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roads.—Vallejo & N. R. Co. v. Reed Orchard Co., 169 Cal. 545, 147 Pac. 238.
v. Soledad Land & W. Co., 170 Cal. 221, 149 Pac. 161.
1. Construction. This section is no bar to a contract by a municipality for the purchase of a bulk supply of water for a period of ten years from a water company. The agreement can not violate that part of the section prohibiting the granting of an "exclusive right” because it does not contemplate the possibility of the town's future purchase of water from sources other than those owned by the water company.-Marin Water & P. Co. v. Sausalito, Town of, 168 Cal. 587, 143 Pac. 767.
1. Stockholder's right to inspect books, ete.The examination which the stockholder is of right entitled to make under this section is the same examination for the refusal to allow him to make which the officers of the corporation become liable to the penalties of the succeeding section.-Symmes v. Sierra Nevada Min, Co., 171 Cal. 427, 153 Pac. 710.
2. Inasmuch as the purpose of the examination is to arrive at the value of the property he would be allowed the right to take samples of the ore even though the statute did not give him the right, as it expressly does in this case. - Symmes v. Sierra Nevada Min. Co., 171 Cal. 427, 153 Pac. 710.
1. Water for family use-Expenses incldental to dellvery.-The provisions herein giving power to prescribe rules for the delivery of water, make it the duty of the corporation to deliver the water, and the laying of water mains or pipe lines and the expenses thereof are an incidental to the delivery of water and can not be charged to the consumer.—Title Guarantee & Trust Co. v. Railroad Commission, 168 Cal. 295, Ann. Cas, 1916 A 738, 142 Pac. 878.
1. Water for Irrigation-Construction.Where the owner of land lying on the line and within the flow of the canal of a company furnishing water for irrigation has been furnished water from such canal for irrigation he is entitled hereunder to have the supply of water continued upon the established rates and terms.-Turner v. East Side. Canal & Irr. Co., 168 Cal. 103, 142 Pac. 69.
2. Constitutionality.-Without deciding the constitutionality, the supreme court say: “We are satisfied that section 552 is constitutional. There is nothing to the claim that it is class legislation because it applies only to domestic corporations.”-Franscioni
1. Penalty for refusal of right to inspect books or visit mine.-The right to enforce such a penalty in the courts of this state against a corporation organized under the laws of this state is not affected by the fact that the properties of the corporation are located outside of the state. Symmes v. Sierra Nevada Min. Co., 171 Cal. 427, 153 Pac. 710.
2. A stockholder of a mining corporation has the right, under section 588 of the Civil Code, not only to make an inspection and examination of the properties of the corporation, but to take samples of the ore bodies therefrom, and where the permission to take samples is refused, he may recover the monetary penalty provided by section 589 of the Civil Code, and have imposed upon the offending officer the additional penalties provided by such section, notwithstanding the latter section does not in terms provide a punishment for a failure to allow the taking of samples, and such taking does not come within the strict definition of inspection and examination.-Symmes v. Sierra Nevada Min. Co., 171 Cal. 427, 153 Pac. 710.
RELIGIOUS, SOCIAL, AND BENEVOLENT CORPORATIONS.
8 594. Incorporation of associations having no fixed place of business (new).
$ 604a. Formation of religious corporations. Directors. $ 594. INCORPORATION OF ASSOCIATIONS HAVING NO FIXED PLACE OF BUSINESS. Any association of this state mentioned in title twelve of part four of division first of the Civil Code made up of constituent or member clubs, or other subordinate bodies, having a common periodical or occasional convention or other general assemblage whether of members or delegates, and operating on the federation plan, whether state, district or otherwise, or having no fixed meeting place for such assemblages, or having no fixed office or principal place of business in any one county or city and county or for the meetings of its agencies or committees or officers, and which association determines such place or places from time to time through its agencies and according to its rules and customs, may incorporate under
the provisions of said title for purposes other than profit and without capital stock. The articles of incorporation upon there being therein stated any of the matters hereinabove mentioned inconsistent with any part or parts of section two hundred ninety of the Civil Code need not make, as to such inconsistent matters, the statements required by said section; but such articles shall be governed otherwise by said section and the rules of section six hundred three of said code as it now stands, except that the same officers who acted as such at the meeting authorizing the incorporation shall be the ones to execute the articles and that the word incorporation is to be deemed substituted for the word authority where the latter is used in said section; and provided, further, that it shall be immaterial whether such authorization is made after or before this section goes into effect if the proceedings show it to have been made in view thereof; and, further, that such articles of incorporation, shall set forth a means whereby its office and constitutional principal place of business, which must be in this state, as it exists from time to time, may be ascertained; or must state that same shall be provided by constitution or by-law; and, until such provision is otherwise made, said place shall be the place of business, or if none such the residence, from time to time, in this state of the chief executive officer of the corporation.
