mortgage bonds of of securities. Proviso, first indebtedness: Provided also, That such first mortgage bonds of corporations organized under the laws of the State of corporations. Michigan shall not be accepted as surety unless the corporation issuing such bonds shall have paid interest on said bonds and dividends on its capital stock for three successive years immediately preceding the deposit of such security; and Depreciation in case any of said securities shall depreciate below par, the State Treasurer is hereby authorized and directed to cause the corporation which has deposited them to make such depreciation good by additional deposit of such securities as are allowed by law and to prohibit any corporation from transacting any insurance business within this State until the Proviso, laws same shall have been deposited: Provided further, That all provisions of law relating to the business in this State of companies doing a general surety bonding business, which are organized under the laws of other states or countries and are doing business in this State, and all other existing laws of this State relating to such surety bonding business, in any manner, shall apply, so far as they may be applicable thereto, to companies organized for the purpose of doing a general surety bonding business under the provisions of this act. to apply to surety companies. This act is ordered to take immediate effect. Section amended. Articles, what to contain. Names, address. [No. 173.] AN ACT to amend section two of chapter one hundred ninety-three of the Compiled Laws of eighteen hundred ninety-seven, entitled "An act in relation to life insurance companies transacting business within this State," being section seven thousand one hundred ninety-one of the Compiled Laws of eighteen hundred ninety-seven. The People of the State of Michigan enact: SECTION 1. Section two of chapter one hundred ninetythree of the Compiled Laws of eighteen hundred ninety-seven, entitled "An act in relation to life insurance companies transacting business within this State," is hereby amended to read as follows: SEC. 2. The persons so associating shall subscribe articles of association, which shall contain: First, The names of the associates, and their places of residence respectively; name, office, Second, The name by which the corporation shall be Corporate known, which shall not be the same as, nor too closely re- etc. sembling, the name of any other corporation organized under the laws of this State, or doing business in this State, and the place where its principal office for the transaction of business is to be established, and the period for which it is to be incorporated; Third, The purposes of the incorporation, as mentioned in Purposes. the first section of this act; Fourth, The manner in which the corporate powers are to Directors, etc. be exercised; the number of directors and other officers, and the manner of electing the same, and how many of the directors shall constitute a quorum, and the manner of filling all vacancies; stock. Fifth, The amount of the capital stock, if any, and what Capital proportion is to be paid in before the corporation shall commence business; Sixth, The time for the holding of the annual meetings of Annual the corporation; and, meetings. Membership, articles, etc. Seventh, Any terms and conditions of membership therein etc. which the corporators may have agreed upon, and which they may deem important to have set forth in such articles. And Cops of the said corporators shall publish a copy of said articles, with notice of their intention to become incorporated under the same, in some newspaper published in the county where the principal office is to be located, once in each week for at least four weeks before filing such articles as hereinafter Proof of provided; and at the time of filing such articles, they shall also file with the Secretary of State, proof of such publication. Approved June 18, 1907. publication. [No. 174.] AN ACT to amend section four of chapter one hundred ninety-three of the Compiled Laws of eighteen hundred ninety-seven, entitled "An act in relation to life insurance companies transacting business within this State," as amended by the several acts amendatory thereof. The People of the State of Michigan enact: amended. SECTION 1. Section four of chapter one hundred ninety- Section three of the Compiled Laws of eighteen hundred ninety-seven, entitled "An act in relation to life insurance companies transacting business within this State," as amended by the several acts amendatory thereof, is hereby amended to read as follows: Capital limited. Deposit of security. Proviso. Further proviso, surety bonding a separate purpose. SEC. 4. The capital of any stock company organized under this act shall not be less than one hundred thousand dollars, in shares of fifty dollars each, which capital stock may be increased by a vote of two-thirds of the stockholders present or represented at any regular meeting called for that purpose to not more than five hundred thousand dollars; and no such stock company, and no company organized to do business on the mutual plan, shall be authorized to issue policies or assume any risk whatever until they shall have deposited with the State Treasurer, as security for any liability to insured parties, stocks or bonds of the United States or of this State, or of any city or county in this State authorized by act of legislature to issue the same, or first mortgage bonds of corporations organized under the laws of the State of Michigan, to the amount in par value, exclusive of interest, of not less than one hundred thousand dollars, which stocks or bonds shall be retained by the State Treas urer, and disposed of as hereinafter directed: Provided, however, That such deposits shall be made within one year from the date of the articles of association: Provided further, That the capital of any stock company organized to do a general indemnity and surety bonding business shall be, for the separate purpose of such surety bonding business and additional to the