False swearing.

Stock personal

estate.

Liability of stockholders.

Stock to be paid up in money only.

All assets of ex

chapter, and any of the directors shall, on or before January fifteenth of such year, file his written request for such compliance with the secretary of the company, the Comptroller of the Currency, and the recorder of deeds of the District of Columbia, such director shall be exempt from the liability prescribed in this section.

SEC. 732. FALSE SWEARING.-Any willful false swearing in regard to any certificate or report or public notice required by the provisions of this subchapter shall be perjury and shall be punished as such according to the laws of the District of Columbia. Any misappropriation of any of the money of any corporation or company formed under this Act, or of any money, funds, or property intrusted to it, shall be held to be larceny, and shall be punished as such under the laws of said District.

SEC. 733. STOCK PERSONAL ESTATE.-The stock of such company shall be deemed personal estate, and shall be transferable only on the books of such company in such manner as shall be prescribed by the by-laws of the company; but no shares shall be transferable until all previous calls thereon shall have been fully paid, and the said stock shall not be taxable in the hands of individual owners, the tax on the gross earnings of the company hereinbefore provided being in lieu of other personal tax. All certificates of the stock of any company organized under this subchapter shall show upon their face the par value of each share and the amount paid thereon.

SEC. 734. LIABILITY OF STOCKHOLDERS.-All stockholders of every company incorporated under this subchapter, or availing itself of its provisions under section seven hundred and twenty-five, shall be severally and individually liable to the creditors of such company to an amount equal to and in addition to the amount of stock held by them respectively for all debts and contracts made by such company.

SEC. 735. STOCK TO BE PAID UP IN MONEY ONLY.-Nothing but money shall be considered as payment of any part of the capital stock, except that in the case of any company now doing business in the District of Columbia in any of the classes herein provided for, or under any act of Congress, or by virtue of the laws of any of the States, and isting companies, which company has actually received full payment in money of at etc., desiring new charter considered least fifty per centum of the capital stock required by this act, and which company desires to obtain a charter under this act, all the assets or property may be received and considered as money at a value to be appraised and fixed by the Comptroller of the Currency:

money.

-transfer of assets required.

Number of trus

tees.

Officers.

One office to be held at a time.

cers.

Provided, That all such assets and property are also transferred to and are thereafter owned by the company organized under this act.

SEC. 736. NUMBER OF TRUSTEES. The stock, property, and concerns of such company shall be managed by not less than nine nor more than thirty directors or trustees, who shall, respectively, be stockholders, and at least one-half residents and citizens of the District of Columbia, and shall, except the first year, be annually elected by the stockholders at such time and place and after such published notice as shall be determined by the by-laws of the company, and said directors or trustees shall hold until their successors are elected and qualified.

SEC. 737. OFFICERS.-There shall be a president of the company, who shall be a director, also a secretary and a treasurer, all of whom shall be chosen by the directors or trustees:

Provided, That only one of the above-named offices shall be held by the same person at the same time. Subordinate officers may be Subordinate offi- appointed by the directors or trustees, and all such officers may be required to give such security for the faithful performance of the duties of their offices as the directors or trustees may require. SEC. 738. BY-LAWS.-The directors or trustees shall have power to make such by-laws as they deem proper for the management or disposal of the stock and business affairs of such company, not incon

By-laws.

sistent with the provisions of this subchapter, and prescribing the duties of officers and servants that may be employed, for the appointment of all officers, and for carrying on all kinds of business within the objects and purposes of such company.

Dividends.

liability of

SEC. 739. DIVIDENDS.-If the directors or trustees of any company shall declare or pay any dividend the payment of which would render it insolvent, or which would create a debt against such company, they shall be jointly and severally liable as guarantors for all the debts of trustees, etc. the company then existing, and for all that shall be thereafter contracted while they shall, respectively, remain in office.

