3489 SEC. 85. [Exemption from general insurance law.] Any corporation or association doing business in this state, which provides, in the main, for the payment of death losses or accident indemnity by any assessment upon its members or upon the natural premium plan, shall, for the purpose of this act, be deemed a mutual benefit association, and shall not be subject to the general insurance laws of this state, regulating life insurance. No corporation or association, operating upon the assessment plan, promising benefits upon any other event than that of the death or disability resulting from accident to the member shall be permitted to do business in this state. This act shall not relieve any corporation or assessment association, now doing business in this state, from the fulfillment of any contract heretofore entered into with its members under its policies or certificates of membership, nor shall any member be released hereby from his or her part of said contract. [Id., § 16.]

3490 SEC. 86. [Extent of act.] Nothing in this act shall be construed to apply to any secret fraternal society nor any association organized solely for benevolent purposes and composed wholly of members of any one occupation, guild, profession, or religious denomination, provided that any such society or organization named above in this section, shall, by complying with the provisions of this act, be entitled to all the privileges and be amenable to the obligations of this act. [Id., § 17.]

3491 SEC. 87. [Foreign companies.] When such insurance associations or companies not organized in this state, having invested assets of not less than one hundred thousand ($100,000) dollars, shall comply with the requirements of the laws of this state, and shall satisfy the auditor of public accounts that it is in a solvent condition and able to meet its obligations at maturity, he shall issue to such company a certificate stating that such company has complied with the laws of this state and is authorized to do business in this state. [Id., § 17A.]

3492 SEC. 88. [Acts repealed.] All acts, or parts of acts, conflicting with this act are hereby repealed. [Id., § 18.]

3493 SEC. 89. [Foreign companies-Compliance with foreign laws.] Whenever the existing of future laws of any other state of the United States, or the rules and regulations of the insurance department of any such state, shall require of life insurance companies organized under the laws of this state any deposit of securities in such state for the security of the policy holders, or any payment of taxes, fines, penalties, certificates of authority, licenses, fees, or require any other duties, examinations, or acts than are by the laws of this state required of such companies organized under the laws of such other state, then the auditor of public accounts shall immediately require from every insurance company of any and every character whatever of such other state transacting or seeking to transact business in this state, the like payment of all licenses, fees, taxes, fines or penalties, and the like making of all deposits of securities and statements, and the like doing of all acts which by the laws or rules of the insurance department of such other state, are in excess of the licenses, fees, taxes, deposts, statements, fines, penalties, acts, examinations or duties required by the laws of this state of the companies of such other states. [Id., § 18A.]

3494 SEC. 90. [Security for policy holders.] No company organized under the laws of this state for the purpose of transacting the business of life insurance with a capital stock, shall continue or commence business until such company has transferred to and deposited with the auditor of public accounts for the security of its policy holders the sum of one hundred thousand dollars in the kinds. of securities as provided by the laws of this state; but in no case shall such securities be received at a rate above their par value nor above their current market value. [Id., § 18B.]

CHAPTER 44.-INTEREST.

3495 SECTION 1. [Rate.] Any rate of interest which may be agreed upon, not exceeding ten dollars per year upon one hundred dollars, shall be valid upon any loan or forbearance of money, goods, or things in action; which rate of interest so agreed upon may be taken yearly, or for any shorter period, or in advance, if so expressly agreed. [1879, § 1, 113.]

3496 SEC. 2. [Unagreed rates.] Interest upon the loan or forbearance of money, goods, or things in action shall be at the rate of seven dollars per year upon one hundred dollars, unless a greater rate, not exceeding ten per cent. per annum, be contracted for by the parties.

3497 SEC. 3. [Judgments-Decrees.] Interest on all decrees and judgments for the payment of money shall be from the date of the rendition thereof at the rate of seven dollars upon each one hundred dollars annually until the same shall be paid; Provided, That if said judgment or decree shall be founded upon any contract, either verbal or written, by the terms of which a greater rate of interest, not exceeding the amount allowed by law, than seven per centum shall have been agreed upon, the rate of interest upon such judgment or decree shall be the same as provided for by the terms of the contract upon which the same was founded.