History: Original section, providing as to additional facts in an incorporation of religious etc. corporations, enacted March 21, 1872, founded upon $ 176, Act April 22, 1850, Stats. 1850, p. 374; as amended April 8, 1862, Stats. 1862, p. 125; and repealed May 1, 1911, Stats. and Amdts. 1911, p. 434; present section approved May 23, 1917, Stats, and Amdts. 1917, p. 830. In effect July 27, 1917.
8 604a. FORMATION OF RELIGIOUS CORPORATIONS. DIRECTORS. For the administration of the temporalities, and for the management of the property and estate of any church, diocese, synod, or district or other organization of such church, or for the administration of the temporalities, and for the management of the property and estate of any religious society or order, community, or other organi. zation of said religious society or order, any church, diocese, synod or other organization of such church, or any community or other council, or other organization of any such religious society or order, or of any community or other organization of such religious society or order, may elect directors and become an incorporation in the manner prescribed in this title, and with all the powers and duties and for the uses and purposes in this title provided for benevolent or religious incorporations, and subject to all the limitations and provisions in said title prescribed, except as otherwise provided in this section; provided, that directors of any such incorporation may be elected and by-laws for its government may be made and amended in accordance with the constitution, by-laws, discipline, rules and regulations of such church, diocese, synod, or district or other organization of such church, or in accordance with the constitution, by-laws, discipline, rules and regulations of such religious society or order, or of any community, or other organization of such religious society or order, at any meeting;
[Attesting of certificate of incorporation.] and provided, the certificate of incorporation and of the election of directors to be filed shall be sufficiently attested by the signatures of the presiding officer, president, or other head, and acting secretary of such church, diocese, synod, or other organization of such church, or of the community or other council or other organization of such society or order, and that the limitations of section five hundred ninety-five shall not apply to such corporations heretofore organized or formed, or hereafter organized under this section when land is held or used for churches, hospitals, schools, colleges, asylums, or parsonages.
[Powers.] Every such corporation heretofore organized or formed, or hereafter organized pursuant to the provisions of this section shall have power to contract in the same manner and to the same extent as a natural person, and may sue and be sued, and may defend in all courts and places in all matters and proceedings whatsoever and shall have authority to borrow money, give promissory notes therefor, and secure the payment thereof by mortgage or other lien upon property real or personal,
and may buy, sell, lease, mortgage and deal in real and personal property in the same manner that a natural person may, subject, however, to the provisions of section five hundred ninety-eight of this code; and may receive bequests and devises for its own use, or upon trusts, to the same extent as a natural person, subject, however, to the provisions of section one thousand three hundred thirteen of the Civil Code of the State of California and may appoint attorneys in fact.
History: Enactment approved June 10, 1913, Stats. and Amdts. 1913, p. 566; amended May 21, 1917, Stats. and Amdts. 1917, p. 784. In effect July 27, 1917.
BUILDING AND LOAN ASSOCIATIONS.
8 638. Security for loans. Interest.
8 638. SECURITY FOR LOANS. INTEREST.
INTEREST. For every loan made a note or obligation, expressing and setting forth the exact rate of interest, must be executed by the borrower, secured by a first mortgage or deed of trust upon unencumbered real estate having an appraised value of not less than twenty-five per cent in excess of the face of the loan, except such loans as may be made upon the security of bonds specified in section six hundred forty-seven; or in lieu of a mortgage or deed of trust, loans to the extent of not exceeding ninety per cent of the then withdrawable value, may be made upon the pledge of free shares or certificates as security for their repayment. The board of directors may from time to time fix the rate of interest to be charged on loans. A borrower may at any time repay his loan together with interest or arrears due thereon and upon the surrender of the shares, or certificate pledged as security therefor.
