Chapter XXVI. Incorporate the Mutual Fire Insurance Company of the District of Columbia
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Chap. XXVI.— An Act Incorporate the Mutual Fire Insurance Company of the District of Columbia. Jan. 10, 1855. *Be it enacted by the Senate and Hoitse of Representatives of the United States of America in Congress assembled, * That Ulysses Ward, Thomas Blagden, F. Howard, J. C. McKelden, John Van Reswick, P. W. Browning, and Matthew G. Emery, and their present and future associates, are hereby declared to be a body politic and corporate under the name and Corporate name.style of the “Mutual Fire Insurance Company of the District of Columbia;” and by the same name shall have perpetual succession; and shall be able to sue and be sued, plead and be impleaded, in all courts of General powers.law and equity in the District of Columbia and elsewhere; and to make and to have a common seal, and the same to break, alter, and renew at pleasure; to ordain and establish such by-laws, ordinances, and regulations, and generally to do such acts and things as are or may be necessary to carry into effect this act and promote the objects and designs of this corporation.
Sec. 2. Purpose of the corporation. *And be it further enacted, *That the purposes and designs of this corporation shall be to insure the respective dwelling-houses and other buildings, furniture, and every description of property of the members thereof, against loss or damage by fire. Sec. 3. Capital stock. *And be it further enacted, *That the capital stock of this company shall consist of the premium notes given by the insured, and of the Notes to be on demand and to be a lien.cash paid in as interest on said premium notes, which cash shall never exceed twenty thousand dollars.
Said notes shall be payable on demand, and shall constitute and be a lien to the amount thereof, respectively, upon all buildings insured by said company, and the land upon which they stand, and the appurtenances to such land, and upon the estate and interest, legal or equitable, of the assured in such buildings, lands, and appurtenances, and upon the other property insured by said company in How such lien is to be effectuated.consideration thereof: *Provided,* That said company shall file in the office of the clerk of the circuit court of the District of Columbia a memorandum of the name of the individual insured, a description of the property, and the amount of the premium note unpaid; and the said note, upon the filing of said memorandum, shall be deemed and taken to be in all respects as a judgment entered upon confession by virtue of a warrant of attorney, and execution may at any time be had thereon for so much as by virtue of the provisions of this act may be due and demeanable; but the lien thereof shall commence with the filing of the memorandum in the said office: *Provided,* That such lien shall not be construed to take from such person insured as aforesaid the privilege of a freeholder: *Provided, further,* That the privileges, immunities, and franchises granted by this act shall be confined to the District of Columbia.
Sec. 4. All insured to be members. *And be it further enacted, *That all persons who shall hereafter insure with said corporation, and also their heirs, executors, administrators, and assigns, continuing to be insured by said corporation, shall thereby become members thereof during the period they shall remain insured by said corporation, and no longer. Sec. 5. Withdrawal of insured. *And be it further enacted, *That any member of the said corporation shall have full power to withdraw therefrom at any time by THIRTY-THIRD CONGRESS.
Sess. II. Ch. 26. 1855. 837 applying to the proper officer thereof and paying any arrearages of assessments that he may then owe the company, when the said officer shall cancel such insurance or insurances as may be in the name of the person or persons so withdrawing; and also cancel such premium note or notes for which said person is responsible, and return any amount of money which may be due said person on the books of the company; and such person shall be debarred from all claim on this company for any loss or damage by fire, subsequent to the time of such withdrawal and the cancelling such insurance: *Provided,* That such premium note or notes shall not be cancelledProviso. or in any manner discharged or given up until all such arrearages are paid, and also all assessments thereupon to be thereafter made on account of liabilities of the company incurred before or at the time of such withdrawal.
Sec. 6. *And be it further enacted, *That the affairs of said corporation shall be conducted by a board consisting of seven managers, to be electedBoard of managers. at the annual meetings of the members, and to continue in office until successors are chosen; not less than a majority of whom shall be a quorum to do business, but a less number may adjourn from time to time. Vacancies happening in said board may be filled by the remaining managers for the remainder of the year for which they were elected.
The board shall choose one of their number as president, and appoint a secretary and treasurer, and such other officers as may be necessary for conducting the affairs of said corporation. Sec. 7. *And be it further enacted, *That the persons named in this actCorporators to be the first board. be, and they are hereby, appointed a board of managers of the said mutual insurance company, until the first annual meeting, and until their successors are chosen, as herein provided; and such of them as shall be present at their first meeting may proceed to organize, by electing a presidentPresident and secretary. and secretary thereof, and as soon thereafter as practicable, adopt by-laws, provide the necessary books, and otherwise prepare the company for the transaction of business, and, when so prepared, to exercise a general superintendence of the affairs of the company: *Provided,* That the said by-laws shall only be made by the concurrent vote of at leastBy-laws. two thirds of the whole board of managers, exclusive of the president; and any alteration or amendment shall only be made by a general meeting of the members of the company, at any annual meeting, and two thirds of the votes shall decide; and any alteration thus made, shall be binding on all the members of the company.
