town, or village in which the business office of such company is to be located, and the intended duration of the company, and if such declaration is found conformable to this act, and not inconsistent with the constitution of this state, the auditor shall thereupon deliver to such persons a certified copy of the charter, which on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy of the charter may be used in evidence for or against said company with the same effect as the original. [Id. § 2.]

SEC. 53. [Directors.]-The number of directors shall be nine (9), a majority of whom shall constitute a quorum to do business to be elected from the members by ballot, and they shall hold their offices until their successors are elected and qualified. [Id. § 3.]

SEC. 54. [Officers.]-The policy holders shall elect from their number a president and a treasurer, and shall also elect a secretary, who may or may not be a member of the company, all of whom shall hold their offices for one (1) year, and until their successors are elected and qualified. [Id. § 4.]

SEC. 55. [Same-Bonds.]-The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors. [Id. § 5.]

SEC. 56. [Powers-By-laws.]-Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or this act, as may be deemed necessary for the management of its affairs in accordance with the provisions of this act, and may prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary. [Id. § 6.]

SEC. 57. [Members.]—Any person owning property in the territory for which any such company is formed, under such restrictions and qualifications as the by-laws may prescribe, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto. [Id. § 7.]

SEC. 58. [Objects insured-Obligations of insured.]-Such company may issue policies only on detached farm dwellings, barns, (except livery, boarding, and hotel barns,) and other farm building, and such property as may properly be contained therein, and also upon horses, mules, cattle, sheep and hogs, against damage by fire, lightning, or tornado for any length of time, but not to extend beyond the limit and duration of the charter, and for any amount the company may deem safe on any one risk, nor shall any property be insured for more than two-thirds (3) its actual value. All persons so insured shall give their obligations to the company, in a written or printed application, binding themselves, their heirs and assigns to pay their pro-rata share to the company of the necessary expenses and of all losses by fire, lightning, or tornado which may be sustained by any member thereof during the time for which their respective poli cies are written and they continue as members of the company, and they shall also, at the time of effecting the insurance, pay such percentage in cash and such other charges as may be required by the rules and by-laws of the company. Provided, That any company formed under the provisions of this act may in its by-laws limit the precentage of the liability of its members. [Id. § 8.]

SEC. 59. [Same-Classification.]-Any such company may classify the property insured therein at the time of issuing policies thereon under different rates corresponding as nearly as may be to the greater or less risk from fire, lightning, or tornado which may attach to each building or personal property insured. [Id. § 9.]

SEC. 60. [Limits of territory.]-No such company shall insure any property beyond the limits of the territory, nor shall it insure any property within the limit of any city or village. [Id. § 10.]

SEC. 61. [Adjustment of loss.]-Every member of such company who may sustain loss or damage by fire, lightning, or tornado, shall immediately notify the secre

tary thereof, stating the amount of damage or loss claimed, then the person or persons authorized by the by-laws of such company to adjust losses, shall proceed to ascertain the amount of such loss or damage and adjust the same. If there is a failure of the parties to agree upon the amount of such damage or loss the same shall be submitted to three (3) persons as a committee of reference, one of whom shall be selected by the claimant, one by the company, and the third by such two persons, who shall be sworn to a faithful and impartial investigation and award, and who shall have authority to examine witnesses and to determine all matters in dispute, and shall make their award in writing to the secretary of the company, and such award shall be final. The pay of the membership of such committee shall be two ($2.00) dollars per day for each day's service so rendered in the discharge of their duties, which shall be paid by the claimant unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company. [Id. § 11.]

SEC. 62. [Loss-Assessment.]-Whenever the amount of any loss shall have been ascertained which exceeds in amount the cash funds of the company, the secretary shall make an assessment upon all the property insured by the company. Provided, That any company may provide in its by-laws for making assessments at stated intervals only, and may also provide that assessments shall be made by the board of directors. [Id. § 12.]

