tary thereof, stating the amount of damage or loss claimed, then the person or persons authorized by the by-laws of such company to adjust losses, shall proceed to ascertain the amount of such loss or damage and adjust the same. If there is a failure of the parties to agree upon the amount of such damage or loss the same shall be submitted to three (3) persons as a committee of reference, one of whom shall be selected by the claimant, one by the company, and the third by such two persons, who shall be sworn to a faithful and impartial investigation and award, and who shall have authority to examine witnesses and to determine all matters in dispute, and shall make their award in writing to the secretary of the company, and such award shall be final. The pay of the membership of such committee shall be two ($2.00) dollars per day for each day's service so rendered in the discharge of their duties, which shall be paid by the claimant unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company. [Id. § 11.]

SEC. 62. [Loss-Assessment.]-Whenever the amount of any loss shall have been ascertained which exceeds in amount the cash funds of the company, the secretary shall make an assessment upon all the property insured by the company. Provided, That any company may provide in its by-laws for making assessments at stated intervals only, and may also provide that assessments shall be made by the board of directors. [Id. § 12.]

SEC. 63. [Same-Notice.]-It shall be the duty of the secretary, whenever such assessment shall have been made, to immediately notify every person composing such company personally, or by a letter sent to his usual postoffice address, of the amount of such loss, and the sum due from him as his share thereof, and of the time, and to whom such payment is to be made; but such time shall not be less than twenty (20) nor more than forty (40) days, from the date of such notice. [Id. § 13.]

SEC. 64. [Same-Suits.]-Suits at law may be brought against any member of such company, who shall neglect or refuse to pay any assessment made upon him or her by the provisions of this act, and the directors or officers of any company so formed, who shall wilfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be liable in their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company by members thereof for losses sustained, if payment is withheld after such losses become due. [Id. § 14.]

SEC. 65. [Annual statement.]-It shall be the duty of the secretary to prepare an annual statement showing the condition of such company, and the business transacted the preceding year, and present the same at the annual meeting. [Id. § 15.]

SEC. 66. [Withdrawal of members-Surrender of policy.]-Any member of such company may withdraw therefrom by surrendering his policy for cancellation at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his or her share of all claims then existing against said company, and a cancellation fee not to exceed one dollar; Provided, That by the withdrawal of any such member, the number of members remaining in the company, shall not be reduced below twenty, or that the assets will not be reduced below twenty thousand dollars. Provided, further, That the company shall have power to cancel or terminate any policy, by giving the insured notice to that effect, and such cancellation of policy ends his or her membership in such company. [Id. § 16.]

SEC. 67. [Report to auditor-Certificate.]-It shall be the duty of the president or vice-president and secretary of every such company, on the first day of January each year, or within a month thereafter, to prepare under their own oath, and transmit to the auditor of public accounts, a statement of the condition of the company on the last day of the month preceeding in such form as the law may direct. If, upon examination, he is of the opinion that such company is doing business correctly, in accordance with the provisions of this act, he shall thereupon furnish the company a cer

tificate, which shall be deemed authority to continue business the ensuing year. For such examination and certificate the company shall pay one ($1.00) dollar, for agent's certificate of authority fifty cents (.50). Each company shall pay, at the time of organization, ten dollars ($10.00) to the auditor, all of which shall be paid into the state treasury and applied to the general fund. [Id. § 17.]

SEC. 68. [Unincorporated companies.]-Any mutual insurance company organized to insure against fire, lightning, or tornado, and now doing business in this state under the provisions of section forty (40) of chapter forty-three (43) of the Revised Statutes, may, with the written consent of two-thirds (3) of the members thereof, accept the provisions of this act, and shall thereupon be governed by its provisions. Before any such company shall be entitled to the benefits thereof, the directors, or a majority of them, shall file with the auditor of public accounts the declaration provided for in section two (2) of this act. [Id. § 18.]

SEC. 69. [Assessments-Limitation-Dividends.]-Such mutual insurance companies shall never make assessments upon their members, as provided in section twelve (12) of this act, until loss has first occurred, unless the directors by a twothird () vote order an assessment. They shall never make any dividends. [Id. § 19.]

CHAPTER 44.-INTEREST.

