CHAPTER XX.

LIENS FOR SALARIES AND WAGES.

In all assignments of property, made by any person to trustees or assignees, on account of the inability of the person, at the time of the assignment, to pay his debts, or in proceedings in insolvency, the wages of the miners, mechanics, salesmen, servants, clerks or laborers employed by such person, to the amount of one hundred dollars each, and for services rendered within sixty days previously, are preferred claims, and must be paid by such trustees or assignees before any other creditor or creditors of the assignor.

In case of the death of any employer, the wages of each miner, mechanic, salesman, clerk, servant and laborer, for services rendered within the sixty days next preceding the death of the employer, not exceeding one hundred dollars, rank in priority next after the funeral expenses, expenses of the last sickness, the charges, and expenses of administering upon the estate, and the allowance to the widow and infant children, and must be paid before other claims against the estate of the deceased person.

In cases of executions, attachments, and writs of a similar nature, issued against any person, except for claims for labor done, any miners, mechanics, salesmen, servants, clerks and laborers, who have claims against the defendant for labor done, may give notice of their claims and the amount thereof, sworn to by the person making the claim, to the creditor and the officer executing either of such writs, at any time before the actual sale of the property levied upon; and unless such claim is disputed by the debtor or a creditor, such officer must pay to such person, out of the proceeds of the sale, the amount each is entitled to receive for such services. rendered within the sixty days next preceding the levy of the writ, not exceeding one hundred dollars. If any or all of the claims so presented, and claiming preference, are disputed by either the debtor or a creditor, the person presenting the same must commence an action within ten days for the recovery thereof, and must prose

cute his action with due diligence, or be forever barred from any claim of priority of payment thereof; and the officer shall retain possession of so much of the proceeds of the sale as may be necessary to satisfy such claim, until the determination of such action; and in case judgment be had for the claim, or any part thereof, carrying costs, the costs taxable therein shall likewise be a preferred claim, with the same rank as the original claim.

CHAPTER XXI.

ARBITRATIONS.

Persons capable of contracting may submit to arbitration any controversy which might be the subject of a civil action between them, except a question of title to real property in fee or for life. The submission to arbitration must be in writing, and may be made to one or more persons.

CHAPTER XXII.

HOMESTEADS.

The homestead consists of the dwelling-house in which the claimant resides, and the land on which the same is situated, selected as hereinafter provided. It may be used as a place of business, but actual residence is essential.

Homesteads may be selected and claimed:

1. Not exceeding five thousand dollars in value, by any head of a family.

2. Not exceeding one thousand dollars in value by any other person.

The phrase "head of a family," includes within its meaning: 1. The husband, when the claimant is a married person.

2. Every person who has residing on the premises with him or her, and under his or her care and maintenance, either:

(1.) His or her minor child, or the minor child of his or her deceased wife or husband.

(2.) A minor brother or sister, or the minor child of a deceased brother or sister.

(3.) A father, mother, grandfather, or grandmother.

(4.) The father, mother, grandfather, or grandmother of a deceased husband or wife.

(5.) An unmarried sister, or any other of the relatives mentioned who have attained the age of majority, and are unable to support themselves.

The declaration of homestead must be executed, acknowledged, and duly recorded in the office of the recorder of the county in which the land is situated. From and after the time the declaration is filed for record, the premises therein described constitute a homestead.

The homestead is exempt from execution or forced sale, except in satisfaction of judgments obtained:

1. Before the declaration of homestead was filed for record, and which constitute liens upon the premises.

2. Qn debts secured by mechanics', laborers' or vendors' liens upon the premises.

3. On debts secured by mortgages upon the premises, executed and acknowledged by the husband and wife, or an unmarried claimant.

4. On debts secured by mortgages upon the premises, executed and recorded before the declaration of homestead was filed for record.

The homestead of a married person cannot be conveyed or incumbered, unless the instrument is executed and acknowledged by both husband and wife.

If the homestead exceed in value the amount of the homestead exemption, the excess may be reached on execution, but the property must first be appraised, upon application to the county judge.

The homestead may be abandoned by filing in the office where the declaration is filed a declaration of abandonment, duly executed.

CHAPTER XXIII.

CORPORATIONS.

Corporations are either public or private. Public corporations are formed or organized for the government of a portion of the State; all other corporations are private.

Private corporations may be formed by the voluntary association of any five or more persons. A majority of such persons must be residents of this State. They may be formed for any purpose for which individuals may lawfully associate themselves.

The owners of shares in a corporation which has a capital stock are called stockholders. If a corporation has no capital stock, the corporators and their successors are called members.

Each stockholder of a corporation is individually and personally liable for such proportion of its debts and liabilities as the amount of stock or shares owned by him bears to the whole of the subscribed capital stock or shares of the corporation, and for a like proportion only of each debt or claim against the corporation. Any creditor of the corporation may institute joint or several actions against any of its stockholders, for the proportion of his claim payable by each, and in such action the Court must ascertain the proportion of the claim or debt for which each defendant is liable, and a several judgment must be rendered against each, in conformity therewith. If any stockholder pays his proportion of any debt

due from the corporation, incurred while he was such stockholder, he is relieved from any further personal liability for such debt; and if an action has been brought against him upon such debt, it shall be dismissed as to him upon his paying the costs, or such proportion thereof as may be properly chargeable against him. The liability of each stockholder is determined by the amount of stock or shares owned by him at the time the debt or liability was incurred; and such liability is not released by any subsequent transfer of stock. The term "stockholder" shall apply not only to such persons as appear by the books of the corporation to be such, but also to every equitable owner of stock, although the same appear on the books in the name of another, and also to every person who has advanced the installments or purchase-money of stock in the name of a minor, so long as the latter remains a minor; and also to every guardian or other trustee who voluntarily invests any trust funds in the stock. Trust funds in the hands of a guardian or trustee shall not be liable under the provisions of this section by reason of any such investment, nor shall the person for whose benefit the investment is made be responsible in respect to the stock, until he becomes competent and able to control the same; but the responsibility in the guardian or trustee making the investment shall continue until that period. Stock held as collateral security, or by a trustee, or in any other representative capacity, does not make the holder thereof a stockholder within the meaning of this section, except in the cases above mentioned, so as to charge him with any proportion of the debts or liabilities of the corporation; but the pledgor, or person, or estate represented, is to be deemed the stockholder as respects such liability. In corporations having no capital stock, each member is individually and personally liable for his proportion of its debts and liabilities, and similar actions may be brought against him, either alone or jointly with other members, to enforce such liability, as may be brought against one or more stockholders, and similar judgments may be rendered.