170 BUSINESS OPERATIONS AND ORGANIZATIONS. 



such offices shall hold over respectively until there is an election, and their suc 

 cessors have qualified, and any stockholder shall be eligible to hold office. 



DUTY or OFFICERS. Section 1. The Directors shall have power to appoint 

 such officers and agents as they deem necessary, and to fix salaries and com 

 missions of all officers and agents. They shall have power to make contracts, 

 transfer property, and provide for a definite sum of money for insurance therein, 

 or issue cash policies in lieu of being assessed. They shall audit all claims of the 

 Association not otherwise provided for; determine the rates and time of insur 

 ance, amount of money to be deposited, and by virtue of their office shall become 

 agents of the Association. 



Sec. 2. The President shall sign all policies, inspect the books and accounts 

 of the Association, and appoint officers pro tern to fill vacancies occasioned by 

 death, removal or resignation of officers; preside at all meetings when present, 

 and perform such other duties as may seem connected with his office, and re 

 quired by the By-Laws. He shall attend to the commencement and prosecution 

 of all suits or actions in which the Association, or any of its officers, as such, may 

 or shall be interested, and in like manner defend against all such suits or 

 actions. 



Sec. 3. The Vice-President shall act at the exclusion of the President, when 

 ever the President shall be absent, unable, or neglect from auy cause whatever, 

 to perform the duties required of him. &quot;When the President and Vice-President 

 are absent from a meeting, the members may elect a President pro tempore. 



Sec. 4. The Secretary or Deputy shall keep a record of the proceedings of all 

 meetings, and keep all necessary books and accounts, file and preserve all papers, 

 documents and instruments required to be kept in his office. He shall issue poli 

 cies for the insurance of the property mentioned in the Charter, and he may cancel 

 policies at any time for the non-fulfillment of the requirements of this Associa 

 tion, audit all claims on the part of the holder or holders thereof, and audit all 

 claims presented against tho Association for payment, and generally transact all 

 business of the Association in the absence of the Board of Directors, not incon 

 sistent with the By-Laws, and make all assessments against the persons insured, 

 and draw all orders on the banks for money for losses and expenses of the Associ 

 ation, in accordance with the By- Laws; and he may appoint agents to receive 

 applications for insurance, and shall make a report annually. 



Sec. 5. It shall be the duty of the Treasurer to keep all moneys coming into 

 his hands, subject to the order of the Secretary, for actual losses and expenses 

 of the Association. He shall give bonds, with sufficient sureties, to an amount 

 satisfactory to the Directors; and he shall make a report in writing at any time 

 when required by the Board of Directors. 



Any officer may be removed for neglect of duty, malfeasance, or misfeasance in 

 office, by a majority vote of the Directors. 



FEES AND ASSESSMENTS. All persons insuring shall pay a fee of $5 00, which 

 includes the issuance of the first policy for five years; and thereafter all policies 

 issued or renewed shall be subject to, and pay 1 25 in U. S. Gold Coin. 



And shall be ratably assessed, and are hereby bound to pay all their proportion 

 of all losses and expenses happening to and accruing in or to said Association. 



WITHDRAWAL. Any person may withdraw at any time, by paying her, his or 

 their proportion of indebtedness to the Association, up to the time of their 

 withdrawal and surrender of policy, when any balance due such person will be 

 refunded. 



DEPOSIT MONEY. Section 1. Each person insuring in this Association shall 

 make a deposit of two per cent, on the amount for which his, her or their property 

 is insured, for the purpose of meeting assessments for losses and expenses of the 

 Association, and the money so received shall be deposited with the Grangers . 

 Bank of California, and a Certificate of Deposit issued to the depositor for the 

 amount; the money so deposited to draw interest as may be agreed upon by 

 the Directors with the Bank. And when the deposits in the said Bank shall 

 amount to over fifty thousand dollars, the President, Vice-President, Secretary, 

 Treasurer and Directors shall have power to withdraw from said Bank the 

 excess of fifty thousand dollars, and deposit the amount so withdrawn with local 

 banks in other parts of the State, or invest the same in real estate securities, 

 school or county, or township or county bonds of this State, as they may deem 

 prudent, and for the best interests of the insured. 



Sec. 2. When a promissory note is given for the deposit-money, the insurance 

 shall be good on said note, provided the policy shall not have been canceled; and 