SECTION 1. [Rate.]—Any rate of interest which may be agreed upon, not exceed ing ten dollars per year upon one hundred dollars, shall be valid upon any loan or forbearance of money, goods, or things in action; which rate of interest so agreed upon. may be taken yearly, or for any shorter period, or in advance, if so expressly agreed. [1879, § 1, 113.]

SEC. 2. [Unagreed rates.]—Interest upon the loan or forbearance of money, goods, or things in action shall be at the rate of seven dollars per year upon one hundred dollars, unless a greater rate, not exceeding ten per cent. per annum, be contracted for by the parties.

SEC. 3. [Judgments-Decrees.]-Interest on all decrees and judgments for the payment of money shall be from the date of the rendition thereof at the rate of seven dollars upon each one hundred dollars annually until the same shall be paid; Provided, That if said judgment or decree shall be founded upon any contract, either verbal or written, by the terms of which a greater rate of interest, not exceeding the amount allowed by law, than seven per centum shall have been agreed upon, the rate of interest upon such judgment or decree shall be the same as provided for by the terms of the contract upon which the same was founded.

SEC. 4. [Other cases.]—On money due on any instrument in writing, or on settlement of the account from the day the balance shall be agreed upon, on money received to the use of another, and retained without the owner's consent, express or implied, from the receipt thereof, and on money loaned or due, and withheld by unreasonable delay of payment, interest shall be allowed at the rate of seven per cent. per anUnsettled accounts between parties shall hear interest after six months from the date of the last item thereof.

num.

SEC. 5. [Usury-Consequences-Agents.]-If a greater rate of interest than is herein before allowed shall be contracted for or received or reserved, the contract

CHAP. 44. "An act to amend chapter 34, General Statutes (being chapter XXVIII of Revised Statutes of 1866), entitled 'Interest "" Passed and took effect June 1, 1879.

SECS. 1-4. Computation. 4 Neb. 193. 7 Id. 83. Interest defined. 11 Neb. 72 On accounts. 9 Neb. 112. 15 "d. 327 16 Id. 58. On judgmente 6 Neb. 363. 15 Id. 327 Partnership accounts. 10 Neb. 97. Rate expressed in contract governs after matury 15 Neb. 260. 16 Id. 14. 17 Id. 494. See also 13 Neb. 320. 10 Id. 327. 8 Id. 61. 15 Id. 334, 579. 12 Id. 336. Funds in court. 18 Neb. 511. Interest in excess of ten per cent. forbidden, and where interest on note is the maximum rate allowed by law, and is represented by coupons providing that interest shall be allowed thereon after maturity at the maximum rate, no interest will be allowed on such coupons. 23 Neb. 539. 25 Id. 501. In absence of agreement, interest is seven per cent., and in action on executor's bond, interest on amoun due is to be computed at that rate. 24 Neb. 262. Interest after maturity rate changed. 27 Neb. 644. Unsettled accounts. 46 N. W. R. 826.

