Rights of

Mortgagees.

Rights of Obligees.

Register of Mortgages and Bonds.

Transfer of Mortgages and Form.

so from time to time; but such power of re-borrowing shall not be exercised without the authority of a general meeting of the Company, unless the money be so re-borrowed in order to pay off any existing mortgage or bond.

XXXVIII. And be it enacted, that the respective mortgagees shall be entitled, one with another, to their respective proportions of the rents, lands and premises comprised in such mortgage, and of the future calls payable by the Shareholders of the Company, according to the respective sums in such mortgages mentioned to be advanced by such mortgagees, respectively, and to be repaid the sums so advanced, with interest, without any preference one above another, or above the bond-creditors of the Company, by reason of priority of the date of any such mortgage, or of the meeting at which the same was authorized, or on any other account whatsoever.

XXXIX. And be it enacted, that the respective obligees in such bonds shall proportionally, according to the amount of the moneys secured thereby, be entitled to be paid out of the property or effects of the Company, and of the future calls payable by the Shareholders of the Company, the respective sums in such bonds mentioned, and thereby intended to be secured, without any preference one above another, or above the mortgagees of the Company, by reason of priority of date of any such bond, or of the meeting at which the same was authorized, or otherwise howsoever.

XL. And be it enacted, that a Register of mortgages and bonds shall be kept by the Secretary, and within fourteen days after the date of any such mortgage or bond, an entry or memorial, specifying the number and date of such mortgage or bond, and the names of the parties thereto, with their proper additions, shall be made in such Register; and such Register may be perused at all reasonable times by any of the Shareholders, or by any mortgagee or bond creditor of the undertaking, or by any person interested in any such mortgage or bond, without fee or

reward.

XLI. And be it enacted, that from time to time any party entitled to any such Bonds; and mortgage or bond, may transfer his right and interest therein to any other person by deed, wherein the consideration shall be truly stated; and every such transfer may be according to the form in the Schedule E. to this Act annexed, or to the like effect.

Entry of transfers of

XLII. And be it enacted, that within thirty days after the date of every such Mortgages and transfer, if executed within the Province of Canada, or otherwise, within thirty days after the arrival thereof in the said Province, it shall be produced to the Secretary,

Bonds.

Secretary, and thereupon the Secretary shall cause an entry or memorial thereof to be made, in the same manner as in the case of the original mortgage; and after such entry, every such transfer shall entitle the transferree, his executors, administrators or assigns, to the full benefit of the original mortgage or bond in all respects; and no party having made such transfer shall have power to make void, release or discharge the mortgage or bond so transferred, or any money thereby secured; and for such entry the Secretary may demand a sum not exceeding the amount of two shillings and six pence.

Payment of interest on

XLIII. And be it enacted, that the interest of the money borrowed upon any such mortgage or bond shall be payable and paid half yearly, to the several par- loans. ties entitled thereto, and in preference to any dividends payable to the Shareholders of the Company.

XLIV. And be it enacted, that the Company may, if they think proper, fix a period for the repayment of the principal money so borrowed, with the interest thereof, and in such case the Company shall cause such period to be inserted in the mortgage deed or bond, and upon the expiration of such period, the principal sum, together with the arrears of interest thereon, shall be paid to the party entitled to such mortgage or bond.

Repayment

of money bor

rowed at a time

fixed.

Repayment

bor

XLV. And be it enacted, that if no time be fixed in the mortgage deed or bond for the re-payment of the money so borrowed, the party entitled to the mortgage of money hor or bond may, at the expiration, or at any time after the expiration of twelve time fixed. months from the date of such mortgage or bond, demand payment of the principal money thereby secured, with all arrears of interest, upon giving six months' previous notice for that purpose, and the Company may, at all times, pay off the money borrowed, or any part thereof, on giving the like notice; and such notice, if given by a mortgagee, or bond-creditor, shall be by writing delivered to the Secretary, and if given by the Company, shall be by writing, given either personally to such mortgagee or bond-creditor, or if such mortgagee or bond-creditor be unknown or cannot be found, such notice shall be given by advertisement in the Canada Gazette, and in some newspaper as after mentioned; and at the expiration of the said notice, when given by the Company, interest shall cease to be payable on the money secured by such mortgage or bond, unless, on demand of such money, the Company fail to pay the same, pursuant to such notice.

For enforcing

torest in arrear.,

XLVI. And in order to provide for the recovery of the arrears of interest and costs, or of the principal and interest and costs of any such mortgage or bond, at payment of inthe respective times at which such interest, or such principal and interest and costs become due; Be it enacted, that if such interest, or any part thereof, shall, for

For enforc

Interest.

thirty days after the same shall have become due, and demand thereof shall have been made in writing, remain unpaid, the mortgagee or bond-creditor may either sue for the interest so in arrear, by action of debt in any of the Superior Courts, or he may require the appointment of a Receiver, by an application to be made as hereinafter provided.

XLVII. And with respect of such principal money, interest and costs; Be it ing payment of enacted, that if such principal money and interest be not paid within two months Principal and after the same has become payable, and after demand thereof in writing, the mortgagee or bond-creditor may sue for the same in any of the Superior Courts of Law or Equity, or if his debt amount to the sum of one hundred pounds, he may alone, or if his debt does not amount to the sum of one hundred pounds, he may, in conjunction with other mortgagees or bond-creditors, whose debts being so in arrear after demand as aforesaid, shall, together with his, amount to the sum of two hundred pounds, require the appointment of a Receiver, by an application to be made as hereinafter provided.

