Chap. 327.—An ACT to amend and re-enact the 32d section of the 36th
chapter of the Code of Virginia, edition of 1873, in*relation to selling
bonds belonging to insurance companies failing to pay their liabilities.

Approved April 4, 1877.

1. Beit enacted by the general assembly of Virginia, That
the thirty-second section of chapter thirty-six, Code of Vir-
ginia, (edition of eighteen hundred and seventy-three,) be
amended and re-enacted so as to read as follows:

+ § 32. If the said company shall fail to pay any of its lia-
bilities on said policies ot insurance, according to the terms
of said policies, when the same shall have been adjusted be-
tween the parties in the mode provided in the policies, if a
mode is specified therein, or when the same shall have been
ascertained in any mode agreed upon by the parties, or by the
judgment, order, or decree of a court having jurisdiction
thereof, the treasurer shall, upon the application of the party
to whom the debt or money is due, proceed to sell at auction
such an amount of said bonds as, with the interest in his
hands, will pay the amount due and the expenses of sale, and
out of the proceeds of such sale shall pay the amount so due.
and the said expenses of sale: provided that the party ma-
king the application to the treasurer shall give to the com-
pany, or an agent of the company in this state, ten days’ no-
tice of his intention to make said application; and all bonds
deposited with the treasurer by foreign insurance companies
shall be held by him as a pledge to secure the payments of
policies made in this state, or the equitable value of the same,
and shall be held by a statutory lien to secure equal and rata-
ble payment of the same; and the holders and owners of all
policies made in this state, shall have a lien on all bonds so
deposited as aforesaid, for all amounts due them by said com-
panies under or in consequence of such policies, for losses.
equitable values, return premiums, or otherwise, and shall be
entitled ta be paid equally and ratably out of the proceeds
of said bonds; and whenever any company depositing bonds
with the treasurer as aforesaid, shall have become insolvent
or bankrupt, or made any assignment for the benefit of its
creditors, then and in that case any holder of a policy made
in this state shall have the right to file a bill in the circuit
court of the city of Richmond, to enforce said lien for the
benefit of holders of claims arising out of policies made in
this state; and the treasurer shall be a party to such pro-
ceedings, and the fund sball in that case be distributed by
the court.
2. This act shall be in force from its passage.