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will be found fully collected.

§538. PENALTY FOR WILFULLY OR MALICIOUSLY
INJURING TELEGRAPH OR TELEPHONE PROPERTY.

Any person who wilfully and maliciously does any injury to
any telegraph or telephone property, mentioned in the pre-
ceding section, is liable to the corporation for one hundred

364



rpi^. VII.] DAMAGES TO CABLE. §§539,540

times the amount of actual damages sustained thereby, to be
recovered in any court of competent jurisdiction.

History: Enacted March 20, 1905, Stats, and Amdt.s. 190.5, p.
492; see introductory note to this title.

As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.

Criminal prosecution for malicious injury to telegraph lines,
etc. See Kerr's Cyc. Pen. C. § 591 and note where the authori-
ties will be found fully collected.

§539. CONDITIONS ON WHICH DAMAGES TO SUBA-
QUEOUS CABLE MAY BE RECOVEKED. No telegraph or
telephone corporation can recover damages for the breaking
or injuring of any subaqueous telegraph or telephone cable,
unless such corporation has previously erected on either bank
of the waters under which the cable is placed, a monument,
indicating the place where the cable lies, and publishes for
one month in some newspaper most likely to give notice to
navigators, a notice giving a description and the purpose of
the monuments, and the general course, landings, and termini
of the cable.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
492; see introductory note to this title.

§540. MAY DISPOSE OF CERTAIN RIGHTS. Any tele-
graph or telepl^one corporation may at any time, with the
consent of the persons holding two-thirds of the issued stock
of the corporation, sell, lease, assign, transfer, or convey any
rights, privileges, franchise, or property of the corpora-
tion, except its corporate franchise.

History: Enacted March 20, 1905, Stats, and Amdts. 1905, p.
492; see introductory note to this title.



865



§ 548 CIVIL CODE. [Div.I,Pt.IV.

TITLE VIII.

WATER AND CANAL CORPORATIONS.

§ 548. Corporation may obtain contract to supplj- city or town.
§ 549. Must furnish water for family use upon demand. Rules

may be prescribed.
§550. Right to use streets, ways, alloys, and roads [repealed].
§ 551. Construction of canal, etc. Construction and repair of

bridges. Supervisors may constrvict bridges and

recover therefor.
§ 552. Right of purchasers to use water for irrigating.

§548. CORPOKATION MAY OBTAIN COXTRACT TO
SUPPLY CITY OR TOWX. No corporation formed to supply
any city, city and county, or town with water must do so
unless previously authorized by an ordinance of the authori-
ties thereof, or unless it is done in conformity with a con-
tract entered into between the city, city and countJ^ or town
and the corporation.

[Reiriilatiiif; rates — Term of g:rant.] Contracts so made are
valid and binding in law, but do not take from the city, city
and county, or town the right to regulate the rates for water,
nor must any exclusive right be granted. No contract or
grant must be made for a term exceeding fifty years.

History: Enacted March 21, 1872, founded upon § 3 Act May
3, 1852, Stats. 1852, p. 171.

See Kerr's Cyc. C. C. for 16 pars, annotation.
As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.

WATER COMPANIES IN GENERAL.

Acquisition of water supply by right of eminent domain. —
See 58 L. 240.

As appurtenances. — See 15 L. 653.

Compelling property owner to pay for water furnished to
former occupant of premises. — See 1 L. N. S. 771.

Compulsory service. — See 15 L. 322.

Consumer's right to maintain suit to compel water company
to furnish water at rates stipulated in contract with municipal-
ity.— See 1 L. N. S, 956.

366



II



Tit. VIII.] WATER COMPANIES. § 548

Effect of limitation of municipal indebtedness upon the
acquisition of water supply. — See 59 L. 604.

Establishment and regulation of municipal water supply. —
See 61 L. 34-119.

Exclusiveness of right of water company. — See 9 L. 195.

Injunction by municipality against water company for main-
taining nusiance. — See 42 L. 821.

Laying water mains at expense of abutting property. — See
3 L. N. S. 817.

