LAWS OF MARYLAND.

1844.

ale accommodation, in relation to the convenient transac-
tion of its business, and such as shall have been bona fide
mortgaged or conveyed to it, by way of security, or in
satisfaction of debts contracted in the course of its dealings,
or purchased at sales, upon judgments which shall have

CHAP. 279.

been obtained for such debts.
SEC. 14. And be it enacted, That all notes or obligations,
or dividend certificates, shall be signed by the president
and countersigned by two of the directors; and no pro-
missory note or obligation, except contracts for insurance,
shall be given without the previous vote of the hoard of
directors; and no sale or transfer of stock or property shall
be made, nor any mortgage or bond discharged, except in
pursuance of a vote of the said board.

Notes or obli-
gations to be
signed by Pre-
sident.

SEC. 15. And be it enacted, That it shall be lawful
for said company to divide on the first Tuesday of July,
eighteen hundred and forty-six, and yearly afterwards,
amongst the holders of its policies, not less than twelve
calender months old in date, and to which no dividend has
been previously awarded, the nett profits resulting from
its operations during the year past, pro rata of the sums
actually paid, or secured to be paid in advance of premi-
ums, as hereinabove mentioned in the fourth section of this
act, and without reference to the particular length of time
for which the insurance was originally effected, the divi-
dends when made, shall be paid in certificates, to be call-
ed dividend certificates, and shall be payable as hereinafter
mentioned; but all dividends not called fur within three
years from their annunciation, shall be forfeited to the com-
pany.

Company to
divide profits.

SEC. 16. And be it enacted, That when the accumula-
tion of the nett profits of the company shall exceed fifty
thousand dollars, the one-half of the excess shall be ap-
plied annually to the formation of a contingent fund, auxil-
iary to the capital, to pay for losses, until said contingent
fund shall amount to two hundred thousand dollars; and
the other half shall be applied from year to year towards
the redemption of dividend certificates, in such manner as
the board shall deem most advisable; when this contingent.
fund shall have reached the aforesaid sum of two hundred
thousand dollars, it shall then be merged in the capital of
the company, which will then be two hundred and fifty
thousand dollars; and it shall then be lawful for the com-
pany to apply the whole of its nett earnings annually
to wards the redemption of its outstanding certifi-
cates; when all these dividend certificates shall have been
thus redeemed, the surplus nett profits of the company shall
30

Contingent
fund, &c