3498 SEC. 4. [Other cases.] On money due on any instrument in writing, or on settlement of the account from the day the balance shall be agreed upon, on money received to the use of another, and retained without the owner's consent, express or implied, from the receipt thereof, and on money loaned or due, and withheld by unreasonable delay of payment, interest shall be allowed at the rate of seven per cent. per annum. Unsettled accounts between parties shall bear interest after six months from the date of the last item thereof.

3499 SEC. 5. [Usury-Consequences-Agents.] If a greater rate of interest than is herein before allowed shall be contracted for or received or reserved, the contract shall not, therefore, be void; but if in any action on such contract proof be made that illegal interest has been directly or indirectly contracted for, or taken, or reserved, the plaintiff shall only recover the principal, without interest, and the defendant shall recover costs; and if interest shall have been paid thereon, judgment shall be for the principal, deducting interest paid; Provided, The acts and dealings of an agent in loaning money shall bind the principal, and in all cases where there is illegal interest by the transaction of the agent, the principal will be held thereby as if he had done the same in person. Where the same person acts as agent for the borrower who obtains the money from the lender, he shall be deemed to be the agent of the loaner also.

CHAP. 44. "An act to amend chapter 34, General Statutes (being chapter XXVIII of Revised Statutes of 1866), entitled 'Interest.' Passed and took effect June 1, 1879. SECS. 1-4. Computation. 4 Neb., 193. 7 Id., 83. Interest defined. 11 Neb., 72, On accounts. 9 Neb., 112. 15 Id., 327. 16 Id., 58. On judgments. 6 Neb., 353. 15 Id., 327. Partnership accounts. 10 Neb., 97. Rate expressed in contract governs after maturity. 15 Neb., 260. 16 Id., 14. 17 Id., 494. See also 13 Neb., 320. 10 Id., 327. 8Id.,

61. 15 Id., 334, 579. 12 Id., 336. Funds in court. 18 Neb., 511. Interest in excess of ten per cent forbidden, and where interest on note is the maximum rate allowed by law, and is represented by coupons providing that interest shall be allowed thereon after maturity at the maximum rate, no interest will be allowed on such coupons. 23 Neb., 539. 25 Id., 501. 31 Id., 181. In absence of agreement, interest is seven per cent, and in action on executor's bond interest on amount due is to be computed at that rate. 21 Neb., 262. Interest after maturity rate changed. 27 Neb., 644. Unsettled accounts. 30 Id., 609. Discount may be for more than one year. 36 Id., 148. 43 Id., 45.

SEC. 5. General rules. 4 Neb., 204. 6 Id., 152, 10 Id., 543. Agreement to pay interest upon interest which may thereafter accrue cannot be enforced, although it does not render the principal contract usurious. 23 Neb., 536. Subsequent agreement to pay does not affect original contract. 4 Neb., 207. 9 Id., 455. Agreement to pay for services in procuring loan not known to lender, will not constitute. 3 Neb., 259. 11 Id., 491. Acts of agent, in taking, bind principal. 3 Neb., 250. 5 Id., 264. 6 Id., 151, S Id., 426. 11 Id., 491. 12 Id., 189. 13 Id., 166, 575. 14 Id.. 91. Borrower not estopped to show agency of lender. 15 Id., 338. If amount paid by borrower exceeds lawful rate, it devolves on plaintiff to show that value of services, etc., did not exceed it. 13 Neb., 556. Retaining

3500 SEC. 6. [Usurers-Witnesses.] Any person charged with taking illegal interest may be required to answer touching the same, on oath, in any civil proceeding.

3501 SEC. 7. [Tender.] Relief to a complain[an]t in case of an usurious loan may be given without payment or tender by him of the principal sum.

3502 SEC. 8. [Witnesses-Perjury.] Any officer or agent of a person or a corporation, whether interested or not, may be summoned as witness in any action for usury against such person or corporation, and required to disclose all the facts of the case, but the testimony of such witness, or the answer of a party as required in section 6, shall not be used against such witness, or party in any criminal prosecution for perjury.