Legislative regulation of rates. — See 33 L. 181.

Liability — Of landlord — As to water pipes and water supply
on leased premises. — See 23 L. 160.

Same — Same — For injuries caused by water brought upon
premises. — See 7 A. C. 1015.

Same — Same — Tenant for injuries caused by water brought
upon premises. — See 10 A. C. 257.

Same — Of municipality — For change of street grade, in
absence of statute allowing compensation, but under constitu-
tional provisions against "damaging" property. — See 10 A. C.
849.

Same — Same — ^For failure to organize and regulate water
works. — See 11 L. 729.

Same — Same — To water company for interfering with pipe in
making public improvements. — See 6 A. C. 388; 8 A. C. 1021.

Liability — For loss by Are due to the lack of adequate water
supply.— See 23 L. 147.

Same — In tort for loss to one sustaining no contract relation
with it, by its failure to comply with its contract with the
municipality. — See 6 L. N. S. 1171.

Same — Under contract with municipality for fire loss sus-
tained by private citizens. — See 2 A. C. 579; 9 A. C. 1070.

Mandamus to compel water company to supply individual
applicant with water at reasonable rates. — See 1 L. N. S. 963.

Municipal regulation of water pipes in highway. — See 10 A.
C. 1098, 1100.

Pipe-line as additional servitude upon highway. — See 9 A. C.
1030, 1033; 17 L. 480.

Privilege of laying water pipes and mains in streets as a
contract within provision against impairing obligation of con-
tract. — See 50 L. 145.

Property of company as real estate for purposes of taxation. —
See 15 L. 299.

Right of private consumer to enforce contract of munici-
pality with water company. — See 5 A. C. 507.

Right of water company as against municipality interfering
with pipes in making public improvements. — See 6 A. C. 390.

Right to stop supply of water for default of payment. — See
14 L. 669.

367



§ 549 CIVIL CODE. [Div.I.Pt.IV.

Statutory protection for water used for supplying munici-
pality.— See 41 L. 177.

Taxation of water company belonging to municipality. — See
1 L. N. S. 766.

Validity of statute holding property owner liable for water
furnished tenant. — ^See 6 L. N. S. 198.

Validity of statute, ordinance or regulation making owner
of premises liable for water furnished to tenant or former
owner.— See 7 A. C. 1017.

Water-rates — As taxes. — See 21 L. 519.

Same — As taxes or rates w^itliin meaning of covenant in lease.
—See 8 A. C. 111.

Same — Grant of franchise upon condition as to price at which
water shall be supplied not exceeding a specific rate, valid. —
See 5 A. C. 504; 8 A. C. 1130.

What are dwellings within the meaning of the water com-
pany's obligation to supply water at specified rates for dwelling.
—See 11 L. N. S. 613.

What may be covered by contract of water supply. — See 15 L.
268.



§549. MUST FIKMSH WATER FOR FA3IIL\ USE UPON
DEMAND. RULES 3IAY BE PRESCRIBED. All corpora-
tions formed to supply water to cities or towns must furnish
pure fresh water to the inhabitants thereof, for family uses,
so long as the supply permits, at reasonable rates and with-
out distinction of persons, upon proper demand therefor;
and must furnish water to the extent of their means, in case
of fire or other great necessity, free of charge. The board
of supervisors, or the proper city or town authorities, may
prescribe proper rules relating to the delivery of water, not
inconsistent with the laws of the state.

History: Enacted March 21, 1872, founded upon § 4 Act April
22, 1858, Stats. 1858, p. 219; amended March 30, 1874, Code Amdts.
1873-4, p. 216; amended by Code Commission, Act March 16,
1901, Stats, and Amdts. 1900-1, p. 375, held unconstitutional,
see history, § 4 ante; amendment re-enacted March 21, 1905,
Stats, and Amdts. 1905, p. 580.

See Kerr's Cyc. C. C. for 117 pars, annotation.

52 C. 13-2, 134 (cited in discussion), 141 (construed and
applied); 152 C. 579, 588, 93 P. 490, 491 (persons to whose use
water is appropriated or dedicated are vested with a right to
have the supply continued).

