776

LAWS OF MARYLAND.

business ; a less number may meet a'nd adjourn

from time to time until a quorum be present.

SEC. 11. And be it enacted, That the Board of

Elect presi-
dent.

Directors selected as aforesaid, on entering upon,
their duties, shall elect one of their number, who

shall be a citizen of this State, president of the

company.

SEC. 12. And be it enacted, That the Board of"

Principal

Directors shall establish the principal office of said

office at Balti-
more.

company in the city of Baltimore, but they may

constitute and establish agencies when and where

they may deem proper ; they shall have power to

enact by-laws, rules and regulations for the gov-

ernment of its officers, agents and servants, and'

the management of its affairs not inconsistent with

this act or the constitution or laws of this State,

and said by-laws from time to time to alter, amend

and add to by a majority vote of such board, and

shall possess all the powers usually vested in boards

of directors not inconsistent with this act.

SEC. 13. And be it enacted, That the holders of

Receive in-

guarantee capital stock shall be entitled to receive
interest thereon at a rate not exceeding seven per

terest.

centum per annum, payable semi-annually on the

first days of December and June.

SEC. 14. And be it enacted, That within sixty-

Valuation to

days after the first day of June, annually, a valua-

be made.

tion of the assets and liabilities of the company

shall be made, and, after providing for all out-

standing liabilities, twenty per centum of the sur-

plus or net profits of the preceding year shall be

set apart as a reserve fund and invested separately

from the other assets of the company, the income

.

accruing from such reserve fund to be divided

among the holders of guarantee capital stock, the

balance of the surplus or net profits of each year

to be divided amongst policyholders in equit-

able manner, as the board of directors shall deem-

best.

SEC. 15. And be it enacted, That all policies is-

Policies non-

sued by said company shall be non-forfeitable

forfeitable.

after payment of the first annual premium, and