Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That John W, Shinn, William V. Cogswell, Thomas J. Little, Joel Wright, Augustus L. Davidson, George W. Gould, Jonathan Caykendall, Luke Webster, Priam B. Hill, Daniel W. Vittum, Thompson Maple, H. Snow, John G. Piper, and all other persons who may hereafter become members of said company in the man-

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ner herein prescribed, be, and they are hereby, incorporated and made a body politic, by the name of “The Fulton County Mutual Fire Insurance Company,” for the purpose of insuring their respective dwelling-houses and other buildings, with their contents, against loss or damage by fire, whether the same shall happen by accident, lightning, or by any other means, excepting that of design in the insured; and, by that name, may sue and be sued, plead and be impleaded, appear, prosecute, and defend, in any court of record or other place whatever; may have and use a common seal; may purchase and hold such real and personal estate as may be necessary to effect the objects of their association; and they may sell and convey the same at pleasure; may make and establish, and put in execution, such by-laws, ordinances, and resolutions, not being contrary to the laws of the State, as may seem necessary or convenient for their regulation and government, and for the management of their affairs; and do and execute all such acts and things as may be necessary to carry into full effect the purposes intended by this grant.

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

Sec. 3. That the said company may, as soon as ten thousand dollars shall be subscribed, to be insured, and they are hereby authorized to insure, for the term of from four to five years, any dwelling-house or other buildings, together with its contents, within the county of Fulton, or any other county in the State of Illinois, against damage arising to the same by fire originating in any cause except that of design in the insured, and to any amount, not exceeding three-fourths of the value of any building; and in any case any member shall sustain damage by fire over and above the then existing funds of the said company, the directors may assess such further sum or sums upon each member as may be in proportion to the sum by him insured, and the rate of hazard originally agreed upon: Provided, nevertheless, That no member, during the term of five years, shall be held to pay, by way of assessment, more than two dollars for each dollar by him advanced as premium and deposite.

Sec. 4. That the moneys advanced by each person insured shall, within sixty days after such advancement, be vested in notes and bonds secured by mortgages, at the discretion of the president and directors; and the proceeds of the same shall be appropriated and applied to pay the damages or loss that any member shall sustain by fire, and to defray the expenses of the company; and each of the insured shall, at the expiration

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of his policy or policies, have a right to demand and receive from the company his share of the remaining funds, in proportion to the sum or sums by him actually paid.

Sec. 5. There shall be a meeting of said company at Canton, in the county of Fulton, on the first Monday of May annually, or on such other day as the said company may hereafter determine; at which shall be chosen, by a majority of the members present, a board of directors consisting of not more than nine nor less than five members, who shall continue in office until others shall have been chosen and accepted the trust in their stead. All vacancies happening to said board may be filled by the remaining members until the next annual meeting; and a majority of the whole number shall constitute a quorum for the transaction of business. Special meetings of the company may be called by order of the directors, or in such manner as the by-laws thereof may have prescribed.

Sec. 6. The board of directors shall superintend the concerns of said company, and shall have the arrangement of the funds and property thereof, and of all matters and things thereunto relating, not otherwise provided for by said company. They shall have power, from [time] to time, to appoint a secretary, treasurer, and such other officers, agents, and assistants, as to them may seem necessary; and to prescribe their duties, fix their compensation, take such security from them as they may deem necessary for the faithful performance of their respective duties, and may remove them at pleasure. They shall determine the rates of insurance, the sum to be insured on any building, not exceeding three-fourths of its value, and the sum to be deposited for their insurance thereof. They shall order and direct the making and issuing of all policies of insurance, the providing of books, stationery, and other things needful for the office of said company, and for carrying on the affairs thereof; and draw upon the treasurer for the payment of all losses which may have happened, and for the expenses incurred, in transacting the concerns of said company. They shall elect one of their own number to act as president, and may hold their meetings monthly, or oftener if necessary, for transacting the business of the company, and shall keep a record of their proceedings; and any director, disagreeing with a majority of the board at any meeting, may enter his dissent, with the reasons therefor, on record.

Sec. 7. That 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 sixty days from the time such loss or damage may have happened; and the directors, upon a view of the same, and inquiry into the circumstances, or in such other way as they may deem proper, shall ascertain and determine in writing, under their hands, the amount of said loss or

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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, within one year next after such determination be made known by said directors, may bring an action at law against said company for such loss or damage, at any court to be holden in and for the county of Fulton; 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, the said party shall become non-suit, and the said company shall recover their costs: Provided, however, That the judgment last mentioned shall in nowise affect the claim of said suffering party to the amount of the loss or damage as determined by the directors aforesaid: And provided, also, That execution shall not issue on any judgment against said company until after the expiration of three months from the rendition thereof.