368



I



Tit VITI.] CONSTRUCTION OF CANAL. §§550,551

As to assumption of public duty by water company, see 63

A. S. 844.

As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.

As to right of irrigation company to refuse to supply and
shut off water, see Kerr's Cyc. C. C. § 552 and note.

As to right of water company to enforce rules, see 63 A.
S. 844.

§ 550. RIGHT TO USE STREETS, WAYS, ALLEYS, AND
ROADS (repealed).

History: Enacted March 21, 1872; repealed by Code Commis-
sion, Act March 16, 1901, Stats, and Amdts. 1900-1, p. 375, held
unconstitutional, see history, § 4 ante; re-repealed March 21,
1905, Stats, and Amdts. 1905, p. 580.

See Kerr's Cyc. C. C. for 12 pars, annotation.

152 C. 579, 588, 93 P. 490, 491 (persons to whose use water
is appropriated or dedicated are vested with a right to have
the supply continued).

As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.

§55L CONSTRUCTION OF CANAL, ETC. CONSTRUC-
TION AND REPAIR OF BRIDGES. SUPERVISORS MAY
CONSTRUCT BRIDGES AND RECOVER THEREFOR. No

canal, flume, or other appliance for the conducting of water
must be so laid, constructed, or maintained as to obstruct
any public highway; and every person or corporation owning,
maintaining, operating, or using any such canal, flume, or
appliance, crossing or running along any public highway,
must construct, maintain, and keep in repair such bridges
across the same as may be necessary to the safe and conven-
ient use of such highway by the public; and on failure so to
do, the board of supervisors of the county, after seven days'
notice in writing to said person or corporation, may construct
or repair such bridge or bridges, and recover of such person
or corporation the amount of the expenditure made in so
doing. ,

History: Enacted March 21, 1872, founded upon § 4 Act May
14, 1862, Stats. 1862, p. 541; amended March 21, 1905, Stats, and
Amdts. 1905, pp. 580-581.

369



§ 552 CIVIL CODE. [Div.I.Pt.IV.

See Kerr's Cyc. C. C. for 10 pars, annotation.

68 C. 359, 360, 9 P. 309 (has not been repealed by § 2737
Pol. C); 98 C. 179, 183, 32 P. 943 (cited in discussion); 152 C.
579, 588, 93 P. 490, 491 (persons to whose use water is appro-
priated or dedicated are vested with a right to have the
supply continued).

As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.



§552. KK^HT OF rURCHASERS TO USE WATER FOR
IRRIGATING. Whenever any corporation, organized under
the laws of this state, furnishes water to irrigate lands which
said corporation has sold, the right to the flow and use of
said water is and shall remain a perpetual easement to the
land so sold, at such rates and terms as may be established
by said corporation in pursuance of law.

[Person funiisbin^ water entitled to continuance, when.]
And whenever any person who is cultivating land on the
line and within the flow of any ditch owned by such corpora-
tion, has been furnished water by it, with which to irrigate
his land, such person shall be entitled to the continued use
of said water, upon the same terms as those who have pur-
chased their land of the corporation.

History: Enacted April 3, 1876, Code Amdts. 1875-6, p. 77.
In effect April 3, 1876.

See Kerr's Cyc. C. C. for 29 pars, annotation.

56 C. 431, 440, 441 (construed and applied); 90 C. 27a, 286, 27
P. 216, 219 (construed and applied with §801); 112 C. 426,
434, 435, 436, 44 P. 720 (construed and applied); 129 C. 437, 448, 62
P. 87 (construed); 130 C. 309, 313, 62 P. 562, 1058 (cited as to
duty of irrigation company to supply water to previous cus-
tomers); 2 C. A. 404, 413, 84 P. 342 (what conditions must exist
before companies can be compelled to supply water); 152 C. 579,
588, 93 P. 490, 491 (persons to whose use water is appropriated or
dedicated are vested with a right to have the supply con-
tinued); 152 C. 596, 597, 93 P. 498 (right to receive water is
appurtenant to land when); 86 F. 975, 976 (no land is appur-
tenant to water rights, when); 97 F. 394, 396, 398 (applied
where appellee had acquired a public use to water necessary
to irrigate his lands).

