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SEC. 4. And be it further enacted, That each and every
premium note given by the company shall bear interest at a
rate fixed, from time to time, by the board of directors, pay-
able annually in advance, on the first Monday in January, in
each and every year, respectively; and said note shall be held
as security for the payment of any assessment that may be
made on the members, and shall not be used for any other
purpose whatever.
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Interest on
premium
notes.
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SEC. 5. And be it further enacted, That the premium notes
taken by this company shall remain in full force until the poli-
cies for which they were given are cancelled, and each of said
notes shall be liable for its proportion of all the losses and
expenses of the company up to the time of cancellation, as
estimated by the directors, including cost of collecting.
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Premium
notes in
... force until
policy is
cancelled.
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SEC. 6. And be it further enacted, That all promissory
notes of hand or other evidences of debt held by the said com-
pany, which shall have been given thereto for premiums for
insurance, or for any part or parts of said premiums, shall
constitute and be deemed a lien on any real estate which may
be insured in consideration, or part consideration, of such
notes or evidences of debt, which real estate shall be liable for
the full and just payment of such notes or evidences of debt,
either wholly or in part, at such time or times as the directors
shall demand, and of all legal charges that may be incurred
in enforcing payment thereof in case of refusal or neglect to
pay by the drawers of such notes or evidences of debt. Any
sale, mortgage or transfer of such real estate subsequent to the
date of such notes or evidences of debt, and during the time
they are in existence, shall not invalidate or prejudice the lien
created thereon by the making and delivery of such notes of
evidences of debt; and such real estate shall only be released
from such liability or lien thereon on the full payment of such
notes or evidences of debt, or such part thereon as may be
demanded by the directors of the company, and the cancelling
of the insurance or insurances for which they were given, as
premiums, under such regulations as the directors may estab-
lish; and in case of any refusal or neglect to pay such notes of
evidences of debt, either wholly or in part, whenever and as
often as may be demanded by the directors of the company, the
said directors may proceed, by bill, in any court having equity
jurisdiction, to collect the same, or any part thereof, by sale, in
the same manner as in the foreclosure of a mortgage on rea
estate; or said company may proceed by suit at law and execu-
tion as hereinafter provided.
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Promissory
notes to be
liens on
property
insured.
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