Chap. 674.—An ACT to authorize the Commercial guarantee company of Rich-
mond, Virginia, to deposit securities with the state treasurer.

Approved March 3. 1896.

1. Be it enacted by the general assembly of Virginia, That the
Commercial guarantee company of Richmond, Virginia, chartered by
the law and equity court of Richmond, Virginia, November eighth,
eighteen hundred and ninety-five, for the purpose of guaranteeing
any note, bond or other obligation that bears its name, signed by the
president of said company, shall have permission to deliver to and
deposit with the treasurer of the state bonds of the state of Virginia,
the United States, or of any municipal corporation in this state or
any other state, or the stock of any company, bank or other business
industry or corporation chartered by this state or any other state, to
such an amount as the board of directors of said company shall di-
rect, and the treasurer shall thereupon give to said company a receipt
for the same. Said bonds or stock shall be accompanied by author-
ity to the treasurer to enable him to transfer the same in event of
sale of any part thereof for the purpose of paying any of the liabili-
ties of the company hereinafter provided for; but all earnings on
said stock or interest earned on such bonds or securities shall be
paid to and retained by said company. The securities so deposited
with said treasurer shall be held for the benefit of all parties who
may be creditors of said company to secure compliance by the said
company with the terms of their agreements in the sale of bonds or
other evidences of debt issued by said company. . If said company
shall default in the payment of any interest or any paper on which
they are endorsers within ninety days after judgment shall have
been obtained in any court of the city of Richmond having jurisdic-
tion of the subject, the treasurer shall, upon application of the party
to whom the money is due, proceed to sell at auction or otherwise
such an amount of said securities, stocks, bonds and other collateral
as will pay the amount of judgment and the expenses of sale, and
out of the proceeds of sale such judgment and expenses. When the
board of directors of said company by a resolution shall require the
return of said securities, or a portion thereof, then the treasurer shall
deliver the same to said company or such officer thereof as may be
designated in said resolution; provided, however, that there shall be
no suit at law pending against said company or judgment recorded
against it; and provided, further, that said company shall give no-
tice to the public, for thirty consecutive days, through some paper
published in the city of Richmond, of their intention to withdraw
said securities, but securities may be exchanged or others substi-
tuted without said notice. Whenever requested by the president
of said company, the treasurer shall give a certificate of the amount
held by him, for which he shall be entitled to a reasonable
charge. It shall be lawful for the said Commercial guarantee com-
pany to request the auditor of state to verify any of its statements by
an examination of the books and papers of said company, and the
auditor of state may make this examination, or cause it to be made,
and he shall be entitled to make a reasonable charge for the same.
The auditor may also furnish a certificate to the correctness of the
accounts, papers and books examined, and make a reasonable charge
for same.
2. This act shall be in force from its passage.