3503 SEC. 9. [Yearly rates.] When in any law, or in any instrument in writing specifying a rate of interest, no period of time is mentioned for which such rate is to be calculated, it shall be deemed to be by the year.

3504 SEC. 10. [Warrants-Bonds-Orders.] All warrants or orders hereafter issued by the proper authorities of any county, city, town, school district or other municipal sub-division less than a county, shall draw interest from and after the date of their presentation for payment at the rate of seven per cent per annum. All warrants hereafter issued by the proper authorities of the state shall draw interest at the rate of five per cent per annum from the date of their presentation for payment. No bonds hereafter issued by any county, city, township, precinct, or school district shall draw interest at a rate exceeding seven per cent per annum. [Amended 1895, chap. 43 and chap. 44.]

3505 SEC. 11. [Educational lands-Delinquent taxes.] The rate of interest fixed by this chapter shall not affect interest on purchase money of school, university, and agricultural college lands, or on lands delinquent or sold for the nonpayment of taxes.

SEC. 12. [Repealed original chapter.]

commissions out of loan. 13 Neb., 575. Subsequent security for loan originally usurious is subject to plea and proof of usury. 11 Id., 467. Sale of bond at less than face value is not. 14 Neb., 381. Nor of note and mortgage at a discount. 9 Neb., 15. Note given for $445.15, only $380 received, held, usurious. 14 Neb., 577. Where a party effected a loan for another of $4,000 for five years at 8 per cent, and took notes as a bonus for $350 without interest, due in less than one year from the date of the last, held, that interest for five years would not be added to the notes taken for a bonus in order to taint the transaction with usury. 24 Neb., 817. Surety may plead. 7 Neb., 58. Defense not available against innocent purchaser. 9 Id., 229. 10 Id., 86. 11 Id., 492. 14 Id., 416. 15 Id., 631. 18 Id., 233, 546. 20 Id., 131. 28 Id., 377. 31 Id., 328. Available as a defense in action on usurious contract; but where action is dismissed without prejudice before submission, defense of usury is not a set-off to be retained and tried by court. 12 Neb., 506. When paid cannot be recovered back by separate action. Id. Agreement for a loan made in N. Y., and money advanced there; note given in Nebraska, held, that laws of N. Y. governed contract, and action in Nebraska would not lie. 1 Neb., 112. But note made in Nebraska, payable in N. Y., laws of Nebraska govern. 11 Neb., 493. 14 Neb.. 93. Loans by building and saving association usurious. 7 Neb., 177. Fee paid attorney for extension of time of payment, held, usurious, and applicable as payment pro tanto. 8 Neb.. 52. Collection fee in note in addition to legal interest, void. 11 Id., 98, 399. Note with 24 per cent interest payable after maturity, not usurious, and recovery may be had for legal interest. 14 Id., 434. Promise to pay interest on interest overdue is not usury. 16 Neb., 12. Answer setting up usury should state with whom contract was made, nature and amount. 16 Neb., 689. Where truth of plea of usury is pleaded or admitted, defendant is entitled to recovery of the costs of the action. 17 Neb., 309. Defense of usury available to maker against the assignee of usurious note and mortgage, transferred to him by written assignment on mortgage only, for value before maturity and without notice. 19 Neb., 643. Where borrower seeks relief from usurious contract in a court of equity he must tender the amount of principal and lawful interest due. 24 Neb., 82. Purchaser of equity cannot plead usury. 27 Neb., 401. Verbal contemporaneous agreement to pay unlawful rate. 31 Id., 328, 913. Bonus to borrower's agent not usurious. 27 Neb., 877. Interest on costs. 31 Id., 846. Demand certificates of deposit interest from demand. 36 Id.. 212. Usury paid not recoverable. 32 Id., 302. Penalty rate construed. 34 id., 181. Increased interest on default a penalty. 32 Id., 565. Penalty for usury by national banks. 32 Id., 70. Essentials and contents of plea of usury. 39 Id., 339. 62 N. W. R., 456, Extension of note at legal rate, at a usurious rate is illegal. 42 Id., 437. Usurer can recover money advanced less payments. 43 Id.. 79.