SEC. 740. If any of the directors or trustees shall object to declaring exemption. such dividends or the payment of the same, and shall at any time before the time fixed for the payment thereof file a certificate of their objection in writing with the secretary of the company and with the recorder of deeds of the District, they shall be exempt from the liability prescribed in the preceding section.

Liabilities

SEC. 741. LIABILITIES EXCEEDING ASSETS.-If the liabilities of any company shall at any time exceed the amount of the fair cash value of ceeding assets. the assets, the directors or trustees of such company assenting thereto shall be personally and individually liable for such excess to the creditors of the company, after the additional liability of the stockholders

has been enforced.

ex

Executors, etc.,

SEC. 742. EXECUTORS, AND SO FORTH, HOLDING STOCK.-No person holding stock in such company as executor, administrator, guardian, holding stock. or trustee shall be personally subject to any liability as stockholder of such company, but the estate and funds in the hands of such executor, administrator, guardian, or trustee shall be liable in like manner and to the same extent as the testator or intestate or the ward or the person interested in such trust fund would have been if he had been living and competent to act and hold the stock in his own name.

Increase of capi

Copy of certifi

SEC. 743. INCREASE OF CAPITAL STOCK.-Any corporation which may be formed under this subchapter may increase its capital stock by com- tal stock. plying with the provisions of this subchapter to any amount which may be deemed sufficient and proper for the purposes of the corporation. SEC. 744. COPY OF CERTIFICATE TO BE EVIDENCE. A copy of any cate to be evicertificate of incorporation filed in pursuance of this subchapter, certi- dence. fied by the recorder of deeds to be a true copy and the whole of such certificate, shall be received in all courts and places as presumptive legal evidence of the facts therein stated.

No bond to be

ed executor.

SEC. 745. No BOND TO BE REQUIRED WHEN COMPANY APPOINTED EXECUTOR, AND SO FORTH, EXCEPT, AND SO FORTH. -No bond or other required when collateral security, except as hereinafter stated, shall be required from company appointany trust company incorporated under this subchapter for and in respect to any trust, nor when appointed trustee, guardian, receiver, executor, or administrator with or without the will annexed, collector, committee of the estate of a lunatic or idiot, or other fiduciary appointment; but the capital stock subscribed for or taken, and all property owned by said company and the amount for which said stockholders shall be liable in excess of their stock, shall be taken and considered as the security required by law for the faithful performance of its duties, and shall be absolutely liable in case of any default whatever; and in case of the insolvency or dissolution of said company, the debts due from the said company as trustee, guardian, receiver, executor, administrator, collector, or committee of the estate of lunatics, idiots, or any other fiduciary appointment shall have a preference.

SEC. 746. BOND MAY BE REQUIRED.-The supreme court of the Court may reDistrict of Columbia, or any justice thereof, shall have power to make quire bond, etc., in fiduciary esorders respecting such company whenever it shall have been appointed tates, etc. trustee, guardian, receiver, executor, administrator with or without the will annexed, collector, committee of the estate of a lunatic, idiot,

pany's affairs, etc.

or any other fiduciary, and require the said company to render all accounts which might lawfully be made or required by any court or any justice thereof if such trustee, guardian, receiver, executor, administrator with or without the will annexed, collector, committee of the cause exami- estate of a lunatic or idiot, or fiduciary were a natural person. And nation of com- said court, or any justice thereof, at any time, on application of any person interested, may appoint some suitable person to examine into the affairs and standing of such companies, who shall make a full report thereof to the court, and said court, or any justice thereof, may at any time, in its discretion, require of said company a bond with sureties or other security for the faithful performance of its obligations, and such sureties or other security shall be liable to the same extent and in the same manner as if given or pledged by a natural person.

Corporations organized under State laws.

Right to amend or repeal reserved

to Congress.

Fraternal benefit associations.

-defined.

-may pay benefits for physical disability, etc.

years.

etc.