Appointment of Receiver.

Mortgagees

not to vote.

Access to Account Books.

XLVIII. And be it enacted, that every such application for a Receiver, in the cases aforesaid, shall be made to any one of the Judges of the Courts of Law or Equity in this Province, or to the Judge of the District Court for the Midland District, and on any such application so made, and after hearing the parties, it shall be lawful for such Judge, by order in writing, to appoint some person to receive the whole or a competent part of the sums liable to the payment of such interest, or such principal and interest, as the case may be, until such interest, or until such principal and interest, as the case may be, together with all costs, including the charges of receiving the sums aforesaid, be fully paid; and upon such appointment being made, all such sums of money as aforesaid shall be paid to and received by the person so to be appointed; and the money so to be received shall be so much money received by or to the use of the party to whom such interest, or such principal and interest, as the case may be, shall be then due, and on whose behalf such Receiver shall have been appointed; and after such interest and costs, or such principal interest and costs, have been so received, the power of such Receiver shall cease.

XLIX. And be it enacted, that no párty shall, in right of any mortgage, be deemed a Shareholder, or be capable of acting or voting as such at any meeting of the Company.

L. And be it enacted, that at all reasonable times the books of account of the Company shall be open to the inspection of the respective mortgagees and bondcreditors thereof, with liberty to take extracts therefrom without fee or reward.

LI. And be it enacted, that it shall be lawful for the Company, with the consent Power to enlarge Capital. of any extraordinary meeting of the Shareholders, specially convened for that purpose, from time to time to raise, by contribution amongst themselves, or by the admission of other persons as subscribers to the said undertaking, or in part by each of those means, a further sum or further sums of money, not exceeding in the whole the sum of twenty-five thousand pounds, in shares of twenty pounds each, in such manner and upon such terms and conditions, and under such regulations as shall be approved and agreed upon at such meeting; and such shares shall be numbered in regular succession from and in continuation of the numbers affixed to the shares of the Company then already issued, in arithmetical progression, and every such share shall always be distinguished by the number to be appointed to the same.

LII. And be it enacted, that the holders of the said new shares, so long as the deposits and calls paid in respect thereof shall amount to less than the sums called for and payable in respect of the said original shares, shall only be entitled to such an amount of dividend in respect thereof, in case any dividend be then declared and become payable under the provisions of this Act as by the meeting of proprietors authorizing the creation of the new capital, in aid of which such new shares may have been issued, shall be declared and agreed upon.

LIII. And be it enacted, that the capital so to be raised by the creation of new shares shall be considered as part of the general capital, and shall be subject to the same provisions in all respects, whether with reference to the payment of calls, and interest upon arrears thereof, or the forfeiture of shares on non-payment of calls or otherwise, as if it had been part of the original capital, except as to the time of making calls for such additional capital, and the amount of such calls which, respectively, it shall be lawful for the Company, from time to time, to fix as they shall think fit.

LIV. And be it enacted, that if at the time of any such augmentation of capital taking place by the creation of new shares, the then existing shares of the Capital Stock of the Company be at a premium or of greater actual value than the nominal value thereof, then the sum so to be raised shall be divided into shares of such amounts as will conveniently allow the said sum to be apportioned among the then Shareholders, in proportion to the existing shares held by them, respectively; and such new shares shall be offered to the then Shareholders in the proportion of one for every existing share held by them, respectively; and such offer shall be made by letter, under the hand of the Secretary, given to or sent by post to each Shareholder, or left at his usual or last place of abode; and such new Shares shall vest in and belong to the Shareholders who shall

accept

If not at a premium to be is

accept the same and pay the value thereof to the Company at the time, and by the instalments which shall be fixed by the Company; and if any Shareholder fail for one month after such offer of new Shares to accept the same and pay the instalments called for in respect thereof, it shall be lawful for the Company to dispose of such shares to any party willing to become the purchaser thereof, for such sum as the Company can obtain for the same, or in such other manner as may be deemed expedient.

LV. And be it enacted, that if at the time of such augmentation of capital sued as Com- taking place the existing shares of the Capital Stock of the Company be not at a premium, then such new shares may be of such amount, and may be issued in such manner as the Company shall think fit.

pany think fit.

LVI. And with respect to general meetings of the Company; Be it enacted, that the first general meeting of the Shareholders of the Company shall be held within three months after the passing of this Act; and the future annual general meetings shall be held in the month of February in each year, and the meetings appointed to be held as aforesaid shall be called "ordinary meetings."

LVII. And be it enacted, that no determination or resolution at any ordinary meeting on any matters, except such as are directed by this Act to be transacted at an ordinary meeting, shall be binding upon the Company, unless either the same be confirmed by a subsequent meeting, of which meeting and of which determination or resolution, reasonable notice shall be given by the Secretary of the Company, or unless special notice of such extraordinary matters be given in the advertisement convening such first mentioned ordinary meeting.

LVIII. And be it enacted, that every meeting of the Shareholders, other than an ordinary meeting, shall be called an "extraordinary meeting," and such meetings may be convened by the Directors at such times and in such places as they may think fit.

LIX. And be it enacted, that no extraordinary meeting shall enter upon any business not set forth in the requisition, or in the notice upon which it shall have been convened.

LX. And be it enacted, that it shall be lawful for ten or more Shareholders, holding in the aggregate two hundred shares, to the amount of four thousand pounds, by writing under their hands, at any time to require the Directors to call an extraordinary meeting of the Company; and such requisitions shall fully express the object of the meeting required to be called, and shall be left at the office

of