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CHAP. 469.
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of requiring a member taking out insurance to sign a
premium note as hereinbefore required by this section,
company may insert in the body of its policies a provision or
condition precedent upon which said policy is issued, that by
the acceptance of said policy the insured covenants and
agrees with said company to pay the said company such
sum of money as the board of directors may require, in
such proportion and at such times as the company agreeably
to its act of its incorporation may require, said provision or
condition and its terms to appear on the books of the said
company, as and in place of the premium note, subject in all
respects to the same rights and remedies as a premium note,
And the insured, by surrendering up his policy, may be released
from all obligations under its provisions, except for losses and
expenses accrued prior to said surrender, a due proportion of
which the insured is liable to pay, in which event payment on
such due portions of losses and expenses alone will discharge
the obligation; and provided, further, that said company,
upon the payment of a cash premium of such amount as the
board of directors of eaid company may deem requisite, may
issue the aforesaid policies of insurance not further assessable
during the term for which said insurance may be issued,
unless during said term the losses and expenses of said com-
pany may aggregate a sum equal to five per cent, of the
aggregate of its premium notes and aforementioned con-
ditional policies ; in which event, non-assessable policies
issued under the provisions of this Act shall bear their due
proportions of said excess and be liable for assessments in an
amount sufficient to pay said excess, but not for any other
purpose, and in computing the aggregate of premiums, notes
and conditional policies, for the purpose of ascertaining
whether or not said excess, and the amount of its existing
said non-assessable policies shall not be included, but in ascer-
taining the rate of 'assessment necessary to pay losses and
expenses in excess of said five per cent, all policies issued by
said company shall be included and bear their share of said
assessment in proportion to the terms and conditions of said
policies, and a holder of said policy shall bear the same
relationship to the company as any other policy holder.
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Location of
office
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11. And be it enacted, That the office of said company
shall be in Hagerstown, Maryland, and the annual and all
other meetings of the company and the board of directors for
transacting the business of the company shall be held at their
office in the aforesaid place, and at the annual meeting of the
company the members shall pass all by-laws, rules and regu-
la,tions necessary for the well government of the affairs of said
corporation. It shall be the duty of the secretary and treas-
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