SEC. 63. [Same-Notice.]—It shall be the duty of the secretary, whenever such assessment shall have been made, to immediately notify every person composing such company personally, or by a letter sent to his usual postoffice address, of the amount of such loss, and the sum due from him as his share thereof, and of the time, and to whom such payment is to be made; but such time shall not be less than twenty (20) nor more than forty (40) days, from the date of such notice. [Id. § 13.]

SEC. 64. [Same-Suits.]-Suits at law may be brought against any member of such company, who shall neglect or refuse to pay any assessment made upon him or her by the provisions of this act, and the directors or officers of any company so formed, who shall wilfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be liable in their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company by members thereof for losses sustained, if payment is withheld after such losses become due. [Id. § 14.]

SEC. 65. [Annual statement.]-It shall be the duty of the secretary to prepare an annual statement showing the condition of such company, and the business transacted the preceding year, and present the same at the annual meeting. [Id. § 15.]

SEC. 66. [Withdrawal of members-Surrender of policy.]-Any member of such company may withdraw therefrom by surrendering his policy for cancellation at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his or her share of all claims then existing against said company, and a cancellation fee not to exceed one dollar; Provided, That by the withdrawal of any such member, the number of members remaining in the company, shall not be reduced below twenty, or that the assets will not be reduced below twenty thousand dollars. Provided, further, That the company shall have power to cancel or terminate any policy, by giving the insured notice to that effect, and such cancellation of policy ends his or her membership in such company. [Id. § 16.]

SEC. 67. [Report to auditor-Certificate.]-It shall be the duty of the president or vice-president and secretary of every such company, on the first day of January each year, or within a month thereafter, to prepare under their own oath, and transmit to the auditor of public accounts, a statement of the condition of the company on the last day of the month preceeding in such form as the law may direct. If, upon examination, he is of the opinion that such company is doing business correctly, in accordance with the provisions of this act, he shall thereupon furnish the company a cer

tificate, which shall be deemed authority to continue business the ensuing year. For such examination and certificate the company shall pay one ($1.00) dollar, for agent's certificate of authority fifty cents (.50). Each company shall pay, at the time of organization, ten dollars ($10.00) to the auditor, all of which shall be paid into the state treasury and applied to the general fund. [Id. § 17.]

SEC. 68. [Unincorporated companies.]-Any mutual insurance company organized to insure against fire, lightning, or tornado, and now doing business in this state under the provisions of section forty (40) of chapter forty-three (43) of the Revised Statutes, may, with the written consent of two-thirds () of the members thereof, accept the provisions of this act, and shall thereupon be governed by its provisions. Before any such company shall be entitled to the benefits thereof, the directors, or a majority of them, shall file with the auditor of public accounts the declaration provided for in section two (2) of this act. [Id. § 18.]

SEC. 69. [Assessments-Limitation-Dividends.]-Such mutual insurance companies shall never make assessments upon their members, as provided in section twelve (12) of this act, until loss has first occurred, unless the directors by a twothird (3) vote order an assessment. They shall never make any dividends. [Id. § 19.]

CHAPTER 44.-INTEREST.

SECTION 1. [Rate.]-Any rate of interest which may be agreed upon, not exceeding ten dollars per year upon one hundred dollars, shall be valid upon any loan or forbearance of money, goods, or things in action; which rate of interest so agreed upon may be taken yearly, or for any shorter period, or in advance, if so expressly agreed. [1879, § 1, 113.]

SEC. 2. [Unagreed rates.]—Interest upon the loan or forbearance of money, goods, or things in action shall be at the rate of seven dollars per year upon one hundred dollars, unless a greater rate, not exceeding ten per cent. per annum, be contracted for by the parties.

SEC. 3. [Judgments-Decrees.]-Interest on all decrees and judgments for the payment of money shall be from the date of the rendition thereof at the rate of seven dollars upon each one hundred dollars annually until the same shall be paid; Provided, That if said judgment or decree shall be founded upon any contract, either verbal or written, by the terms of which a greater rate of interest, not exceeding the amount allowed by law, than seven per centum shall have been agreed upon, the rate of interest upon such judgment or decree shall be the same as provided for by the terms of the contract upon which the same was founded.

