Sec.[Section] 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That there shall be established in the town of Beardstown an insurance company, to be called the “Beardstown Marine and Fire Insurance Company.”

Sec. 2. All such persons as shall hereafter be stockholders of said company shall be and they are hereby declared to be a body corporate and politic, by the name and style of the “Beardstown Marine and Fire Insurance Company,” and to continue for and during the term of thirty years from and after the passage of this act; and by that name and style shall be competent to contract and be contracted with, and be capable in law and equity to sue and be sued, to plead and be impleaded, answer and be answered unto, defend and be defended in all courts and places, and in all matters whatsoever.

Sec. 3. The said corporation may have and use a common seal, which they may alter, change, or break at pleasure; and may, also, make and establish, and put in execution such by-laws, ordinances, and regulations as shall in their opinion be necessary for the good government of said corporation, and the prudent and efficient management of its affairs. No by-laws, ordinances, and regulations of the same shall be in any wise contrary to the constitution and laws of this State, or of the United States.

Sec. 4. The capital stock of said company shall be one hundred thousand dollars, to be divided into shares of fifty dollars each, to be paid in such instalments as the directors chosen under this act may from time to time direct, under such penalties as the president and directors may in their discretion appoint and order. The said capital stock may hereafter be increased to the amount of five hundred thousand dollars, in the discretion of a majority of the directors of said incorporation, to be subscribed for and taken under the direction of the president and directors aforesaid, or a majority of said directors, by any person whomsoever in the same manner as is provided for the subscription of the original capital stock. The stock of said corporation shall be assignable and transferrable, according to such rules as shall be adopted in that behalf by the by-laws and ordinances thereof.

Sec. 5. The corporation hereby created shall have power and authority to make marine insurance upon vessels, goods and merchandize, freight, monies, bottomry, respondentia interest, and on all marine risks, and inland

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navigation and transportation; and against losses by fire of any buildings or houses whatsoever, and vessels on the stock, and also to receive monies on deposite, and to loan the same on bottomry, respondentia or otherwise, at such rates of interest as may now or hereafter be done by the existing laws of this State; and they may also cause themselves to be insured against any maritime risks upon which they have made insurance, and upon the interest which they may have in any vessel, goods or merchandize, or houses, in virtue of any such loans, whether on bottomry and respondentia, or otherwise, on such terms and conditions as may be agreed upon by the parties, and to fix the premiums and terms of payment.

Sec. 6. All policies of insurances by them made shall be subscribed by the president, or in case of his death or absence, by the vice president, and countersigned and sealed by the secretary of said company; and all losses, arising under any policy so subscribed and sealed, may be adjusted and settled by the president and board of directors.

Sec. 7. The said corporation shall not take any risk, nor subscribe any policy by virtue of this act, until the sum of ten thousand dollars of said capital stock thereof shall have been actually paid in.

Sec. 8. Said company shall not directly or indirectly deal or trade in buying or selling any goods, wares, or merchandize whatever; but the president and directors may, at their option, vest the capital stock of said corporation in the capital stock of any incorporated bank or trust company, or public funds of the United States, on any State in the Union. They shall have power also to loan to any citizen of this State any portion of their capital stock, not exceeding ten thousand dollars, to one individual on bottomry, bond, mortgage of real estate, or other satisfactory security at their discretion, and also to purchase and sell bills of exchange.

Sec. 9. The said corporation may purchase and hold such real estate as may be deemed necessary for the transaction of its business, and to an amount at any time not exceeding ten thousand dollars, and to take and hold any real estate as securities, mortgaged, or pledged to the said corporation, to secure the payment of any debt due, or that may become due to it, and also to purchase any sales made by virtue of any judgment at law, or any decree of a court of equity; or authorize to take and receive any real estate in payment or towards satisfaction of any debts previously contracted or due to said corporation, and to hold the same until they can conveniently

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and advantageously sell and convert the same into money or other personal property, and to sell and convey said real estate or any part thereof.

Sec. 10. John S. Wilbourn, Nathaniel B. Thompson, S. H. Wilkey, Isaac C. Spence, Thomas Graham, William Bassett, and B. W. Snider are hereby appointed commissioners for superintending subscriptions to said capital stock; and the said commissioners, or a majority of them, shall open one or more subscriptions books for said stock on the first Monday of May, in the year of our Lord one thousand eight hundred and thirty-seven, in the town of Beardstown; and the sum of five dollars, on each share subscribed for, shall be paid to said commissioners at the time of making such subscriptions. The books may be closed when the whole of said stock shall be subscribed, and whenever the board of directors shall be duly elected, the said commissioners shall deliver over to the said board of directors the whole amount of money by them respectively or jointly received, except so much as shall be retained for the expenses incurred by them in executing the duties imposed on them by this act: Provided, however, That if the books for the subscription of stock shall not be opened at the time herein required, the said commissioners may open the books at any time thereafter, upon their giving twenty days previous notice in some newspaper printed in the town of Jacksonville, in the county of Morgan, of the time and place of opening the same.