Sec. 8. *And be it further enacted, *That the managers may determinePower of managers. the rates of insurance, the sum to be insured, and the rate of interest to be paid upon the deposit notes, provided it shall not exceed six per centumLimitation on amount of policies. per annum; but no more than five thousand dollars shall be insured on any one risk, unless the premium notes shall amount to over one hundred thousand dollars, and in that case no risk to exceed five per centum on the whole amount of premium notes.
Sec. 9. *And be it further enacted, *That every person who shall become a member of said corporation by effecting insurance therein, shall, before he receives a policy, deposit his promissory note for such sura and uponPremium notes. such interest, not exceeding six per centum per annum, as may be determined by the managers; and said note, and all interest paid thereon, shall be liable, in part or the whole, at any time, when the managers shall deem the same requisite for the payment of losses and such incidental expenses as may be necessary for transacting the business of said company, in proportion to the amount of said notes.
Sec. 10. *And be it further enacted, *That suits may be commenced bySuits for losses. any member against this corporation for damages sustained by fire, if payment is withheld for more than sixty days after the company are duly notified of the same; and no member of this corporation, not being in hisMembers competent as witnesses. individual capacity a party to such suit, shall be incompetent as a witness in such suit on account of his being a member of said company. 838 THIRTY-THIRD CONGRESS.
Sess. II. Ch. 26, 27. 1855. Sec. 11. Assessments on notes. *And be it further enacted, *That whenever the managers shall deem it necessary, for the purpose of paying losses, or the current expenses of said company, or both, to call for the payment of any portion of the principal of the deposit notes, they shall settle and determine the sum to be paid by the several members of said company, which shall always be in proportion to the original amount of the respective deposit notes, and shall give each of said members notice thereof, in such manner as the by-laws shall have prescribed; and if any member shall, for the space of thirty days after receiving such notice, refuse or neglect to pay the sum assessed upon him, in such case the managers may proceed to collect the whole amount of such deposit note, with all costs accruing thereon; and the amount thus collected shall remain in the treasury of the company, subject to the same liabilities as said note or notes would have been liable to.
Sec. 12. Stockholders’ meetings. *And be it further enacted, *That the general meetings of this company shall be held annually, the time and place to be determined by the managers; also, it shall be the duty of the president to call a meeting of the company whenever requested to do so by twenty of its members. Election of managers.The election of managers shall be held at the annual meetings, and be by ballot, each member having one vote for each risk held by him. It shall also be the duty of the managers of said corporation to cause to be publishedAnnual publication of affairs of the company. annually, in a newspaper published in the city of Washington, the amount of the premium notes and cash on hand, and securities held by them, and the amount of losses, if any, during the previous year, and such other matters relating to the business of said company, as they may think proper; said publication to be at least two weeks previous to the annual meeting of the members of the company; and of said meetings notice shall be given in two newspapers published in the city of Washington, at least two weeks previous thereto.
Sec. 13. Banking privileges not granted. *And be it further enacted, *That nothing in this act shall be construed to grant banking privileges, or the right to issue any note in the nature of a bank-note, or to circulate as money or currency. It shall, Employment of the revenue of the company.however, be lawful for said company to employ and improve all moneys received by them, and the profits thereof, in-such manner as the managers deem best for the interest of the company, except as above prohibited, Real estate to escheat in certain cases.and except in the purchase of real estate.
And all real estate purchased by said company for the purposes of collecting or securing debts, shall escheat to the government of the United States, unless the same shall have been sold and disposed of, and passed bond fide from the possession and ownership of said corporation, within three years next succeeding such purchase: *Provided,* Said company may hold property that may be absolutely necessary for the transaction of their corporate business. Sec. 14. When act to take effect. *And be it further enacted, *That this act shall be in full force and effect from its passage.
Sec. 15. Act may be amended. *And be it further enacted, *That Congress reserves to itself the right to change, alter, repeal, or annul this act, or any part thereof, at their pleasure. Sec. 16. Members liable for debts to third persons. *And be it further enacted, *That the members of said corporation shall each be liable, in his or her individual capacity, for all debts created by said corporation in favor of persons not members thereof. Approved, January 10, 1855.