As to contract as to rates, see Kerr's Cyc. C. C. § 552
note pars. 19-22.

370



I



Tit. VIII.] PURCHASE AND USE OF WATER. | 552

As to duty of company to furnish water for irrigation, see
81 A. S. 488, 492.

As to entire diversion for irrigation purposes, see 98 A.
D. 543.

As to many miscellaneous inatters as to corporations gen-
erally, see note § 283, ante.

As to irrigation, see 17 Encyc. L. 485.

As to liability of company for failure to supply, see 81
A. S. 488-492.

As to mandamus to compel furnishing of water for irrigation,
see 81 A. S. 488.

As to necessity of written contract, see Kerr's Cyc. C. C.
§ 552, note pars. 13, 14.

As to right of riparian proprietor to divert for irrigation
purposes, see 98 A. D. 543.

As to right to contract as to rates, see Kerr's Cyc. C. C.
§ 552, note pars. 19-22.

Parties entitled to use, see Kerr's Cyc. C. C. § 552, note
par. 16 this note.

Purchaser. — .See Kerr's Cyc. C. C. § 552, note pars. 22, 25 this
note.

As to what is reasonable use for irrigation purposes, see
98 A. D. 543.



371



§§ 557, 558 CIVIL CODE. [Div.I.Pt.IV.

TITLE IX.
HOMESTEAD CORPORATIONS.

§ 557. Time of corporate existence.

§ 558. By-laws must specify time for and amount of payment
of instalments, and penalty for failure to pay. By-
laws to be furnislied to any member on demand.

§ 559. Advertisement and sale of delinquent and forfeited
shares.

§ 560. May borrow and loan funds, how, and for what time.

§ 561. Minor children, wards, and married women may own
stock.

§ 562. Forfeiture for speculating in or owning lands exceeding
two hundred thousand dollars.

§ 563. When corporation is terminated, and how.

§ 564. Payment of premiums.

§ 565. Annual report to be published.

§ 566. Publication in certain cases.

§ 557. TIME OF t OKPORATE EXISTENCE. Corporations
organized for the purpose of acquiring lands in large tracts,
paying off encumbrances thereon, improving and subdividing
them into homestead lots or parcels, and distributing them
among the shareholders, and for the accumulation of a fund
for such purposes, are known as homestead corporations, and
must not have a corporate existence for a longer period than
ten years.

History: Enacted March 21, 1872, founded upon §§ 1, 3, Act
May 20, 1861, Stats. 1861, p. 567; § 1 Act March 30, 1868, Stats.
1867-8, p. 539.

§558. BY-LAWS MUST SPECIFY TIME FOR AND
AMOUNT OF PAYMENT OF INSTALMENTS, AND PENALTY
FOR FAILURE TO PAY. BY-LAWS TO BE FURNISHED
TO ANY MEMBER ON DEMAND. Such corporations must
specify in their by-laws the time when the instalments of the
capital stock are payable, the amount thereof, and the fines,
penalties, or forfeitures incurred in case of default. A

372



Tit. IX.] DELINQUENT, ETC., SHARES. §§ 559^ 56O

printed copy of the articles of incorporation and by-laws
must be furnished to any shareholder on demand.
History: Enacted March 21, 1872.

§559. ADVERTISEMENT AND SALE OF DELINQUENT
AND FORFEITED SHARES. Whenever any shares of stock
are declared forfeited by resolution of the board of directors,
the directors may advertise the same for sale, giving the
name of the subscriber and the number of shares, by notice
of not less than three weeks, published at least once a week
in a newspaper of general circulation in the city, town, or
county where the principal place of business of such corpo-
ration is located. Such sale must be made at auction, under
the direction of the secretary of the company. The corpora-
tion may be a bidder, and the shares must be disposed of to
the highest bidder for cash. No defect, informality, or irreg-
ularity in the proceedings respecting the sale invalidates it,
if notice is given as herein provided. After the sale is made
the secretary must, on receipt of the purchase money, trans-
fer to the purchaser the shares sold, and after deducting from
the proceeds of such sale all instalments then due, and all
expenses and charges of sale, must hold the residue subject
to the order of the delinquent subscriber.

