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paying out of surplus accumulations or reserve fund to its members, such ratable cash dividends or crediting on assessments such ratable sums as they are now or may hereafter become entitled to by the terms of their contracts, provided that nothing contained in this article shall be construed to permit any contract promising any fixed cash payment to any living certificate or policy holder, unless such corporation, association or society shall have deposited the sum of one hundred thousand dollars with the insurance department of the state, and the superintendent has certified to that effect. The voluntary unincorporated associations known as the New York stock exchange and the consolidated stock and petroleum exchange of New York, and the booksellers and stationers' provident association of the United States are exempted from the provisions of this article. (As amended by chap. 399 of 1894, § 1.)

§ 215. Corporations may deposit securities with the superintendent of insurance.-Any corporation, association or society lawfully engaged in the business of insurance upon the co-operative or assessment plan in this state, may, in its discretion, through its officers or directors, deposit with the superintendent of insurance such securities and for such amounts as may be approved by him. Such deposit shall be received and held by the superintendent for the sole benefit of the members of such corporation and subject to the provisions of such deed of trust as shall be approved by the superintendent and accepted by him. from the officers or directors of the corporation; but the deposits. with the insurance department, and all other investments of reserve funds shall be made in the same class of securities that are required by law for deposit with the superintendent of insurance or for the investment of funds by life insurance corporations.

§ 216. Quorum.-At the stated meeting for the election of officers, trustees, directors or managers of any such corporation, association or society, a majority of the persons entitled to vote at such meeting shall not be necessary to a quorum.

Fraternal Beneficiary Societies.

§ 230

ARTICLE VII.

FRATERNAL BENEFICIARY SOCIETIES ORDERS OR ASSOCIATIONS.

SECTION 230. Incorporation.

231. Reincorporation of existing fraternities.

232. Foreign societies.

233. Mutual benefit fraternities.

234. Constitution and by-laws.

235. Agreements for benefits.
236. Revenues.

237. Annual report.

238. Rights of members, exemptions, notice of assessment.
239. Application of article.

§ 230. Incorporation.-Nine or more persons may become an incorporated fraternal beneficiary society, order or association for the relief by insurance, upon the mutual or assessment plan, of members or beneficiaries, in case of sickness, disability or death, or for the payment of money upon the expiration of a fixed period, of not less than five years, in case payment of a death loss has not been incurred before the expiration of such period by filing in the office of the superintendent of insurance a declaration executed and acknowledged by each of them, stating their intention to form a fraternal beneficiary society, order or association for the purposes above named, the name of the proposed society, order or association, the mode in which its corporate powers are to be exercised, the name and official title of the officers, trustees, directors, representatives or other persons, by whatsoever name or title designated, who are to have and exercise the general control and management of its affairs and funds, who shall be elected after the first year by representatives chosen by subordinate lodges, councils or bodies who shall be members of such society, order or association. There shall be indorsed upon such declaration or annexed thereto, and forming a part thereof, the sworn statement of at least three of the subscribers thereto, that two hundred persons eligible under the proposed laws of such society, order or association to membership therein have in good faith made application in writing for membership.

If all the requirements of law have been complied with, the superintendent shall thereupon file such declaration and cause it

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to be recorded with the certificate of the attorney-general in a book to be kept for that purpose, and shall deliver to such society, order or association a certified copy of the papers so recorded in his office, together with a license or certificate of the superintendent to such society, order or association, to carry on the work of a fraternal beneficiary society, order or association, as proposed in the declaration.

No such society, order or association shall transact the business of insurance in this state until at least two hundred persons have subscribed in writing to be beneficiary members therein in the aggregate amount of at least four hundred thousand dollars, and have each paid in one full assessment in cash amounting to at least one per cent thereof, nor until the superintendent of insurance shall have further certified that it has complied with the provisions of this chapter and is authorized to transact business in this state.

