and shall forfeit its right to do the business contemplated by this act, which forfeiture the superintendent shall enforce by proceeding in quo warranto. 86 O. L. 377

(§ 3691-6). Sec. 6. Examinations by commissioner of in

surance

The superintendent of insurance may, whenever he may deem it advisable, cause an examination of the affairs of such company or corporation to be made by one or more disinterested persons, at the expense of the company, such expense not to exceed five dollars per day for each person so employed; and if, upon such examination, it shall appear that such company or corporation is exercising powers or franchises contrary to law, the superintendent of insurance shall institute proceedings in quo warranto against the same, and if it be found, in such proceedings, that such company or corporation has exercised powers or franchises contrary to law, a forfeiture of its right to do business shall be declared. 86 (. L. 377.

($3691-7). Sec. 7. Amount of applications for insurance required before commencing business

No company organized under this act shall issue any certificate or policy of insurance until bona fide applications for insurance to the amount of fifty thousand dollars shall have been filed with the secretary of such company, and a statement of such fact sworn to by such secretary and president of such company, filed with and approved by the superintendent of insurance. Nor shall the treasurer of such company receive any money, as such treasurer, until he shall have filed with the superintendent of insurance, payable to the State of Ohio, for the benefit of the members of such company, his bond, in the sum of ten thousand dollars, with security, to be approved by the superintendent. Such bond shall be conditional for the faithful application of all money coming into his hands as such treasurer, 86 0. L. 377.

(3691-8.) Sec. 8. When company may commence busi

ness

When the statement of the secretary and the president, and the bond of the treasurer, provided for by the preceding section, shall have been filed and approved by the superintendent of insurance, the superintendent shall issue, to such company, his certifi

cate, certifying such fact, and such certificate shall constitute the authority of such company to commence business. 86 0. L. 377.

(§ 3691-9.) Sec. 9. When charter may be forfeited

Should the amount at risk in such company, at any time, become reduced below fifty thousand dollars, such company shall issue no more certificates or policies of insurance until bona fide applications, sufficient to restore such insurance to said amount, shall have been secured, and a sworn statement of such fact shall have been filed with and approved by the superintendent of insurance, and by him certified to the company; and should such company fail to so restore such amount, for the period of six months, then such company shall forfeit its right to do [the] business contemplated by this act; and when the liabilities of such company shall exceed three per cent of the amount of risk in force, as determined by the last preceding assessment, such company shall be deemed to be insolvent, and to have forfeited its charter; and such forfeiture shall be enforced by the superintendent of insurance by proceedings in quo warranto.

L. 377.

(§ 3691-10.) Sec. 10.

86 O.

Bond of secretary and treasurer

The treasurer and secretary of such companies shall give bond for the faithful performance of their duties, to the directors or trustees of the company, in such sum and in such security as shall be prescribed in the by-laws of the company, the security to be approved by such directors or trustees. 86 O. L. 377.

(§ 3691-11.) Sec. 11. Directors

The directors or trustees of such company shall, before qualified, take an oath, to be administered by any officer authorized to take acknowledgments of deeds to faithfully perform the duties required of them as such officers. 86 O. L. 377.

(§ 3691-12.) Sec. 12. Statement of secretary and bond of treasurer to be filed with commissioner

of insurance

Any company or association, organized under sections 3686 and 3687 of the Revised Statutes of Ohio, as amended February 27, 1885, for the purpose of insuring its members against loss from

death of domestic animals, and still doing business shall, within ninety days after the passage of this act, file the statement, and the treasurer shall file his bond as provided in section 7 of this act, and, failing so to do, shall forfeit the right to do the business contemplated by this act. 86 O. L. 377.

(§ 3691-13.) Reinsurance

Any fire, marine, fidelity, accident, plate glass, boiler, or other insurance company, now or hereafter organized or existing, under or by virtue of the laws of Ohio, shall have authority, by and with the consent and approval of the commissioner of insurance, to reinsure any and all risks undertaken by it, in any company authorized by law to transact a similar class of insurance business in this state. 81 v. 179.

