rowed and the security therefor. All other claims against the company. Seventh. The income of the company during the previous year, specifying the amount received for premiums exclusive of premium notes; the amount of premium notes received; the amount received for interest; the amount received for assessment calls on stock or notes, or premium notes. The amount received from all other sources. Eighth. The expenditures during the preceding year, specifying the amount of losses paid during said term, stating how much of the same accrued prior, and how much subsequent to the date of the preceding statement, and the amount at which losses were estimated in such preceding statement. The amount paid for dividends. The amount paid commissions, salaries, expenses, and other charges of agents, clerks, and other employees. The amount paid for salaries, fees, and other charges of officers and directors. The amount paid for local, state, national internal revenue, and other taxes and duties. The amount paid for all other expenses, expenditures, including printing, stationery, rents, furniture, etc. Ninth. The largest amount insured in any one risk. Tenth. The amount of risks written during the year then ending. Eleventh. The amount of risks in force having less than one year to run. Twelfth. The amount of risks in force having more than one, and not over three years to run. Thirteenth. The amount of risks having more than three years to run. Fourteenth. The following questions must be answered, viz: Are dividends declared on premiums received for risks not terminated? The auditor of state shall withhold the certificate of authority from any such company neglecting or failing to comply with the provisions of this section.

SEC. 21. [Information to auditor.]-The auditor of state is hereby authorized and empowered to address any inquiries to any insurance company in relation to its doings and condition, or any other matter connected with its transactions which he may deem necessary for the public good, or for a proper discharge of his duties; and it shall be the duty of any company so addressed, to promptly reply in writing thereto.

SEC. 22. [Statement-Notes.]-The statement of any company, the capital of which is composed in whole or in part of notes, shall, in addition to the foregoing, exhibit the amount of notes originally forming the capital, and also what proportion of said notes are still held by such company and considered capital.

SEC. 23. [Foreign companies-Capital Qualifications.]—It shall not be lawful for any insurance company, association, or partnership, organized or associated for any of the purposes specified in this act, incorporated by, or organized under the laws of any other state of the United States, or any foreign | government, directly or indirectly, to take risks or transact any business of insurance in this state, unless possessed of two hundred thousand dollars of actual paid up capital, exclusive of any assets of any such company as shall be deposited in any other states or territories for the special benefit or security of the insured therein. Any such company desiring to transact any such business as aforesaid, by an agent or agents in this state, shall appoint one attorney in each county in which agencies are established, resident at the county seat, and shall file with the auditor of state a written instrument, duly signed and sealed, authorizing such attorney of such company to acknowledge service of process for and in behalf of such company in this state, consenting that such service of process, mesne or final upon such attorney, shall be taken and held as valid as if served upon the company [according] to the laws of this or any other state, and waiving all claim or right of error by reason of such acknowledgment or service, and also a certified copy of their charter or deed of settlement, together with a statement under the oath of the president or vice-president, or other chief officer, and the secretary of the company for which they may act, stating the name of the company and the place where located, the amount of its capital, with a detailed statement of the facts and items as required from companies organized under the laws of this state, as per section twenty hereof. Such statement shall also show to the full satisfaction of the auditor of state, that said company has deposited, in some one

of the United States or territories, a sum not less than twenty-five thousand dollars, for the special benefit or security of the insured therein, and shall file also a copy of the last annual report, if any, made under any law of the state by which such company was incorporated; and no agent shall be allowed to transact business for any company whose capital is impaired by the liabilities, as stated in section twenty of this act, to the extent of twenty per cent. thereof, while such deficiency shall continue."

SEC. 24. [Same-Auditor's certificate.]-It shall not be lawful for any agent or agents, or individual, to act for any insurance company or companies referred to in this act, directly or indirectly, in taking risks or transacting business of insurance in this state, without procuring from the auditor of state a certificate of authority, stating that such company has complied with all the requisitions of this act.

SEC. 25. [Same-Annual statements.]-The statements and evidences of investments required of foreign companies as above, shall be renewed annually in such manner and form as required by this act and as said auditor may direct, with any additional statement of the amount of the losses incurred or premiums received in this state during the preceding period, so long as such agency continues; and the said auditor, on being satisfied that the capital, securities, and investments remain secure, as hereinbefore provided, shall furnish a renewal of his certificate as aforesaid.

SEC. 26. [Violation of act- Penalty.]-Every insurance company organized under the laws of, or doing business in this state, shall conform to all the provisions of this act, applicable thereto, on or before the first day of April, 1873; and when necessary, any existing company shall change its charter and by-laws so as to conform thereto, by a vote of a majority of its board of directors, and any president, secretary or other officer of any company organized under the laws of Nebraska, or any officer or person doing business or attempting to do business in this state for any insurance company organized without this state, failing to comply with any of the requirements of this act, or violating any of the provisions thereof, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be fined in a sum not exceeding one thousand dollars and be imprisoned in the county jail for a period of not less than thirty days, nor more than six months. SEC. 27. [Agent's advertisement.]-Every agent of any insurance company shall, in all advertisements of such agency, publish the location of the company, giving the name of the city, town, or village in which the company is located and the state or government, under the laws of which it is organized. The term agent or agents used in the foregoing sections shall include an acknowledged agent or surveyor, or any other person or persons, who shall in any manner directly or indirectly transact or aid in transacting the insurance business of any insurance company not incorporated by the laws of this state. The provisions of the foregoing sections relative to foreign companies, shall apply to all such companies, partnerships, associations, or individuals, whether incorporated or not; Provided, That none of the provisions of this clause shall be deemed operative in regard to insurance upon goods or merchandise in transit.