SEC. 5. General rules: 4 Neb 204. 6 Id 152. 10 Id. 543. Agreement to pay interest upon interest which may there after accrue cannot be enforced, although it does not render the principal contract usurious. 23 Neb. 536. Subsequent agreement to pay does not affect original contract. 4 Neb. 207. 9 Id. 455. Agreement to pay for services in procuring loan not known to lender, will not constitute. 3 Neb. 259. 11 Id. 491. Acts of agent, in taking, bind principal. 3 Neb. 250. 5 Id. 264. 6 Id. 154. 8Id. 426. 11 Id. 491. 12 Id. 189. 13 Id. 166, 575. 14 Id. 91. Borrower not estopped to show agency of lender. 15 Id. 338. If amount paid by borrower exceeds lawful rate, it devolves on plaintiff to show that value of services, etc., did not exceed it. 13 Neb. 556. Retaining commissions out of loan. 13 Neb. 575. Subsequent security for loan originally usurious is subject to plea and proof of usury. Id. 467. Sale of bond at less than face value is not. 14 Neb. 381. Nor of note and mortgage at a discount. 9 Neb. 15. Note given for $445.15, only $380 received, Held, Usurious. 14 Neb. 577. Where a party effected a loan for another of $4,000 for five years at 8 per cent. and took notes as a bonus for $350 without interest, due in less than one year from the date of the last, Held, That interest for five years would not be added to the notes taken for a bonus in order to taint the transaction with usury. 24 Neb. 817. Surety may plead. 7 Neb. 58. Defense not available against innocent purchaser. 10, 229. 10 10. 8. 11 Id. 4.2. 14 Id. 416. 15 Id. 631. 18 Id. 233, 546. 20 Id. 131. 28 Id. 377. 47 N. W. R. 913. Available as a defense in action on usurious contract: but where action is dismissed without prejudice before submission, defense of usury is not a set-off to be retained and tried by court. 12 Neb. 506. When paid cannot be recovered back by separate action. Id. Agreement for a loan made in N. Y., and money advanced there; note given in Nebraska, Held, That laws of N. Y. governed contract, and action in Nebraska would not lie. 1 Neb. 112. But note made in Nebraska, payable in N. Y., laws of Nebraska govern. 11 Neb. 493. 14 Neb. 93. Loans by building and saving association usurious. Neb. 177. Fee paid attorney for extension of time of payment, Held, Usurious, and applicable as payment pro tanto. 8 Neb. 52. Collection fee in note in addition to legal interest, void. 11 Id. 98, 399. Note with 24 per cent. interest payable after maturity, not usurious, and recovery may be had for legal interest. 14 Id. 434. Promise to pay interest on interest overdue is not usury. 16 Neb. 12. Answer setting up usury should state with whom contract was made, nature and amount. 16 Neb. 699. Where truth of plea of usury is pleaded or admitted, defendant is entitled to recovery of the costs of the action. 17 Neb. 309. Defense of usury available to maker against the assignee of usurious note and mortgage, transferred to him by written assignment on mortgage only, for value before maturity and without notice. 19 Neb. 643. Where borrower seeks relief from usurious contract in a court of equity he must tender the amount of principal and lawful interest due. 24 Neb. 82. Purchaser of equity cannot plead usury. 27 Neb. 401. Verbal contemporaneous agreement to pay unlawful rate. 47 N. W. B 13. Bonus to borrower's agent not usurious. 27 Neb. 877.

shall not, therefore, be void; but if in any action on such contract proof be made that illegal interest has been directly or indirectly contracted for, or taken, or reserved, the plaintiff shall only recover the principal, without interest, and the defendant shall recover costs; and if interest shall have been paid thereon, judgment shall be for the principal, deducting interest paid; Provided, The acts and dealings of an agent in loaning money shall bind the principal, and in all cases where there is illegal interest by the transaction of the agent, the principal will be held thereby as if he had done the same in person. Where the same person acts as agent for the borrower who obtains the money from the lender, he shall be deemed to be the agent of the loaner also.

SEC. 6. [Usurers-Witnesses.]-Any person charged with taking illegal interest may be required to answer touching the same, on oath, in any civil proceeding.

SEC. 7. [Tender.]-Relief to a complain [an]t in case of an usurious loan may be given without payment or tender by him of the principal sum.

SEC. 8. [Witnesses-Perjury.]-Any officer or agent of a person or a corporation, whether interested or not, may be summoned as witness in any action for usury against such person or corporation, and required to disclose all the facts of the case, but the testimony of such witness, or the answer of a party as required in section 6, shall not be used against such witness or party in any criminal prosecution for perjury.

SEC. 9. [Yearly rates.]-When in any law, or in any instrument in writing specifying a rate of interest, no period of time is mentioned for which such rate is to be calculated, it shall be deemed to be by the year.

SEC. 10. [Warrants-Bonds.]-All warrants issued by the proper authorities of the state, county, city, town, or other municipal subdivision less than a county, shall draw interest from and after the date of their presentation for payment at the rate of seven per cent. per annum, and all bonds issued by any county, city, township, precinct, or school district, shall not draw interest at a rate exceeding eight per cent. per

annum.

SEC. 11. [Educational lands-Delinquent taxes.]-The rate of interest fixed by this chapter shall not affect interest on purchase money of school, university, and agricultural college lands, or on lands delinquent or sold for the non-payment of

taxes.

SEO. 12. [Repealed original chapter.]

CHAPTER 45.-INTERNAL IMPROVEMENTS.

