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118 CORPORATIONS. [ART. XXIII
capital of not less than twenty-five thousand dollars nor more than,
two hundred thousand dollars, divided into shares of one hundred dol-
lars each, which shall be invested in the same manner as 10/22/2001 12:49PMis provided
for the investment of the capital stock of life insurance companies of
this State. The stockholders of the guaranty capital of a company shall
be entitled to a semi-annual dividend of not more than four per cent,
on their respective shares if the net profits or unused premiums, left
after all expenses, losses and liabilities then incurred, with the reserve
for reinsurance, are provided for, shall be sufficient to pay the same.
The guaranty capital shall be applied to the payment of losses only
when the company has exhausted its cash in hand and the invested
assets, exclusive of uncollected premiums, and when thus impaired, the
directors may make good the whole or any part of it by assessments
upon the contingent funds of the company at the date of such impair-
ment. Shareholders and members of such companies shall be subject
to the same provisions of law relative to their right to vote as apply
respectively to shareholders in stock companies and policy holders in
purely mutual companies; and said guaranty capital shall be retired
when the permanent fund of the company equals two per cent, of the
amount insured upon all policies in force; and said guaranty capital
may be reduced or retired by vote of the policy holders of the company
and the assent of the insurance commissioner, if the net assets of the
company above its reinsurance reserve and all other claims and obliga-
tions exclusive of guaranty capital, for two years last preceding and
including the date of its last annual statement, shall be not less than
twenty-five per cent, of the guaranty capital. Due notice of such pro-
posed action on the part of the company shall be mailed to each
policy holder of the company not less than thirty days before the meet-
ing when such action may be taken, and shall also be advertised in two-
papers of general circulation in the city or county where the principal
office of the company is located, not less than three times a week for a
period of not less than four weeks before said meeting. No insurance
company with a guaranty capital, which has ceased to do new business,
shall divide among its stockholders any part of its assets or guaranty,
capital, except income from investments, until it shall have performed
or cancelled its policy obligations.
1916, ch. 256, sec. 154X. 1918, ch. 400, sec. 154X.
154X. Mutual Fire Insurance companies, incorporated under the
laws of any other State of the United States, or of any foreign govern-
ment, and duly licensed to transact business in such other State or
country, shall be admitted to do business in this State, upon complying
with all the requirements and restiictions of this Article applicable to
domestic companies of the same class, save only as to their incorpora-
tion and investment of their funds, if they shall at the time of applica-
tion for admission be in compliance with the laws of their respective
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