History: Original section providing rate of interest on a security for loans, approved March 31, 1891, Stats.' and Amdts. 1891, p. 255; amended February 25, 1897, Stats, and Amdts. 1897, p. 30; March 11, 1901, Stats. and Amdts. 1900-1, p. 268; repealed and present section approved March 23, 1907, Stats. and Amdts. 1907, p. 926, Kerr's Stats. and Amdts. 1906-7, p. 419; June 10, 1913, Stats and Amdts. 1913, p. 551; amended May 21, 1917, Stats. and Amdts. 1917, p. 780. In effect July 27, 1917.
$710. Joint tenancy in personal property.
Restraint on marriage-In will.—Where Personal property may be held in joint ten- a testator by the first clause of his will ancy as well as real property.-Estate of gives all his estate to his wife, and then Harris, 169 Cal. 725, 147 Pac. 967.
provides that "should she wish to marrie 2. "A joint tenancy in personal property
agane then seventy-five per cent of the hole
amount at my death will go to my chilmay be created by an oral agreement by
dren," he thereby imposes a condition in which the title to the property is transferred
restraint of marriage which renders the to two persons as joint tenants."-Estate of
proviso void under section 710 of the Civil Harris, 169 Cal. 725, 147 Pac. 967.
Code.-Estate of Scott, 170 Cal. 65, 148 Pac. For other on joint tenancy,
221. Biennial 1915, C. C. Pt., $ 761.
$ 711. 8 685.
1. Conditions repugnant, when. Where 1. Tenancy in common.--A deed to two
the granting clause in a deed purports to persons presumptively conveys to each an
convey a fee simple and is followed by a undivided half interest as tenants in com
clause prohibiting the grantee from convey
ing without the grantor's consent, the latter mon.-Rich v. Smith, 26 Cal. App. 775, 148
clause is repugnant to the interest created Pac. 545.
by the former, and being in restraint of For other cases on tenancy in common, see alienation is void. --Bonnell v. McLaughlin, Biennial 1915, C. C. Pt., $ 761.
173 Cal. 213, 159 Pac. 590.
PROPERTY IN GENERAL.
Title I. Nature of property.
MODIFICATIONS OF OWNERSHIP.
RESTRAINTS UPON ALIENATION.
§ 715. How long it may be suspended.
8 715. HOW LONG IT MAY BE SUSPENDED. Except in the single case mentioned in section seven hundred seventy-two, the absolute power of alienation can not be suspended, by any limitation or condition whatever, for a longer period than as follows:
1. During the continuance of the lives of persons in being at the creation of the limitation or condition; or
2. For a period not to exceed twenty-five years from the time of the creation of the suspension,
History: Enacted March 21, 1872; amended May 18, 1917, Stats, and
Amdts. 1917, p. 699. In effect July 27, 1917. 1. Restraint on allenation-Charities and youngest of my two said children would, charitable uses.—These code provisions re- if alive, have reached the age of twenty-five specting the suspension of the power of years, at which time the remainder of my alienation have no application to charities estate shall be divided equally between my and charitable uses.-Estate of Coleman, 167 two said children, or if one be dead, then Cal. 212, Ann. Cas. 1915C 682, 138 Pac. 992. to the survivor of them," creates a trust for
term of years and is invalid, being in
violation of section 716 of the Civil Code 1. Trust for a term of years.-A bequest
of California, as it is possible in such case of all the testator's property in trust, to
that the power of alienation is suspended convert the estate into cash and keep the
by limitation for a longer period than during proceeds invested and to pay the income
the continuance of lives of persons in being. thereof and such portion of the principal as
-Estate of Bourke, 6 Cof. Prob. Dec. 45. may be necessary "until such time as the
8 718. LEASE OF CITY LOTS, FOR OVER NINETY-NINE YEARS, VOID. No lease or grant of any town or city lot for a longer period than ninety-nine years, in which shall be reserved any rent or service of any kind, shall be valid;
[Property of minor or incompetent.) provided, that the property of any municipality, or any minor or incompetent person, shall not be leased for a longer period than ten years, excepting that the sewer farm of a municipality and all waters and sewage used or discharged thereon may be leased for a period not exceeding twenty-five years;
[Tide-lands.] and excepting that the tide-lands and submerged lands granted to any city by the state, or any lands belonging to such city adjacent to such tide-lands and submerged lands, may be leased for a period not exceeding forty years if the grant from the State of California of the use of said tide-lands and submerged lands does not provide specifically for a term of years for which said lands may be leased.