SEC. 4. [Other cases.]-On money due on any instrument in writing, or on settlement of the account from the day the balance shall be agreed upon, on money received to the use of another, and retained without the owner's consent, express or implied, from the receipt thereof, and on money loaned or due, and withheld by unreasonable delay of payment, interest shall be allowed at the rate of seven per cent. per anUnsettled accounts between parties shall hear interest after six months from the date of the last item thereof.

num.

SEC. 5. [Usury-Consequences-Agents.]-If a greater rate of interest than is herein before allowed shall be contracted for or received or reserved, the contract

CHAP. 44. "An act to amend chapter 34, General Statutes (being chapter XXVIII of Revised Statutes of 1866), entitled 'Interest '"' Passed and took effect June 1, 1879.

SECS. 1-4. Computation. 4 Neb. 193. 7 Id. 83. Interest defined. 11 Neb. 72 On accounts. 9 Neb. 112. 15 Id. 327 16 Id. 58. On judgmente 6 Neb. 363. 15 Id. 327 Partnership accounts. 10 Neb. 97. Rate expressed in contract governs after maturity 15 Neb. 260. 16 Id. 14. 17 Id. 494. See also 13 Neb. 320. 10 Id. 327. 8 Id. 61. 15 Id. 334, 579. 12 Id. 336. Funds in court. 18 Neb. 511. Interest in excess of ten per cent. forbidden, and where interest on note is the maximum rate allowed by law, and is represented by coupons providing that interest shall be allowed thereon after maturity at the maximum rate, no interest will be allowed on such coupons, 23 Neb. 539. 25 Id., 501. 34 Id., 181. In absence of agreement, interest is seven per cent, and in action on executor's bond interest on amount due is to be computed at that rate. 24 Neb. 262. Interest after maturity rate changed. 27 Neb., 644. Unsettled accounts. 30 Id., 609.

