stitution, indemnify its members for losses caused by horse thieves or other felons, and expend such moneys as may be deemed necessary in the pursuit and arrest and in procuring the conviction of felons, and do all other acts and things consistent with the object of this Act and of such association, and not inconsistent with such articles and by-laws or with the laws and Constitution of this State or of the United States. SEC. ART. 3a. BONDING OR SURETY COMPANIES. SEC. 3432a. Bonding Cos. may guarantee fidelity 3432p. Interest, collection of. of persons. 3432b. Articles of incorporation. 3432c. Duty of auditor and atty. general. 3432d. Officers. 3432e. Capital stock. 3432f. May sue and be sued. 3432g. Annual report. 3432h. Form of report may amend. 34321. Failure to make deposit or report. 34320. Dissolution of company. [1901 S., p. 63. 34324. Penalty, business without certificate. 3432F. Suits, how brought. 3432s. Investments, manner of. 3432t. Real estate, purpose for which may be held. 3432u. Real estate, sale of. 3432v. Bonds, purpose for which may give. 3432y. Fiduciary may include expense of bond. 34327. Trust funds, deposit of. 3432aa. Foreign Surety Co. not affected. 3432bb. Fee of auditor. |3432cc. Stockholders, liability of. Approved March 2, 1901.] 3432a. Bonding or surety companies May guarantee fidelity of persons, 1. That any five or more persons, citizens of this State, may associate in accordance with the provisions of this act, and form an incorporated company for the purpose of guaranteeing the fidelity of persons holding places of public or private trust, and performing a contract, other than insurance, and executing or guaranteeing bonds or undertakings required or permitted in actions or proceedings or by law allowed. 3432b. Articles of incorporation. 2. Such persons shall associate themselves together by articles of incorporation in writing, for the purpose of forming a bonding or surety company, which articles shall specify the name by which the company shall be known, the place in which its principal office will be established or located, the amount of its capital stock, the general object of the company, and the proposed duration of the same. Any name not previously in use by any existing company may be adopted, but such name must clearly indicate the object and purpose of the company. The Auditor of State may reject any name or title, when in his judgment it too closely resembles that of any existing company or is likely to mislead the public. 3432c. Duty of Auditor and Attorney General. 3. The subscribers to said articles of incorporation shall acknowledge the same before some one empowered to take acknowledgments of deeds, and forward the same to the Auditor of State, who shall, in case he approves of the title of the proposed company, submit said articles of incorporation to the Attorney-General for examination, and if found by the Attorney-General to be in accordance with the provisions of this aet, and not inconsistent with the Constitution of this State or of the United States, he shall certify the same to the Secretary of State, with his approval endorsed thereon, who shall file the same in his office. 3432d. Officers. 4. The subscribers to said articles of incorporation shall choose from their number a president, a secretary, a treasurer and such number of directors, not less than five, who shall continue in office for the period of one year from the date of filing the articles of incorporation and until their successors shall be duly chosen and qualified as hereinafter provided. They shall open books for the subscription of stock in the company at such times and places as they shall deem convenient and proper, and shall keep them open until the full amount specified in the certificate is subscribed. 3432e. Capital stock. 5. Companies organized under the provi sions of this act shall have not less than two hundred thousand dollars ($200,000) of capital stock subscribed, two hundred thousand dollars ($200,000) of which shall be paid up and invested in bonds of the United States or of this State or of any county or any municipality of this State or in bonds or mortgages upon unincumbered real estate in the State of Indiana worth at least double the sum loaned thereon. (If buildings are considered a part of the value of the real estate they must be insured for the benefit of the mortgagee.) Fifty thousand dollars of such securities shall be deposited with the Auditor of State and upon said deposit and satisfactory evidence to the Auditor of State that the capital stock of at least two hundred thousand dollars is all subscribed and paid up in cash in good faith and that such stock has been invested as herein prescribed and upon the deposit of the sum of fifty thousand dollars of such securities or in cash with the Auditor then said Auditor shall issue to said company a certificate authorizing it to do business. No part of the capital paid in shall be loaned to any officer or stockholder of said company. 3432f. May sue and be sued. 6. A corporation organized or doing business under the provisions of this act, shall, by the name adopted by such corporation, in law, be capable of suing or being sued, and may have the power to make or enforce contracts in relation to the business of such corporation, may have and use a common seal and may change or alter the same at pleasure, and in the name of the corporation, or by a trustee chosen by the board of directors, shall, in law, be capable of taking, purchasing, holding and disposing of real and personal property for carrying into effect the purposes of their organization; and may by their board of directors, trustees or managers, make by-laws and amendments thereto not inconsistent with the laws or the Constitution of the State or of the United States, which by-laws shall define the manner of electing directors, trustees or managers and officers of such corporations, together with the qualifications and duties of the same, and fixing the term of office. 