Sec. 11. In case of the death, resignation, or absence of any of the commissioners named in this act of incorporation, it shall and may be lawful for any three of them to form a quorum, and proceed to business, whose duties shall be the same in the premises as those prescribed to the whole of said commissioners by this act of incorporation named, and their acts, as such, shall be legal.

Sec. 12. The stock, property, and concerns of said incorporation shall be managed and conducted by nine directors, who shall hold their offices for the term of one year, and until others shall be chosen, and no longer, and shall at the time of their election be a citizen of this state, and holders respectively of not less than ten shares of the capital stock of said company.

Sec. 13. The first election of the directors, under this act, shall be held at such time and place in the town of Beardstown as shall be directed by the said commissioners, a majority of them, who, or a majority thereof, are hereby appointed inspectors of said election, and persons thus elected as directors shall hold their offices

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until the first Monday of June, in the year of our Lord one thousand eight hundred and thirty-eight, and until others are elected in their stead.

Sec. 14. The directors, for every subsequent year, shall be elected on the first Monday of June, in each year, at such time of the day and at such place within the town of Beardstown, and under the direction of such person as a majority of directors for the time being shall appoint by a resolution to be entered on their minutes.

Sec. 15. All elections shall be by ballot, allowing one vote to each share of the capital stock, and the nine persons who shall have the greatest number of votes, shall be directors, and if at any election two or more persons shall have an equal number of votes, so as to leave their election undecided, the directors, who have been duly (elected,) shall by ballot and by plurality determine which of said persons so having an equal number of votes shall be director or directors, so as to complete the whole number, and whenever any vacancy shall happen for the office of president, vice president, or directors, from death, or other causes, such vacancy shall be filled for the remainder of the year in which it shall happen by the directors for the time being, or a majority of them. The said commissioners shall certify under their hands and seal the persons elected, and deliver such certificate to the persons elected, or to some one of them, and if through any unavoidable accident said directors should not be chosen on the first Monday as aforesaid, it shall be lawful to choose them on any other day in the manner herein provided.

Sec. 16. The directors, when chosen, shall meet as soon as may be after any election, and shall choose out of their number a president, who shall be sworn or affirmed faithfully to discharge the duties of said office, and shall preside for the term of one year, and until another person shall be chosen in his stead, and also a vice president for the same term. They shall have power to appoint a secretary and all subordinate officers of said corporation, fix their compensations, define their powers, and prescribe their duties, who shall give such bond and in such penal sums, with such conditions, and with such securities, as the directors shall prescribe, and hold their several offices during the pleasure of a majority of said directors.

Sec. 17. The president and vice president, and four of the directors shall be a board competent to the transaction of business, and all questions shall be decided by a majority of votes.

Sec. 18. The president and directors of said company shall, previous to subscribing any policy, and once in every year after, publish in two of the newspapers printed in this state the amount of capital stock, against what risks they mean to insure, and the largest sum they mean to tax on any risk.

Sec. 19. The expenses, incurred by the commissioners in executing any duty required by this act, shall be paid out of the money received by them from the subscribers out of the capital stock, and may be retained by them for such purposes.

Sec. 20. It shall be the duty of the directors of said company, at such times as the by-laws thereof shall prescribe, to make dividend of so much of their interest, arising from the capital stock and the profits of said company, as to them shall appear advisable; but the money received and notes taken for premiums or risks, which shall be undetermined and outstanding at the time of making such dividends, shall not be considered as a part of the profits of said company; and in case of any loss or losses whereby the capital stock of said company be lessened before all the instalments are paid in, proprietors’ or stockholders’ estates shall be held accountable for the instalments that may remain unpaid on his share or shares at the time of such loss or losses taking place; and not subsequent dividends shall be made, until the sum, arising from the profits of the business of the said company, equal to such diminution, shall have been added to the capital stock. And once in every three years, and oftener, if required by a majority of the votes of the stockholders, the directors shall lay before the stockholders, at a general meeting, an exact and particular statement of the profits, if any there shall be, after deducting losses and dividends.

Sec. 21. This act is hereby declared to be a public act, and shall take effect from and after its passage, and shall be liberally construed for every purpose herein contained.

Sec. 22. This charter shall be void and of no effect, unless the stock shall be subscribed, and the company shall commence operations agreeably to the provisions thereof within two years after the passage of this act.

Sec. 23. Nothing in this act contained shall confer on said corporation banking powers, or authorize it to issue notes in the similitude of bank notes, to be issued as a circulating medium in lieu of money.

Sec. 24. That in case of any loss or losses taking place, which shall be equal to the amount of the capital

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stock of said company, and the president and directors, after knowing of such loss or losses having taken place, shall subscribe to any policy of insurance: their estates, jointly and severally, shall be accountable for any and every loss which shall take place under policies so subscribed; and the estates of stockholders, as aforesaid, shall be liable for every loss equal to the amount of said capital stock subscribed, and not actually paid, in all cases of losses exceeding the means of said company, whether they consist of stock paid in or profits not divided.

Approved 3d March, 1837.