Chap. 406.—An ACT to amend and re-enact sections 7, 8, 9, 10 and 25 of an act
entitled an act to regulate and control guaranty, trust, indemnity, fidelity,
and other like companies having for their purpose, or one of their purposes,
to become security for the faithful performance of any trust, duty, contract,
agreement, or bond, public or private, official or otherwise, or to assume any
duty or obligation of like nature as principal or otherwise, or to become
fiduciary, approved March 5, 1894

Approved February 21, 1896.

1. Be it enacted by the general assembly of Virginia, That sec-
tions seven, eight, nine, ten and twenty-five of an act entitled an act
to regulate and control guaranty, trust, indemnity, fidelity, and
other like companies having for their purpose, or one of their pur-
poses, to become security for the faithful performance of any trust,
duty, contract, agreement, or bond, public or private, official or
otherwise, or to become fiduciary, approved March fifth, eighteen
hundred and ninety-four, be amended and re-enacted so as to read
as follows:

§ 7. Securities to be deposited with the treasurer.—Every such com-
pany, whether incorporated by the laws of this state or not, shall, by an
agent employed to superintend or manage its business in this state,
deliver, under oath, to the treasurer of this state a statement of the
amount of capital stock of said company, and deposit with him bonds
of the state of Virginia or of the United States, or bonds of the cities of
Richmond, Petersburg, Lynchburg, Norfolk, Alexandria, or Danville,
to an amount equal to five per centum on said capital stock, and the
treasurer shall thereupon give the agent a receipt for the same; pro-
vided that the cash value of the securities so deposited need not be
more than twenty-five thousand dollars nor shall be less than twelve
thousand five hundred dollars. Said securities shall be assigned to satd
treasurer and his successors in office in trust for the purposes of this act.
Upon the exhibition of the said receipt tos commissioner of the reve-
nue of the county, city or district in which an office of the said company
in this state is, or is intended to be, located, and the payment of the
specific license tax which may be imposed thereon, a license shall be
issued in the manner prescribed by law to the said company to carry
on its business. And if, at the end of the period for which a license
is given, the said company desire another license, it shall only be
given on the certificate of the treasurer that the bonds required by
this section to be deposited with him are in his possession. The
treasurer, shall require any such company to make good any depre-
ciation or reduction in value of said securities, and he shall, in the
month of December of every year, examine all securities so deposi-
ted with him for the purpose of ascertaining whether any of them
have depreciated or have been reduced in value.

§ 8. Companies to draw interest on securities—The treasurer, at
the time of receiving said bonds, shall give to the company authority
to draw the interest thereof, as the same may become due and payable,
for the use of the company, which authority shall continue in force
until the company fails to pay any of ita liabilities in this state by
reason of its becoming security, as aforesaid, or by reason of its
assuming any duty or obligation of like nature, as principal or other-
wise, or becoming fiduciary, and which failure has been ascertained by
agreement of the parties binding on such company, or by judgment, order,
or decree of a court of competent jurisdiction against such company, not
appealed from, superseded or stayed, and, in case of such failure so ascer-
tained, the party charged with the payment of such interest shall be
notified of such failure; and thereafter such interest shall be pay-
able to the treasurer, to be applied, if necessary, to the payment of
such liabilities.

§ 9. Sale of securities to pay liabilities.—If the said company fail to
pay any of its liabilities after the same shall have been ascertained by
any agreement of the partics, binding on such company, or by judgment,
order or decree of a court of competent jurisdiction against such com-
pany, not appealed from, superseded or stayed, 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 bands will pay the sum due and expenses of sale, and
out of the proceeds of sale pay said sums and expenses; provided the
treasurer give the said company, or its agent in this state, ten days’
notice, by mail or personally, of the time and place of said applica-
tion. Any such sale shall be advertised daily for ten days in some news-
paper published in the city of Richmond.

§ 10. Lien on securities.—Upon the bonds deposited, as aforesaid.
with the treasurer, any party or person who is a citizen of this state
who may be interested in the faithful performance of any such
undertakings or obligations of such company, whether as principal
or surety, shall have a lien for the amounts due or to become due in
consequence of any failure in the performance, and shall be entitled
to be paid ratably out of the proceeds of such bonds if such proceeds
be not sufficient to pay all the liabilities of such company. When.
ever any such company depositing bonds, as aforesaid, shall have
become insolvent or bankrupt, or shall have made an assignment fo.
the benefit of its creditors, it shall be the duty of the attorney:
general to file a bill in the circuit court of Richmond in the name o!
any party or person interested in securing the payment or the en.
forcement of such liabilities, and to convene all parties in interes!
and to enforce the said lien. The treasurer shall be a party and the
funds distributed by the court.

§ 25. Civil proceedings against any such company may be instituted in
the same manner and form as provided by the laws of this state for proceed-
ings against other corporations.

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