CHAPTER XXVI. An Act to amend an Act entitled “An Act to establish a Code of Civil Procedure," adopted March 11, 1872, by adding thereto a new section, to be known as section one thousand three hundred and forty-eight, authorizing certain corporations to act as executor and in other capacities. [Approved March 5, 1887.] The People of the State of California, represented in Senate and SECTION 1. Another section is hereby added to the Code of Civil Procedure, to be known as section one thousand three hundred and forty-eight, to read as follows: act as exec 1348. Corporations authorized by their articles of incor- Authority poration to act as executor, administrator, guardian of estates, and liabilassignee, receiver, depository, or trustee, and having a paid porations to up capital of not less than two hundred and fifty thousand utor, etc. dollars, of which one hundred thousand dollars shall have been actually paid in in cash, may be appointed to act in such capacity in like manner as individuals. In all cases in which it is required that an executor, administrator, guardian, assignee, receiver, depository, or trustee, shall qualify by taking and subscribing an oath, or in which an affidavit is required, it shall be a sufficient qualification by such corporation, if such oath shall be taken and subscribed, or such affidavit made, by the President or Secretary or Manager thereof; and such officer shall be liable for the failure of such corporation to perform any of the duties required by law to be performed by individuals acting in like capacity and subject to like penalties; and such corporation shall be liable for such failure to the full amount of its capital stock and upon the bond required upon its assuming the trusts provided for herein. SEC. 2. This Act shall be in force from and after its passage. How invest capital stock. CHAPTER XXVII. An Act to amend an Act entitled "An Act to establish a Civil Code," approved March 21, 1872, as amended by an Act entitled "An Act to amend the Civil Code, relative to insurance," approved April 1, 1878, and to add a new section thereto, to be known as section four hundred and thirty-two, relating to insurance, and to the investment of the capital stock and accumulations of insurance companies. [Approved March 5, 1887.] The People of the State of California, represented in Senate and SECTION 1. Section four hundred and twenty-seven (427) of the Civil Code is amended so as to read as follows: 427. Corporations organized subsequent to April first, eighteen hundred and seventy-eight, under the laws of this State, for the transaction of business in any kind of insurance, may invest their capital and accumulations in the following named securities: 1. In the purchase of or loans upon interest-bearing bonds of the United States Government. 2. In the purchase of or loans upon interest-bearing bonds of any of the States of the United States, not in default for interest on such bonds. 3. In the purchase of or loans upon interest-bearing bonds of any of the counties and incorporated cities and towns of the States of California and Oregon, not in default of interest on such bonds. 4. In loans upon unincumbered real property, worth at least one hundred per cent more than the amount loaned; or upon merchandise or cereals in warehouse, but in no instance shall such loan be made in excess of seventy-five per cent of the security taken. 5. Corporations engaged in the business of insuring titles to real estate may, after the investment of one hundred thousand (100,000) dollars in the manner provided for in subdivisions one, two, three, and four of this section, invest an amount not exceeding fifty per cent of their subscribed capital stock, in the preparation or purchase of the materials or plant necessary to enable them to engage in such business; and such materials or plant shall be deemed an asset, valued at the actual cost thereof, in all statements and proceedings required by law for the ascertainment and determination of the condition of such corporations. 6. Corporations organized for and engaged in the business of fire and marine insurance, may, after the investment of two hundred thousand (200,000) dollars, in the manner provided in subdivisions one, two, three, and four of this section, invest the balance of their capital, and any accumulations in interest-bearing first mortgage bonds of any corporations (except mining companies), not in default of interest, organized and carrying on business under the laws of any State of the United States; provided, that a two-thirds vote of all the Directors of such corporations shall approve such investment. It shall be the duty of the officers of such corporation to report quarterly, on the first days of January, April, July, and October of each year, to the Insurance Commissioner, a list of such investments so made by them; and the Insurance Commissioner may, if such investments, or any of them, seem injudicious to him, require the sale of the same. But no investment in the securities named in subdivisions one, two, three, and six of this section, must be made in an amount exceeding the market value of such securities at the date of such investment. SEC. 2. Section four hundred and twenty-nine (429) of the Civil Code is amended so as to read as follows: tions subsequent 1878. 429. No corporation formed subsequent to April first, Corporaeighteen hundred and seventy-eight, under the laws of this is formed State, and transacting fire, marine, inland navigation insur- to April 1, ance business, or insurance provided for by section four hundred and twenty (420) of this Code, except insurance of the title to real property, must make any dividends except from profits remaining on hand after retaining unimpaired: 1. The entire subscribed capital stock. 