3432g. Annual report of officers. 7. The president, vice-president and secretary or majority of directors or trustees of each company organized under the provisions of this act shall, annually, on the first day of January, or within sixty days thereafter, prepare and deposit in the office of the Auditor of State, a verified statement of the condition of such company on the 31st day of December of the preceding year showing: C. The amount of cash deposited in bank or trust company. d. The amount of stocks and bonds of the United States, and all other bonds, e. giving names and amounts, with par and market values of each kind. The amount of loans secured by first mortgage on real estate. f. The amount of all other bonds, loans, and how secured, with rate of interest. g. The amount of notes given for unpaid stock and how secured. b. a. The amount of fees received during the year. C. C. The amount of commissions and salaries paid to agents. a. The greatest amount of any bond issued by the company. b. The amount paid in fees during the year. c. The amount paid for losses during the year. d. The whole amount of liability on bonds issued and in force on the 31st day of December of the previous year. 3432h. Form of report, Auditor may amend. 8. The Auditor of State is authorized to amend the form of statement and to exact such additional information as he may think necessary in order that a full exhibit of the standing of companies organized and doing business under this act may be shown. 34321. Failure to make deposit or report. 9. Upon the failure of any company organized or doing business under this act to make the deposit or to file the statement in time as stated in the preceding section, the Auditor of State shall notify such company to issue no new bonds until there shall have been a compliance with said requirements, and it shall be unlawful for any such company to thereafter issue any bond until such requirements shall be complied with. 3432j. Examination of books by Auditor. 10. The Auditor of State may at any time make personal examination of the books, papers and securities of any company organized and doing business under the provisions of this act, or may authorize or empower any other suitable person to make such examinations, and for the purpose of securing a full and true exhibit of its affairs, he or the person selected by him shall have power to examine under oath, any officer of said company relative to its business management. Suit on any bond or other obligation of such company may be brought in the Circuit Court of the county in which the same was required by law to be filed, or in which the same was issued, to be in force, and process may be had upon any agent or officer of such company either in such county or in the home office of such company. 3432k. Receiver, Auditor may ask. 11. If the Auditor of State shall at any time find from any report or examination that the company has not complied with the provisions of this act, he shall refer the facts to the AttorneyGeneral who shall proceed to ask the proper court to appoint a receiver for said company, who shall under direction of the court wind up the affairs of said company. But in no other way can the Auditor of State or other person restrain or interfere with the prosecution of business of any company doing business under provisions of this act, except in actions by judgment creditor or in proceedings supplementary to execution. 34321. Securities, may change. 12. Companies shall have the right at any time to change their securities on deposit with the Auditor of State by substituting for those withdrawn a like amount in other securities of the character provided for in this act, but securities to the amount of at least twentyfive per cent., of the stock subscribed shall at all times be and remain on deposit. 3432m. Capital stock, increase of. 13. Any bonding or surety company organized under the provisions of this act may increase the capital stock of the same, at any time after the intention to so increase the capital stock shall have been ratified by a two-thirds vote of the stockholders and after notice of the purpose to so increase the capital stock has been given by publication in some newspaper of general circulation, for the period of four consecutive weeks; but no increase of capital stock in less amount than fifty thousand dollars is hereby authorized. 3432n. Dividends, how made. 14. The directors of any bonding or surety company shall not make any dividends except from the surplus profit arising from their business, nor divide, withdraw or in any way pay the stockholders or any of them any part of its capital or reduce the net surplus of the company to an amount less than the whole amount of the unearned premium or fees on live or existing obligations. No dividends shall be declared except at the close of the year and at the time when, by law, the company is required to file its annual statement with the Auditor of State. ง 34320. Dissolution of company. 15. If at any time any company organized under this act shows to the Circuit or Superior Court of the county where its principal office is located, that it wishes to retire from business, that it has no unpaid liabilities of any character, such court shall, if it finds such facts to be true, enter an order directing the Auditor of State to surrender to said company all funds or securities theretofore deposited with him by such company. No such order shall be made until the Auditor of State shall have been notified of the pendency of such application at least ten days before the time set for the hearing thereof and until a full hearing by said court. 