History: Enacted March 21, 1872, founded upon § 4 Act May
20, 1861, Stats. 18fil, p. 268, as amended April 4, 1864, Stats.
1863-4, p. 492, as amended by § 2 Act March 30, 1868, Stats.
1867-8, p. 540.

§560. MAY BORROW AND LOAN FUNDS, HOW, AND
FOR WHAT TIME. Homestead corporations may borrow
money for the purposes of the corporation, not exceeding at
any one time one-fourth of the aggregate amount of the
shares or parts of shares actually paid in, and the income
thereof; no greater rate of interest must be paid therefor
than twelve per cent per annum. For the purpose of complet-
ing the purchase of lands intended to be divided and distrib-
uted, they may borrow on the security of their shares on the
land thus purchased, or that owned by the corporation at the

373



§§ 561, 562 CIVIL CODE. [Div.I.Pt.IV.

time of procuring the loan, any sum of money which, together
with the interest contracted to become due thereon, will not
exceed ninety per cent of the unpaid amount subscribed by
the shareholders; but no loan must be made to the corpora-
tion for a term extending beyond that of its existence.

History: Enacted March 21, 1872, founded upon § 5 Act May
20, 1861, Stats. 1861, p. 569, as amended Act March 29, 1870,
Stats. 1869-70, p. 474.

See Kerr's Cyc. C. C. for 5 pars, annotation.

As to many miscellaneous matters as to corporations gen-
erally, see note § 283, ante.

§561. MI\<)1{ nilLDKEX, WAKDS, A>D MARRIED
>y()ME>' MAY ()»■>■ STOCK. Such shares of stock in home-
stead cor])orations as may be acquired by children, the cost
of which, and the deposits and assessments on which are paid
from the personal earnings of the children, or with gifts
from persons other than their male parents, may be taken
and held for them by their parents or guardians. Married
woiMon may hold such shares as they acquire with their per-
sonal earninjjs, or those of their children, voluntarily bestowed
therefor, or from property bequeathed or given to them by
persons other than their husbands.

Hi.«itory: Enacted March 21, 1872, founded upon § 6 Act May
20, 1861, Stats. 1861, p. 567.

§562. FORFEITIRE FOR SPECILATING I> OR OWN-
ING LANDS EXCEEDING! TWO HUNDRED THOUSAND
DOLLARS. Homestead corporations must not purchase and
sell, or otherwise acquire and dispose of real property, or any
interest therein, or any personal property, for the sole pur-
pose of speculation or profit. Nor must any such corporation
at any one time own or hold, in trust or otherwise, for its
purposes, real property, or any interest therein, which in
the aggregate exceeds in cash value the sum of two hundred
thousand dollars.

[Penalty for violation.] For any violation of the provis-
ions of this section, corporations forfeit their corporate rights

374



I



rpj^jX] TERMINATION— PREMIUMS. §§563,564

and powers. On the application of any citizen to a court of
competent jurisdiction such forfeiture may be adjudged, and
the judgment carries with it costs of the proceedings.

History: Enacted March 21, 1872.

§563. >VHEN COKPORATIOX IS TERMINATED, AND
HOW. Except for the purpose of winding up and settling
its affairs, every homestead corporation must terminate at
the expiration of the time fixed for its existence in the arti-
cles of incorporation, or when dissolved as provided in this
part. No dividend of funds must be made on termination of
its corporate existence, until its debts and liabilities are paid;
and upon the final settlement of the affairs of the corpora-,
tion, or upon the termination of its corporate existence, the
directors, in such manner as they may determine, must divide
its property among- its shareholders in proportion to their
respective interests, or, upon the application of a majority
in interest of the stockholders, must sell and dispose of any
or all of the real estate of the corporation upon such terms
as may be most conducive to the interests of all the stock-
holders, and must convey the same to the purchaser, and dis-
tribute the proceeds among the shareholders, or may at any
time when best for the interests of all the shareholders,
cause the lands of the corporation to be subdivided into lots
and distributed, by sale for premiums, at auction or other-
wise, among the shareholders.

