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Sec. 3. As soon as such amount of stock shall be so subscribed and paid in as aforesaid or made secure, a meeting shall be called of the said stockholders, and they shall elect from their own number the remaining half of the first Board of Directors; and at every future election of directors, until the guarantee stock shall be redeemed, one-half the number shall be elected from the assured and the other half from the stockholders, all to be chosen jointly.
Sec. 4. The funds of the said company shall be invested in the stocks of the United States, of the State of Massachusetts, of the city of Boston, and in notes secured by bond and mortgage of unincumbered real estate in Massachusetts, worth three times the amount loaned thereon. The said company may hold real estate to an amount not exceeding ten thousand dollars, for the purpose of securing suitable offices for the institution.
Sec. 5. At the expiration of every three years, after the expiration of the first year, there shall be a general investigation of the affairs of the company for the past three years, with an estimate of the surplus funds which may remain after providing for all risks, losses and inci. dental expenses. If it shall appear after the investigation that there is a surplus fund more than equivalent to the amount of debts and claims against the funds, one-third of the estimated surplus funds and receipts shall be set aside with its accumulations as a reserved fund to be applied to the redemption of the guarantee stock; and whenever after the expiration of ten years from the time of organizing the corporation, the amount of such reserve funds shall be sufficient for the purpose, and the assured shall vote to redeem the said guarantee stock, the same shall be redeemed. The remaining twothirds of the estimated surplus fund shall be equitably divided among the existing policies for one or more years or for the whole term of life in proportion to the respective amounts of premium each has paid either by single contribution or by uniform annual contributions, and allocated to the original sum insured as a bonus or reversionary addition, payable when the policy emerges and becomes a claim.
Sec. 6. Within thirty days after the expiration of four years from the time of organizing the company and within thirty days after the expiration of every subse. quent three years, the company shall cause to be made a general balance statement of the affairs of the said company which shall be entered in a book, prepared for such purpose. Such statement shall contain: ist. The amount of contributions received during the said period, and the amount of interest received from investments and loans. 2d. The amount of expenses of the said company during the same period. 3d. The amount of losses incurred during the same period. 4th. The balance remaining with the said company. 5th. The nature of the security in which the said balance is invested or loaned and the amount of cash on hand, and the aggregate amount of the sums assured in the existing policies. 6th. The president or vice-president of the company shall within thirty days after the balance statement is made up, transmit a copy thereof, signed and sworn to by the president and vice-president and a ma. jority of the directors, and also by the auditor, actuary or secretary, to the secretary of the commonwealth to be by him laid before the legislature.
Sec. 7. The said corporation shall, on the third Monday of January every year, pay over to the trustees of the Massachusetts General Hospital one-third of the net profits, if any, which shall have arisen, from insur. ance on lives made during the preceding year.
Sec. 8. So long as this corporation shall well and truly pay to the General Hospital the aforesaid share of profit, it shall not be lawful for any persons or corporation within the commonwealth, to make insurance on lives upon land, unless empowered so to do by any future legislature of this commonwealth. And whenever any person or corporation shall hereafter be thus empowered, the obligation of this corporation, to pay the trustees of the General Hospital, for the use of said hospital, the third part of the net profits, which may thereafter arise on insurance on lives, shall cease, unless the same obligation shall be imposed upon such persons or corporation thus hereafter empowered.
Note. -Section 7 of Charter was repealed in 1887.
House of Representatives, March 16, 1844. Passed to be enacted.
Sam H. WALLEY, JR.,
JOSIAH QUINCY, JR.,
President. Approved March 16, 1844. Geo. N. BRIGGS. NOTE.--Section 7 of Charters was repealed in 1887.