SEC. 28. [Examination by auditor-Settlement.]-It shall be the duty of the auditor of the state, whenever he shall deem it expedient so to do, in his judgment, to appoint one or more persons, not officers, agents or stockholders of any insurance company doing business in this state, to examine into the affairs and condition of any insurance company incorporated or doing business in this state, or to make such examination himself; and it shall be the duty of the officers, or agents of such company or companies, to cause their books to be opened for the inspection of the auditor or the person or persons so appointed, and otherwise facilitate such examination so far as may be in their power so to do, and for the purpose of arriving at the truth in such cases, the auditor, or person or per sons so appointed by him, shall have power to examine, under oath, the officers or agents of any company or others, if necessary, relative to the business and condi

tion of said company; and whenever the auditor shall deem it best for the interest of the public so to do, he shall publish the result of such investigation in one or more papers of this state; and whenever it shall appear to the said auditor from such examination, that the assets and funds of any company incorporated in this state, are reduced or impaired by the liabilities of said company, as described under the head of liabilities in the statement required by this act, more than twenty per cent. below the paid up capital stock required by this act, may direct the officers thereof to require the stock holders to pay in the amount of such deficiency within such a period as he may designate in such requisition; or he shall communicate the fact to the attorney of state, whose duty it shall then become to apply to the district court, or, if in vacation, to one of the judges thereof for an order requiring said company to show cause why their business should not be closed; and the court or judge, as the case may be, shall thereupon proceed to hear the allegations and proofs of the respective parties; and in case it shall appear to the satisfaction of said court or judge, that the assets and funds of said company are not sufficient as aforesaid, or that the interest of the public require it, the said court or judge shall decree a dissolution of said company, and a distribution of its effects; the said court or judge shall have the power to refer the application of the attorney of state to a referee, to inquire into and report upon the facts stated herein.

SEC. 29. [Same-Deficiency.]-Any company receiving the aforesaid requisition from the said auditor, shall forthwith call upon its stockholders for such amounts as will make its paid up capital equal to the amount filed by this act, or the charter of said company; and in case any stockholder shall refuse or neglect to pay the amount so called for, after notice personally given, or by advertisement, in such time and manner as said auditor shall approve, it shall be lawful for the said company to require the return of the original certificate of stock held by such stockholder, and in lieu thereof, to issue new certificates for such number of shares as such stockholders may be entitled to, in the proportion that the ascertained value of the funds of the said company may be found to bear to the original capital of the said company, the value of such shares for which new certifi cate shall be issued to be ascertained under the direction of the said auditor, the company paying for the fractional parts of shares. And it shall be lawful for the directors of such company to create new stock, and dispose of the same, and to issue new certificates therefor, to an amount sufficient to make up the original capital of the company; and in the event of any additional losses, accruing upon new risks taken upon expiration of the period limited by the auditor, in the aforesaid requisition for the filling up of the deficiency in the capital of such company, and before said deficency shall have been made up, the directors shall be individually liable to the extent thereof.

SEC. 30. [Same-Mutual companies.]-If, upon such examination, it shall appear to the said auditor that the assets of any company chartered upon the plan of mutual insurance under this act, are insufficient to justify the continuance of such company in business, it shall be his duty to proceed in relation to such company, in the same manner as is herein required in regard to jointstock companies; and the trustees or directors of such company are hereby made personally liable for any losses which may be sustained upon risks taken after the expiration of the period limited by the said auditor for filling up the deficiency in the capital, and before such deficiency shall have been made up; any transfer of the stock of any company organized under this act, made during the pending of any investigation required above, shall not release the party making the transfer from his liability for losses which may have accrued previous to such transfer

SEC. 31. [Same-Certificate revoked.]-The auditor of state shall be authorized to examine into the condition and affairs of any insurance company, as provided for in this act, doing business in this state, not organized under the laws of this state, or cause such examination to be made by some person or persons appointed by him, having no interest in any insurance company; and when

1

ever it shall appear to the satisfaction of said auditor that the affairs of any such company are in an unsound condition, he shall revoke the certificate granted in behalf of such company, and shall cause the notification thereof to be published in some newspaper in general circulation, published at the state capital; and the agent or agents of such company are, after such notice, requested to discontinue the issuing of any new policies, or the renewal of any previously issued.

