Sec.[Section] 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That Ignatius R. Symes, James Dunlap, Carlton H. Perry, James McKinney, and John P. Wilkinson, and all other persons who may hereafter associate with them, in the manner hereinafter prescribed, shall be a corporation, by the name of the Morgan County Mutual Fire Insurance Company, for the purpose of insuring their respective dwelling houses, stores, shops and other buildings, household furniture and merchandize, against loss or damage by fire.

Sec. 2. Every person who shall at any time, become interested in said company, by insuring therein, and also his heirs, executors, administrators, and assigns, continuing to be insured therein, as hereinafter mentioned, shall be deemed and taken to be members thereof, for and during the terms specified in their policies, and no longer; and at all times shall be concluded and bound by the provisions of this act.

Sec. 3. The affairs of said company shall be managed by a board of directors, which shall consist of thirteen stockholders, as hereinafter provided. All vacancies happening in said board may be filled by the remaining members; and a majority of the whole number shall constitute a quorum for the transaction of business.

Sec. 4. Every person who shall become a member of said company, by effecting insurance therein, shall, before he receives his policy deposite his promissory note for such sum of money as shall be determined by the directors; a part, not exceeding ten per cent. of which note, shall be immediately paid, for the purpose of discharging the incidental expences of the institution, and the remainder of said note shall be payable, in part or in whole, at any time when the directors shall deem the same requisite for the payment of losses or other expenses; and at the expiration of the term of insurance, the said note, or such part of the same as shall remain unpaid, after deducting all losses and expenses accruing during said term, shall be relinquished and given up to the signer thereof.

Sec. 5. Every member of said company shall pay his proportion of all losses or expenses, happening or accruing in and to said company; and all buildings insured by and with said company, together with all the right, title, and interest of the assured, to the lands on which they stand, shall be pledged to said company, and the said company shall have a lien thereon against the assured, during the continuance

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of his policy. The said company shall cause a certificate of such policy, stating the date, term of years, and lien on said estate, in such form as shall be provided by the directors, to be recorded in the county recorder’s office in the county where said land lies, or said lien shall not be construed to effect the right of a subsequent purchaser of said real estate.

Sec. 6. In case of any loss or damage by fire happening to any member upon property insured, in and with said company, the said member shall give notice thereof in writing to the directors, or some one of them, or to the secretary of said company, within thirty days from the time such loss or damage may have happened; and the directors, upon a view of the same, or in such other way as they may deem proper, shall ascertain and determine the amount of said loss or damage; and if the party suffering is not satisfied with the determination of the directors, the question may be submitted to referees, or the said party may bring an action against said company, in the circuit court of Morgan county, within one year from the happening of said loss or damage, and not afterwards, and if upon the trial of said action, a greater sum shall be recovered than the amount determined upon by the directors, the party suffering shall have judgment therefor against said company, with interest thereon from the time said loss or damage happened, and costs of suit; but if no more shall be recovered than the amount aforesaid, so determined upon by said directors, the said party shall become non-suit, and the said company shall recover their costs; but the judgment last mentioned shall in nowise affect the claim of said suffering party to the amount of loss or damage as determined upon by the directors aforesaid; and execution shall not issue on any judgment against said company until three months after the rendition thereof.

Sec. 7. The directors shall, after receiving notice of any loss or damage by fire, sustained by any member, and ascertaining the same, or after the rendition of any judgment as aforesaid, against said company, for such loss or damage, settle and determine the same to be paid by the several members thereof, as their respective portions of such loss, and publish the same in such manner as they shall see fit, or as the bye-laws shall have prescribed; and the sum to be paid by each member shall always be in proportion to the original amount of his deposite note or notes, and shall be paid to the treasurer within thirty days next after the publication of said notice. And if any members for the space of thirty days after such notice, neglect or refuse to pay the sum assessed as his portion of any loss as aforesaid, in such

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case, the directors may sue for, and recover, the whole amount of his deposite note or notes, with costs of suit; and the money thus collected shall remain in the treasury of said company, subject to the payment of such losses and expenses as have or may thereafter accrue; and the balance, if any remain, shall be returned to the party from whom it was collected, on demand, after thirty days from the expiration of the term for which insurance was made.

Sec. 8. If the whole amount of the deposite notes shall be insufficient to pay the loss occasioned by any one fire, in such case the sufferers insured by said company, shall receive, towards making good their respective losses a proportionate dividend of the whole amount of said notes, according to the sums by them respectively insured, and in addition thereto a sum to be assessed on all the members of said company, not exceeding one dollar on every hundred dollars by them respectively insured; and the said members shall never be required to pay for any loss occasioned by fire, at any one time, more than one dollar on each hundred dollars insured in said company, in addition to the amount of his deposite note or notes, nor more than that amount for any such loss, after his said note shall have been paid in and expended; but any member upon the payment of the whole of his deposite note, and surrendering his policy before any subsequent loss or expense has occurred, may be discharged from said company.

Sec. 9. The said company may make insurance for any term not exceeding ten years; and any policy of insurance issued by said company, and signed by the president and countersigned by the secretary, shall be deemed valid and binding on said company in all cases where the assured has a title in fee simple, unincumbered, to the building or buildings insured, and to the land covered by the same; but if the assured have a less estate therein, or if the premises be incumbered, the policy shall be void, unless the true title of the assured and the incumbrances on the premises be expressed therein, and in the application therefor.

Sec. 10. When any house or other building shall be aliened by sale or otherwise, the policy shall thereupon be void, and be surrendered to the directors of said company to be cancelled, and upon such surrender the assured shall be entitled to receive his deposite note, upon the payment of his proportion of all losses and expenses that have accrued prior to such surrender. But the alienee having the policy assigned to him for his own proper use and benefit, upon application to the directors, and with their consent, within thirty days next after such alienation, and giving proper security to the satisfaction of said directors, for such portion

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of the deposite or premium note as shall remain unpaid, shall be entitled to all the rights and privileges, and subject to all the liabilities of the original party insured.

Sec. 11. If any alteration shall have been made in any house or building by the proprietor thereof, after insurance with said company, whereby it may be exposed to greater risk or hazard from fire than it was when insured, the insurance made upon such house or building, shall be void, unless an additional premium or deposite, after such alteration, be settled with and paid to the directors.

Sec. 12. William Brown, John Hardin, James Dunlap, John Wyatt, William Miller, Carlton H. Perry, Murray McConnell, Ignatius R. Syms, John P. Wilkinson, Bazaleel Gilbert, Cornelius Hook, David B. Ayres, and Porter Clay, shall be the first directors of said company, who may call the first meeting of the directors of said company, at any time and place at Jacksonville, in the county of Morgan aforesaid, by advertising in the newspaper printed at said town, giving at least fifteen days notice.

Sec. 13. The business of said corporation shall be carried on in the said town of Jacksonville.

Sec. 14. At the next election for Senators and representatives, from the county of Morgan, it shall be the duty of the judges and clerks of election at the several places of voting, to open the necessary columns in the poll books, to receive votes for the additional senators allowed to said county by the act apportioning the representation, passed at the present session of the general assembly; and the voters in said county shall vote for one senator, and the additional senator, and the person having the highest number of votes for senator, shall be declared elected, and the person having the highest number of votes for additional senator, shall be declared elected; and the clerk of the commissioners’ court in making the certificate of election, for the person elected as additional senator shall state the fact, that such person was elected as additional senator; and the same mode of proceeding shall be adopted at each subsequent election to supply the place of said additional senator.

Approved, Jan. 18, 1836.