CHAP. 79.

An Act respecting the North American Life Assurance Company.

W

[Assented to 29th June, 1897.]

WHEREAS the North American Life Assurance Company Preamble. has, by its petition, prayed that its Act of incorporation, and the Act amending it, be further amended as hereinafter set forth, and it is expedient to grant the prayer of the said petition: Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows::

Company.

1. The North American Life Assurance Company, herein- Powers of after called "the Company," may effect contracts of life insurance throughout Canada and elsewhere with any person, grant, sell or purchase annuities, grant endowments, purchase contingent rights, reversions or remainders, enter into any transactions dependent on the contingency of life, and generally carry on the business of life insurance in all its branches.

2. Section three of the Act incorporating the Company, 1879, c. 73, being chapter seventy-three of the statutes of 1879, is hereby s. 3 repealed. repealed and the following substituted therefor :

"3. The guarantee fund so subscribed shall be liable for the Guarantee payment of losses, and may be used for the purposes of the fund. Company in such manner and to such extent as the directors. may by by-law determine; the said guarantee fund shall be redeemable by the Company out of the accumulated surpluses, at such time and upon such terms as shall be decided by a majority of the members present at a general meeting called for that purpose, or at an annual general meeting of the Company; and, until redemption, the directors may pay to the Dividends. holders of shares thereof dividends on the amount paid up, at such rate as may be agreed upon by the directors, but not exceeding fifteen per cent per annum-the profits from the non-participating policies being first applied in or towards the

Proviso.

Section 15 replaced. Investments.

payment of such dividends; and after such guarantee fund shall have been redeemed, the whole of the divisible profits of the Company shall belong exclusively to the policyholders in the participating branch, and shall be thenceforth divided among them in such proportion and at such times as the directors shall appoint: Provided that the redemption of the guarantee fund shall not be effected until the full deposit required by The Insurance Act shall have been made."

3. Section fifteen of the said Act of incorporation is hereby repealed and the following substituted therefor :

"15. It shall be lawful for the Company to invest its funds in or on the debentures, bonds or stocks or other securities of the Dominion of Canada or of any province of Canada or the securities of any municipal or school corporation in Canada, or the security of the stock, bonds or debentures of any incorporated building society, loan or investment company, water-works company, gas company, street railway company, electric light or power company, electric railway or street railway company, telegraph company, incorporated in Canada, or of bank stock, or on the security of real estate or mortgage security thereon, or on the security of leaseholds for a term or terms of years or other estate or interest in real property or mortgage security thereon in any province of Canada or in or on policies issued by the Company, or by other companies, or in the purchase of ground rents and in or upon the stock, bonds or debentures of the United States or of any state thereof, or of any municipality in the United Kingdom or in the United States or any state thereof, or in, or on mortgages on real estate therein, (but the amount so invested in the United States shall not at any time exceed the reserve upon all outstanding policies in force in the United States, and the amount so invested in the United Kingdom shall not at any time exceed the reserve upon all outstanding policies in force in the United Kingdom, and such reserve in each case shall be calculated upon the basis prescribed by The Insurance Act), and to change and re-invest the same occasion may from time to time require; and to take, receive, and hold all or any of such securities in the corporate name of the Company, or in the name of trustees for the Company appointed by the directors, whether for funds invested by being advanced or paid in the purchase of such securities or loaned by the Company on the security of the said debentures, bonds, stocks, mortgages or other securities as aforesaid; such loans to be on such terms and conditions and in such manner and at such times and for such sums, and in such sums of repayment, whether of principal or interest, or principal and interest together and at such interest and return as the board of directors may from time to time determine and direct, and taken either absolutely or conditionally or as collateral security, or taken in satisfaction of debts due to the

as

Company, or judgments recovered against any person or corporation in its behalf, or in security for the payment of the same or of any part thereof: Provided that the Company may Additional take any additional security of any nature to further secure securities. the repayment of any liability to the Company or to further secure the sufficiency of any of the securities upon which the Company is above authorized to lend any of its funds."

OTTAWA: Printed by SAMUEL EDWARD DAWSON, Law Printer to the Queen's most Excellent Majesty.