Proof of same to be Secretary of Books of subscription. Capital stock of stock four weeks before filing such articles as hereinafter provided; Sec. 3. The persons so associating, shall, after having pub- Sec. 4. The capital stock of any stock company organized companies to under this act, shall not be less than one hundred thousand be $100,000. each. increased. Shares $50 dollars, in shares of fifty dollars each, which capital stock may Provice. 2 S shall amount to at least five thousand dollars, nor until the examination by the Attorney General and commissioners, as hereinafter provided. State to ap iners. said examin Sec. 5. The articles of association shall be submitted to the Articles to be approved by Attorney General for his examination, and if found by him to Attorney General be in compliance with this act, he shall so certify to the Secretary of State, and the Secretary of State shall thereupon Secretary of appoint three disinterested persons residing in the county point examwhere the principal business office of the corporation is proposed to be established, who shall certify, under oath, if they Certificate of find such to be the fact, that the provisions in the articles of ers. association, in respect to capital stock, as shown to them to have been fully complied with; and if the company is organized to do business on the mutual plan, that the company is in the actual possession of the applications for insurance, hereinbefore provided for, and that it was shown to them by the affidavit of the president and secretary of the company that such applications have been taken in good faith and not merely colorably, and that [such] officers believe it to [be] the intention of each of the applicants to receive and pay for policies thereon, when the company shall be prepared to issue the same. A copy of Articles, the articles of association, together with such certificate and affidavit, shall thereupon be filed with the Secretary of State, and another copy of the articles and a copy of such certificate and affidavit, with the county clerk of the county in which the company's principal office is to be established; and the filing of Authority to the same with such officers, and the deposit with State business. Treasurer of the stocks, or bonds, and mortgage securities, as hereinbefore provided, shall be the authority of the company to commence business and issue policies. where filed. commence existence; Sec. 6. Whenever it shall be necessary, in any legal proceed- Corporate ings, to prove the corporate existence of any such company, a how proved. copy of the articles of association, with a certificate by the Secretary of State, attached, that such copy is a duplicate of the copy on file in his office; that the certificate and affidavit required to be filed by examining commissioners, are also on Not to hold real estate, except as herein specified. By-laws. file in his office, and that it has been made to appear to him by the certificate of the proper county clerk, that another copy of such articles has been duly filed in the office of such clerk, and by the certificate of the State Treasurer, that the securities required to be deposited with him have been deposited, shall be prima facie evidence of the corporate existence of the company; and except in proceedings by or under the authority of the State, to question its corporate right by information in the nature of a quo warranto or otherwise, shall be conclusive evidence of the authority of the company to issue policies and transact business as contemplated by its articles, until such authority has been terminated by the expiration of the term of incorporation, or on some one of the grounds hereinafter specified. Sec. 7. No company formed under this act shall purchase or hold any real estate, except: 1. Such as shall be necessary for its immediate accommodation in transacting business; or, 2. Such as shall have been conveyed or mortgaged to the company in good faith, by way of security for debts; or, 3. Such as shall have been conveyed to the company in satisfaction for debts; or, 4. Such as shall have been purchased at sales upon judgments, decrees, or mortgages in favor of such company, or held or owned by it; and all real estate obtained by virtue of any provisions of this section, except that mentioned in the first subdivision, shall be sold or disposed of within five years after the title has been perfected in such company. Sec. 8. The directors of any company organized under this act shall have power to make such by-laws, not inconsistent with the constitution and laws of this State, or with their articles of association, as they may deem necessary for the government of the officers and members of the company, and the conduct of its affairs. with State be security for policy pany may est thereon. Treasurer to sell stocks posited, to claims unad justed. Sec. 9. The bonds, or stocks and mortgage securities de- Deposits posited by any such company with the State Treasurer, shall be Treasurer to held by him as security for policy-holders in such company; holders. but so long as it continues solvent, the company shall have the When comright from time to time to collect and receive the dividends or receive interinterest thereon, and to withdraw any of the same, on depositing with the State Treasurer other securities of the kinds specified, so that the amount in his hands for the security of policy-holders, at any time, shall not be less than one hundred thousand dollars, exclusive of interest. If at any time a claim When State shall be made against any such company on one of its policies, may proceed and the same shall not be adjusted and paid, and the claimant or bouds deshall recover judgment thereon against the company, the State Treasurer, on being served with an affidavit by the claimant or his attorney, setting forth the recovery of the judgment, and that the same has remained unpaid for three months, and that no proceedings are pending for the review or reversal of the same, shall proceed to sell at the current market value, sufficient of the stocks or bonds so deposited with him, to satisfy the amount of such judgment, together with one per centum for his services and expenses; or, if said stocks or bonds shall previously have been disposed of for the satisfaction of claims, then he shall proceed to collect sufficient of the mortgage securities to pay the amount of the claim mentioned in such affidavit, with his reasonable costs and expenses; and said company, after Company notice of the service of such affidavit, shall not be at liberty to new policies, until any deissue any new policies until any deficiency of securities caused ficiency in by the necessity of meeting such claims, shall have been made has been good by further deposit with said State Treasurer of the like securities: Provided, however, That if any such company shall Proviso. become insolvent, and proceedings shall be taken in equity with a view to its dissolution, nothing in this section contained shall prevent an equal and just distribution of all its assets, including the securities so deposited with the State Treasurer, among the persons equitably entitled thereto. not to issue securities made good. Regarding companies Sec. 10. No company organized or existing under any aunot organ- thority whatsoever, other than the statutes of this State, shall ized under Michigan. State Treas urer; how held. satisfy judg ments. non-compli ance with law. statutes of be at liberty to transact the business of life insurance within this State, until such company, in addition to the requirements Deposit with now made by law, shall have deposited with the State Treasurer one hundred thousand dollars of the like securities required to be deposited by companies formed under this act, which shall be held as security for any losses suffered by policySale of, to holders therein, upon the same terms and conditions, and with the same authority of sale or collection to satisfy judgments, Penalty for as are set forth in the last preceding section; and any person who shall solicit and obtain within this State, applications for insurance upon lives, in any company not organized under the statutes of this State, before such securities are deposited, shall be liable to a penalty of one hundred dollars for every application obtained, to be sued for and recovered in the name of the people, by the Attorney General, or prosecuting attorney of the proper county, either by action of debt or criminal prosecution; and any person who shall have paid to any agent of such company any premium moneys, before such securities are deposited, shall be entitled to recover the same back from such agent, or, at his option, from the company, by action of assumpsit, to be brought at any time within six years after such Proviso re- payment: Provided, however, That where, by the statutes of posit in this any other State, life insurance companies organized or doing business therein, are required to deposit securities with the State Treasurer or other State officer, for the protection of policy-holders generally, and any such company shall furnish to the Secretary of State of this State the certificate of the proper officer of such other State, showing the amount and character of the securities so deposited with him, and it shall appear therefrom that the said securities are equal in market value and availability to one hundred thousand dollars of the interest-bearing bonds of this State, said Secretary of State shall thereupon be authorized to issue to such company an authority or license to transact the business of life insurance garding de State. |