EMERSON C. HARRINGTON, GOVERNOR. 525

be made good within the time specified in such requisition and
satisfactory proof thereof filed with the Commissioner, the
corporation shall be deemed insolvent and may be proceeded
against as an insolvent corporation in the manner authorized
by law.

Section 154W. A mutual fire insurance company may be
formed with, or an existing mutual fire insurance company
may establish, a guaranty capital of not less than twenty-five
thousand dollars nor more than two hundred thousand dollars,
divided into shares of one hundred dollars each, which shall be
invested in the same manner as is provided for the investment
of the capital stock of life insurance companies of this State.
The stockholders of the guaranty capital of a company shall be
entitled to a semi-annual dividend of not more than four per
cent, on their respective shares if the net profits or unused
premiums, left after all expenses, losses and liabilities then in-
curred, with the reserve for reinsurance, are provided for, shall
be sufficient to pay the same. The guaranty capital shall be
applied to the payment of losses only when the company has
exhausted its cash in hand and the invested assets, exclusive of
uncollected premiums, and when thus impaired, the directors
may make good, the whole or any part of it by assessments
upon the contingent funds of the company at the date of such
impairment. Shareholders and members of such companies
shall be subject to the same provisions of law relative to their
right to vote as apply respectively to shareholders in stock com-
panies and policy holders in purely mutual companies; and
said guaranty capital shall be retired when the permanent fund
of the company equals two per cent, of the amount insured
upon all policies in force; and said guaranty capital may be
reduced or retired by vote of the policy holders of the company
and the assent of the insurance commissioner, if the net assets
of the company above its reinsurance reserve and all other
claims and obligations exclusive of guaranty capital, for two
years last preceding and including the date of its last annual
statement, shall be not less than twenty-five per cent, of the
guaranty capital. Due notice of such proposed action on the
part of the company shall be mailed to each policy holder of
the company not less than thirty days before the meeting when
such action may be taken, and shall also be advertised in two
papers of general circulation in the city or county where the
principal office of the company is located, not less than three
times a week for a period of not less than four weeks before
said meeting. No insurance company with a guaranty capital,