98 CORPORATIONS. [ART. 23

and of the meeting hereinafter provided for in two daily news-
papers published in the county or city where such corporation is
located, may, with the consent in writing of two thirds of the
members of such corporation and the consent of three-fourths of
its directors, become a joint stock corporation, subject to the
existing laws of this State applicable to such corporations. The
policy holders of said company shall have the first right to sub-
scribe to said stock, subject to such equitable regulations as the
directors may prescribe, but all such subscriptions must be made
in cash, and at not less than par, and the assets and liabilities of
the mutual company shall thereupon be and become the assets
and liabilities of the joint stock company, except so far as herein
otherwise provided. The reserve fund, if any, of the mutual
company shall be and become reserve of the joint stock company,
except so much of said reserve fund as may, on examination by
the Insurance Commissioner, be deemed to be the interest in said
reserve fund of those members of the mutual company who do
not desire to become members of the said stock company, and
said reserve, less the provision made above for the protection of
outstanding mutual policy holders, or any part thereof, may be
deposited with the Treasurer or Insurance Commissioner of
Maryland, as guarantee capital for the payment of the policies of
insurance issued by said company, as required by section 116 and
section 128 of this article, and the mutual policies and all the
rights and liabilities attached thereto, and all the powers and
obligations of the company with reference to the same, shall sur-
vive so long as said policies shall remain in force, except that
such policies shall be thereafter considered as policies for the
largest amount which, according to their terms, might be payable
thereunder, in case the assessment provided for should yield a
sufficient amount to pay the same, and, if any certain number of
assessments be specified upon said policies as payable by the
holders thereof, the company shall not be entitled to levy any
further assessments, even although such rights may have been
expressly reserved in the policy; provided, however, that before
any such company shall be entitled to do business as a stock com-
pany as aforesaid, the Insurance Commissioner shall, upon request,
value the assets of the said company and its outstanding policies,
and shall find and give his certificate that the admitted assets of