Sec. 8. That so soon as the amount of the company’s liability shall be ascertained in either of the ways mentioned in this act, (and the funds on hand not being sufficient,) the said directors shall make an assessment upon the members of the said corporation agreeably to the principles of this act, and deliver the same to the treasurer of said company to collect.

Sec. 9. That whenever the said company shall make insurance upon any dwelling-house or other building, the said dwelling-house or other building insured, together with the land under the same, shall be held by the said company as security for the sum of the deposite money required to be paid or secured upon such insurance, together with such assessment or assessments as the member of said company thus insured shall be liable to pay. And the policy of insurance to any member upon his said dwelling-house or other building shall of itself, from the time it issued, create a lien upon such dwelling-house or other building, and the land under the same, to the amount of the sum of such deposite money and any assessment or assessments which may be made upon the insured as a member of said company, and the cost which may accrue in collecting the same, without any other act or ceremony in law whatever; and said lien shall continue and be in force upon such dwelling-house or other building insured, with the land under the same, for the security to the said company of the payment of said deposite money, and the assessment or assessments upon the member so insured, with costs, until the said deposite money, with the sum or sums of said assessments, shall be paid or otherwise satisfied to, or released by, said company, notwithstanding any transfer or alienation thereof: Provided, nevertheless, That nothing herein contained shall restrict said company from receiving any other security in lieu of said lien for said deposite and assessments, upon which

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their authorized agents and the insured may agree: And provided, also, That in all cases where the said company rely upon the security of the lien created by the policy, it shall be expressed in said policy that the insurance is made upon the said dwelling-house or other building insured, subject to the lien created by law.

Sec. 10. That if any member of said company, who shall obtain insurance of his dwelling-house or other building, subject to the lien aforesaid, or, in case of his decease, his legal representatives, shall neglect, for the space of thirty days next after demand made by the authorized agent or agents of said company, (which demand may be in such manner as said company shall in their by-laws direct,) to pay the sum of the deposite money upon the insurance of his dwelling-house or other building, or any assessment or assessments made upon him as a member of said company, he shall be liable to the suit of the company therefor in an action of the case in any court of competent jurisdiction; and the said company, having obtained judgment and execution for the amount of such deposite money, assessment or assessments, may at their election cause the said execution to be levied upon the said dwelling-house or other buildings insured, with the land under the same; and the officer having said execution shall proceed to satisfy the same by sale and conveyance of said dwelling-house or other buildings, with the land under the same, in the same manner, and after the like previous advertisement and notice, as is provided by law where the right of redeeming real estate is sold which has been conveyed in mortgage, saving to the owner or owners of such dwelling-house or other building, with the land under the same, the right of redemption, at any time within one year from the time of sale, by paying the purchaser, or any under him, the sum for which it was sold, and interest at the rate of twelve per cent., deducting therefrom the rents and profits over and above the necessary repairs: Provided, however, That in case of the alienation and transfer, by deed or record, of any dwelling-house or other building insured, with the land under the same, previous to the levy of said execution, notice of the intended sale shall be given by the officer to the owner thereof, or his tenant in possession instead of the debtor in said execution; and the excess of money, if any shall arise from any sale as aforesaid beyond satisfying the debts and costs and necessary intervening charges, shall be returned by the officer to the debtor in the execution, (or, in case of an alienation by him as aforesaid, to the owner thereof,) at the time of the levy of said execution.

Sec. 11. The directors shall settle and pay losses within three months after they shall have been notified as aforesaid, unless they shall judge it proper, within that time, to rebuild the house or houses destroyed, or repair the damages sustained, which they are hereby empowered to do in convenient time: Provided they do not lay out and expend in such build-

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ing or repairs more than the sum insured on the premises; but no allowance is to be made, in estimating damage in any case, for gilding, historical or landscape painting, statue or carved work, nor are the same to be replaced if destroyed by fire.

Sec. 12. If any alteration should be made in any house or building by the proprietors thereof, after insurance has been made thereon by said company, whereby it may be exposed to greater risk or hazard from fire than it was at the time it was insured, then, and in every such case, the insurance made upon such house or building shall be void, unless an additional premium and payment, after such alteration, be settled with and paid to the directors; but no alterations or repairs in buildings, not increasing such risk or hazard, shall in anywise affect the insurance previously made thereon.

Sec. 13. If insurance on any house or building shall be and subsist in said company and in any other office, or from and by any other person or persons at the same time, the insurance made in and by said company shall be deemed and become void, unless such double insurance subsist with the consent of the directors, signified by endorsement on the back of the policy, signed by the president and secretary.

Sec. 14. That any two of the persons herein named are hereby authorized to call a meeting of the members of said company at Canton, at such time as they shall think fit, by advertising the same in the newspaper printed at Canton, fourteen days, at least, previous to said meeting.

Sec. 15. This act shall be a public act, and shall be construed liberally in all courts for the purposes hereinbefore expressed.

Approved, February 28, 1839.