24

SEC. 6. General rules: 4 Neb 204. 6 id 152. 10 1d. 543. Agreement to pay interest upon interest which may there after accrue cannot be enforced, although it does not render the principal contract usurious. 23 Neb. 536. Subsequent agreement to pay does not affect original contract. 4 Neb. 207. 9 Id. 455. Agreement to pay for services in procuring loan not known to lender, will not constitute. 3 Neb. 259. 11 Id. 491. Acts of agent, in taking, bind principal. 3 Neb. 250. 5 Id. 264, 6 Id. 154. 8Id. 426. 11 Id. 491. 12 Id. 189. 13 Id. 166, 575. 14 Id. 91. Borrower not estopped to show agency of lender. 15 Id. 338. If amount paid by borrower exceeds lawful rate, it devolves on plaintiff to show that value of services, etc., did not exceed it. 13 Neb. 556. Retaining commissions out of loan. 13 Neb. 575. Subsequent security for loan originally usurious is subject to plea and proof of usury. 11 Id. 467. Sale of bond at less than face value is not. 14 Neb. 381. Nor of note and mortgage at a discount. 9 Neb. 15. Note given for $445.15, only $380 received, Held, Usurious. 14 Neb. 577. Where a party effected a loan for another of $4,000 for five years at 8 per cent. and took notes as a bonus for $350 without interest, due in less than one year from the date of the last, Held, That interest for five years would not be added to the notes taken for a bonus in order to taint the transaction with usury. Neb. 817. Surety may plead. 7 Neb. 58. Defense not available agamst innocent purchaser. 9 Id. 229. 10 Td. 86. 11 Id.. 492. 14 Id., 416. 15 Id., 631. 18 id., 233, 546. U 10., 131. 28 Id., 377. 31 Id., 828. Available as a defense in action on usurious contract: but where action is dismissed without prejudice before submission, defense or usury is not a set-off to be retained and tried by court. 12 Neb. 506. When paid cannot be recovered back by separate action. Id. Agreement for a loan made in N. Y., and money advanced there; note given in Nebraska, Held, But note made in NeThat laws of N. Y. governed contract, and action in Nebraska would not lie. 1 Neb. 112. braska, payable in N. Y., laws of Nebraska govern. 11 Neb. 493. 14 Neb. 93. Loans by building and saving association usurious. 7 Neb. 177. Fee paid attorney for extension of time of payment, Held, Usurious, and applicable as pay. ment pro tanto. 8 Neb. 52. Collection fee in note in addition to legal interest, void. 11 Id. 98, 399. Note with 24 per cent. interest payable after maturity, not usurious, and recovery may be had for legal interest. 14 Id. 434. Promise to pay interest on interest overdue is not usury. 16 Neb. 12. Answer setting up usury should state with whom contract was made, nature and amount. 16 Neb. 689. Where truth of plea of usury is pleaded or admitted, defendant is entitled to recovery of the costs of the action. 17 Neb. 309. Defense of usury available to maker against the assignee of usurious note and mortgage, transferred to him by written assignment on mortgage only, for value before maturity and without notice. 19 Neb. 643. Where borrower seeks relief from usurious contract in a court of equity he must tender the amount of principal and lawful interest due. 24 Neb. 82. Purchaser of 81 Id., 828, equity cannot plead usury. 27 Neb., 401. Verbal contemporaneous agreement to pay unlawful rate. 913. Bonus to borrower's agent not usurious. 27 Neb., 877. Interest on costs. 31 Id., 846. Demand certificates of deposit interest from demand. 54 N. W. R., 308. Usury paid not recoverable. 32 Id. 302. Penalty rate construed. 34 Id., 181. Increased interest on default a penalty. 32 Id., 565. Penalty for usury by national banks.

32 ld., 70.

shall not, therefore, be void; but if in any action on such contract proof be made that illegal interest has been directly or indirectly contracted for, or taken, or reserved, the plaintiff shall only recover the principal, without interest, and the defendant shall recover costs; and if interest shall have been paid thereon, judgment shall be for the principal, deducting interest paid; Provided, The acts and dealings of an agent in loaning money shall bind the principal, and in all cases where there is illegal interest by the transaction of the agent, the principal will be held thereby as if he had done the same in person. Where the same person acts as agent for the borrower who obtains the money from the lender, he shall be deemed to be the agent of the loaner also.

SEC. 6. [Usurers-Witnesses.]-Any person charged with taking illegal interest may be required to answer touching the same, on oath, in any civil proceeding.

SEC. 7. [Tender.]—Relief to a complain[an]t in case of an usurious loan may given without payment or tender by him of the principal sum.

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SEC. 8. [Witnesses-Perjury.]-Any officer or agent of a person or a corporation, whether interested or not, may be summoned as witness in any action for usury against such person or corporation, and required to disclose all the facts of the case, but the testimony of such witness, or the answer of a party as required in section 6, shall not be used against such witness or party in any criminal prosecution for perjury.

SEC. 9. [Yearly rates.]—When in any law, or in any instrument in writing specifying a rate of interest, no period of time is mentioned for which such rate is to be calculated, it shall be deemed to be by the year.

SEC. 10. [Warrants-Bonds.]-All warrants issued by the proper authorities of the state, county, city, town, or other municipal subdivision less than a county, shall draw interest from and after the date of their presentation for payment at the rate of seven per cent. per annum, and all bonds issued by any county, city, township, precinct, or school district, shall not draw interest at a rate exceeding eight per cent. per

annum.

SEC. 11. [Educational lands-Delinquent taxes.]-The rate of interest fixed by this chapter shall not affect interest on purchase money of school, university, and agricultural college lands, or on lands delinquent or sold for the non-payment of

taxes.

SEC. 12. [Repealed original chapter.]