SEC. 10. Last amendment took effect April 10, 1895. First amendment repealed by last, differed in not having the word "hereafter" before "issued," and was not to take effect until Aug. 1, 1895. The former law fixed the rate of interest on all warrants at seven per cent and on bonds at not exceeding eight per cent.

CHAPTER 45.-INTERNAL IMPROVEMENTS.

3506 SECTION 1. [Bonds.] That any county or city in the state of Nebraska is hereby authorized to issue bonds to aid in the construction of any railroad, or other work of internal improvement, to an amount to be determined by the county commissioners of such county or the city council of such city, not exceeding ten per centum of the assessed valuation of all taxable property in said county or city; Provided, The county commissioners or city council shall first submit the question of the issuing of such bonds to a vote of the legal voters of said county or city, in the manner provided by chapter nine of the Revised Statutes of the state of Nebraska, for submitting to the people of a county the question of borrowing money. [1869, § 1, 92. G. S., 448.]

be

3507 SEC. 2. [Proposition to vote.] The proposition of the question must accompanied by a provision to levy a tax annually for the payment of the interest on said bonds as it becomes due; Provided, That an additional amount shall be levied and collected to pay the principal of said bonds, when it shall become due; and, Provided further, That no tax shall be levied or collected to pay any of the principal of said bonds until after the year 1880. [Amended 1870, 15.]

3508 SEC. 3. [Rate of interest.] The proposition shall state the rate of interest such bond shall draw, and when the principal and interest shall be made payable.

3509 SEC. 4. [Result of vote.] If two-thirds of the votes cast at any such election for the purposes herein set forth be in favor of the propositions submitted, the county commissioners, in the case of a county, and the city council, in the case of a city, shall cause the proposition and result of the vote to be entered upon the records of said county or city, and a notice of its adoption to be published for two successive weeks in any newspaper in said county or city, if there be one, and shall thereupon issue said bonds, which shall be and continue a subsisting debt against such county or city, until they are paid and discharged. [Amended, taking effect Dec. 1, 1875. Laws 1875, 87.]

3510 SEC. 5. [Taxes.] It shall be the duty of the proper officers of such county or city to cause to be annually levied, collected, and paid to the holders of such bonds a special tax on all taxable property within said county or city, sufficient to pay the annual interest as the same becomes due; and when the principal of said bonds become due, such officers shall in like manner collect an additional amount sufficient to pay the same as it becomes due; Provided, That when any bonds have

CHAP. 45. "An act to enable counties, cities, and precincts to borrow money on their bonds, or to issue bonds to aid in the construction or completion of works of internal improvement in this state, and to legalize bonds already issued for such purpose." Passed and took effect February 15, 1869.

DECISIONS. Acts are constitutional. 2 Neb., 424. 10 Id., 279. Aid cannot be voted exceeding ten per cent of the assessed valuation of county, and two-thirds vote necessary. 7 Neb., 313. But limitation does not prohibit precinct from voting aid in addition to that voted by county. 6 Neb., 215. 13 Id., 131. Works of internal improvement defined. 4 Neb., 156. Bridge over Platte river, Id. 7 Id., 260. Bridge over Loup river is work of internal improvement and bonds issued by city of Columbus in aid of its erection are valid. 23 Neb., 185. Water grist mill is. 14 Neb., 327. But a steam grist mill is not. 15 Id., 568. Court house is not. 10 Neb., 281. Bridges wholly within county are. 16 Neb., 509 (distinguishing 12 Id., 185). People cannot delegate to county commissioners the authority to determine which of two works shall be recipient of aid voted. 13 Neb., 132. 14 Id., 294. Proposition need not contain provision for levy of tax to pay principal, but only interest. Proposition containing provision for collecting tolls not objectionable. Proposition should contain provision to levy tax to meet liability incurred. 6 Neb., 53, 235. And see 14 Neb., 324. Precinct bonds may be issued for. 6 Neb., 49. Mode of collection by tax; mandamus lies to compel levy. 6 Neb., 24. Mandamus to pay bonds for; petition should contain particular description of works. 9 Neb., 459. In ascertaining donations already made, unpaid interest should not be considered in making up aggregate which county is entitled to vote. 13 Neb., 130. Cities of second class may issue bonds under this act. 19 Neb., 237. Paving bonds and bonds for water works in cities of second class. 25 Neb., 502. See also 25 Neb., 512. Precinct bonds for bridges. 18 Neb., 362. County bonds a charge on after annexed territory. 31 Id., 374. Beet sugar factory not for toll is not work of internal improvement. 30 Id., 870.

