Page:United States Statutes at Large Volume 54 Part 1.djvu/1105

From Wikisource
Jump to navigation Jump to search
This page needs to be proofread.

54 STAT.] 76TH CONG. , 3D SESS.-CI. 792-OCT. 9, 1940 thereafter without any increase of authority, the minimum capital and surplus required of a stock company, and the minimum surplus required of a mutual or reciprocal company, or of a Lloyd's organ- ization by the laws of the District heretofore applicable shall not be increased by this Act, and provided also that m the case of such continuously authorized companies the provisions of section 24 relat- ing to the names of companies, and the provisions of section 25 relating to the amount of surplus necessary to the issuance of policies having no provision for contingent liability, shall not be applicable. SEC. 15. DOMESTIC COMPANIES. - Any domestic stock, mutual, or reciprocal company desiring to transact business in the District shall, after complying with the general laws of the District governing the formation of companies or corporations, file with the Superintendent copies of its articles of incorporation, bylaws, charter, proposed forms of policies, and such other information as may be necessary to manifest and explain the organization, objects, and purposes of the company, and to satisfy the Superintendent that such company has complied with the laws of the District regarding the formation of companies. There- after, upon application made to the Superintendent upon such forms as the Superintendent shall prescribe, the Superintendent, subject to the provisions of chapter II, section 2, of this Act, shall issue to the com- pany a certificate of authority to transact business in the District. SEC. 16. DOMESTIC COMPANY REAL ESTATE HOLDINGS. - A domestic company may acquire, hold, and convey real estate for the purpose and in the manner only following: (1) The building in which it has its principal office and the land on which it stands. (2) Such as shall be requisite for its convenient accommodation in the transaction of its business. (3) Such as shall have been acquired for the accommodation of its business. (4) Such as shall have been mortgaged to it in good faith by way of security for loans previously contracted or for money due. (5) Such as shall have been conveyed to it in satisfaction of debts, previously contracted in the course of its dealings. (6) Such as it shall have purchased at sales on judgments, decrees, or mortgages obtained or made for such debts. All such real estate specified in paragraphs (3), (4), (5), and (6) of this section, which shall not be necessary for its accommodation in the convenient transaction of its business, shall be sold by the company and disposed of within five years after it shall have acquired the title to the same, or within five years after the same shall have ceased to be necessary for the accommodation of its business, unless the company procure the certificate of the Superintendent that its interests will suffer materially by a forced sale thereof, in which event the time for the sale may be extended to such time as the Superintendent shall direct in such certificate. SEC. 17 . MUTUAL COMPANY'S SURPLUS FUND-PowER TO BORROW. - A domestic mutual company may borrow or assume liability for the repayment of a sum of money sufficient to defray the reasonable expenses of its organization or to enable it to comply with any requirement of law or as a surplus fund upon agreement which shall first be submitted to and approved by the Superintendent that such loan or advance with interest at a rate not exceeding 6 per centum per annum shall be repaid only with the approval of the Superintendent whenever in his judg- ment the company shall be in possession of sufficient surplus in excess of a surplus equal to the amount required by this Act. Any such loan or advance shall not form a part of the legal liabilities of the company, but until such loan or advance has been repaid all statements published