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transaction of the business of said corporation; and at the
expiration of the term of insurance for which a policy is
issued the said note shall be surrendered; provided, there are
no losses and expenses which have accrued during said term,
a pro rata share of which said note should bear, in which
event said note will not be surrendered until such pro
rata share of losses and expenses are paid; or instead
of requiring a member taking out insurance to sign a pre-
mium note as is hereinbefore required by this section, the
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 proportions and at such times as the company, agree-
ably to its act of incorporation, may require; said pro-
vision 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 obligation 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 portion of losses and expense 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 said company may deem
requisite, may issue the aforesaid policies of insurance not
farther assessable during the term for which said insurance may
be issued, unless during said term the losses and expenses of said
company may aggregate a sum equal to five per cent, of the
aggregate of its premium notes and aforementioned conditional
policies; in which event non-assessable policies issued under
the provisions of this Act shall bear their due proportion of
said excess and be liable for assessment in an amount sufficient
to pay said excess, but not for any other purpose; and in com-
puting the aggregate of premium notes and conditional
policies for the purpose of ascertaining whether or not said
excess and the amount of it exists, said non-assessable policies
shall not be included, but in ascertaining the rate of assessment
necessary to pay losses and expenses in excess of said tive per
cent, the 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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CHAP. 556
When note
shall be
surrendered,
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