ever it shall appear to the satisfaction of said auditor that the affairs of any such company are in an unsound condition, he shall revoke the certificate granted in behalf of such company, and shall cause the notification thereof to be published in some newspaper in general circulation, published at the state capital; and the agent or agents of such company are, after such notice, requested to discontinue the issuing of any new policies, or the renewal of any previously issued.

SEC. 32. [Same-Fees.]-There shall be paid by every company, association, person or persons, agent or agents, to whom this act shall apply, the following fees: For examination and filing of the first application of any company, and issuing of the certificate of license thereon, fifty dollars, which shall go to the auditor; for filing each annual statement herein required, twenty dollars; for each certificate of authority, two dollars; for every copy of paper filed as herein provided the sum of ten cents per folio, and fifty cents for certifying the same and affixing the seal of office thereto; all of which fees shall be paid to the officer required to perform the duties. [12 Neb. 176.]

SEC. 33. [Security deposits.]-Whenever the existing or future laws of any other state of the United States shall require of insurance companies incorporated by or organized under the laws of this state, having agencies in such other state, or of the agents thereof, any deposit of securities in such state, for the protection of policy-holders, or otherwise, or any payment for taxes, fines, penalties, certificates of authority, license fees, or otherwise, greater than the amount required for such purposes, from similar companies of other states, by the then existing laws of this state, then, and in every such case, all companies of states establishing, or having therefore established an agency or agencies in this state, shall be and are hereby required to make the same deposit, for a like purpose, with the auditor of this state, and to pay said auditor, for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon or required by the laws of such state, of the companies of this state, or the agents thereof.

SEC. 84. [Certificate published.]-It shall be the duty of every insurance company of the kind provided in this act, doing business in this state, organized under the laws of this state or any other state or country, to publish once, annually, in two newspapers of general circulation, one of which newspapers shall be published at the capital of the state, (and in case of companies organized in the state of Nebraska, one of which shall be published in the county where the principal office is located), a certificate from the auditor of state that such company has in all respects complied with the laws of this state relating to insurance.

SEC. 35. [Examination-Expenses.]-The necessary expenditures of any examination made or ordered to be made by the auditor of the state, under this act, shall be certified to by him and paid on his requisition by the company which is the subject of such examination; Provided, That the auditor of state shall have the power, upon receiving information that the capital of any company is impaired, to call upon any such company for a full statement of its condition, and in event of refusal or neglect of any company to answer the requisition of the auditor as aforesaid, he shall proceed to make the examination required by this act, and to take the necessary action to terminate the business of said company in this state.

SEC. 36. [Examination-Blanks.]—It shall be the duty of the auditor of state to cause to be prepared and furnished to each of the companies organized under the laws of this state, and to attorneys or agents of companies incorporated by other states and foreign governments, who may apply for the same, printed forms of statements required by this act, and he may from time to time make such changes in the form of these statements as shall seem to him best adapted to elicit from the companies a true exhibit of their condition in respect to the several points hereinbefore enumerated.

SEC. 37. [Auditor's report.]-It shall be the duty of the auditor of state to cause the information contained in the statements required of the companies

organized in this state, to be arranged in tabular form, and prepare the same in a single document for printing, and submit the same to the legislature, as a portion of his regular report to that body.

SEC. 38. [Repealed. See sec. 38, chap. 77.]

SEC. 39. Mixed mutual and stock companies.]-It shall not be lawful for any company organized upon the mutual plan, to do business and take risks upon the stock plan, neither for a company organized as a stock company, to do business upon the plan of a mutual insurance company.

SEC. 40. [Unincorporated mutual companies.]-Nothing in this act shall be so construed as to prevent any number of persons, not exceeding two hundred, from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire, hail or death; but such associations of persons shall in no case insure any property not owned and occupied by one of their number, and no life except that of their own number, nor shall the provisions of this act be applicable to such associations or companies; Provided, Such associatious or companies shall in no case pay any salaries or compensations to officers, agents, or any other employes, and shall receive no premiums, nor make any dividends, and further, nothing in this act shall be so construed as to prevent any number of persons from making mutual pledges and giving valid obligations to each other for their own insurance from loss by hail; Provided, Such association of persons shall in no case insure any property not owned and occupied by one of their own number, neither receive premiums or make any dividends. [Amended 1888, chap. L.]

SEC. 41. [Repealed that portion of chapter 16 relating to insurance companies except so far as the same relates to the business of life insurance.]

SEC. 42. [Cancelling policies.]-Any person, company, association, or corporation, transacting the business of fire, or fire, wind, storm, and tornado insurance, in this state, shall cancel any policy of insurance hereafter issued or renewed, at any time, by request of the party insured, or his legal representative, and shall return to the said party, or his representative, as aforesaid, the net amount of premium received by the company, after deducting the actual compensation of the agent or solicitor for securing the issue of said policy, and also deducting the customary short-rate premium for the expired time of the full term for which said policy was issued or renewed, anything in the policy to the concontrary notwithstanding. [1885, chap. 57.]

