Chap. 306.—An ACT to Amend and Re-enact an Act Entitled an Act to In-
corporate the Southern Protection Insurance Company of Alexandria,
Virginia, Passed January 30, 1854.

Approved March 31, 1871.

1. Be it enacted by the general assembly, That the act
passed January thirtieth, eighteen hundred and fifty-four, en-
titled. an act to incorporate the Southern protection insurance
company of Alexandria, Virginia, be and the same is hereby
amended and re-enacted so as to read as follows:

Ҥ1. That B. F. Nalle, George H. Robinson, T. T. Hill,
George E. French, J. T. Antrum, A. R. Blakey, John B. Smoot,
H. D. Wright, and A. G. Garnett, and all other persons who
may hereafter be associated with them in the manner herein
prescribed, shall be a corporation by the name of The Southern
Protection Insurance Company, for the purpose of insuring
their respective dwelling houses, stores, shops, and other build-
ings, household furniture, merchandise, and other property,
against loss or damage by fire.

““§ 2, All persons who shall hereafter insure with the said
corporation, and also their heirs, executors, administrators, and
assigns, continuing to be insured in said corporation, as is here-
inafter provided, shal] be members thereof during the period
they shall remain insured by said corporation, and no longer.

Ҥ 3. The affairs of said company shall be managed by a
board of directors, consisting of members, as hereinafter pro-
vided. All vacancies happening in said board may be filled by
the remaining directors for the remainder of the term for
which they were elected, and five thereof shall constitute a
quorum for the transaction of business of said corporation, and
shall continue in office until January first, eighteen hundred
and seventy-two, and until others shall be chosen in their

laces.

a § 4. Said board of directors shall hereafter be elected every
three years, at such time and place in the city of Alexandria
as the corporation in their by-laws shall appoint; of which
election public notice shall be given in at least one of the pub-
lic newspapers published in the city of Alexandria, at least
thirty days immediately preceding such election. Such elec-
tion shall be holden under the inspection of three members,
not being directors, to be appointed previous to every election
by the board of directors; and such election shall be made by
ballot and by plurality of the votes of the members or their
proxies present, allowing to each member one vote for every
one hundred dollars insured in said company.

“$5. The directors may determine the rates of insurance,
the sum to be insured and the sum to be deposited for any in-
surance. ,

Ǥ 6. Every person who shall become a member of said
company, by effecting insurance therein on the premium note
plan, shall, before he receives his policy, deposit his promissory
note for such a sum of money as shall be determined by the
directors, together with such an amount in cash as may be
fixed by the directors. The said deposit note shall be payable
in part or the whole, at any time when the directors shall deem
the same requisite for the payment of losses by fire and such
other incidental expenses as shall be necessary for transacting
the business of said company, and for the redemption of bonds,
obligations, and notes which may be incurred or issued by said
company; and at the expiration of the term of insurance, the
said note, or such part thereof, as shall remain unpaid after
deducting all losses and expenses and other liabilities occurring
in said term, shall be relinquished and given up to the maker
thereof. And it shall be lawful for said corporation to loan
such portion of their money on hand as may not be immedi-
ately wanted for the purposes of said corporation, and on such
security as the executive committee may require.

Ҥ 7. When any property insured with said corporation
shall be alienated by sale or otherwise, the policy shall there-
upon be void and be surrendered to the directors of said com-
papy to be cancelled; and upon such surrender the assured shall
be entitled to receive his deposit notes upon the payment of his
proportion of all losses and expenses and other liabilities that
have accrued prior to such surrender, but the grantee drawing
the policy assigned to him may have the same ratified and con-
firmed to him for his own use and benefit, upon application to
the secretary, and with his consent, within thirty days next
after such alienation, on giving proper security to the satisfac-
tion of the said secretary for such portion of the deposit or
premium note as shall remain unpaid; and by such ratification
and confirmation the party causing such security to be given,
shall be entitled to all the rights and privileges, and be subject
to all the liabilities to which the original party to whom the
policy was issued, was entitled and subjected under this act.