SEC. 32. [Same-Fees.]-There shall be paid by every company, association, person or persons, agent or agents, to whom this act shall apply, the following fees: For examination and filing of the first application of any company, and issuing of the certificate of license thereon, fifty dollars, which shall go to the auditor; for filing each annual statement herein required, twenty dollars; for each certificate of authority, two dollars; for every copy of paper filed as herein provided the sum of ten cents per folio, and fifty cents for certifying the same and affixing the seal of office thereto; all of which fees shall be paid to the officer required to perform the duties. [12 Neb. 176.]

SEC. 33. [Security deposits.]-Whenever the existing or future laws of any other state of the United States shall require of insurance companies incorporated by or organized under the laws of this state, having agencies in such other state, or of the agents thereof, any deposit of securities in such state, for the protection of policy-holders, or otherwise, or any payment for taxes, fines, penalties, certificates of authority, license fees, or otherwise, greater than the amount required for such purposes, from similar companies of other states, by the then existing laws of this state, then, and in every such case, all companies of states establishing, or having therefore established an agency or agencies in this state, shall be and are hereby required to make the same deposit, for a like purpose, with the auditor of this state, and to pay said auditor, for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon or required by the laws of such state, of the companies of this state, or the agents thereof.

SEC. 34. [Certificate published.]-It shall be the duty of every insurance company of the kind provided in this act, doing business in this state, organized under the laws of this state or any other state or country, to publish once, annually, in two newspapers of general circulation, one of which newspapers shall be published at the capital of the state, (and in case of companies organized in the state of Nebraska, one of which shall be published in the county where the principal office is located), a certificate from the auditor of state that such company has in all respects complied with the laws of this state relating to insurance.

SEC. 35. [Examination-Expenses.]-The necessary expenditures of any examination made or ordered to be made by the auditor of the state, under this act, shall be certified to by him and paid on his requisition by the company which is the subject of such examination; Provided, That the auditor of state shall have the power, upon receiving information that the capital of any company is impaired, to call upon any such company for a full statement of its condition, and in event of refusal or neglect of any company to answer the requisition of the auditor as aforesaid, he shall proceed to make the examination required by this act, and to take the necessary action to terminate the business of said company in this state. SEC. 36. [Examination-Blanks.]-lt shall be the duty of the auditor of state to cause to be prepared and furnished to each of the companies organized under the laws of this state, and to attorneys or agents of companies incorporated by other states and foreign governments, who may apply for the same, printed forms of statements required by this act, and he may from time to time make such changes in the form of these statements as shall seem to him best adapted to elicit from the companies a true exhibit of their condition in respect to the several points hereinbefore enumerated.

SEC. 37. [Auditor's report.]-It shall be the duty of the auditor of state to cause the information contained in the statements required of the companies

organized in this state, to be arranged in tabular form, and prepare the same in a single document for printing, and submit the same to the legislature, as a portion of his regular report to that body.

SEC. 38. [Repealed. See sec. 38, chap. 77.]

SEC. 39. Mixed mutual and stock companies.]-It shall not be lawful for any company organized upon the mutual plan, to do business and take risks upon the stock plan, neither for a company organized as a stock company, to do business upon the plan of a mutual insurance company.

SEC. 40. [Unincorporated mutual companies.]-Nothing in this act shall be so construed as to prevent any number of persons, not exceeding two hundred, from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire, hail or death; but such associations of persons shall in no case insure any property not owned and occupied by one of their number, and no life except that of their own number, nor shall the provisions of this act be applicable to such associations or companies; Provided, Such associations or companies shall in no case pay any salaries or compensations to officers, agents, or any other employes, and shall receive no premiums, nor make any dividends, and further, nothing in this act shall be so construed as to prevent any number of persons from making mutual pledges and giving valid obligations to each other for their own insurance from loss by hail; Provided, Such association of persons shall in no case insure any property not owned and occupied by one of their own number, neither receive premiums or make any dividends. [Amended 1883, chap. L.]

SEC. 41. Repealed that portion of chapter 16 relating to insurance companies except so far as the same relates to the business of life insurance.]

SEC. 42. [Cancelling policies.]-Any person, company, association, or corporation, transacting the business of fire, or fire, wind, storm, and tornado insurance, in this state, shall cancel any policy of insurance hereafter issued or renewed, at any time, by request of the party insured, or his legal representative, and shall return to the said party, or his representative, as aforesaid, the net amount of premium received by the company, after deducting the actual compensation of the agent or solicitor for securing the issue of said policy, and also deducting the customary short-rate premium for the expired time of the full term for which said policy was issued or renewed, anything in the policy to the con-contrary notwithstanding. [1885, chap. 57.]

CHAPTER 44.-INTEREST.

SECTION 1. [Rate.]-Any rate of interest which may be agreed upon, not ex-ceeding 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, it so expressly agreed. [1879 § 1, 113.]

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.

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 con

SEC. 40. See 16 Neb. 551.

SECS. 1-4. Computation; 4 Neb. 193. 7 Id. 83. Interest defived; 11 Neb. 72. On accounts: 9 Neb. 112. 15 Id. 327. 16 Id. 58. On judgments; 6 Neb. 363. 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. 8 Id. 61. 15 Id. 334, 579. 12 Id. 336. Funda in court; 18 Neb. 511.