capital required in any other business in which it may be lawfully engaged, not less than two hundred fifty thousand dollars nor more than one million dollars and its deposit of securities with the State Treasurer as herein provided for shall not be less than two hundred thousand dollars, and such capital and such deposits shall be used solely in, and shall be liable only for the debts and liabilities of such surety bonding business: Provided further, That personal obligations secured by first mortgage on improved and productive real estate within this State, worth at least double the amount of the lien and bearing interest of not less than five per centum per annum, may be received by the State Treasurer instead of the bonds or stock hereinbefore provided for in this section. Such mortgages shall be properly assigned to the State Treasurer as provided for in section twenty-one of this act, but any examination by the State Treasurer or under his direction to satisfy him respecting the title or value of the property mortgaged shall be at the expense of such company; and no mutual insurance company shall commence business, by issuing policies, until they shall have received at least five hundred applications for insurance, on which the premiums shall amount to at least five thousand dollars, nor until the examination by the Attorney General and commissioner as hereinafter provided: Provided further, That the net indebtedness of said city or proviso, net Indebtedness. county shall not exceed five per cent of the assessed valua tion of all the real estate of said city or county, said valua tion to be on the basis of the last preceding equalization of Deposit of security. Further proviso, real estate first mortgages. Further bonds of of securities. the State board for counties, and the proportionate amount thereof. The term net indebtedness in this section shall be Term construed. construed to denote the indebtedness of any city or county, omitting debt created for supplying the inhabitants with water, and deducting the amount of sinking funds available for the payment of such indebtedness: Provided also, That Proviso, such first mortgage bonds of corporations organized under corporations. the laws of the State of Michigan shall not be accepted as surety unless the corporation issuing such bonds shall have paid interest on said bonds and dividends on its capital stock for three successive years immediately preceding the deposit of such security; and in case any of said securities Depreciation shall depreciate below par, the State Treasurer is hereby authorized and directed to cause the corporation which has deposited them to make such depreciation good by additional deposit of such securities as are allowed by law and to prohibit any corporation from transacting any insurance business within this State until the same shall have been deposited: Provided further, That all provisions of law relat- Further proviso, ing to the business in this State of companies doing a gen- foreign eral surety bonding business, which are organized under the companies. laws of other states or countries, and are doing business in this State, and all other existing laws of this State relating to such surety bonding business, in any manner, shall apply, so far as they may be applicable thereto, to companies organized for the purpose of doing a general surety bonding business under the provisions of this act. Approved June 18, 1907. 30 Section amended. Certain associations may continue business. Proviso. [No. 175.] AN ACT to amend section three of act number one hundred nineteen of the public acts of eighteen hundred ninetythree, being an act, entitled "An act to define what shall constitute fraternal beneficiary societies, orders or associations; to provide for their incorporation and the regulation of their business, and for the punishment for violation of the provisions of the act of their incorporation, and to repeal all existing acts inconsistent therewith," approved May twenty-five, eighteen hundred ninety-three, as amended by act two hundred sixty-three of the public acts of eighthundred ninety-five, approved June three, eighteen hundred ninety-five, as amended by act forty-four of the public acts of nineteen hundred three, approved April twenty-two, nineteen hundred three; the same being section seven thousand seven hundred forty-two of the Compiled Laws of eighteen hundred ninety-seven, as amended. een The People of the State of Michigan enact: SECTION 1. Section three of act number one hundred nineteen of the public acts of eighteen hundred ninety-three, being an act, entitled "An act to define what shall constitute fraternal beneficiary societies, orders or associations; to provide for their incorporation and the regulation of their business, and for the punishment for violation of the provisions of the act of their incorporation, and to repeal all existing acts inconsistent therewith," approved May twenty-five, eighteen hundred ninety-three, as amended by act two hundred sixty-three of the public acts of eighteen hundred ninety-five, approved June three, eighteen hundred ninety-five, amended by act forty-four of the public acts of nineteen hundred three, approved April twenty-two, nineteen hundred three; the same being section seven thousand seven hundred forty-two of the Compiled Laws of eighteen hundred ninetyseven, as amended, is hereby amended to read as follows: as SEC. 3. All such associations coming within the description as set forth in section one of this act, organized under the laws of this or any other State, province or territory, and now doing business in this State, and all associations of any other state which have been authorized by the Commissioner of Insurance to do business in this State and have been doing business herein for the period of five years and upwards, may continue their business: Provided, That they hereafter comply with the provisions of this act regulating annual reports and the designation of the Commissioner of Insurance as the person upon whom process may be served as |