SEC. 747. CORPORATIONS ORGANIZED UNDER STATE LAWs.-No corporation or company organized by virtue of the laws of any of the States of this Union and having its principal place of business within the District of Columbia shall carry on in the District of Columbia any of the kinds of business named in this subchapter without strict compliance in all particulars with the provisions of this subchapter for the government of such corporations formed under it, and each one of the officers of the corporation or company so offending shall be punished by a fine not exceeding one thousand dollars or imprisonment not exceeding one year, or by both fine and imprisonment, in the discretion of the court.

SEC. 748. RIGHT TO AMEND OR REPEAL RESERVED TO CONGRESS.

Congress may at any time alter, amend, or repeal this subchapter, but any such amendment or repeal shall not, nor shall the dissolution of any company formed under this subchapter, take away or impair any remedy given against such corporation, its stockholders, or officers for any liability or penalty which shall have been previously incurred.

SUBCHAPTER TWELVE.

FRATERNAL BENEFICIAL ASSOCIATIONS.

SEC. 749. DEFINED.-A fraternal beneficial association is hereby declared to be a corporation, society, order, or voluntary association, formed or organized and carried on for the sole benefit of its members and their beneficiaries, and not for profit, having a lodge system with ritualistic form of work and representative form of government, mak ing provision for the payment of benefits in case of death. Each such association may make provision for the payment of benefits in case of sickness, temporary or permanent physical disability, either as a result, of disease, accident, or old age:

-for old age not Provided, That the period in life at which physical disability benefits to be under 70 on account of old age commences shall not be under seventy years, or the age of expectancy from the time of entering, subject to their compliance with its laws. Any such association may create and maintain a Reserve emer- reserve, emergency or benefit fund in accordance with its laws. Any gency, etc., fund, such association having a reserve, emergency or benefit fund may, in addition to the benefits hereinbefore named, pay withdrawal benefits, not exceeding the contributions of such member, to a member unable or unwilling to continue membership, provided such membership shall continue not less than three successive years. Such association may also, after ten years of membership, apply its funds and accumulations as its laws provide or the association and members agree. The fund from which the payment of such benefits shall be made and the fund from which the expenses of such association shall be defrayed shall be derived from assessments, dues, and other payments collected from its

to.

To whom pay

Laws applicable

members or otherwise. Payment of death benefits shall be to the families, heirs, blood relatives, affianced husband or affianced wife of ments made. or to persons dependent upon the member. Such association shall be governed by this subchapter, and shall be exempt from the provisions of insurance laws of the United States relating to the District of Columbia, and no law hereafter passed shall apply to them unless they be expressly designated therein:

Provided, however, That the fact that any such association has out- Outstanding standing agreements with its members for the payment of benefits agreements to pay other than those hereinbefore specified, if it is making no new con- fits not to exclude unspecified benetracts of that character and is retiring those already existing, shall not company, etc. exclude such association from the operation of this subchapter.

tinue.

SEC. 750. EXISTING ASSOCIATIONS.-All such associations coming Existing assowithin the description as set forth in section seven hundred and forty- ciations may connine of this subchapter, organized under the laws of the United States relating to said District, or of any State, country, province, or Territory, and now doing business in said District, may continue such business:

compliance

visions.

Provided, That they hereafter comply with the provisions of this subchapter regulating annual reports and the designation of the super- with certain prointendent of insurance of said District, provided for in subchapter five of this chapter, as the person upon whom process may be served as hereinafter provided.

to be filed before

SEC. 751. NONRESIDENT ASSOCIATIONS. -Any such association com- Nonresident asing within the description as set forth in section seven hundred and sociation; papers forty-nine of this subchapter, organized under the laws of any State, doing business. country, province, or Territory, and not now doing business in said District, shall be admitted to do business within said District when it shall have filed with the superintendent of insurance a duly certified copy of its charter and articles of association and a copy of its by-laws, certified to by its secretary or corresponding officer, together with an appointment of the said superintendent as the person upon whom process may be served as hereinafter provided:

-must show au

thority to act at place of incorporation.

