(c) The amount of capital stock of the corporation, association or company, and the amount of paid-up capital stock;

(d) The names and residences of the incorporators and its stockholders at the time when said statement is filed, and the name of its officers and date when their terms will expire;

(e) The name and address of the officers or representative within the state upon whom process can be served;

(f) A statement of the net premiums received from the sale of bonds, debentures or certificates of investment during the preceding six months; which statement shall remain a public record in said office.

Enacted March 18, 1905; stats. 1905, p.

157.

Duty of state treasurer-Duty of attorney general.

§ 635d. The treasurer of the State of California shall whenever such fact is brought to his knowledge notify the attorney general of the non-compliance of any person, company, corporation or association doing business as an investment company as herein before defined in the State of California with the provisions of this act, and the attorney general shall immediately after receiving such notification commence an action against such corporation, company or association in the name of the people of the State of California :

(a) To dissolve such corporation, company or association, if incorporated or organized under the laws of the State of California;

(b) To enjoin and restrain such person, corporation, company or association from doing business within the State of California, if an individual or if incorporated and organized at any place without this state.

Enacted March 18, 1905; stats. 1905, p. 158.

Withdrawal of deposit upon ceasing to do business.

§ 635e. Every corporation, company, association, co-partnership or individual that has made a deposit with the treasurer of the State of California in conformity with and under the provisions of this act, may, upon ceasing to do business within the state, maintain an action against the treasurer of the State of California to withdraw its deposit. It shall be the duty of the attorney general to defend such action, and if upon judgment being rendered therein it shall be found that said corporation, company or association has no liabilities within the state, the treasurer of the State of California shall return to

said corporation, company or association, or to its order, the cash or securities deposited by it under the provisions of this act, but all expenses of such suit shall in any event be paid by such corporation, company or association.

Enacted March 18, 1905; stats. 1905, p. 158.

Right to substitute securities for cash deposit.

§ 635f. Every corporation, company, association, co-partnership or individual depositing cash or securities with the treasurer of the State of California, in conformity with the provisions of this act, shall have the right to substitute securities in equal value for cash deposited, or other securities of like value for those on deposit, upon securing the approval of the treasurer of the State of California, to said exchange, and the treasurer is hereby authorized to permit such exchange of cash for securities, or securities for other securities, or securities for cash deposited by such corporation, company or association if in his judgment such securities are equal in value to the amount of cash provided by law to be deposited. Every corporation, company or association so making a deposit in compliance with or under the provisions of this act may collect and use any dividend, interest or profits arising on or from any securities deposited with the treasurer of the State of California, provided such security is not thereby depreciated in value.

Enacted March 18, 1905; stats. 1905, p. 159.

Amount of money to be loaned out of reserve fund-Collateral may be deposited with treasurer.

§ 635g. No corporation, company, association, co-partnership or individual doing business within this state as an investment company as herein before defined shall hereafter lend to holders of bonds, debentures or certificates of investment, out of its reserve fund, any amount greater than the proportionate share of such bond, debenture or certificate of investment in said reserve, and whenever such loan is made it shall be evidenced by the note of the borrower and secured by a deposit as collateral security, of the bond, debenture or certificate of investment on which the same is made. Any collateral so taken may be deposited with the treasurer of the State of California as a part of the deposit hereinbefore required and it may be computed as making so much of said required deposit as the proportionate share of such bonds, debentures or certificates of investment so

deposited as the entire reserve fund amounts to, not exceeding however the amount loaned.

Enacted March 18, 1905; stats. 1905, p. 159.

Reserve fund.

§ 635h. Every corporation, company, association, co-partnership or individual doing business within this state as an investment company as hereinbefore defined shall apportion not less than forty per cent of every partial payment or installment received from the sale of any bond or bonds, debenture or debentures, certificate or certificates of investment as a reserve fund; said reserve may be invested from time to time within the discretion of the board of directors or governing body of such corporation, company, association, co-partnership or individual. Enacted March 18, 1905; stats. 1905, p. 160.

