Policies—
when void.

Sec. 7.. And be it enacted, That when any pro-
perty insured by this corporation shall be aliened
by sale or otherwise, the policy shall thereafter be
void and of no effect, and shall be surrendered
to the directors to be cancelled, and upon such
surrender the insured shall be entitled to receive
his deposit on payment of his proportion of losses
and expenses accrued prior to such surrender, but
the alienee of guarantee, having the policy assign-
ed to him, may have the same ratified and con-
ferred to him for his own proper use and benefit
upon application to the directors with their consent
within twenty days next after such alienation on
giving proper security to the satisfaction of said
directors for such portion of the deposit or pre-
mium note as shall remain unpaid, and by virtue
thereof, from the time of such ratification, the
party causing such security to be given shall be
entitled to all the rights and privileges, and be
subject to all the liabilities to which the original
party to whom the policy was issued was entitled
and subject under this Act.

Liabilities of
Stockholders.

Sec. 8. And be it enacted. That every member
of said corporation shall be bound to pay for losses
or damages, and such necessary expenses afore-
said accruing in said corporation in proportion to
the amount of his or her deposit note.

May bring
suit.

Sec. 9. And be it enacted, That suits at law may
be maintained by said corporation against any of
its members for the collection of said deposit notes
or any assignment thereon, or for any other cause
relating to the business of said corporation; also,
all suits may be prosecuted and maintained by any
member against said corporation for loss or dam-
age by fire if payment be withheld or refused
more than three months after the company are
duly notified of such loss, no member of the com-
pany not being in his individual capacity a party
to the suit or suits shall be incompetent as a wit-
ness on account of his being a member of the
company.

Payment of
deposit notes.

Sec. 10. And be it enacted, That the Directors
shall, after ascertaining the amount of loss or
damage by fire sustained by any of its members,
settle and determine in proportion to the deposit
notes, the amount to be paid by any of its mem-