[Purposes for which tide-lands may be leased.] Said tide-lands and submerged lands and lands adjacent thereto can only be leased for industrial uses, the purpose of improvement and development of the harbor of said city, and the construction and maintenance of wharves, docks, piers or bulkhead piers or for other public uses and purposes consistent with the requirements of commerce or navigation at said harbor.
History: Enacted March 21, 1872; amended March 20, 1903, Stats. and Amdts. 1903, p. 247; May 1, 1911, Stats, and Amdts. 1911, p. 1391; May 4, 1915, Stats. and Amdts. 1915, p. 349; May 21, 1917, Stats, and
Amdts. 1917, p. 798. In effect July 27, 1917. 8 725.
to cover the time of the deferred payment.
Estate of Yates, 170 Cal. 254, 149 Pac. 555. 1. Accumulations beyond minority.-The direction in a trust for accumulations be
8775. yond the age of the minority of the legatee is void, but such fact does not operate
1. Remainders, when effective. — Estates to destroy the trust in its creation but
in remainder which are limited to take effect merely to avoid the provision for the illegal
upon default in the exercise of a power of accumulations, with the result that the lega- appointment are not prevented from vesting tee after maturity would be entitled to
by the existence of the power, but take receive the income of the trust fund.-Estate
effect in the same manner as if no power of Yates, 170 Cal. 254, 149 Pac. 555.
existed, subject, however, to be divested by
an exercise of the power.-Gray v. Union $ 740.
Trust Co., 171 Cal. 638, 154 Pac. 306. 1. Future interest-Reservation in deed of right to revoke.-A grantor may reserve
8 779. in his deed the right to revoke the deed as 1. Construction.-This abrogates the rule to all or any portion of the property de- in Shelley's Case, and the effect thereof is to scribed therein. There is in this section restore to courts of equity their right to at least a very strong implication that the construe the language in an instrument in reservation of such power as a means of accordance with the plain import and intent. defeating the interest is not contrary to law. -Gray v. Union Trust Co., 171 Cal. 637, 154 -Tennant v. John Tennant Memorial Home,
Pac. 306. 167 Cal. 570, 140 Pac. 242.
$ 789. 8741.
1. Termination of lease.-A lease may be 1. Construction. — This section refers brought to an end by the surrender of the solely to acts which the owner of the inter
leased premises and the acquiescence in the mediate estate may do as owner or by virtue
surrender by the lessor, and such acquiof ownership and has no application to acts
escence is perhaps best evidenced by his done because he is also invested with a
taking possession of the property and aspower of revocation entirely distinct from suming again all of the authority over it and independent of his ownership of the life
of an owner in possession.-Baker v. Ellers estate.---Tennant v. John Tennant Memorial
Music Co., 26 Cal. App. 371, 146 Pac. 1056. Home, 167 Cal. 570, 140 Pac. 242.
$ 801. 8771.
1. Servitudes—Right of way (subd. 4).1. Undue suspension by trust.-A bequest
An easement as a right of way is incident of a sum of money to a trustee to hold the to the land, and passes with it unless exprincipal, accumulate the interest, and pay
pressly excepted by the terms of the deed.both to the beneficiary when he attains the Cona way v. Toogood, 172 Cal. 706, 158 Pac. age of twenty-five years does no violence
200. to the rule against perpetuities and the
2. When a grantor conveys land shut off undue suspension of the power of alienation, from access to a road by the grantor's reas the ultimate duration of such trust is maining land, or partly by his land and based upon a life in being, and should the partly by that of a stranger, a way of nebeneficiary die, the trust absolutely deter- cessity arises over the adjoining land of the mines for lack of a beneficiary.- Estate of grantor.-Mesmer v. Uharriet, 174 Cal. 110, Yates, 170 Cal. 254, 149 Pac. 555.
162 Pac. 104. 2. Such a bequest vests in the legatee an 3. A way of necessity follows in like absolute, indefeasible and disposable inter- manner from a decree of partition, under est, with only the time of payment post- which one of the parcels set off in severalty poned and a trust for accumulation created is entirely inclosed by others. The effect