1835.

LAWS OF MARYLAND

CHAP. 229.

for the remainder of the year, shall be filled up by the

company from which such director had been delegated.

Application of

SEC. 15. And be it enacted, That the President and

funds

Directors shall, from time to time, apply all sums re-

ceived by them for premiums, and dividends and inte-

rests, or their investments, to the payment of charges

and losses in the first instance; and to make up the

amount of their original capital when it shall sustain

Dividends

a diminution from any cause whatever, and shall make

such dividends of their clear net profits from time to

Contingent fund

time as they shall judge expedient; Provided, that he-

fore making any such dividend as aforesaid, the said

President and Directors shall first retain one fifth of

the said net profits, to be held and invested as a contin-

gent fund to pay losses; And provided, that the said

contingent fund shall at no time exceed the sum of two

hundred thousand dollars.

Loans— invest-ments

SEC. 16. And be it enacted, That it shall be lawful

for said corportion to make loans upon bond and mort-

gage and other securities, on real estate, and to con-

Vert any portion of their capital stock into real estate

from time to time, not exceeding three fourths of their

capital; and shall have power and authority to provide

for the investment of the funds of said corporation, in

the public debt of the United States, or of this State,

or of the city of Baltimore, or in the stock or funds of

Banking forbid

any corporation of this State; Provided, that nothing

contained in this act shall be construed to authorise

said company to issue, or put into circulation, any ne-

gotiable note, or notes payable to bearer, or notes in the

nature of bank notes, nor to authorise any contract.

which by existing laws amounts to usury, nor to gua-

rantee in any manner whatever, the payment of any

chose-in-action; and that the real estate which the cor-

poration shall be entitled to hold, except on mortgage,

shall be only such as shall be actually necessary for

the convenient transaction of its business.

Contracts valid

SEC. 17. And be it enacted, That all contracts, poli-

cies, and other instruments not under seal made by

said corporation, shall be good and valid in law and

equity,