ors.

he receives his policy, deposit his promissory note for such sum of money as shall be determined by the directA part, not less than twenty per cent., of which said note shall be immediately paid, for the purpose of discharging the incidental expenses of said company; and at the expiration of the term of insurance, the said note, or such part of the same as shall remain unpaid after deducting all losses and expenses accruing during said term, shall be relinquished and given up to the signer thereof. § 5. That every member of said company shall be, and obligation is hereby, bound and obliged to pay his portion of all losses and expenses happening or accruing in and to said company to the amount of his or her deposit note; and all buildings insured by and with said company, together with the right, title, and interest of the insured to the lands ou which they stand, shall be pledged to said company; and said company shall have a lien thereon against the insured during the continuation of his, her, or their policies.

members.

-how given.

§6. That in case of any loss or damage by fire happen- Notices of losses ing to any member upon property insured in and with said company, the said member shall give notice thereof, in writing, to the directors, or some one of them, or the secretary of said company, within thirty days from the time such loss or damage may have happened; and the directors, upon a view of the same, or in such other ways as they may deem proper, shall ascertain and determine the amount of such loss or damage; and if the party suffering is not satisfied with the determination of the directors, the question may be submitted to referees, or the said party may bring an action against said company for the loss or damage: Provided, Said action shall be commenced within three months from said determination.

paid.

7. The directors shall, as often as they deem neces- Losses-how sary, after ascertaining the loss or damage by fire sustained by any member, or after the rendition of any judgment against said company for such loss or damage, settle or determine the sums to be paid by the several members thereof as their respective portions of such loss, and

Term of risk.

publish the same in such manner as the by-laws may prescribe; and the sum to be paid by each member shall always be in proportion to the original amount of his deposit note or notes, and shall be paid to the treasurer of said company within thirty days next after the publication of said notice; and if any member shall refuse or neglect to so pay the sum assessed against him, her, or them, as his, her, or their proportion of any loss aforesaid, in such case the directors may sue for and recover the whole amount of his, her, or their note or notes, with cost of suits, and the money thus collected shall remain in the treasury of the company, subject to the payment of such losses and expenses as have or may hereafter accrue; and the balance, if any remain, shall be returned to the party from whom it was collected on demand, after thirty days from the expiration of the term for which the insurance was made. If the whole amount of the deposit notes shall be insufficient to pay the loss occasioned by any fire or fires, in such case the sufferers insured by said company shall receive, towards making good their respective losses, a proportional share of the whole amount of said notes, according to the sum by them respectively insured; but no member shall ever be required to pay for any loss occasioned by fire more than the whole amount of his deposit note.

§ 8. That said company make insurance for any term not exceeding five years; and any policy of insurance issued by said company, signed by the president and countersigned by the secretary, shall be deemed valid and binding by said company in all cases when the insured has a title in fee-simple unincumbered to the building or buildings insured, and to the lands covered by the same; but if the insured have a less estate therein, or if the premises be incumbered, the policy shall be void, unless the true title to the insured and the incumbrance of the premises be expressed therein, and in the application. thereof.

§ 9. That the directors shall settle or pay all losses Losses shall be within three months after they shall have been notified as aforesaid; but no allowance shall be made in esti

settled within 3 months.

mating the damages in any case for gilding, historical or landscape painting, stucco, or carved work.

vitiated.

§ 10. That when any house or building shall be alienated Policies-how by sale or otherwise, the policy shall thereupon be void, and be surrendered to the directors of said company to be canceled; and upon such surrender, the insured shall be entitled to his, her, or their deposit note upon the payment of his, her, or their proportion of all losses or expenses that have accrued prior to such surrender: Provided, That the alienee or grantee having the policy assigned to him may have the same satisfied or confirmed to him for his own proper use and benefit upon application to the directors, and with their consent, within thirty days next after such alienation, on giving proper security to the satisfaction of said directors for such portion of the deposit or premium notes as remain unpaid; and by such satisfaction and confirmation, the party causing the same shall be entitled to all the rights and privileges, and subject to all the liabilities to which the original party insured was entitled and subject under this act.

vitiates policy.

