1835.
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LAWS OF MARYLAND
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CHAP. 229.
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for the remainder of the year, shall be filled up by the
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company from which such director had been delegated.
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Application of
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SEC. 15. And be it enacted, That the President and
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funds
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Directors shall, from time to time, apply all sums re-
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ceived by them for premiums, and dividends and inte-
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rests, or their investments, to the payment of charges
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and losses in the first instance; and to make up the
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amount of their original capital when it shall sustain
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Dividends
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a diminution from any cause whatever, and shall make
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such dividends of their clear net profits from time to
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Contingent fund
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time as they shall judge expedient; Provided, that he-
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fore making any such dividend as aforesaid, the said
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President and Directors shall first retain one fifth of
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the said net profits, to be held and invested as a contin-
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gent fund to pay losses; And provided, that the said
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contingent fund shall at no time exceed the sum of two
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hundred thousand dollars.
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Loans— invest-ments
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SEC. 16. And be it enacted, That it shall be lawful
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for said corportion to make loans upon bond and mort-
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gage and other securities, on real estate, and to con-
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Vert any portion of their capital stock into real estate
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from time to time, not exceeding three fourths of their
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capital; and shall have power and authority to provide
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for the investment of the funds of said corporation, in
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the public debt of the United States, or of this State,
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or of the city of Baltimore, or in the stock or funds of
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Banking forbid
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any corporation of this State; Provided, that nothing
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contained in this act shall be construed to authorise
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said company to issue, or put into circulation, any ne-
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gotiable note, or notes payable to bearer, or notes in the
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nature of bank notes, nor to authorise any contract.
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which by existing laws amounts to usury, nor to gua-
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rantee in any manner whatever, the payment of any
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chose-in-action; and that the real estate which the cor-
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poration shall be entitled to hold, except on mortgage,
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shall be only such as shall be actually necessary for
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the convenient transaction of its business.
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Contracts valid
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SEC. 17. And be it enacted, That all contracts, poli-
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cies, and other instruments not under seal made by
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said corporation, shall be good and valid in law and
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equity,
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