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Secretary of state to report failure to attorney general

of dissolution.

pendency of such neglect or refusal, which penalty shall be for the use and benefit of the general fund of this State. The Secretary of State shall, during the last week of June of each year, report to the Attorney General in writing, the name and post-office address of each and every association which has failed to comply with the provisions of this section. And upon the receipt of such report, it shall be the duty of the Attorney General to institute proceedings in any court of competent jurisdiction, to collect said penalties, and all necessary expenses incurred by the Auditor General in such proceedings shall be audited by the Board of State Auditors, and paid from To give notice the general fund of the State. And in case an association organized or doing business under the provisions of this act shall be dissolved by process of law, or whose term of existence shall terminate by limitation, or whose property and franchises shall be sold at mortgage sale, or at private sale, it shall be the duty of the last partners of such association, within thirty days thereafter, to give written notice of such change to the Secretary of State and the county clerk of the county where the principal office of such association is located, signed by a majority of such partners, which said notice shall be recorded as amendments are required to be recorded. And in case of neglect to give such notice, they shall be subject to the same penalties provided in case of neglect to make annual reports, which said penalties shall be collected and applied in the same manner as in case of neglect in making annual reports. The neglect or refusal to file the reports required by this section to be filed, shall be deemed to be wilful when the report required is not filed within the time herein limited. Whenever any association has neglected or refused to make and file its report within twenty days after the time limited in this section, the Secretary of State shall cause notice of that fact to be given by mail to such association, and to each last-known officer and manager thereof, directed to their respective post-office addresses. The certificate of the Secretary of State or his deputy, of the mailing of such notices, shall be prima facie evidence in all courts and places of that fact, and that such notices were duly received by said association. All actions and suits based on the neglect or refusal of the officers or partners of such associations to make and file the reports required by this section, shall be commenced within two years next after such neglect or refusal has occurred, and not afterwards.

Penalty for neglect to make

What to be evidence of receipt of notice.

When and where to file articles.

SEC. 14. Every partnership association heretofore organ ized, is required to file a copy of its statement in writing or articles of association, verified by the oath of the secretary of the board of managers or certified by the register of deeds of the county in which said statement or articles were recorded, as a full and true copy of the same with its date of record together with all amendments to such statement or articles if any have been made and recorded, in the office of the Secretary of State of this State on or before the first day of Jan

failure.

uary, nineteen hundred and four. The officers and managers Penalty for of every such partnership association failing to file such copy of its statement in writing or articles within the time herein prescribed, shall each be subject to a penalty of twenty-five dollars, and in addition thereto the sum of five dollars for each and every secular day after January first, nineteen hundred and four. Such penalty shall be for the same use, and shall be collected in the same manner, by the Attorney General as prescribed in section thirteen of this act: Provided, That Proviso as to partnership associations already organized shall not be required to pay a franchise fee upon their recording articles of association under this act.

franchise fee.

amend

come opera

SEC. 15. Every association organized or existing under the How may provisions of this act may, at any annual meeting or any meet- articles. ing duly called for that purpose by a resolution adopted by a vote of two-thirds in value of interest of its capital stock, amend its articles of association in any manner not inconsistent with the provisions of this act, but such amendment When to beshall not become operative until a copy of such resolutions, tive. signed by the chairman and secretary of the board of managers of such association, shall have been recorded as is provided herein for the recording of the original articles of association when such amendments shall have the same force and effect as though said amendments had been included in the original articles, and a record or copy of the record of such resolution certified as provided in section one for the certification of the original articles of association shall be received in all courts of this State as prima facie evidence of the things therein stated.

reorganize.

vote of mem

SEC. 16. Every partnership association, now existing, or- How may ganized under act number one hundred ninety-one of the public acts of eighteen hundred seventy-seven, as amended, being chapter one hundred and sixty of the Compiled Laws of eighteen hundred and ninety-seven, may at any time within two years from and after the first day of July in the year nineteen hundred and three reorganize under any act providing for the incorporation of companies for a purpose or purposes for which such association was organized: Provided, Such reor Proviso as to ganization is authorized and directed by a vote of two-thirds bers. in interest of the members holding the capital stock of any such partnership association, at a regular meeting of the members of such association, or at a meeting called expressly for that purpose in accordance with the by-laws or statement in writing by which it was organized. The resolution or other Resolution to action by which said vote is expressed shall be certified in du be recorded. plicate by the executive officers of the association so reorganiz ing and attached to its articles of incorporation when the same are recorded; and in addition to said resolution or other action, the said officers shall certify the name of the association and the date upon which the same was organized under the statute now known as chapter one hundred sixty of the Compiled Laws of eighteen hundred ninety-seven and

Proviso as to term of exist

ence.

every such association so organized before this act becomes
operative may reorganize as herein provided without pay-
ing the franchise fee provided in act number one hun-
dred eighty-two of the public acts of eighteen hundred ninety-
one, being section eight thousand five hundred seventy-four
of the Compiled Laws of eighteen hundred ninety-seven: Pro-
vided, That the period for the existence of the corporation so
organized shall be coincident with the period of existence
remaining to the partnership association at the date of its
reorganization as above provided.

This act is ordered to take immediate effect.
Approved June 18, 1903.

Section amended.

Judges not to sit in certain

cases.

[No. 245.]

AN ACT to amend section eighteen of chapter ninety-six of the Revised Statutes of eighteen hundred forty-six, entitled "General provisions concerning courts and the powers and duties of certain judicial officers," being section one thousand one hundred nine of the Compiled Laws of eighteen hundred ninety-seven.

