this scrip shall constitute a surplus or reserve of
said company for the security and payment of
losses, and liable for any excess of losses and ex-
penses above the earned premiums of any year ;
each later annual issue of scrip always to be first
reduced or wholly cancelled before any previous
annual issue is at all reduced, and all the issues
of scrip to be liable to reduction and cancellation
before the capital stock shall be encroached upon.
The Board of Directors shall have full power to
reduce and cancel the scrip of said company for
the purpose and in the succession aforesaid, as the
exigencies of the company may require.

Scrip—how
paid.

Sec. 11. And be it enacted. That no scrip issued
by the company shall be paid off in whole or in
part so as to reduce the aggregate of the capital
and the surplus or referred fund aforesaid below
the sum of one hundred thousand dollars; but the
capital shall be regarded as impaired, unless the
amount of the stock capital created by or under
the second article of this charter is deficient by
losses or otherwise. In case of such deficiency,
the Board of Directors shall have power to levy an
assessment on the shares to make up the defici-
ency; and after public notice is given in two of
the daily papers of the city of Baltimore, for at
least thirty days of such assessment, and requiring
its payment, the directors may sell at auction the
stock of any shareholder who shall neglect or re-
fuse to pay such assessment within 'one week from
the time at which such payment is in and by said

Proviso.

public notice required; provided, a price equal to
the assessment be realized for it, and a new certi-
ficate shall be issued to the purchaser for the share
or shares so purchased, and the old one shall be
cancelled in the books of the company, and any
surplus received for the stock so sold, over and
above the assessment and expense, shall be paid
over to the holder of such cancelled certificate.

Scrip—how
converted into
stock.

Sec. 12. And be it enacted. That the directors
may at any time, by a vote of two-thirds of their
whole number, convert the issue of scrip at its then
marketable value, into capital stock, and make the
company wholly a capital stock company; or when
the surplus or reserved fund represented by the
scrip aforesaid shall amount to a sum equal to the