Ҥ 8. Every member of said company who shall have given
& premium note, shall be bound to pay for losses and expenses
and other liabilities as aforesaid, accruing in and to said com-
pany, in proportion to, but not beyond, the amount of his de-
posit note; and all buildings insured by said company, together
with the right, title, and interest of the assured to the lands
on which they stand, shall be and are hereby pledged to said
company; and said company shall have a lien thereon, in na-
ture of a mortgage, to the amount of his deposit note, which
shall continue during his policy; the lien to take effect when-
ever the said company shall file with, and have entered of re-
cord by the clerk of the county or city wherein the property
is situate, a memorandum of the name of the individual in-
sured, a description of the property, the amount of the deposit
note, and the term for which said policy shall continue; and
the clerk of the county or city shall post the same at the door
of the courthouse, with a list of the deeds admitted to record.

‘““§ 9. Suits may be maintained by said corporation for the
collection of said deposit notes, or any assessment thereon, or
for any other cause relating to the business of said corpora-
tion; also, suits may be prosecuted and maintained against
said corporation for losses or damages by fire, if payment is
withheld more than four months after the losses are duly
proved and notified to the company, agreeably to the condi-
tions of the policy.

Ҥ 10. The directors may, after receiving notice of any loss
or damage by fire sustained by any member, and ascertaining
the same, or after the rendition of any judgment as aforesaid
against said company for loss or damage, settle and determine
the sums to be paid by the several members thereof, as their
respective proportion of such loss, and publish the same in
such manner as they shall see fit, or as the by-laws shall have
prescribed; and the sum to be paid by each member shall al-
ways be in proportion to the original amount of his deposit.
note or notes, and shall be paid to the treasurer within thirty
days next after the publication of said notice. And if any mem-
ber shall, for the space of thirty days after the publication of said
notice, neglect or refuse to pay the sum assessed upon him as
his proportion of any loss as aforesaid, in such case the direc-
tors may sue for and recover the whole amount of his deposit.
note or notes, with costs of suit; and the amount thus collected
shall remain in the treasury of said company, subject to the
payment of such losses and expenses as have or may thereafter
accrue, and the balance, if any remain, shall be returned to the
party from whom it was collected, on demand, after thirty
days from the expiration of the term for which insurance was
made.

Ҥ 11. The first election of directors shall be had the first
Monday of December, eighteen hundred and seventy-one, and
other elections shall be held periodically, once in three years
thereafter, for the choice of new directors. The board of di-
rectors shall elect, viva voce, a president, vice-president, sec-
retary, actuary, treasurer, and general agent of their own num-
ber, who may hold their offices for and during the term of
three years, and until others are elected in their places.

Ҥ 12. The executive committee shall consist of the presi-
dent, secretary, and treasurer of the company, and when the
board of directors is not in session, may exercise all the pow-
ers vested in the company, (except as shall be otherwise pro-
vided by the board of directors in the by-laws of the company,)
any two of whom may constitute a quorum to do business.

““§ 13. The directors may make such by-laws as they may
deem necessary, not inconsistent with this charter.

Ҥ 14. This company may effect insurance either on the cash
plan, without premium notes, or may require premium notes,
and a cash amount in addition, as hereinbefore provided for;
but all persons insuring on the premium note plan shall be
bound to pay his or her share of all losses and expenses in-
curred by the company, whether the same arise out of losses
or expenses growing out of a cash or premium note insu-
rance. —

“$15. It, during the life of any policy issued by this com-
pany, the risk shall be increased by the erection of buildings,
or by the use or occupation of neighboring premises, or other-
wise, or if, from any other cause, the company shall so elect, it
shall be optional with the company to terminate the insurance,
after notice given to the insured or his representatives, of their
intention so to do; in which case, the company shall refund a
ratable proportion of the premium, whether the same be cash
or deposit notes.

Ҥ 16. The capital stock of this company shall consist of
cash premiums and premium notes received upon risks taken
by the company, and such other capital as may by the by-laws
ot the company be added, and shall not be more than five mil-
lions of dollars.

Ҥ 17. This company shall be located at Alexandria city,
Virginia, at which place the general office of the company shall
be held.”

2. This act shall be in force from and after its passage, and C
shall be subject to any amendment, alteration, or modification, "
at the pleasure of the general assembly.