Chap. 69.—An ACT to amend an act entitled an act to incorporate
the Life Insurance Company of Virginia. Approved March 21,

1871.
Approved February 5, 1886.

1. Be it enacted by the general assembly of Virginia, That
the second section of an act to incorporate the Life Insurance
Company of Virginia, approved March twenty-one, eighteen
hundred and seventy-one, be amended so as to read as follows:

§ 2. The capital stock of said company may be fixed at not
less than fifty thousand dollars, in shares of one hundred dol-
lars each, by consent of the majority in interest of its stock-
holders, and any holder of stock shall be eligible as a director:
provided that nothing herein contained shall be construed to
alter the contingent liability of the stockholders, who are par-
ticipants in the distribution incident to the reduction of the
capital stock of said company, to the holders of the policies
of said company: and provided further, that the company shall
set aside, and hold in reserve for the securities of its present
policyholders, a fund, equal to one hundred dollars for each
share of stock retired, invested in one or more of the following
securities: First. In bonds or notes secured by mortgage or
deed of trust on unencumbered real estate, worth in each case
double the amount loaned; or second, in bonds of the United
States; or third, in bonds of the state of Virginia, issued under
the act of February fourteenth, eighteen hundred and eighty-
two, or in bonds of the other several states, or of incorporated
cities and towns therein, at their cash market value; and pro-
vided further, that this act shall not take effect or be operative,
so far as it relates to the reduction of the capital stock of the
company, until the said company shall show, to the satisfaction
of the chancery court of the city of Richmond, that the said
company has made the investment in some one of the securi-
ties as above provided, to the amount of the capital. stock re-
tired at any time under the operation of this act, which shall
be held in trust by the president of the company, as trustee,
as collateral to secure the ultimate payment of all existing
policyholders. :

2. That the following sections be added to said act:

$17. On the application of a majority in interest of the
policyholders of said company, and with the consent of a
majority in interest of its stockholders, the company may be
changed into a purely mutual company, the capital being pur-
chased on agreed terms, or loaned at not exceeding lawful in-
terest.

§ 18. Should the company be changed to be purely mutual,
under the terms and conditions of section seventeen of this act,
then the directors shall be elected by the policyholders, and
any policyholder shall be eligible as director.

4 1g. As soon as practicable after January first of each year,
the company shall ascertain the present value of all its out-
standing engagements for insurance by the American expe-
rience table of mortality at lawful interest. From the sum so
ascertained, shall be deducted the present value of all premium
engagements, less the compensation allowed to agents for col-
lecting and remitting the same. The sum of the difference
shall constitute the reserve of the company. To this sum shall
be added each year, from and after the passage of this act,
to be held as a surplus, not less than two per centum of the
reserve so ascertained; and no dividend shall at any time be
declared to stockholders or policyholders, which would impair
said surplus.

§ 20. The accumulation of surplus may be stopped when
the sum shall equal sixty-six per centum of the entire reserve :
provided, it shall thereafter be maintained at not less than sixty-
six per centum.

3. All debts and demands due from said company to the
state of Virginia shall be paid in currency and not in coupons.

4. This act shall be in force from its passage.