T. WATKINS LIGON, ESQUIRE, GOVERNOR.

235

they shall have power to establish their salaries, fill
vacancies in their own body, make by-laws, and possess
all the other powers conferred upon the directors by this
act.

SEC. 4. And be it enacted, That the said company
for the belter security of its dealers, may receive notes
for premiums in advance, of persons intending to receive
its policies, and may negotiate such notes for the pur-
pose of paying claims or otherwise in the course of its
business; but the aggregate amount of such notes shall
not exceed at any one time two hundred and fifty
thousand dollars, and shall not be used by the company
until all its other available funds are exhausted; but in
proportion as its earnings will justify it, the company
shall have the right to decrease the respective amount
of said notes, and to cancel and return them to their
respective signers, after receiving from them the propor-
tion which the company may have earned for policies

Security of
dealers.

Amount of
notes.

Right to de-
crease notes.

issued to them respectively; and no policy shall be is-
sued by the company until such notes to be approved
of by the board of directors, or such notes and money
amounting in the aggregate to four hundred thousand
dollars shall have been delivered and paid into the

Notes to be
approved.

company, and the said subscription in money not to
exceed one hundred and fifty thousand dollars shall be
subscribed and paid in such manner, and at such times,
as the board shall direct, but in sums of not less than
one hundred dollars, and if over that amount, in even
sums of one hundred dollars; the subscribers to said
sums, on the payment of the amount subscribed by

Manner of
paying.

them, shall receive from the company certificates there-
for, of not less than one hundred dollars each, which,
to distinguish them from the dividend certificates to be
issued, as hereinafter provided, shall be designated, cer-
tificates of stock, the holders of said certificates of stock
shall receive six per cent yearly on the amount thereof,
which shall be paid semi-annually out of the profits of
the company before any disposition of the funds of the
company shall be made among the policy holder or
holders of dividend certificates, as hereinafter provided;

Certificates of
stock.

and, in case of a deficiency of means in any one year
to meet the said interest, the same shall be made good
in the succeeding year, or as soon thereafter as the busi-
ness and resources of the company permit; it being the
true intent and meaning of this act, that if the said
subscription in money and notes, or any part thereof, or
the interest not divided thereon, be at any time required
to meet any demand against said company, such

Deficiency.

Intent and
meaning of
act.