§ 231. Reincorporation of existing fraternities.—Any mutual benefit fraternity, as defined by this article, and incorporated under the laws of this state, may reincorporate under the provisions of this chapter by filing with the superintendent a declaration adopted by the governing body of such corporation and executed and duly acknowledged by the president, secretary, treasurer and trustees, with the seal thereof, which shall contain the name of the corporation, the mode in which the corporate powers granted by this article are to be exercised, the name and official title of its officers, trustees, directors, representatives or other persons by whatsoever name or title designated, who are to have and exercise the general control and management of its affairs and of its funds, and the mode of their selection, and the place where its office within the state is located. Such declaration shall have indorsed thereon or annexed thereto as a part thereof, the sworn statement of three of such officers that at least two hundred persons are bona fide members of such society, order or association, and that the total beneficiary amount is not less than four hundred thousand dollars, and that one full assessment has been paid in.

The superintendent shall file such declaration and statement, and refer same to the attorney-general for his certificate of conformity and approval, and upon the return thereof the superintendent shall record the same with the certificate of the attorneygeneral in his office and deliver to such corporation, association

Fraternal Beneficiary Societies.

§ 232

or society, a certified copy of the papers so recorded, together with his license to carry on the work of a fraternal beneficiary society, order or association as proposed in such declaration. Upon filing the same in the office of the clerk of the county. wherein the principal office for the transaction of its business is located, it shall thereupon be duly incorporated under the provisions of this article. No existing fraternal beneficiary society, order or association shall be required to reincorporate under the provisions of this article.

232. Foreign societies.--No fraternal beneficiary society, order or association organized under the laws of any other state or territory of the United States, or of the District of Columbia or foreign countries, or any voluntary fraternal beneficiary society, order or association having its principal place of business outside of the state of New York, and not now doing business in this state, shall transact business herein until it has filed with the superintendent of insurance a certificate under oath of its principal officers that at least two hundred persons have subscribed in writing to be beneficiary members therein with a total beneficiary amount not less than four hundred thousand dollars, and that they have paid in one full assessment in cash amounting to at least one per cent thereof, nor until such society, order or association has received from the superintendent a certificate of authority to transact business in this state in duplicate, one of which shall be filed in the office of the superintendent.

The superintendent shall revoke such certificate at any time that it shall appear from the annual report of such order, society or association to the insurance department, or from any other satisfactory evidence, that the membership of such society, order or association has diminished below two hundred representing an insurance of four hundred thousand dollars, and no such society, order or association shall thereafter continue to do business in this state.

In addition to the foregoing requirements and provisions, and before the issuance of a certificate of authority, to transact business, as herein provided, to any society, order or association, herein described, organized under the laws of any foreign country, it shall be the duty of the superintendent of insurance, either personally or by some person or persons appointed by him, to visit and examine thoroughly and fully as he may deem necessary, and as he may determine, into the condition, business

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methods, character and investment of funds and the affairs generally of any such society, order or association making application to him for license, and such superintendent is authorized to make such examination as often as he may deem necessary; and the expense of every such examination shall be paid by the society, order or association examined to such an amount as the superintendent shall determine; but when such examination shall be made by the superintendent personally, or by one or more of the regular clerks in his department, no charge shall be made for such examination, except for the necessary traveling and other expenses. And whenever it shall appear to the said superintendent, from an examination made as aforesaid, and from the statement, report or certificate filed or submitted by any such society, order or association as herein provided, that it is conducting its affairs in a safe and authorized manner and has in all respects complied with the requirements of this section, he shall issue to such society, order or association, a certificate under his hand and seal, permitting it to transact business in this state for the term of one year from the date thereof.

But whenever it shall appear to the said superintendent, from any examination made, or from any report submitted or certificate filed or from any reliable information otherwise obtained, that such licensee, in addition to any other violation in this section pro. vided, is conducting its business in an unsafe or unauthorized manner, he shall, by an order under his hand and seal of office addressed to such licensee, or its proper officers, direct said licen see to discontinue such unsafe or unlawful practice, and to conform to the requirements of its charter and of law, and to provide for the safety and security of its transactions, and for the failur to make any report herein required, or to comply with such order. or whenever it shall appear to said superintendent that it is un safe or inexpedient for any such licensee to continue the transac tion of business in this state, he shall forthwith revoke the licens of such licensee; and service of any such order of revocation may be made personally upon any of the officers of such licensee within this state, or by mail, addressed to such licensee or its officers, at its principal place of business in the country wherein it is or ganized, or such service may be made by publication thereof for six successive days in the state paper, published in the city of Albany, and after the completion of such service, no such licensee shall thereafter continue to do business in this state.

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