SECTION 1. [Bonds.]-That any county or city in the state of Nebraska is hereby authorized to issue bonds to aid in the construction of any railroad, or other work of internal improvement, to an amount to be determined by the county commissioners of such county or the city council of such city, not exceeding ten per centum of the assessed valuation of ali taxable property in said county or city; Provided, The county commissioners or city council shall first submit the question of the issuing of such bonds to a vote of the legal voters of said county or city, in the manner provided by chapter nine of the Revised Statutes of the state of Nebraska, for submitting to the people of a county the question of borrowing money. [1869, § 1, 92. G. S. 448.]

SEC. 2. [Proposition to vote.]-The proposition of the question must be accompanied by a provision to levy a tax annually for the payment of the interest on said bonds as it becomes due; Provided, That an additional amount shall be levied and collected to pay the principal of said bonds, when it shall become due; and, Provided further, That no tax shall be levied or collected to pay any of the principal of said bonds until after the year 1880. [Amended 1870, 15.]

SEC. 3. [Rate of interest.]-The proposition shall state the rate of interest such bond shall draw, and when the principal and interest shall be made payable.

SEC. 4. [Result of vote.]-If two-thirds of the votes cast at any such election for the purposes herein set forth be in favor of the propositions submitted, the county commissioners, in the case of a county, and the city council, in the case of a city, shall cause the proposition and result of the vote to be entered upon the records of said county or city, and a notice of its adoption to be published for two successive weeks in any newspaper in said county or city, if there be one, and shall thereupon issue said bonds, which shall be and continue a subsisting debt against such county or city, until they are paid and discharged. [Amended, taking effect Dec. 1, 1875. Laws 1875, 87.]

SEC. 5. [Taxes.]-It shall be the duty of the proper officers of such county or city to cause to be annually levied, collected, and paid to the holders of such bonds a special tax on all taxable property within said county or city, sufficient to pay the an. nual interest as the same becomes due; and when the principal of said bonds become due, such officers shall in like manner collect an additional amount sufficient to pay the same as it becomes due; Provided, That when any bonds have been heretofore issued, such officers shall not levy or collect any amount more than may be necessary to pay the amount annually falling due by the condition of such bonds until after the year 1880; Provided, That not more than 10 per centum of the principal of said bonds shall be collected in any one year, excepting where bonds have been heretofore issued, and by the conditions of such bonds are required to be paid in some other manner. [Amended 1870, 15.]

CHAP. 45. "An act to enable counties, cities, and precincts to borrow money on their bonds, or to issue bonds to aid in the construction or completion of works of internal improvement in this state, and to legalize bonds already issued for such purpose.' Passed and took effect February 15, 1869.

DECISIONS. Acts are constitutional. 2 Neb. 424. 10 Id. 279. Aid cannot be voted exceoding ten per cent. of the assessed valuation of county, and two-thirds vote necessary. 7 Neb. 313. But limitation does not prohibit precinct from voting aid in addition to that voted by county 6 Neb. 215. 18 Id. 131. Works of internal improve ment defined. 4 Neb. 156. Bridge over Platte river. 1d. 7 Id. 260. Bridge over Loup river is work of internal im. provement and bonds issued by city of Columbus in aid of its erection are valid. 23 Neb. 185. Water grist mill is. 14 Neb. 327. But a steam grist mill is not. 15 Id. 568. Court house is not. 10 Neb. 281. Bridges wholly within county are. 16 Neb. 509 (distinguishing 12 Id. 185). People cannot delegate to county commissioners the authority to determine which of two works shall be recipient of aid voted. 13 Neb. 132. 14 Id. 294. Proposition need not contain provision for levy of tax to pay principal, but only interest. Proposition containing provision for collecting tolls not objectionable. Proposition should contain provision to levy tax to meet liability incurred. Neb. 53, 235, And see 14 Neb. 324. Precinct bonds may be issued for. 6 Neb. 49. Mode of collection by tax; mandamus lies to compel levy. 6 Neb. 24. Mandamus to pay bonds for; petition should contain particular descrip tion of works. 9 Neb. 459. In ascertaining donations already made, unpaid interest should not be considered in making up aggregate which county is entitled to vote. 13 Neb. 130. Cities of second class may issue bonds under this net. 19 Neb. 237. Paving bonds and bonds for water works in cities of second class. 25 Neb. 502. See also 25 Neb. 512. Precinct bonds for bridges. 18 Neb. 362. County bonds a charge on after annexed territory. 47 N. W. R. 1121. Beet sugar factory not for toll is not. Id. 468.