of any subsequent year, and whenever it shall be
necessary to reduce the scrip of said company to
pay the losses and expenses of any subsequent
year the scrip originally granted to the insured
shall be first reduced and exhausted before re-
course shall be had to the scrip granted to the
stockholders of the company.

Sec. 11. And be it enacted, That in case any
person or persons entitled to a certificate shall be
indebted to said corporation fora premium or pre-
miums of insurance the Board of Directors may
withhold or correct the certificate or deduct such
indebtedness from the amount thereof.

Indebtedness
to be deducted.

Sec, 12. And be it enacted, That at the end of
each fiscal year after the payment of a dividend or
dividends to stockholders equal to ten per cent.
per annum on the amount paid up on each share
of stock held by them, the Board of Directors
shall, out of the remaining profits, pay such inter-
est for the preceding year to the holders of certi-
ficates as such balance will pay, not exceeding
six per cent.; and whenever there shall be a sur-
plus, after paying six per cent. interest for the
preceding year on all certificates issued, they shall
dispose of such surplus to the stockholders and
holders of participating policies, in the same man-
as required in the tenth section hereof.

Interest to be
paid.

Sec. 13. And be it enacted. That whenever the
accumulation of the net profits, together with the
capital stock paid up, shall exceed three hundred
thousand dollars, the Board of Directors may
apply the excess, after the payment of dividends
and interest as hereinbefore provided, annually
thereafter towards the redemption in whole, or in
part, of the certificates, commencing with those
of the oldest dates; and whenever funds shall be
provided to redeem certificates, no interest shall
be paid to holders of the same after notice shall
have been given to them that funds are provided
for the redemption thereof; such notice shall be
given by publishing the same daily for one week
in two newspapers printed in the city of Balti-
more.

Excess—how
applied.

Sec. 14. And be it enacted, That if any person
entitled to a certificate of profits of this corpora-
tion, issued in conformity with the provisions of

Application
to be made
within two
years.