($ 3691-14.) Sec. 1. ization

Credit guarantee companies-Organ

Any number of persons not less than five, may associate and form a company to guarantee and indemnify merchants, manufacturers, traders, and those engaged in business and giving credit, from loss and damage by reason of giving and extending credit to their customers and those dealing with them, by making, acknowledging, and filing articles of incorporation pursuant to, and by complying with sections 3588, 3589, and 3590, of the Revised Statutes of Ohio. gi O. L. 415.

($ 3691-15.) Sec. 2. Capital stock

No such company shall be organized with a less capital than one hundred thousand dollars ($100,000), and the whole capital shall, before proceeding to business, be paid in and invested in treasury notes, in stocks or bonds of the United States, in stocks or bonds of the State of Ohio, or of any municipality or county thereof, or in mortgages on unincumbered real estate within the State of Ohio, worth double the amount loaned thereon at the time such loan is made. gi O. L. 415.

(§ 3691-16.) Sec. 3.

Increase of capital

Any such company may increase its capital stock as provided in section 3592 of the Revised Statute of Ohio. gr O. L. 415.

(§ 3691-17.) Sec. 4.

Sec. 4. Investment of capital-Deposit with superintendent of insurance

Any such company may invest its capital stock and change such investment, as provided in section thirty-five hundred and ninety-three of the Revised Statutes of Ohio; but no such company shall commence business until it has made the deposit of securities provided for in said section, which shall be held and controlled by the superintendent of insurance for the purpose and in the manner provided in said section thirty-five hundred and ninety-three and in section thirty-five hundred and ninety-four of the Revised Statutes of Ohio. 91 O. L. 415.

($ 3691-18.) Sec. 5. Certificate of deposit authority for transacting business

When such company is fully organized and has deposited the requisite amount of securities, as hereinbefore provided, together with a certified copy of the papers required by this act, the superintendent of insurance shall, unless he find the name assumed by such company so nearly similar to the name of another company organized in this state as to lead to uncertainty or confusion on the part of the public, furnish such company with a certificate of such deposit and of authority to commence and transact business. gi O. L. 415.

(§ 3691-19.) Sec. 6. Powers of companies

No such company shall undertake any business or risk except as herein provided, and such companies shall have the right, power, and authority to agree to pay to merchants, manufacturers, dealers, and persons engaged in business and giving credit, the debt or debts, or such part thereof as may be agreed upon, owing to them, or which may be thereafter owing to them, and to indemnify them from loss on account thereof in such an amount or per cent. as may be agreed upon, and to charge and receive therefor such a sum or per cent. as the consideration for such an agreement, guaranty or indemnity as shall be agreed upon between such corporation and the person guaranteed or indemnified, and to buy, hold, own, and take an assignment of any and all claims, accounts and demands so guaranteed, and to hold, own and collect the same, and to enforce the collection thereof by action the same as the original holder and owner thereof might or could do; and such corporation may also guarantee the payment.

of money for personal services under contract of hiring. Any such corporation may use its capital stock or its funds accumulated in the course of its business to purchase or pay for any claim or demand, the payment of which it has guaranteed; or against the loss of which it has indemnified the holder; and such of its capital stock or accumulated funds as may not be so used shall be invested in the same classes of securities in which the deposit to be made with the superintendent of insurance is required by the provisions of this act to be invested; provided, that when on account of losses or otherwise, the amount of the funds of any such corporation shall fall below such sum as is required to be deposited by this act, no further guarantee of indemnity shall be issued until the deficiency has been made good. 91 O.

(§ 3691-20.) Sec. 7. Annual statements of companies—

The president or vice-president of each company organized under this act, or under the laws of any other state, and doing business in this state, shall, annually, on the first day of January, or within thirty days thereafter, prepare under oath and deposit in the office of the superintendent of insurance a statement of the condition of such company on the thirty-first day of December then next preceding, exhibiting the following facts and items, and in the following form, to wit:

First. The amount of the capital stock of the company, specifying the amount paid and unpaid.

Second. The property or assets held by the company, specifying :

1. The value of the real estate owned by such company, where it is situated, and the value of the buildings thereon.

2. The amount of cash on hand and deposited in banks to the credit of the company, specifying in what banks the same is deposited.

3. The amount of cash in the hands of agents and in course of transmission.

4. The amount of loans secured by bonds and mortgages which are first liens on real estate and on which there is less than one year's interest due.

5. The amount of loans on which interest has not been paid within one year.