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, it 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.

SEO. 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 con

SEC. 40. See 16 Neb. 551.

SECS. 1-4. Computation: 4 Neb. 193. 7 Id. 83. Interest defined; 11 Neb. 72. On accounts: 9 Neb. 112. 15 Id. 327. On judgments; 6 Neb. 363. 15 Id. 327. Partnership accounts: 10 Neb. 97. Rate expressed in contract governs after maturity: 15 Neb. 260. See also 13 Neb. 320 10 Id. 327. 8 Id. 61. 15 Id. 334, 579.

12 Id. 336.

tract, 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 annum. Unsettled accounts between parties shall bear interest after six months from the date of the last item thereof."

SEC. 5. (Usury-ConsequencesAgents.-If a greater rate of interest than is hereinbefore allowed shall be contracted for or received, or reserved, the contract 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 nad 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 be given without payment or tender by him of the principal sum.

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 author. ities 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,

SEC. 5. General rules and principles. 4 Neb. 204. 6Id. 152. 10 Id. 543. Subsequent agreement to pay does not affect the 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. 8 Id. 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 of interest, it devolves on plaintiff to show that value of services, etc., did not exceed it: 13 Neb. 556. Where agent retains commissions out of loan; in absence of special denial by alleged principal of agency, judgment finding existence of agency will not be disturbed: 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. Surety may plead; usury need not be expressed in note: 7 Neb. 58. Defense of, not available against innocent purchaser; but if proved, plaintiff must show that he was bona fide purchaser: 9 Neb. 229. 10 Id. 86. 11 Id. 492. 14 Id. 416. 15 Id. 631. Available as a defense in action on usurious contract; but where action is dismissed without prejudice before submission, defense of 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, That laws of N. Y. governed contract, and action in Nebraska would not lie: 1 Neb. 112. But note made in Neb. payable in N. Y., laws of Neb. govern: 11 Neb. 493. 14 Id. 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 payment 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 over due is not usury; 16 Neb. 12. Answer setting up usury should state with whom contract was made, nature and amount; 16 Neb. 689.

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.]

CHAPTER 45.-INTERNAL IMPROVEMENTS.

SECTION 1. [Bonds.]-That any county or city in the state of Nebraska is hereby authorized to issue bonds to aid in the construction of any railroad, or other work of internal improvement, to an amount to be determined by the county commissioners of such county or the city council of such city, not exceeding ten per centum of the assessed valuation of all taxable property in said county or city; Provided, The county commissioners, or city council, shall first submit the question of the issuing of such bonds, to a vote of the legal voters of said county or city, in the manner provided by chapter nine of the Revised Statutes of the state of Nebraska, for submitting to the people of a county, the question of borrowing money. [1869 § 1, 92. G. S. 448.1

SEC. 2. [Proposition to vote.]-The proposition of the question must be accompanied by a provision to levy a tax annually for the payment of the interest on said bonds as it becomes due; Provided, That an additional amount shall be levied and collected to pay the principal of said bonds, when it shall become due; and, Provided, further, That no tax shall be levied or collected to pay any of the principal of said bonds until after the year 1880. [Amended 1870, 15.]

SEC. 3. [Rate of interest.]-The proposition shall state the rate of interest such bond shall draw, and when the principal and interest shall be made payable. SEC. 4. [Result of vote.]-If two-thirds of the votes cast at any such election for the purposes herein set forth, be in favor of the propositions submitted, the county commissioners in the case of a county, and the city council, in the case of a city, shall cause the proposition and result of the vote to be entered upon the records of said county or city, and a notice of its adoption to be published for two successive weeks in any newspaper in said county or city, if there be one, and shall thereupon issue said bonds which shall be and continue a subsisting debt against such county or city, until they are paid and discharged. [Amended taking effect Dec. 1, 1875. Laws 1875, 87.]

