the payment of his, her, or their proportion of all losses and 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 ratification 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.

§ 11. That if any alteration shall be made in any house 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 proprietors, and after the same shall have been accepted by the aid directors or their agents, to fix without delay the amount of said additional premium and deposit note; but no alteration or repairs in building not increasing such risk or hazard, shall in any wise affect insurance previously made thereon.

Insurance not

paid, whenparties

§ 12. That if any buildings situated upon leased lands, and insured by said company, be destroyed by fire, in owe notes, till due such cases the directors may retain the amount of the premium note given tor insurance thereof till the time for which insurance was made shall have expired; and at the expiration thereof the insured shall have a right to demand and receive such part of said retained sum or sums as have not been expended in losses and assess

ments.

§ 13. That if insurance on any house, building, or property, shall be, and subsist in said company, and in any other office, or from and 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 insurance. subsist with the consent of the directors or agents signified by indorsement on the back of the policy, signed by the president and secretary.

In case of insurcompanies, notice

ance with other

must be given.

issue till $20,000 secured.

§14. That no policy of insurance shall be issued by No insurance to said company until bona fide premium notes to the amount of twenty thousand dollars, which notes shall be

1874.

capital in bonds and real estate.

predicated upon property to be insured, and shall not exceed twenty per cent. of the amount sought to be insured; and in addition thereto, said company shall be in actual possession of at least two thousand dollars.

§ 15. That it shall be lawful for said company to invest May invest its capital and the funds accumulating in the course of its business, or any part thereof, in bonds and mortgages on unencumbered 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, on the security of such bonds, or upon bonds and mortgages as aforesaid, and to change and reinvest the same as occasion may, from time to time, require.

How affairs to be managed, and by

whom.

Covington, and by ballot.

§ 16. That the affairs of said company shall be managed by twelve 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 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..

§ 17. That the annual meeting for the election of diElections to be in rectors shall be in the city of Covington, Kentucky, on the first Monday of May. All elections shall be by ballot, and each member entitled to one vote in person or by proxy. A plurality of votes shall be necessary for a choice.

§ 18. That the principal office of said company shall be Principal office, in the city of Covington, Kentucky. All existing laws of this State in relation to insurance companies shall not be applicable to or affect said company.

Covington.

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

Approved February 23, 1874.

CHAPTER 437.

AN ACT for the benefit of the assessor and county court clerk of Henry

county.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

1. That the further time until the twentieth of May next shall be allowed George Patty, assessor of Henry county, to return his tax-book; and the further time until the twentieth of June be given the county clerk to deliver his tax-book to the sheriff, and transmit copy and sheriff's receipt to Auditor.

§ 2. This act to take effect from its passage.

Approved February 23, 1874.

1874.

CHAPTER 438.

AN ACT to incorporate the Farmers' Exchange Bank.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

§1. That there is hereby established the Farmers' Exchange Bank, to be located at the town of Winchester, in Clark county, with a capital of one hundred thousand dollars, with the privilege of increasing the same to one hundred and fifty thousand dollars, in shares of one hundred dollars each, to be subscribed and paid for by individuals, companies, and corporations, in the manner hereinafter specified; which subscribers and shareholders, their successors and assigns, are hereby created a body-politic and corporate, by the name and style aforesaid, and shall so continue a body-politic and corporate until the first day of June, nineteen hundred; and by that name, under the restrictions hereinafter prescribed, shall be competent to contract and be contracted with, to sue and be sued, plead and be impleaded, answer and be answered, defend and be defended, in all courts and places, and in all matters whatever as natural persons; with full power to acquire, hold, possess, use, occupy, and enjoy, and the same to sell, convey, and dispose of, all such real estate, goods, effects, and chattels, as shall be convenient for the transaction of its business, provided the value thereof shall not exceed fifteen thousand dollars, or which may be conveyed to said institution as surety for any debt, or which may be received in discharge of any debt or purchase in satisfaction of any judgment or decree in its favor, or in the purchase of any property on which it may have a lien; and said institution may have and use a common seal, change, alter, and renew the same at pleasure; and

Capital stock $100,000, may be

increased to shares of $100

$150,000, in

each.

May sue and be sued, &c.

1874.