SEC. 1. Chap. 9, R. S., impliedly repealed by chap. 18, art. 1, C. S. Duly registered bonds not declared invalid for irregularities. 32 Neb., 80. SEC. 2. Proposition to pay principal should be submitted. 21 Neb., 599. 32 Id., 80.

been heretofore issued, such officers shall not levy or collect any amount more than may be necessary to pay the amount annually falling due by the condition of such bonds until after the year 1880; Provided, That not more than 10 per centum of the principal of said bonds shall be collected in any one year, excepting where bonds have been heretofore issued, and by the conditions of such bonds are required to be paid in some other manner. [Amended 1870, 15.]

3511 SEC. 6. [Estoppel.] Any county or city which shall have issued its bonds, in pursuance of this act, shall be estopped from pleading want of consideration therefor, and the proper officers of such county or city may be compelled, by mandamus, or otherwise, to levy the tax herein provided to pay the same.

SEC. 7. [Repealed 1885, chap. 58.]

3512 SEC. 8. [Bonds heretofore issued.] All bonds heretofore voted and issued by any county or city in this state, to aid in the construction of any railroad or other work of internal improvement, are hereby declared to be legal and valid, and a lien upon all of the taxable property in such county or city, notwithstanding any defect or irregularity in the submission of the question to a vote of the people, or in taking the vote, or in the execution of such bonds, and notwithstanding the same may not have been voted upon, executed, or issued in conformity with law, and such bonds shall have the same legal validity and binding force as if they had been legally authorized, voted upon, and executed; Provided, That nothing in this section nor in this act shall be so construed as to legalize or in any way sanction any vote of the people of Nemaha county, heretofore had, for the purpose of aiding in the construction of any railroad, nor anything done by the county commissioners of said county authorizing said vote, or anything done by them in consequence of such

vote.

3513 SEC. 9. [Taxes to pay principal.] That after the year 1880 the officers of any county or city may levy and collect not exceeding 10 per centum of the principal of said bonds; Provided, Said bonds are not payable in installments not exceeding 10 per centum; and whenever any county, city, or precinct shall have on hand an amount exceeding two thousand dollars, for the payment of the principal of said indebtedness, the corporate authorities of such county or city shall advertise for the surrender of any such indebtedness; and the person offering to surrender such indebtedness on the lowest and best terms shall receive the money, and surrender such indebtedness; and if at any time there shall have accumulated a sum exceeding ten thousand dollars, the same may be invested in Nebraska state stocks, or in United States stocks. [1870, § 3, 15.]

3514 SEC. 10. [Refunding taxes.] All taxes which have been paid to raise a sinking fund to pay the principal of such indebtedness, and now on hand, shall be returned to the person paying the same. [1870, § 4, 15.]

REFUNDING BONDS.

3515 SEC. 11. [Outstanding bonds.] That any county, precinct, or city in the state of Nebraska which has heretofore voted and issued bond or bonds to aid in the construction of any railroad or other work of internal improvement, and which bond or bonds, or any part thereof, still remain and are a legal liability against such county, precinct, or city, and bearing interest at a greater rate than seven (7) per centum per annum, is hereby authorized to issue coupon bond or bonds, bearing interest at a rate not exceeding seven (7) per centum per annum, to be sub

SEC. 11. "An act to amend sections 11, 12, and 13, of chapter 45 of the compiled statutes of 1881, entitled 'Internal improvements,' and to repeal said sections." Passed and took effect June 1, 1885. In registration of bonds auditor and secretary of state have no right to review the action of their predecessor upon the original bonds. 14 Neb., 281. Cited 23 Neb., 803. This act was repealed. See chap. 18, secs. 141a-141h. 33 Neb., 823.