Further proviso. how con strued. hereinafter provided: Provided further, That the net indebtedness of said city or county shall not exceed five per cent of the assessed valuation of all the real estate of said city or county, said valuation to be on the basis of the last preceding equalization of the State board for counties, and the proporCertain term, tionate amount thereof. The term net indebtedness in this section shall be construed to denote the indebtedness of any city or county, omitting debt created for supplying the inhabitants with water, and deducting the amount of sinking funds available for the payment of such indebtedness; and also, Provided, That such first mortgage bonds of corporations organized under the laws of the State of Michigan shall not be accepted as surety unless the corporation issuing such bonds shall have paid interest on said bonds and dividends on its capital stock for three successive years immediately preceding When to make the deposit of such security; and in case any of said securities Proviso. additional deposit. Powers of insurance shall depreciate below par, the State Treasurer is hereby authorized and directed to cause the corporation which has deposited them to make such depreciation good by additional deposit of such securities as are allowed by law and to prohibit any corporation from transacting any insurance business within this State until the same shall have been deposited. SEC. 33. The Commissioner of Insurance may, upon written application of the company, vary the standards of mortality commissioner. and interest required by section eighteen of this act, value policies in groups, use approximations and accept the valuation of the department of insurance of any other State in place of the valuation required by this act; nothing in this paragraph shall be construed as permitting the use of standards of mortality and interest or methods producing reserves lower than those based upon the standard prescribed by said section eighteen; said policies shall be valued in accordance with the terms of the policy contracts. Approved May 4, 1903. [No. 73.] AN ACT to amend section twenty-five of act number two hundred fifty-seven of the session laws of one thousand eight hundred ninety-nine, entitled "An act to amend section twenty-five of act number one hundred thirty-seven of the laws of one thousand eight hundred forty-nine, as amended, relative to authorizing proceedings against garnishees, and for other purposes, as amended, being section eight thousand fifty-five of Howell's Annotated Statutes, as amended by act number one hundred seventy-eight of the session laws of one thousand eight hundred ninety-one, the same being compiler's section one thousand fourteen of the Compiled Laws of eighteen hundred ninety-seven, and to add two new sections thereto, to stand as sections twenty-five a and twenty-five b. The People of the State of Michigan enact: amended. SECTION 1. Section twenty-five of act number two hundred Section fifty-seven of the session laws of one thousand eight hundred ninety-nine, entitled "An act to amend section twenty-five of act number one hundred thirty-seven of the laws of one thousand eight hundred forty-nine, as amended, relative to authorizing proceedings against garnishees and for other purposes, as amended, being section eight thousand fifty-five of Howell's Annotated Statutes, as amended by act number one hundred seventy-eight of the session laws of one thousand eight hundred ninety-one, the same being compiler's section one thousand fourteen of the Compiled Laws of eighteen hundred ninety-seven, and to add two new sections thereto to stand as sections twenty-five a and twenty-five b," is hereby amended so as to read as follows: liable as gar summons. SEC. 25. All corporations of whatsoever nature, whether Corporations foreign, domestic, municipal or otherwise, except counties, nishees. may be proceeded against as garnishees in the same manner and with like effect as individuals under the provisions of this act, and the rules of law regulating proceedings against corporations, and the summons against the garnishee in such case Service of may be served on the president, cashier, secretary, treasurer, comptroller or other principal officer of such corporation, and it shall be the duty of such officer so served, or the proper officer of such corporation having knowledge of the facts, to appear before the justice at the return day of the summons and answer thereto, or to answer at his option in writing, verified by his oath, before some person authorized to administer oaths, and transmit the same, by mail or otherwise, to the justice issuing said summons on or before the return · day thereof, which shall be deemed a sufficient compliance with such summons; and unless he shall so appear or so an- In case of fail swer, such corporation shall be held to be indebted to the de ure to answer Appeals. municipal corporations. Further proviso. fendant in the original suit to the amount of any judgment that may be made against such defendant in said original suit, unless within three days after the return day of such summons such corporation shall, by such officer show a sufficient reason to the satisfaction of the justice for non-appearing to answer such summons, and the justice shall thereupon, on the third secular day, render judgment against such corporation, as against other garnishees for the amount of such debt, and with like effect; but on such cause shown, such officer may be examined as other garnishees, and with like effect, as against the corporation he represents. Such corporation or the plaintiff in such suit may appeal from such judgment rendered under this section to the circuit court of the proper county, in the same manner as appeals may be taken from any other judg ment of a justice of the peace, where the liability of such corProviso as to poration may be fully inquired into: Provided, That when a municipal corporation is proceeded against, as provided for in this act, judgment shall have been obtained in a court of competent jurisdiction by the plaintiff against the defendant before garnishment proceedings shall be valid against such municipal corporation: Provided further, That it shall be necessary for the plaintiff in the action to cause to be served a notice in writing upon the clerk, treasurer, or comptroller of such municipal corporation, signed by the justice of the peace before whom an action of garnishment has been commenced, stating that judgment has been rendered and is on file in favor of the plaintiff and against the defendant; that the plaintiff has filed an affidavit to that effect, and that he believes or has good reason to believe that such municipal corporation is indebted to the defendant, and has money, property or effects in its hands belonging to such defendant, and that such municipal corporation shall hold such money, property or effects until the final disposition of the action or garnishment then pending before such justice, unless sooner released by the justice. Such cirporation receiving the notice herein provided of defendant. shall