has been usurped, intruded into, or unlawfully held or exercised by any person, or when he is directed to do so by the governor. Amended March 19, 1907; stats. 1907, p. 600. 54 Cal. 321; 55 Cal. 616; 66 Cal. 288; 69 Cal. 463; 73 Cal. 491; 76 Cal. 437; 77 Cal. 372; 82 Cal. 243; 84 Cal. 120, 376; 96 Cal. 606; 100 Cal. 541; 101 Cal. 148; 114 Cal. 474; 115 Cal. 284; 116 Cal. 109; 117 Cal. 614; 123 Cal. 146; 125 Cal. 529; 127 Cal. 349, 571; 128 Cal. 259; 129 Cal. 546; 132 Cal. 190; 145 Cal. 760; 151 Cal. 172, 452, 453, 454; XXXVII Cal. Dec. 340; 3 Cal. App. 679; 5 Cal. App. 492. NOTE. § 803. The amendment suggested by the commissioner simply added to the original section as it was enacted March 11, 1872, the following sentence: "And if it is claimed that a corporation, either de jure or de facto, is exercising a franchise which it is not authorized to exercise, or is exercising corporate functions when not authorized to do so, such corporation must be made a party defendant." This was struck out on the floor of the senate January 31, 1907, and the following inserted after the word "franchise," where it first appears: "or against any corporation, either de jure or de facto, which usurps, intrudes into, or unlawfully holds or exercises any franchise." Coöperative business association. Attorney general may investigate: See Civ. C. § 653k. Franchise: See Civ. C. § 358. Dissolution of corporation: See Civ. C. § 400. Investment companies: See Pol. C. § 653i. Non-profit coöperative corporation, suit by attorney general: See Civ. C. § 6532. TITLE XIV. Of Miscellaneous Provisions. CHAPTER VI. OF COSTS. SEC. 1036. When plaintiff is a non-resident or a foreign corporation, defendant may require security for costs. 1037. If such security is not given, the action may be dis missed. When plaintiff is a non-resident or a foreign corporation, defendant may require s curity for costs. § 1036. When the plaintiff in an action or special proceeding resides out of the state, or is a foreign corporation, security for the costs and charges, which may be awarded against such plaintiff, may be required by the defendant. When required, all proceedings in the action or special proceeding must be stayed until an undertaking, executed by two or more persons, is filed with the clerk, to the effect that they will pay such costs and charges as may be awarded against the plaintiff by judgment, or in the progress of the action or special proceeding, not exceeding the sum of three hundred dollars. A new or an additional undertaking may be ordered by the court or judge, upon proof that the original undertaking is insufficient security, and proceedings in the action or special proceeding stayed until such new or additional undertaking is executed and filed. Amended March 18, 1903; stats. 1903, p. 187. 56 Cal. 251; 62 Cal. 42; 93 Cal. 509; 118 Cal. 660; 137 Cal. 449; 149 Cal. 490, 492, 493. Qualification of sureties: See Code Civ. Proc. § 1057. If such security is not given, the action may be dismissed. § 1037. After the lapse of thirty days from the service of notice that security is required, or of an order for new or additional security, upon proof thereof, and that no undertaking as required has been filed, the court or judge may order the action or special proceeding to be dismissed. Amended March 18, 1903; stats. 1903, p. 188. 93 Cal. 509; 118 Cal. 661; 137 Cal. 449; 149 Cal. 490, 492; 152 Cal. 348. SEC. 1056. 1057. CHAPTER VII. GENERAL PROVISIONS. Corporations may become sureties on undertakings and bonds. Undertakings or bonds, requisites of. Corporations may become sureties on undertakings and bonds. § 1056. In all cases where an undertaking or bond, with any number of sureties, is authorized or required by any provision of this code, or of any law of this state, any corporation with a paid-up capital of not less than one hundred thousand dollars, incorporated under the laws of this or any other state of the United States for the purpose of making, guaranteeing, or becoming a surety upon bonds or undertakings required or authorized by law, or which, by the laws of the state where it was originally incorporated has such power, and which shall have complied with all the requirements of the law of this state regulating the formation or admission of these corporations to transact such business in this state, may become and shall be accepted as security or as sole and sufficient surety upon such undertaking or bond, and such corporate surety shall be subject to all the liabilities and entitled to all the rights of natural persons sureties; provided, that the insurance commissioner shall have the same jurisdiction and powers to examine the affairs of such corporations as he has in other cases; shall require them to file similar statements and issue to them a