JOHN WALTER SMITH, ESQ., GOVERNOR.

201

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 subscribe 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 lees than par. The assets, if any, and the
liabilities of the mutual company shall thereupon be and
become the assets of the stock company, except so far as
herein otherwise provided ; but it is hereby made the duty of
the Insurance Commissioner, upon request and payment for
said work at the usual rates, to ascertain the interest in said
assets of all the members of the mutual company who have
not given their consent as aforesaid to the change of said com-

CHAP. 131.'

Mav become
a Joint stock
company.

pany into a stock company, and this interest so ascertained
shall be paid over to such non assenting members, and upon
payment or tender to them of said interest so ascertained
their membership shall cease and be determined, and the
balance of such assets, less the provision made above for the
protection of outstanding mutual policy holders, may be
deposited with the treasurer or the 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 survive 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 assess-
ment 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 com-
pany shall not be entitled to levy any further assessments,
even although such rights may have been expressly reserved

Non-
assenting
members to
be paid
their Interest
in said
assets.

in the policy ; provided, however, that before any such com-
pany shall be entitled to do business as a stock company ae
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 said company, including its capital stock, are sufficient
to provide reserve upon all outstanding policies as required bj
the laws of this State in relation to insurance companies.
SEC. 2. And be it enacted, That this Act shall take effect
from the date of its passage.
Approved April 1, 1902.

Assets of
company to
be valued.