11. That if any alteration shall be made in any house Change of or building by the proprietors thereof after insurance has been made thereon with said company, whereby it may be exposed to greater risk or hazard from fire than it was at the time it was insured, then, and in every such case, the insurance made upon such house or building shall be Void, unless an additional premium or deposit note, after such alteration, be settled with and paid to the said directors or their agents; and it is hereby made obligatory upon said directors or their agents, after due notice of said alteration shall have been given by said proprietor, and after the same shall have been accepted by the said directors or their agents, to fix, without delay, the amount of said additional premium and deposit note; but no alteration or repairs in buildings, not increasing such risk or hazard, shall in any wise affect insurance previ ously made thereon.

12. That if any buildings situated upon leased lands, and insured by said company, be destroyed by fire, in such

risk

surance vitiates

policy.

cases the directors may retain the amount of the premium note given for insurance thereof till the time for which insurance was made shall have expired; and after the expiration thereof, the insured shall have a right to demand receive such part of said retained sum or sums as have not been expended in losses and assessments.

13. That if insurance on any house, building, or Additional in property shall be and subsist in said company, and ́in any other office, or from or by any other person or persons at the same time, the insurance made in and by said company shall be deemed void, unless such double insur ance subsist with the consent of the directors or agents, signified by indorsement on the back of the policy, signed by the president and secretary.

issued.

§ 14. That no policy of insurance shall be issued by Policies--how said company, until bona fide premium notes to the amount of twenty thousand dollars, which notes shall be predicated upon property to be insured, and shall not exceed twenty per cent. of the amount sought to be insured, shall have been deposited, and in addition thereto, said company shall be in actual possession of at least two thousand dollars.

how invested.

§ 15. That it shall be lawful for said company to invest Capital funds its capital, and the funds accumulating in the course of its business, or any part thereof, in lands and mortgages on unincumbered real estate in the State of Kentucky, worth fifty per cent. more than the sum loaned thereon, exclusive of buildings, unless such buildings are insured, and the policies transferred to said company, and also in bonds of the United States, or of any county or incorporated city of this State authorized to be issued by the Legislature, and to lend the same, or any part thereof, and the security of such bonds, or upon bonds and mort. gages as aforesaid, and to change and re-invest the same as occasion may, from time to time, require.

§ 16 That the affairs of said company shall be manBusiness-how aged by not less than five directors, all of whom shall be members. They shall choose by ballot a president and vice president from their own number; and shall fill all

managed.

vacancies that may arise in the board, or in the presidency thereof. They shall have power to appoint a treasurer and secretary, and other officers or agents necessary for transacting the business of the company, paying such salaries, and taking such security, as they may think reasonable. They may establish, ordain, and publish such by-laws and regulations as shall appear necessary to them for conducting the business of the company; and it shall be their duty to keep full and correct entries of their transactions, which shall, at all reasonable times, be open to the inspection of the members.

mence buiness.

§ 17. Within thirty days after the amount required When may comunder section fourteen shall be subscribed, a majority of the incorporators shall call a meeting of the subscribers in the city of Maysville, Kentucky, for the purpose of electing nine directors. Those receiving a plurality of the votes cast shall be directors; and annually on the same day an election shall be held, and the directors elected shall continue in office until their successors are duly elected. All said elections shall be by ballot, and each member entitled to one vote in person or by proxy.

18. That the principal office of said company shall be in the city of Maysville, Kentucky. All existing laws of this State in relation to insurance companies shall not be applicable to or affect said company. The provisions of this bill shall apply only to the counties of Mason, Nicholas, Bracken, Fleming, Robertson, and Lewis.

19. That this act shall take effect from and after its passage.

Approved April 1, 1880.

CHAPTER 721.

AN ACT to incorporate the town of Fancy Farm, in Graves county. Be it enacted by the General Assembly of the Commonwealth of Kentucky:

1. That the following boundary of land, in Graves County, lying and situated on the State road between Mayfield and Milburn, be, and is hereby, established as