2. All the premiums received or receivable on outstanding marine or inland risks, except marine time risks. 3. A fund equal to one half of the amount of all premiums on all other risks not terminated at the time of making such dividend. 4. A sum sufficient to pay all losses reported or in course of settlement, and all liabilities for expenses and taxes. SEC. 3. The following is added as a new section to said Code, to be known as section four hundred and thirty-two (432): 432. Corporations transacting business in insuring titles to Accumulate real estate, shall annually set apart a sum equal to twenty- surplusfund. five per cent of their premiums collected during the year, which sum shall be allowed to accumulate until a fund shall have been created amounting to ten per cent of the subscribed capital stock. Such fund shall be maintained as a further security to policy holders, and shall be known as the Surplus Fund; and if at any time such fund shall be impaired by reason of a loss, the amount by which it may be impaired shall be restored in the manner hereinabove provided for its accumulation. The reporting of a loss shall be deemed an impairment of such fund for the purposes of this section. Such corporation must not make any dividends except from profits remaining on hand after retaining unimpaired: 1. The entire subscribed capital stock. 2. The amount owing to the Surplus Fund, under the provisions of this section. 3. A sum sufficient to pay all losses reported, or in course of settlement, which shall be in excess of the Surplus Fund, and all liabilities for expenses and taxes. SEC. 4. This Act shall take effect from and after its passage. Appropria tion. Claim Commis sioner Chronic Insane. CHAPTER XXVIII. An Act to appropriate money to pay the claim of W. T. Brown, or his executors or administrators. [Approved March 5, 1887.] The People of the State of California, represented in Senate and SECTION 1. The sum of four hundred and twenty-one and W.T. Brown, fifteen one hundredths dollars is hereby appropriated out of any money in the State Treasury not otherwise appropriated, to pay the claim of W. T. Brown, or his executors or administrators, a Commissioner appointed by the Governor to select a site for the California Hospital for the Chronic Insane, as heretofore allowed and approved by the Board of Examiners, for traveling and other expenses incurred while acting as such Commissioner. Appropria R. F. Del missioner Chronic SEC. 2. The Controller of State is hereby directed to draw his warrant for said sum, and the Treasurer of State is hereby directed to pay the same. SEC. 3. This Act shall take effect and be in force from and after its passage. CHAPTER XXIX. An Act to appropriate money to pay the claim of R. F. Del Valle. [Approved March 5, 1887.] The People of the State of California, represented in Senate and SECTION 1. The sum of three hundred and seven and tion. Claim ninety-five one hundredths dollars is hereby appropriated Valle, Com- out of any money in the State Treasury not otherwise appropriated, to pay the claim of R. F. Del Valle, a Commissioner appointed by the Governor to select a site for the California Hospital for the Chronic Insane, as heretofore allowed and approved by the Board of Examiners, for traveling and other expenses incurred while acting as such Commissioner. Insane. SEC. 2. The Controller of State is hereby directed to draw his warrant for said sum, and the Treasurer of State is hereby directed to pay the same. SEC. 3. This Act shall take effect and be in force from and after its passage. CHAPTER XXX. An Act to appropriate money to pay the claim of Benj. Knight. The People of the State of California, represented in Senate and tion. Benjamin Commis SECTION 1. The sum of four hundred and eleven and Approprianinety-five hundredths dollars is hereby appropriated out of Benjamin any money in the State Treasury not otherwise appropriated, Knight, to pay the claim of Benj. Knight, a Commissioner appointed sioner by the Governor to select a site for the California Hospital Insane. for the Chronic Insane, as heretofore allowed and approved by the Board of Examiners, for traveling and other expenses incurred while acting as such Commissioner. SEC. 2. The Controller of State is hereby directed to draw his warrant on the State Treasury for said sum, and the Treasurer of State is hereby directed to pay the same. SEC. 3. This Act shall take effect and be in force from and after its passage. CHAPTER XXXI. An Act to appropriate money to pay the claim of E. T. Wilkins. [Approved March 5, 1887.] The People of the State of California, represented in Senate and Chronic tion. Claim missioner SECTION 1. The sum of three hundred and eighty-two Appropriadollars is hereby appropriated out of any money in the E. T. WilState Treasury not otherwise appropriated, to pay the claim kins, Comof E. T. Wilkins, a Commissioner appointed by the Governor Chronic to select a site for the California Hospital for the Chronic Insane. Insane, as heretofore allowed and approved by the Board of Examiners, traveling and other expenses incurred while acting as such Commissioner. SEC. 2. The Controller of State is hereby directed to draw his warrant on the State Treasurer for said sum, and the Treasurer of State is hereby directed to pay the same. SEC. 3. This Act shall take effect and be in force from and after its passage. |