED WITH STATEMENT.

Sec. 635c, Pol. C. Every investment company as herein defined now doing business in the State of California shall, within sixty days after the approval of this act, and every investment company hereafter organized to carry on the business of an investment company as hereinbefore defined, shall, prior to engaging in such business, in addition to making such deposit, file

with the secretary of state a duly authenticated copy of its articles of incorporation, charter or other instrument authorizing it to do business, and shall pay to the secretary of state the fees provided by law to be paid such officer for filing articles of incorporation within this state for a capital stock of like amount, the same to be accompanied with a statement showing

(a) Statement to contain what. The name of the corporation, company, association, copartnership or individual;

(b) The place where the principal business of the company, corporation, association, copartnership or individual within this state is or is to be carried on;

(c) The amount of capital stock of the corporation, association or company, and the amount of paid-up capital stock;

(d) The names and residences of the incorporators and its stockholders at the time when said statement is filed, and the name of its officers and date when their terms will expire;

(e) The name and address of the officers or representative within the state upon whom process can be served;

(f) A statement of the net premiums received from the sale of bonds, debentures or certificates of investment during the preceding six months; which statement shall remain a public record in said office. En. Stats. 1905, 157.

DUTY OF STATE TREASURER; OF ATTORNEY GENERAL.

Sec. 635d, Pol. C. The treasurer of the State of California shall, whenever such fact is brought to his knowledge, notify the attorney general of the noncompliance of any person, company, corporation or association doing business as an investment company as hereinbefore defined in the State of California with the provisions of this act, and the attorney general shall immediately after receiving such notification commence an action against such corporation, company or association in the name of the people of the State of California;

(a) To dissolve such corporation, company or association, if incorporated or organized under the laws of the State of California;

(b) To enjoin and restrain such person, corporation, company or association from doing business within the State of