May receive de

posits & pr. vide

inode and man

ner of payment.

exceed

stock.

capital

may ordain and put in execution such by-laws and regulations for the government of the same as may be deemed necessary: Provided, They be not contrary to the Constitution and laws of this State or the United States.

§ 2. That the business of the institution shall be to receive money on deposit upon which it may pay an interest to the depositor of not more than six per cent. nor less than two per cent. per annum, as it may contract, dependent upon the length of time for which said deposit may be inade; to loan money, discount promissory notes and bills of exchange. The promissory notes made negotiable and payable to this or any other banking institution of this State, and notes negotiable and payable at and indorsed to and discounted by said institution, shall be, and they are hereby, put upon the same footing as foreign bills of exchange; and remedy may be had jointly and severally against the drawers and indorsers, and with like effect, except as to damages, and except that in a regular course of administration they shall have no other or greater dignity or priority of payment than other notes. And the said institution shall not directly or indirectly deal or trade in anything except loaning of money and exchange, and in gold or silver coin or bullion, or in the sale of goods, chattels, rights, and credits, really and truly pledged for money lent and not redeemed in time, or goods which shall be the proceeds of its loans.

§ 3. The institution shall not at any time owe, either Liabilities not to by bond, bill, note, or other contract, any amount exceeding the capital stock actually paid in, exclusive of sums due on deposit; and in case of excess, the president and directors under whose administration it shall have taken place, shall be liable for any or all the debts of said institution, in their individual capacities, by joint and several actions of debt against them, or any of them, their heirs, executors, administrators, in any court having jurisdiction thereof, by any creditor or creditors of the same, and shall be prosecuted to judgment and execution, any condition or agreement to the contrary notwithstanding: Provided, That if the president, or any of the directors, may be absent when the excess may be contracted or created, or being present, shall dissent from the act by which the excess is about to be contracted or created, he or they shall not be liable under this section.

on failure to pay deposits, &c.

§ 4. Said institution shall not at any time fail or refuse Liable to damage to pay its deposits and accrued interest as aforesaid, if any, in gold or silver or currency of the value of that deposited; and in case the officers, in the usual business hours, at their banking-house, shall refuse or unreasonably delay payment as aforesaid, then demandable by any person entitled to receive the same, said institution

shall be liable to pay damages, at the rate of twelve per cent. per annum, on the amount thereof, from the time of such failure or refusal or delay until payment thereof; and for such failure or refusal to pay such deposits the charter shall be forfeited.

1874.

control affairs.

§ 5. That the real and personal estate, business, prop- Seven directors to erty. fund, and prudential concerns of said institution, shall be under the direction of and control of seven directors, who shall be stockholders, and (after the first election) shall have been stockholders at least three months previous to their election; they shall be residents of the State, and citizens of the United States, and after the first election they shall be elected annually on the second Monday in January. Each director shall be a stockholder in his own right; they shall hold their offices for one year, and until their successors shall be chosen; all elections after the first shall be conducted by two at least of the stockholders, acting under oath, appointed by the directors. The stockholders so appointed shall give at least thirty days' notice of the time and place of said election The election shall be by plurality of votes, to be counted and read in public after they are taken. No director or officer of any bank shall be eligible as director in this institution; and any director becoming a director or officer of a bank, or while under protest in this institution for the non-payment of debt, shall be held to have vacated his office; nor shall two partners in trade, nor shall one partner while another is a director in a bank, be eligible as director in this institution at one and the same time. If, from any cause, an election should not be held on the day fixed by this charter, it shall be the duty of the board to give notice immediately, as before required, that an election will be held on the first Monday of the succeeding month; and said election shall be conducted as required in the regular elections.

directors by stockholders.

§ 6. That at all meetings of the stockholders, and at Mode of electing all elections under this charter, each shareholder shall be entitled to one vote for every share held in his own right; but after the first election no share shall entitle the holder to a vote, unless the same has been held by the person claiming to vote, at least three months prior to the time, and so appear on the books of the institution. Any stockholder entitled to vote may do so in person or by proxy, such proxy being granted to a stockholder who is not either president, director, or other officer in the same; and no person who is not a citizen of the United States shall be permitted to vote on his stock.

side.

§ 7. That the directors shall select one of their own President to prenumber as president, who shall preside at all meetings; and in case of a vacancy in said office, the residue of the