14. Payment for stock.

§ 14. Nothing but money shall be considered as payment of any part of the capital stock; but the trustees may, in their discretion, issue stock in payment for the purchase of real or personal property necessary to their business; and no loan of money shall be made by any such company to any stockholder therein; and if any such loan shall be made to a stockholder, the officers who shall make it, or who shall assent thereto, shall be jointly and severally liable to the extent of such loan, and interest, for all the debts of the company, contracted before the repayment of the sum so loaned.

15. False statements.

$15. If any certificate or report made, or public notice given by the officers of any such company in pursuance of the provisions of this act, shall be false in any material representation, all the officers who shall have signed the same, knowing it to be false, shall be jointly and severally liable for all the debts of the company contracted while they are stockholders or officers thereof.

16. Who to be stockholders.

§ 16. No person holding stock in any such company as executor, administrator, guardian or trustee, and no person holding such stock as collateral security shall be personally subject to any liability as stockholder of such company; but the person pledging such stock shall be considered as holding the same, and shall be liable as a stockholder accordingly, and the estate and funds in the hands of such executor, administrator, guardian or trustee, shall be liable in like manner and to the same extent as the testator or intestate, or the ward or person interested in such trust fund would have been if he had been living and competent to act and held the same stock in his own name.

17. Id.

§ 17. Every such executor, administrator, guardian or trustee shall represent the share of stock in his hands at all meetings of the company, and may vote accordingly as a stockholder.

18. Liability of stockholders.

§ 18. The stockholders of any company organized under the provisions of this act, shall be jointly and severally individually liable for all debts that may be due and owing to all their laborers, servants and apprentices for services performed for such corporation.

19. Power to amend or repeal.

19. The legislature may at any time alter, amend, annul or repeal this act, or may annul or repeal any incorporation formed or created under this act, but such amendment or repeal shall not, nor shall the dissolution of any such company take away or impair any remedy given against any such corporation, its stockholders or officers for any liability which shall have been previously incurred.

20. Limitation of liability.

$20. No stockholder shall be personally liable for the payment of any debt contracted by any company formed under this act, who shall have ceased to be a stockholder in any such company, unless a suit for the same shall have been commenced within two years from the time he shall have ceased to be a stockholder in such company, nor until an execution against the company shall have been returned unsatisfied in whole or in part. 354

GUARANTEE, INDEMNITY AND CASUALTY.

I. POWERS AND REGULATIONS.

1. For what purposes may be incorporated. (Laws of 1853, ch. 463.)*

SECTION 1. Any number of persons not less than thirteen in number may associate and form an incorporation or company for any of the purposes specified in either of the following departments:

First Department. To make insurance upon the lives of persons, and every insurance appertaining thereto or connected therewith, and to grant, purchase or dispose of annuities.

Second Department. To make any of the following kinds of insurance: First, upon the health of persons; second against injury, disablement or death of persons resulting from travelling, or general accidents by land or water; third, guaranteeing the fidelity of persons holding places of public or private trusts; fourth, upon the lives of horses, cattle and other live stock; fifth, upon plate-glass against breakage; sixth, upon steam boilers against explosion and against loss or damage to life or property resulting therefrom; seventh, against loss by burglary or theft, or both. [As amended by Laws of 1865, ch. 328, § 1, and by Laws of 1879, ch. 485, § 1.]

2. Limitations on business.

§ 2. No company organized under this act, for the purposes named in the first department, shall undertake either of the risks mentioned in the second department, and no company organized under this act for either of the

*The title of this act was amended by Laws of 1879, ch. 161, § 1, by adding thereto the words "and casualty insurance companies," which are inserted above.

purposes mentioned in the second department shall undertake any business mentioned in the first department nor shall any such company hereafter organized undertake or do more than one of the several kinds of insurance mentioned in said second department; and no company organized under this act shall undertake any business or risk, except as herein provided; provided that nothing herein contained shall affect the business of any company heretofore duly organized under the second department of this act. [As amended by Laws of 1862, ch. 300, § 1, and by Laws of 1879, ch. 485, § 2.]

3. Declaration to be filed.

3. The persons referred to in the first section of this act shall be designated as corporators, and they shall file in the office of the superintendent of the insurance department a declaration signed by each of the corporators setting forth their intentions to form a company for the purpose or purposes named in this act, and the department under which the company is intended to be formed, which declaration shall comprise a copy of the charter they propose to adopt, and the said charter shall set forth the name of the company, the place where it is to be located, the kind of business to be undertaken, and the department of the first section of this act by which such business is authorized; the mode and manner in which the corporate powers of the company are to be exercised; the manner of electing the trustees or directors and officers, a majority of whom shall be citizens of this state, and the time of such election; the manner of filling vacancies, the amount of capital to be employed, and such other particulars as may be necessary to explain and make manifest the objects and purposes of the company, and the manner in which it is to be conducted. [As amended by Laws of 1869, ch. 404, § 1, and by Laws of 1879, ch. 485, § 3.]

(See Laws of 1869, ch. 634.)

4. Attorney-general to certify to declaration. 84. Whenever the corporators shall file such declaration with the superintendent of the insurance department it shall become his duty to submit the same to the attorney-general for examination; and if found by him to be in accordance with the provisions of this act, and not inconsistent with the Constitution and laws of the United States and of this state, he shall certify to the same and deliver it back to the said superintendent, who shall cause the said declaration, with the certificate of the attorney-general, to be recorded in a book to be kept for that purpose, and, upon application of the corporators to the said superintendent, it shall become his duty to furnish a certified copy of such declaration and certificate to the said corporators.

5. Corporators to publish intention to form company in the state paper.

§ 5. Whenever the corporators shall have received from the said superintendent the certified copy provided for in the last section, and desire to proceed to organize such company, they shall publish their intentions in the paper in which the state notices are directed to be inserted; and when such intentions have been published in said paper for six weeks they may open books to receive subscriptions to the capital stock, and keep such books open until the amount required by this act is subscribed, and may then proceed to distribute the stock among the subscribers, if more than the necessary amount is subscribed, and proceed to collect in the said capital and complete the organization of the company.

6. Amount of capital required. And of what to consist.

§ 6. No company shall be organized under this act for