Duty of attorney general.

§ 635i. The attorney general of the State of California shall, at any time that he may deem proper, or at any time upon the complaint of any holder of any bond or bonds, debenture or debentures, certificate or certificates of investment by whatever name they be known or designated, make any examination of the affairs of any corporation, company or association doing business within this state as an investment company as herein defined, and inquire into the investments of the reserve fund of such corporation, company or association and if upon such examination it shall be ascertained that any corporation, company or association so doing business has not assets to equal in value the total amount of reserve as in the last section required with interest thereon at three and a half per cent per annum compounded annually from the time of the sale of such bonds, debentures or certificates of investment, he shall commence an action in the name of the people of the State of California to restrain and enjoin said corporation from doing business and unless said reserve is made to equal the amount required before judgment is rendered in said action, judgment shall be rendered restraining and enjoining said corporation, company or association from doing business within this state, and he shall in his discretion institute proceedings against such company, corporation, association, co-partnership or individual to have it declared bankrupt.

Enacted March 18, 1905; stats. 1905, p. 160.

Violation of the provisions of this act; penalty.

§ 635j. Every officer, agent or representative of any corporation, company or association doing business within this state as an investment company as hereinbefore defined, who shall place or sell any bond or bonds, debenture or debentures, or certificate, or certificates of investment of any company that has not complied with the provisions of this act shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars, and not more than five hundred dollars, for each offense, or by imprisonment in the county jail for not less than thirty days, nor more than six months, or by both such fine and imprisonment.

Enacted March 18, 1905; stats. 1905, p. 160.

Not to do business until deposit is made.

§ 635k. No person, firm, corporation, company, co-partnership or individual shall issue, sell or dispose of any species of bond or bonds, debenture or debentures, certificate or certificates of investment on the partial payment or installment plan whereby the holder or holders of such bond or bonds, debenture or debentures, or certificate or certificates of investment are or may become entitled to claim and receive from such person, firm, company, association or co-partnership a return either at a definite or indefinite time in cash, or in merchandise, or in property, for the payment of installments so paid, and wherein or whereby the holder may be subject to a fine or penalty or forfeiture for non-payment of such partial payments or installments, without having complied with the provisions of this act and first made the deposit required by section two of this act.

Enacted March 18, 1905; stats. 1905, p. 161.

Application.

§ 6357. All provisions of this act providing for the making of said deposits, the exchange of securities and the penalties for selling said bonds, debentures or certificates shall apply to all persons, corporations, associations, firms or co-partnerships engaged in the business of investment companies as herein defined.

Enacted March 18, 1905; stats. 1905, p. 131.

§ 955. The officer whose duty it is to approve official bonds required of state, county, city and county, or township officers, must not accept or approve any such bond, unless each of the sureties severally justify before an officer authorized to administer oaths as follows:

4. A corporation such as is mentioned in section ten hundred and fifty-six of the Code of Civil Procedure of this state, may become and shall be accepted as sole and sufficient surety upon any bond or undertaking authorized or required by the provisions of this code or of any law of this state, subject to the provisions of said section, and those of section ten hundred and fifty-seven of the same code.

Amended March 16, 1889; stats. 1889, p. 220.

See §§ 1056 and 1057, Code Civ. Proc.; also "Bonds," statutes at large, Appendix.

Sureties for less than the penal sum.

§ 956. When the penal sum of any bond required to be given, amounts to more than one thousand dollars, the sureties may become severally liable for portions of not less than five hundred dollars thereof, making in the aggregate, at least two sureties for the whole penal sum. And if any such bond becomes forfeited an action may be brought thereon against all or any number of the obligors, and judgment entered against them, either jointly or severally, as they may be liable. The judgment must not be entered against a surety severally bound for a greater sum than that for which he is specially liable by the terms of the bond. Each surety is liable to contribution to his