Provided, That such association shall be shown to be authorized to do business in the State, country, province, or Territory in which it is incorporated or organized, in case the laws of such State, country, province, or Territory shall provide for such authorization; and in case the laws of such State, country, province, or Territory do not provide for any formal authorization to do business on the part of any such association, then such association shall be shown to be conducting its business in accordance with the provisions of this subchapter; for which purpose the said superintendent may personally, or by some person to be designated by him, examine into the condition, affairs, character, and business methods, accounts, books, and investments of such association at its home office, which examination shall be at the expense of such association and shall be made within thirty days after demand therefor, and the expense of such examination shall be limited to fifty dollars. Any association doing business under this subchapter Filing certifi shall be permitted to do business upon filing annually with the super- cate of authority. intendent of insurance the certificate of authority of the insurance department of the State, Province, or Territory in which it is incorporated or organized:

-examination

Provided, unrever, That in case of failure to file said certificate by any such association, or in case the superintendent of insurance shall at home office. deem it necessary, he shall have power, either personally or by some person designated by him, to examine into the condition, affairs, character, business methods, accounts, books, and investments of such association, at its home office, which examination shall be at the expense of the association. The amount of such expense shall not exceed one

SUP R S -VOL 2 -110

Annual reports.

Questions quired to be swered.

re

hundred dollars for associations which have no reserve or emergency fund and two hundred dollars for associations with a reserve or emergency fund.

SEC. 752. ANNUAL REPORTS.-Every such association doing business in said District shall, on or before the first day of March of each year, make and file with the said superintendent a report of its affairs and operations during the year ending on the thirty-first day of December immediately preceding, which annual report shall be in lieu of all other reports required by any other law. Such report shall be upon blank forms to be provided by the said superintendent, or may be printed in pamphlet form, and shall be verified under oath by the duly authorized officers of such association, and shall be published, or the substance thereof, in the annual report of the said superintendent under a separate part entitled "Fraternal Beneficial Associations," and shall contain answers to the following questions:

First. Number of certificates issued during the year or members an- admitted.

Second. Amount of indemnity effected thereby.

Third. Number of losses or benefit liabilities incurred.

Fourth. Number of losses or benefit liabilities paid.

Fifth. The amount received from each assessment for the year. Sixth. Total amount paid members, beneficiaries, legal representatives, or heirs.

Seventh. Number and kind of claims for which assessments have been made.

Eighth. Number and kind of claims compromised or resisted, and brief statement of reasons.

Ninth. Does the association charge annual or other periodical dues or admission fees?

Tenth. If so, how much on each one thousand dollars, annually or per capita, as the case may be?

Eleventh. Total amount received, from what source, and the disposition thereof.

Twelfth. Total amount of salaries paid to officers.

Thirteenth. Does the association guarantee in its certificates fixed amounts to be paid regardless of amount realized from assessments, dues, admission fees, and donations?

Fourteenth. If so, state amount guaranteed and the security of such guaranty.

Fifteenth. Has the association a reserve or emergency fund?

Sixteenth. If so, how is it created, and for what purpose, the amount thereof, and how invested?

Seventeenth. Has the association more than one class?

Eighteenth. If so, how many; and the amount of indemnity in each

case.

Nineteenth. Number of members in each class.

Twentieth. If voluntary, so state; and give date of organization. Twenty-first. If organized under the laws of said District, under what law and at what time, giving chapter and year, and date of passage of the act.

Twenty-second. If organized under the laws of any State, country, province, or Territory, state such fact and the date of organization, giving chapter and year, and date of passage of the act.

Twenty-third. Number of certificates of beneficial membership lapsed during the year.

Twenty-fourth. Number in force at beginning and end of year; if more than one class, number in each class.

Twenty-fifth. Names and addresses of its president, secretary, and treasurer, or corresponding officers.