Duties of

corpora

tion.

by Com

city and county, or town the right to regulate the rates for water, nor must any exclusive right be granted. No contract or grant must be made for a term exceeding fifty years.

am

NOTE.-Stats. 1852, p. 171, Sec. 3.

549. All corporations formed to supply water to cities or towns must furnish pure fresh water to the inhabitants thereof for family uses, so long as the supply permits, at reasonable rates and without distinction of persons, upon proper demand therefor; and must furnish water, to the extent of their means, in case of Rates fixed fire or other great necessity, free of charge. The rates missioners. to be charged for water must be determined by a Board of Commissioners, to be selected as follows: Two by the city and county, or city or town authorities, and two by the water company; and in case they cannot agree to the valuation they must choose a fifth member of the Board; if the four Commissioners cannot agree upon a fifth, then the County Judge of the county must appoint such fifth person. The decision of the majority of the Board determines the rates to be charged for water for one year, and until new rates are established. The Board of Supervisors, or the proper city or town authorities, may prescribe other proper rules relating to the delivery of water, not inconsistent with the laws of this State.

Right to

use streets ways. alleys,

NOTE.-Stats. 1858, p. 219, Sec. 4.

550. Any corporation created under the provisions of this Part, for the purposes named in this Title, suband roads. ject to the reasonable direction of the Board of Supervisors, or city or town authorities, as to the mode and manner of using such right of way, may use so much of the streets, ways, and alleys in any town, city, or city and county, or any public road therein, as may be necessary for laying pipes for conducting water into

any such town, city, or city and county, or through or into any part thereof.

NOTE.-Stats. 1868, p. 220, Sec. 5.

551. Every water or canal corporation must construct and keep in good repair, at all times, for public use, across their canal, flume, or water pipe, all of the bridges that the Board of Supervisors of the county in which such canal is situated may require, the bridges being on the lines of public highways and necessary for public uses in connection with such highways; and all waterworks must be so laid and constructed as not to obstruct public highways.

NOTE.-Stats. 1862, p. 541, Sec. 4.

To build

and keep

bridges in

repair.

TITLE IX.

HOMESTEAD CORPORATIONS.

SECTION 557. Time of corporate existence.

558. By-laws must specify time for and amount of payment
of installments, and penalty for failure to pay. By-
laws to be furnished to any member on demand.
559. Advertisement and sale of delinquent and forfeited
shares.

560. May borrow and loan funds-how, and for what time.
561. Minor children, wards, and married women may own

stock.

562. Forfeiture for speculating in or owning lands exceeding
two hundred thousand dollars.

563. When corporation is terminated, and how.

564. Payment of premiums.

565. Annual report to be published.

566. Publication in certain cases.

corporate

557. Corporations organized for the purpose of ac- Time of quiring lands in large tracts, paying off encumbrances existence. thereon, improving and subdividing them into homestead lots or parcels, and distributing them among the

shareholders, and for the accumulation of a fund for such purposes, are known as homestead corporations, and must not have a corporate existence for a longer period than ten years.

NOTE.-Stats. 1861, p. 567, Secs. 1, 3; 1867-8, p. 539, Sec. 1.

558. Such corporations must specify in their bylaws the times when the installments of the capital stock are payable, the amount thereof, and the fines, penalties, or forfeitures incurred in case of default. A printed copy of the articles of incorporation and bylaws must be furnished to any shareholder on demand.

559. Whenever any shares of stock are declared forfeited by resolution of the Board of Directors, the Directors may advertise the same for sale, giving the name of the subscriber and the number of shares, by notice of not less than three weeks, published at least once a week in a newspaper of general circulation in the city, town, or county where the principal place of business of such corporation is located. Such sale must be made at auction, under the direction of the Secretary of the company. The corporation may be a bidder, and the shares must be disposed of to the highest bidder for cash. No defect, informality, or irregularity in the proceedings respecting the sale invalidates it, if notice is given as herein provided. After the sale is made the Secretary must, on receipt of the purchase money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all installments then due, and all expenses and charges of sale, must hold the residue subject to the order of the delinquent subscriber.

NOTE.-Stats. 1863-4, p. 492; 1867-8, p. 540, Sec. 1. 560. Homestead corporations may borrow money for the purposes of the corporation, not exceeding at any one time one fourth of the aggregate amount of

borrow and

How, and

For for what

time.

the shares or parts of shares actually paid in, and the May income thereof; no greater rate of interest must be loan funds. paid therefor than twelve per cent per annum. the purpose of completing the purchase of lands intended to be divided and distributed, they may borrow on the security of their shares on the land thus purchased, or that owned by the corporation at the time of procuring the loan, any sum of money which, together with the interest contracted to become due thereon, will not exceed ninety per cent of the unpaid amount subscribed by the shareholders; but no loan must be made to the corporation for a term extending beyond that of its existence.

NOTE.-Stats. 1870, p. 474, Sec. 1; 1861, p. 567, Sec. 5.

children,

married

are women

may own stock.

561. Such shares of stock in homestead corpora- Minor tions as may be acquired by children, the cost of wards, and which, and the deposits and assessments on which paid from the personal earnings of the children, or with gifts from persons other than their male parents, may be taken and held for them by their parents or guardians. Married women may hold such shares as they acquire with their personal earnings, or those of their children, voluntarily bestowed therefor, or from property bequeathed or given to them by persons other than their husbands.

NOTE.-Stats. 1861, p. 567, Sec. 6.

for specu

owning

two

thousand

562. Homestead corporations must not purchase Forfeiture and sell, or otherwise acquire and dispose of real prop- lating in or erty, or any interest therein, or any personal property, landing for the sole purpose of speculation or profit. Nor must hundred any such corporation at any one time own or hold, in dollars. trust or otherwise, for its purposes, real property, or any interest therein, which in the aggregate exceeds in cash value the sum of two hundred thousand dollars. For any violation of the provisions of this section, corporations forfeit their corporate rights and powers. On

When corporation is terminated, and how.

Payment of premiums.

the application of any citizen to a Court of competent jurisdiction such forfeiture may be adjudged, and the judgment carries with it costs of the proceedings.

563. Except for the purpose of winding up and settling its affairs, every homestead corporation must terminate at the expiration of the time fixed for its existence in the articles of incorporation, or when dissolved as provided in this Part. No dividend of funds must be made on termination of its corporate existence, until its debts and liabilities are paid; and upon the final settlement of the affairs of the corporation, or upon the termination of its corporate existence, the Directors, in such manner as they may determine, must divide its property among its shareholders in proportion to their respective interests, or, upon the application of a majority in interest of the stockholders, must sell and dispose of any or all of the real estate of the corporation upon such terms as may be most conducive to the interests of all the stockholders, and must convey the same to the purchaser, and distribute the proceeds among the shareholders, or may at any time, when best for the interests of all the shareholders, cause the lands of the corporation to be subdivided into lots and distributed, by sale for premiums, at auction or otherwise, among the shareholders.

NOTE.-Stats. 1861, p. 567, Sec. 7; 1870, p. 474, Sec. 1.

564. Such premiums on lots may be made payable at the time they are bid off, and, if not so paid on any lot of land, the Directors may immediately offer the same for sale again. If made payable at a future day, and any shareholder fails to pay his bid on the day the same is made due and payable, the Directors may advertise and sell the shares of stock representing the lots of land on which the premiums remain unpaid, in the manner provided in the by-laws for the sale of