Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That Joseph Knox, P. Gregg, John S. Miller, Louis Wells, Lemuel Andrews, David Hawes, Nathaniel Belcher, Miles W. Conway, Henry Powers, and T. J. Spencer, and their associates, being owners of buildings, shall be a corporation, under the name of “The Rock Island Mutual Fire Insurance Company,” and enjoy all the privileges and powers incident to such corporation for twenty-one years from and after the passing of this act.

Sec. 2. That for the well ordering and governing the affairs of the said corporation, they shall have power to choose a president, treasurer, and directors, to manage the concerns of the said corporation, and such other officers as they may deem necessary: Provided, however, That no policy of insurance shall be made by said corporation unti[l] the sum subscribed by the associates to be insured shall amount to the sum of twenty thousand dollars; and at all meetings of said corporation every matter shall be decided by a majority of votes, each member having as many votes as he has policies, with the right of voting by proxy.

Sec. 3. That the said corporation, as soon as the said twenty thousand dollars shall be subscribed, to be insured, and they are hereby authorized to insure, for the term of from one to seven years, any mansion house or other building within the county of Rock Island; and also to insure household furniture in any mansion house or other building within said county, 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 or the value of any household furniture; and in case any member shall sustain damage by fire over and above the then existing funds of the said corporation, 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, That no member, during the terms of seven years, shall be held to pay, by way of assessment, more than two dollars for each dollar by him advanced as a premium and deposite.

Sec. 4. That the money advanced by each person insured shall, within sixty days after such advancement, be vested in the stock of some incorporated bank, United States or State stocks, or 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 damage or loss that any member may sustain by fire, and to defray the expenses of the corporation; and each of the insured shall, at the expiration of his policy or policies, have a right

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to demand aud receive from the corporation his share of the remaining funds, in proportion to the sum or sums by him actually paid.

Sec. 5. That when any member of said corporation so insured shall sustain any loss for which the same corporation shall be held to indemnify him, and he shall recover judgment therefor against it, he shall have a right to levy his execution issued on such judgment on any of the funds of the said corporation; and when he shall not f[I]nd sufficient funds of the said corporation to satisfy the same and all costs thereon, and the said directors shall neglect or refuse, for the period of thirty days from the rendering of such judgment, to make an assessment agreeably to the principles herein expressed, and deliver the same to the treasurer of said corporation, and direct him to collect the same in such manner as the said corporation may point out, to satisfy such execution as far as the said funds and assessments may extend, then and in that case it shall be lawful for such judgment creditor to levy or extend his said execution on the private property of any of the said directors, to the amount of the damage and cost he shall be entitled to recover and receive on such execution. And any director whose estate, real or personal, shall be so taken may recover compensation therefor by an action on the case against the said corporation.

Sec. 6. That whenever any person shall sustain any loss of property by fire so insured, he shall, within sixty days next after, give notice of the same to such of the directors as shall be agreed upon by the said corporation for that purpose, whose duty it shall be immediately to view where the fire happened, and to inquire into the circumstances attending the same, and determine, in writing, under their hands, the amount (if any) of the said corporation’s liability for such loss; and if the sufferer shall not acquiesce in their determination, he or she, within thirty days after such determination be made known by said directors, may bring an action at law against said corporation for such loss, before any court of competent jurisdiction within the said county of Rock Island; and in case the sufferer shall not, by the verdict of jury, recover more than the damage determined on by the directors as aforesaid, the plaintiff in such action shall have judgment upon the verdict, but the corporation shall recover their costs, and execution shall issue for the balance in favor of the party entitled to recover it.

Sec. 7. That so soon as the amount of the corporation’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 the said corporation to collect; and the said corporation shall have power to make

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such by-laws, rules, and regulations for the due management of the concerns thereof as may be thought proper, not repugnant to the constitution and laws of this State.

Sec. 8. That any two of the persons herein named are hereby authorized to call a meeting of the members of said corporation, at such time and place as they may think fit, by advertising the same in any newspaper printed in said county of Rock Island, or by advertising the same by posting up notices in three public places in said county, fourteen days at least previous to said meeting.

Sec. 9. That whenever the said corporation shall make insurance upon any mansion house or other building, the said mansion house or other building insured, together with the land under the same, shall be held by the said corporation 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 the said corporation thus insured shall be liable to pay pursuant to the provisions of this act; and the policy of insurance to any member upon his said mansion house or other building shall of itself, from the time it issues, create a lien upon such mansion 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 corporation, and the costs which may accrue in collecting the same, without any other act or ceremony in law whatsoever; and said lien shall continue and be in force upon such mansion house or other building insured, with the land under the same, for the security to the said corporation 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 release by, said corporation, notwithstanding any transfer or alienation thereof: Provided, That nothing herein contained shall restrict the said corporation from receiving any other security, in lieu of said lien for said deposite and assessments, upon which their authorized agents and the insured may agree: And provided, also, That in all cases where the said corporation 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 mansion house or other building insured, subject to the lien created by law.

Sec. 10. That if any member of said corporation who shall obtain insurance of his mansion house or other building, subject to the lien aforesaid, or, in case of his decease, his legal representatives, shall neglect, for the period of thirty days next after demand made by the authorized agent or agents of said corporation, (which demand may be made in such manner as said corporation shall in their by-laws direct,)

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to pay the sum of the deposite money upon the insurance of his mansion house or other building, or any assessment or assessments made upon him as a member of said corporation pursuant to the provisions of this act, he shall be liable to the suit of the corporation therefor, in an action on the case, in any court of competent jurisdiction; and the said corporation 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 mansion house or other building insured, with the land under the same; and the officer having said execution shall proceed to satisfy the same by the sale and conveyance of said mansion house or other building, with the land under the same, in the same manner and after the like previous advertisement and notice, as is provided by law when the right of redeeming real estate is sold which has been conveyed in mortgage, saving to the owner or owners of said mansion 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.

This act shall be in force from and after its passage.

Approved, March 2, 1839.