3432p. Interest, collection of. 16. The Auditor of State shall permit companies having on deposit with him stocks or bonds as security, to collect the interest accruing on such deposit, delivering to their authorized agent respectively the coupons or other evidence of interest as the same shall become due; but upon default by any company to deposit additional security as called for by the Auditor of State, or pending any proceedings to close up or enjoin it, the Auditor of State shall collect the interest as it becomes due, and add the same to the security in his hands belonging to such company. 3432q. Penalty, business without certificate. 17. Any company or ganized or doing business under this act without a certificate as provided for in this act, shall forfeit one hundred dollars for every day it continues to write new business in this State without such certificate. 3432r. Suits, how brought. 18. Suits brought to recover any of the penalties provided for in this act, shall be instituted in the name of the State of Indiana on relation of the Prosecuting Attorney of the Circuit Court of the county in which the principal office of said company is located under the direction and by the authority of the Auditor of State. Such penalties, when recov ered, shall be paid into the State treasury for the use of the school fund. 3432s. Investments, manner of. 19. No company organized under the provisions of this act shall invest its funds in any other manner than as follows: In bonds of the United States, in bonds of this State or of any other State, at or above par, in bonds and mortgages on unincumbered real estate within this State, worth at least double the amount loaned thereon, the value of such real estate shall be determined by a valuation made under oath by two freeholders of the county where the real estate is located, (if bulidings are considered as a part of the value of such real estate, they must be insured for the benefit of the mortgagee); in bonds or other evidence of indebtedness bearing interest, of any county, incorporated city, town or school district within the State where such bonds or other evidence of indebtedness are issued by authority of law, and upon which interest has never been defaulted; in loans upon bonds or mortgages of par value, if the current value of such bonds or mortgages is at least twenty-five per cent more than the amount loaned thereon. 3432t. Real estate, purpose for which may be held. 20. No company organized under this act shall be permitted to purchase, hold or convey real estate, except for the purposes and in the manner herein set forth. First. For the erection and maintenance of buildings at least ample and adequate for the transaction of its own business. Second. Such as shall have been mortgaged to it in good faith for money due. Third. Such as shall have been conveyed to it in the satisfaction of debts previously contracted in the course of its dealings, and which must be taken in by the company on account of the debt secured by such mortgage. Fourth. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts. And no company incorporated as aforesaid shall purchase, hold or convey real estate in any other cases or for any. other purposes. 3432u. Real estate, sale of. 21. All real estate acquired as aforesaid, except such as is occupied by buildings used in whole or in part for the accommodation of such companies in the transaction of its business, shall, except as hereinafter provided, be sold and disposed of within ten years after such company shall have acquired title to the same. No such company shall hold such real estate for a longer period than that above mentioned unless the said company shall procure a certificate from the Auditor of State that the interests of the company will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the Auditor of State shall direct in said certificate. 3432v. Bonds, purpose for which may be given. 22. Whenever any bond, recognizance, obligation, stipulation or undertaking is by law or the rules or regulations of any board, body or organization, required or permitted to be made, given, tendered, or filed for the security or protection of any person, persons, corporation, State, county, township, municipality or other organization whatsoever, conditioned for the doing or not doing of anything in any such instrument specified, and all heads of departments, public officers, State, county, town or municipal, and any and all boards, municipalities, committees thereof, courts and judges now or hereafter required or permitted to accept or approve the sufficiency of any such bond, recognizance, obligation, stipulation or undertaking may accept and approve the same whenever it is executed or the conditions thereof are guaranteed solely by a corporation authorized to guarantee the fidelity of persons holding places of public or private trusts, and the performance of contracts, other than of insurance, and to execute and guarantee bonds and undertakings required or permitted in actions or proceedings or by law allowed; and whenever any such bond, recognizance, obligation, stipulation or undertaking is so required or permitted to be made, given, tendered or filed with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the conditions thereof shall be sufficient when guaranteed solely by such companies, so authorized, and shall be in all respects a full and complete compliance with every law, ordinance, rule or regulation that such bond, undertaking, recognizance, obligation, or stipulation shall be executed or guaranteed by one or more sureties or that such sureties shall be resident householders, or freeholders; and any and all heads of departments, courts, judges, boards, municipalities or committees thereof, and any and all public officers, State, county, town or municipal, whose duty it may be to accept or approve the sufficiency of any such instrument, may accept and approve the same when executed or guaranteed by such corporation; and all such corporations may execute or guarantee such bonds, recognizances, obligations, stipulations or undertakings, whether given under the laws |