(Amendment of 1846.) Commonwealth of Massachusetts, in the year one thousand eight hundred and forty six. An act in addition to "An act to corporate the State Mutual Life Assurance Company," of Worcester. Be it enacted by the Senate and House of Representatives, in General Court assembled, and by the authority of the same, as follows:
The State Mutual Life Assurance Company, of Worcester, may invest their funds in such purchases and loans as are permitted to savings banks in the seventyeighth and seventy-ninth sections of the thirty-sixth chapter of the revised statutes and in the forty-fourth chapter. of the acts of the year one thousand eight hundred and forty-one.'
House of Representatives, March 19, 1846. Passed to be enacted.
Sam. H. WALLEY, JR.,
W. B. CALHOUN,
Geo. N. BRIGGS. (Amendment of 1866 ) Commonwealth of Massachusetts, in the year one thousand eight hundred and sixty-six. An act to authorize the State Mutual Life Assurance Company, of Worcester, to purchase and hold real estate. Be it enacted by the Senate and House of Representatives, in General Court assembled, and by the authority of the same, as follows:
SECTION 1. The State Mutual Life Assurance Com. pany, in the city of Worcester, is hereby authorized to purchase and hold real estate in said city, to an amount not exceeding fifty thousand dollars; provided, that no part of said amount shall be invested in real estate, except in the purchase of a suitable site, and the erection and preparation of suitable buildings, to be used, wholly or in part, for the purposes of said company; and all income, if any, arising from such real estate, shall be devoted exclusively to the interests of said company.
Sec. 2. This act shall take effect upon its passage.
House of Representatives, February 10, 1866. Passed to be enacted.
James M. Stone, Speaker.
JOSEPH A. POND, President.
Alex. H. BULLOCK. (Amendment of 1884.) Commonwealth of Massachusetts, in the year one thousand eight hundred and eighty-four. An act to authorize the State Mutual Life Assurance Company, of Worcester, to purchase and hold additional real estate. Be it enacted by the Senate and House of Representatives, in General Court assembled, and by the authority of the same, as follows:
SECTION 1. The State Mutual Life Assurance Company, of Worcester, incorporated under charter one hundred and seventy-seven of the acts of the year eighteen hundred and forty-four, is authorized to purchase and hold real estate to an amount not exceeding two hundred thousand dollars, subject, however, to the provisions of chapter twenty-five of the acts of the year eighteen hundred and sixty-six.
Sec. 2. This act shall take effect upon its passage.
House of Representatives, February 5, 1884. Passed to be enacted.
GEO. A. MARDEN, Speaker.
Geo. A. BRUCE, President.
Geo. D. ROBINSON,
BY-LAWS. la force July 1, 1896, being the code adopted Jan. uary 8, 1884, as subsequently amended.
MEMBERSHIP. .1. Each recorded policy-holder shall be a member of the company while his policy is in force.
2. Each member shall enjoy the privileges secured to him by the Charter and these By-laws, and shall be liable for the losses and expenses of the company.
ORGANIZATION. 1. There shall be a board of sixteen directors elected by ballot at the present annual meeting and six directors shall constitute a quorum for business. No person shall be a director unless he is insured in this company to the amount of $1,000.
2. At one of their regular meetings, the directors shall divide themselves by lot into four classes of four each. The term of the first class shall expire at the end of one year; the term of the second class shall expire at the end of the second year; the term of the third class at the end of the third year; and the term of the fourth class at the end of the fourth year. At each succeeding annual election four directors shall be elected to hold office for the term of four years and to take the place of those directors whose term of office expires then, unless the whole number of directors has been changed by a vote of the policy-holders; in which case, one-fourth of the whole number of directors prescribed by such vote shall be elected annually until the whole number shall conform to such vote; provided however, there should be a failure to elect directors at the annual election, those directors whose term of office was about to expire shall hold over until there shall be an election of directors to succeed them.
3. The officers shall be a president, a vice-president, a financial committee of seven (including the president), a secretary, a treasurer, solicitor, two consulting physicians and an actuary.
4. These officers shall be chosen by the directors from their own number. The secretary may be chosen from the board or not, as the directors deem best.