The People of the State of Michigan enact:

SECTION 1. Section eighteen of chapter ninety-six of the Revised Statutes of eighteen hundred forty-six, entitled “General provisions concerning courts and the powers and duties of certain judicial officers," being section one thousand one hundred nine of the Compiled Laws of eighteen hundred ninety-seven, is hereby amended so as to read as follows:

(1109) SEC. 18. No judge of any court shall sit as such in any cause in which he is a party, or in which he is interested, or in which he would be excluded from being a juror by reason of consanguinity or affinity to either of the parties; nor can any judge decide, or take part in the decision of any question which shall have been argued in the court, when he was not present and sitting therein as a judge. Nor, in judicial circuits having two or more circuit judges, shall any judge sit as a court in such circuit in any cause in which he is related within the third degree of consanguinity to either of the attorneys, counselors or solicitors of either party to said cause. Approved June 18, 1903.

[No. 246.]

AN ACT to amend act number one hundred eighty-seven of the public acts of eighteen hundred eighty-seven, entitled "An act to revise the laws providing for the incorporation of cooperative and mutual benefit associations and to define the powers and duties and regulate the transaction of the business of all such corporations and associations doing business within this State," approved June seventeenth, eighteen hundred eighty-seven, and the acts amendatory thereof, by adding thereto seven new sections to stand as sections thirty-four, thirty-five, thirty-six, thirty-seven, thirty-eight, thirty-nine and forty, and to repeal all acts and parts of acts inconsistent with the provisions of this act.

The People of the State of Michigan enact:

SECTION 1. Act number one hundred eighty-seven of the Act amended. public acts of eighteen hundred eighty-seven, entitled "An act to revise the laws providing for the incorporation of cooperative and mutual benefit associations and to define the powers and duties and regulate the transactions of business of all such corporations and associations doing business within this State," approved June seventeenth, eighteen hundred eighty-seven, and the acts amendatory thereof, is hereby amended by adding thereto seven new sections to be known as sections thirty-four, thirty-five, thirty-six, thirty-seven, thirty-eight, thirty-nine and forty which shall read as follows: SEC. 34. Every such corporation, association or society To maintain shall accumulate and maintain a reserve or emergency fund fund. of at least five thousand dollars which said fund shall be deposited with the State Treasurer; such fund, if not already accumulated shall be accumulated by every such existing corporation, association or society, and by every corporation, association or society hereafter organized under this act, by setting aside ten per cent of its gross premiums, receipts or assessments, until the said five thousand dollars has been accumulated.

emergency

or certain

SEC. 35. Such funds shall be in cash or in the same class To be in cash of securities required by law for the investment of funds by securities. insurance corporations; and nothing herein contained shall prevent the creation and accumulation of other funds in excess of the amounts herein required to provide for the purpose of such corporation.

transfer or

SEC. 36. No such corporation, association or society, or- When may ganized under the laws of this State, shall transfer its risks re-insure risks. or reinsure them in any other corporation unless the contract of transfer or reinsurance is first submitted to and approved by a two-thirds vote of a meeting of the policy or certificate holders of such corporation called to consider the same, of which meeting a written or printed notice shall be mailed to each policy or certificate holder at least thirty days before the date fixed for such meeting.

Vote to act as dissolution.

Not to transfer to certain companies.

Proceedings when company insolyent.

Act not to affect certain societies.

Repealing clause.

SEC. 37. Such vote or approval of a contract of reinsurance or transfer shall act as a dissolution of the corporation; and all liability upon its certificates shall cease upon the expiration of five days following such vote, but its officers may thereafter perform any act necessary to close its affairs.

SEC. 38. No such corporation, association or society, organized under the laws of this State, shall transfer its risks or assets, or any part thereof, to, or reinsure its risks or any part thereof in, any insurance corporation or association of any other State or country which is not at the time of such transfer or reinsurance authorized to do business in this State, under the laws thereof.

SEC. 39. In event any such company be adjudged insolvent, the receiver may apply the amount remaining in the reserve fund to the payment of all outstanding claims or other legal indebtedness, and if thereafter there remain a balance, the same shall be paid to the Commissioner of Insurance and by him turned over to the State Treasurer for the use and benefit of the State.

SEC. 40. Nothing in this act shall be construed to affect the grand or subordinate lodges of the Independent Order of Odd Fellows, Free and Accepted Masons, Ancient Order of United Workmen, Knights of Pythias, Modern Woodmen of America, Knights of Maccabees or other similarly conducted secret societies, maintaining grand or subordinate lodges, with ritualistic form of work and representative form of government, which may be now or hereafter formed for the sole benefit of members and their beneficiaries, and not for the profit from the business of insurance.

SEC. 2. All acts and parts of acts inconsistent with the provisions of this act are hereby repealed. Approved June 18, 1903.

Section amended.

[No. 247.]

AN ACT to amend section one, of act number one hundred twenty-seven of the public acts of eighteen hundred sixtyone, entitled "An act making the actions of trespass and trespass on the case transitory in certain cases," approved March twelfth, eighteen hundred sixty-one, the same being section ten thousand two hundred seventeen of the Compiled Laws of eighteen hundred ninety-seven.

The People of the State of Michigan enact:

SECTION 1. Section one of act number one hundred twentyseven of the public acts of eighteen hundred sixty-one, entitled "An act making the actions of trespass and trespass on the case transitory in certain cases," approved March twelfth,

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