HUtorr: Enacted March 21, 1872, founded upon § 7 Act May
20, 1861. Stats. 1861, p. 569; § 1 Act March 29, 1870, Stats. 1869 - 0.
p. 474.

§ 564. PAYMENT OF PREMIUMS. Such premiums on lots
may be* made payable at the time they are bid off, and, if not
so paid on any lot of land, the directors may immediately offer
the same for sale again. If made payable at a future day.
and any shareholder fails to pay his bid on the day the
same is made due and payable, the directors may advertise
and sell the shares of stock representing the lots of land on
which the premiums remain unpaid, in the manner provided

375



§§ 565, 566 CIVIL CODE. [Div.T,Pt.IV.

in the by-laws for the sale of shares on account of delinquent
instalments and premiums.

History: Enacted March 21, 1872, founded upon § 1 Act March
29, 1870, Stats. 1869-70, p. 474.

§565. ANNUAL KEPOKT TO BE PUBLISHED. The act-
ual financial condition of all homestead corporations must,
by the directors thereof, be published annually in the [a]
newspaper published at the principal place of business of the
corporation, for four weeks, if published in a weekly, and
two weeks, if published in a daily. The statement must be
made up to the end of each year, and must be verified by the
oath of the president and secretary, showing the items of
property and liabilities.

History: Enacted March 21, 1872, founded upon § 8 Act May
20, 1861, Stats. 1861. p. 569.

§566. PUBLICATION IN CERTAIN CASES. In any case
in which a publication is required, and no newspaper is pub-
lished at the principal place of business, the publication may
be made in a paper published in an adjoining county.
History: Eaacted March 21, 1872.



376



d



Tit. X.] SAVINGS AND LOAN. § 571

TITLE X.
SAVINGS AND LOAN CORPORATIONS.

§ 571. May loan money, on what terms, how, and to whom, and

how long.
§ 572. Capital stock, and rights and privileges thereof.
§ 573. No dividends, except from surplus profits. To contract

no liability, except for deposits.
§ 574. Property which may be owned by corporation. What

may not hold, etc.
§ 575. Married women and minors may own stock in their own

right.
§ 576. May issue transferable certificates of deposit. Special

certificates.
§ 577. To provide a reserve fiind for the payment of losses.
§ 578. Prohibition on director and officer, and what vacates

office. •

§ 579. Definition of phrase "create debts."

§ 580. Banks, amount of capital stock required [repealed].
§ 581. Restrictions on savings banks.
§ 582. True names of persons engaged in banking business must

be shown.
§ 583. Dividends. Surplus funds.

§ 583a. Capital actually paid up must be published.
§ 583b. Biennial report to bank commissioners of unclaimed

deposits.

§ 571. MAT LOAN MONET, ON WHAT TERMS, HOW, AND
TO WHOM, AND HOW LONG. Corporations organized for
the purpose of accumulating and loaning the funds of their
members, stockholders, and depositors, may loan and invest
the funds thereof, receive deposits of money, loan, invest,
and collect the same, with interest, and may repay depositors
with or without interest. No such corporation must loan
money, except on adequate security on real or personal prop-
erty, and such loan must not be for a longer period than ten
years.

History: Enacted March 21, 1872, founded upon §§ 4, 5 Act
April 11, 1862, Stats. 1862, p. 199, as amended Act April 12,
1864, Stats. 1863-4, p. 158; amended March 15, 1901, Stats, and
Amdts. 1900-1, p. 295. In force March 15, 1901.

377



/



§§572,573 CIVIL CODE. [Div.I,Pt.IV.

See Kerr's Cyc. C. C. for 14 pars, annotation.

64 C. 117, 123, 28 P. 110, 112 (referred to); 97 C. 214,



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