similar certificate. And whenever the liabilities of any such corporation shall exceed its assets, the insurance commissioner shall require the deficiency to be paid up in sixty days, and if it is not so paid up, then he shall issue a certificate showing the extent of such deficiency, and he shall publish the same once a week for three weeks, in a daily San Francisco paper. And, until such defi ciency is paid up, such company shall not do business in this state. In estimating the condition of any such company, the commissioner shall allow as assets only such as are allowed under existing laws at the time, and shall charge as liabilities, in addition of eighty per cent of the capital stock, all outstanding indebtedness of the company, and a premium reserve equal to fifty per centum of the premiums charged by said company on all risks then in force. Enacted March 16, 1889; stats. 1889, p. 215. 95 Cal. 599; 97 Cal. 355. For insurance commissioner: See Pol. C. § 588 et seq. See act of 1885, under heading "Bonds," Appendix, entitled "An act to facilitate the giving of bonds required by law." Undertakings or bonds, requisites of. § 1057. In any case where an undertaking or bond is authorized or required by any law of this state, the officer taking the same must, except in the case of such a corporation as is mentioned in the next preceding section, require the sureties to accompany it with an affidavit that they are each residents and householders, or freeholders, within the state, and are each worth the sum specified in the undertaking or bond, over and above all their just debts and liabilities, exclusive of property exempt from execution; but when the amount specified in the undertaking or bond exceeds three thousand dollars, and there are more than two sureties thereon, they may state in their affidavits that they are severally worth amounts less than the amount specified in the undertaking or bond, if the whole amount is equivalent to that of two sufficient sureties. Any corporation such as is mentioned in the next preceding section, may become sole surety on such bond. No such corporation must be accepted in any case as a surety when its liabilities exceed its assets as ascertained in the manner provided in section ten hundred and fifty-six. Whenever an undertaking has been given and approved in any action or proceeding, and it is thereafter made to appear to the satisfaction of the court that any surety upon such undertaking has for any reason become insufficient, the court may, upon notice, order the giving of a new undertaking, with sufficient sureties, in lieu of such insufficient undertaking. In case such new undertaking so required shall not be given within the time required by such order, or in case the sureties thereon fail to justify thereon when required, all rights obtained by the filing of such original undertaking shall immediately cease. Amended March 15, 1907; stats. 1907, p. 308. 52 Cal. 448; 97 Cal. 355; 106 Cal. 46; 122 Cal. 208; 128 Cal. 669. NOTE. § 1057. The change consists in the addition of the last two sentences, and authorizes the court to exact a new undertaking in any case in which it is shown that any surety on a bond has become insufficient, thus avoiding all possible doubt of the court's power in the premises. PART III. OF SPECIAL PROCEEDINGS OF A CIVIL NATURE. TITLE VI. Of the Voluntary Dissolution of Corporations. SEC. 1227. How dissolved. Application, what to contain. Application, how signed and verified. 1228. 1229. 1230. 1231. 1232. Hearing of application. 1233. 1234. Filing application and publication of notice. Judgment roll and appeals. Application by savings and loan society. How dissolved. § 1227. A corporation may be dissolved by the superior court of the county where its principal place of business is situated, upon its voluntary application for that purpose. Amended April 16, 1880; amendts. 1880, p. 109. 81 Cal. 386; 84 Cal. 365; 150 Cal. 577, 578. Voluntary dissolution, receiver: See Code Civ. Proc. §§ 564, 565. Application, what to contain. § 1228. The application must be in writing, and must set forth: 1. That at a meeting of the stockholders or members called for that purpose, the dissolution of the corporation was resolved upon by a vote of two thirds of the members or of the holders of two thirds of the subscribed capital stock; 2. That all claims and demands against the corporation have been satisfied and discharged. Amended March 16, 1907; stats. 1907, p. 318. 150 Cal. 579. NOTE. § 1228. The amendment is in subdivision 1 and substitutes the words "vote of two thirds of the members or of the holders of two thirds of the subscribed capital stock," for the ambiguous words in the former statute, the words in the quotation marks being what was really intended by the legislature. |