SEC. 5. [Taxes.]-It shall be the duty of the proper officers of such county or city to cause to be annually levied, collected and paid to the holders of such bonds a special tax on all taxable property within said county or city, sufficient to pay the annual interest as the same becomes due; and when the principal of said bonds become due, such officers shall in like manner collect an additional amount sufficient to pay the same as it becomes due; Provided, That when any bonds have been heretofore issued, such officers shall not levy or collect any amount more than may be necessary to pay the amount annually falling due by the condition of such bonds until after the year 1880; Provided, That not more than 10 per centum of the principal of said bonds shall be collected in any one year,

DECISIONS. Acts are constitutional. 2 Neb. 424. 10 Id. 279. Aid cannot be voted exceeding ten per cent. of the assessed valuation of county, and two-thirds vote necessary. 7 Neb. 313. But limitation does not prohibit precinct from voting aid in addition to that voted by county. 6 Neb. 215. 13 Id. 131. Works of internal improvement defined. 4 Neb. 156. Bridge over Platte river. Id. 7 Id. 260. Water grist mill.is. 14 Neb. 327. But a steam grist mill is not. 15 Id. 568. Court house is not. 10 Neb. 281. Bridges wholly within county are. 16 Neb. 509, (distinguishing 12 Id. 185.) People cannot delegate to county commissioners the authority to determine which of two works shall be recipient of aid voted. 13 Neb. 132. 14 Id. 294. Proposition need not contain provision for levy of tax to pay principal, but only interest. Proposition containing provision for collecting tolls not objectionable. Proposition should contain provision to levy tax to meet liability incurred. 6 Neb. 53, 235. And see 14 Neb. 324. Precinct bonds may be issued for. 6 Neb. 49. Mode of collection by tax; mandamus lies to compel levy. 6 Neb. 24. Mandamus to pay bonds for; petition should contain particular description of works. 9 Neb. 459. In ascertaining donations already made, unpaid interest should not be considered in making up aggregate which county is entitled to vote. 13 Neb. 130.

excepting where bonds have been heretofore issued, and by the conditions of such bonds are required to be paid in some other manner. [Amended 1870, 15.]

SEC. 6. [Estoppel.]-Any county or city which shall have issued its bonds, in pursuance of this act, shall be estopped from pleading want of consideration therefor, and the proper officers of such county or city may be compelled, by mandamus, or otherwise, to levy the tax herein provided to pay the same.

SEC. 7. [Repealed 1885, chap. 58.]

SEC. 8. [Bonds heretofore issued.]-All bonds heretofore voted and issued by any county or city in this state, to aid in the construction of any railroad or other work of internal improvement, are hereby declared to be legal and valid, and a lien upon all of the taxable property in such county or city, notwithstanding any defect or irregularity in the submission of the question to a vote of the people, or in taking the vote, or in the execution of such bonds, and, notwithstanding the same may not have been voted upon, executed, or issued in conformity with law, and such bonds shall have the same legal validity, and binding force, as if they had been legally authorized, voted upon, and executed; Provided, That nothing in this section, nor in this act, shall be so construed as to legalize, or in any way sanction any vote of the people of Nemaha county, heretofore had, for the purpose of aiding in the construction of any railroad, nor anything done by the county commissioners of said county authorizing said vote, or anything done by them in consequence of such vote.

SEC. 9. Taxes to pay principal.]—That after the year 1880, the officers of any county or city may levy and collect, not exceeding 10 per centum of the principal of said bonds; Provided, Said bonds are not payable in installments not exceeding 10 per centum; and whenever any county, city, or precinct shall have on hand an amount exceeding two thousand dollars, for the payment of the principal of said indebtedness, the corporate authorities of such county or city shall advertise for the surrender of any such indebtedness; and the person offering to surrender such indebtedness on the lowest and best terms, shall receive the money, and surrender such indebtedness; and if, at any time, there shall have accumulated a sum exceeding ten thousand dollars, the same may be invested in Nebraska state stocks, or in United States stocks. [1870 § 3, 15.]

SEC. 10. [Refunding taxes.]-All taxes which have been paid to raise a sinking fund to pay the principal of such indebtedness, and now on hand shall be returned to the person paying the same. [1870 § 4, 15.)

REFUNDING BONDS.

SEC. 11. [Outstanding bonds.]-That any county, precinct or city in the state of Nebraska, which has heretofore voted and issued bond or bonds to aid in the construction of any railroad or other work of internal improvement, and which bond or bonds or any part thereof still remain and are a legal liability against such county, precinct or city, and bearing interest at a greater rate than seven (7) per centum per annum, is hereby authorized to issue coupon bond or bonds, bearing interest at a rate not exceeding seven (7) per centum per annum, to be substituted or exchanged for such bond or bonds heretofore issued, whenever such county, precinct, or city can affect such substitution or exchange dollar for dollar; Provided, That no such refunding bonds shall be issued except after four (4) publications of notice thereof in at least two weekly papers published in the county, by the duly constituted authorities of such county, city, village or precinct, which notice shall recite the date, number and denomination of the bonds sought to be refunded and also of the bonds sought to be issued. [Amended 1885, chap. 59.]

SEC. 12. (Form of new bonds.]-The new bond or bonds so issued shall have recited therein the object of its or their issue, the whole of the act under SEC. 11. In registration of bonds auditor and secretary of state have no right to review the action of their predecessor upon the original bonds. 14 Neb. 281.