hold any money, property or effects in its hands belonging to the defendant named in such notice until the final disposition of the action against said municipal corporation, unless sooner released by order of the justice. Such money may be released by the defendant giving a bond in double the amount claimed to be due by the plaintff in the action then pending, conditioned that if the plaintiff recover, the bondsmen will pay into court for the use of said plantiff the amount of such judgment and costs, such bond to be approved by the ment, where justice. The plaintiff in such original action against the defendant shall cause to be filed with the treasurer of such municipal corporation, at the time of service of the notice aforesaid, a certified copy of the judgment, whereupon such municipal corporation shall be liable to the judgment creditor for the amount of such judgment. The filing of such judgment shall constitute a lien upon any money, property or effects When may hold property Copy of judg filed. To constitute lien. viso as to that such municipal corporation may have in its hands belonging to the defendant in such action, and such municipal corporation shall be required to make disclosure the same as in garnishee proceedings, and such further action shall be had under the law now provided for in garnishee proceedings, after the service of a summons, and any reference hereafter made relative to garnishees shall include and be construed to mean municipal corporations, after a filing of a certified copy of the judgment as herein before provided: Provided further, Further proThat when such corporation shall wish to appeal, in cases where appeal. they have not answered as garnishees, they shall, in addition to the other requirements of law, file with the justice a full and complete answer, in writing, as such garnishees, verified by the oath of one of the officers having knowledge of the facts which said officer shall also answer under oath all questions put to him by such justice relating to the matter of such suit, and whereupon the said justice shall, within the time required for making such return of such appeal, at the option of the plaintiff, either make such return or set aside the judgment rendered against such corporation, by entry thereon upon his docket, and across the face of such judgment, in which event said corporation, if they have not already paid all costs in such suit, shall be liable for the same: Provided further, That viso as to in the Upper Peninsula garnishee process under this act upper penmay be served on the clerk of all companies organized under the general mining laws of the State of Michigan, as well as on other officers thereof mentioned in this section. Approved May 4, 1903. Further pro insula. [No. 74.] AN ACT to amend section ten of act number seventy-seven of the public acts of eighteen hundred sixty-nine, entitled "An act in relation to life insurance companies transacting business in this State," as amended by act number one hundred forty-eight, public acts of eighteen hundred ninety-one. The People of the State of Michigan enact: SECTION 1. Section ten of act number seventy-seven of the Section public acts of eighteen hundred sixty-nine, entitled "An act in amended. relation to life insurance companies transacting business in this State," as amended by act number one hundred forty-eight of the public acts of eighteen hundred ninety-one, is hereby amended so as to read as follows: make deposit. SEC. 10. No company organized or existing under any au- Companies to thority whatsoever other than the statutes of this State shall be at liberty to transact the business of life insurance within this State until such company, in addition to the requirements Unlawful to solicit before making. now made by law, shall have deposited with the State Treasurer at least one hundred thousand dollars of the like securities required to be deposited by companies formed under this act, which shall be held as security for any losses suffered by policy holders of said company, upon the same terms and conditions, and with the same authority of sale or collection to satisfy judgments, as are set forth in the last preceding section; and any person who shall solicit and obtain within this State applications for insurance upon lives or issue policies of insurance upon lives, or contracts, guarantees or pledges for the payment of annuities, or endowments to the families or representatives of policy or certificate holders, in any company not organized under the statutes of this State, before such securities are deposited, shall be liable to a penalty of one hundred dollars for every application obtained, policy issued, or contract, guaranty or pledge made, to be sued for and recovered in the name of the people by the Attorney General or prosecuting attorney of the proper county either by action for debt or criminal prosecution; and any person who shall have paid to any agent of such company any premium moneys before such securities are deposited shall be entitled to recover the same back from such agent, or, at his option, from the company, by action of assumpsit to be brought at any time within six years after such payProviso as to ment: Provided, however, That when, by the statutes of any having deposit other State, life insurance companies organized or doing busiin otherstates. ness therein are required to keep on deposit with the State companies Treasurer, or other State officer, securities for the protection of policy holders generally, and any such company shall furnish to the Commissioner of Insurance of this State the certificate of the proper officer of such State showing the amount and character of the securities so deposited with him, and it shall appear therefrom that the said securities are equal in market value and availability to one hundred thousand dollars, and that a portion equal in market value of fifty thousand dollars is of stocks or bonds of the United States, or of this State, or of any city or county in this State authorized by act of Legislature to issue the same, or of State, county or city bonds, or of stocks of the State where such company or association is organized, or of bonds or mortgages on improved real estate worth double the sum loaned thereon, and it shall further appear from the laws of such State that the securities so deposited are subject to be made available to satisfy judgments of policy holders, in any manner corresponding to that provided for the care of securities deposited under this act, the Commissioner of Insurance shall thereupon be authorized to issue to such company an authority or license to transact the business or life insurance within this State until the thirty-first day of January of the succeeding year without any such deposit of securities with the State Treasurer of this State as is above When annual provided. And upon compliance with the provisions of this act and the laws of the State of Michigan, the Commissioner of Insurance shall be authorized to issue a license or authority to transact said business, annually thereafter for the period of license to issue. |