the profits as the bylaws may determine, less all fines and other charges: Provided, that at no time shall more than one-half of the funds in the treasury of the association be applicable to the demands of withdrawing stockholders without the consent of the board of directors, and also that no stockholder shall be entitled to withdraw whose stock is held as security for a loan. Upon the death of a stockholder, his legal representatives shall be entitled to receive the full amount paid on his stock and legal interest thereon, after deducting all charges against said stock. No fines shall be charged to a deceased member's account from and after his decease, unless the legal representatives of such member assume the future payments on the stock. The authorized capital stock of such association may be increased by a two-thirds vote of the board of directors, a certified copy of a resolution of the board of directors authorizing such increase being filed with the secretary of state.

SEC. 6. The officers of the association shall hold stated meetings at which the moneys in the treasury shall be offered for loan in open meeting, and the stockholder who shall bid the highest premium for the preference or priority right of loan shall be entitled to receive a loan equal to the par value of the shares of stock held by him; Provided, that good and ample security shall be given by the borrower to secure the repayment of the loan. In case the borrower shall neglect to offer security that is approved by the board of directors within such time as the bylaws prescribe, such member may be charged with one month's interest upon the amount of the loan so bid for, and a fine not to exceed one (1) dollar per share, together with any expense incurred, and the money shall be resold at the next regular meeting. In case of non-payment of any instalment of dues, interest, premiums, fines, insurance, taxes or other sums due from the borrower to the association for the space of six (6) months after such delinquency occurs, the whole sum loaned, together with the unpaid premium bid therefor, and all interest, fines, insurance, taxes and dues on stock pledged for said loan, shall become due and payable and may be at once collected for the full period for which the same were contracted to be paid.

SEC. 7. Any borrower may voluntarily repay a loan at any time by the payment of the principal sum borrowed, together with the interest to the date of such repayment, and such per cent of premium per annum as may have been bid for the preference or priority right to such loan, together with any fines or other charges that may be due by such borrower at the time of the repayment, and in case the amount of premium bid for the priority right to such loan be deducted in advance, and the repayment thereof is made before the expiration of the eighth year after the organization of the association, there shall be refunded to such borrower one-eighth of the premium bid for every year of the said eight years unexpired, providing that when the stock is issued in separate series the time shall be computed from the date of issuing the shares of stock on which the loan was made, and when the series of stock has a less period than eight years to complete the full payment thereof, or a longer period than eight years from the date of said series to complete the full payment thereof, there shall be refunded only pro rata for the unexpired term of the series. But the bylaws of such association may prescribe different terms upon which loans may be repaid, and the voluntary repayment of loans can only be made in accordance with the bylaws of the association. Loans made in accordance with the provisions of this act shall become due and payable upon the date of the maturity of the stock of the borrowing member pledged as collateral security to such loan, but the payments made by the borrowing member upon the stock so pledged shall not be considered as payments upon the principal of the loan.

SEC. 8. Such associations may contract for and collect from their members the premiums or bonus bid by their stockholders for preference or priority right to loans in periodical instalments, and such premiums or bonus so paid in instalments shall not be deemed usurious, and shall be taken to be a payment as it falls due in contradistinction to a premium offered and paid in advance.

SEC. 9. Such associations shall have the right to impose fines upon their members

for the non-payment of dues, interest, premiums, taxes, insurance or other sums which may be due such associations at the times and in the manner provided for the payment of the same by their bylaws, which fines shall be a lien upon the stock of such defaulting member, or upon any other property or security held by the association and belonging to such member, and no fine, premium, bonus or premiums paid by members for preference or priority right to loans, fines or interest on such premiums shall be deemed a violation of any statute against the taking of usury, and they may be enforced and shall be collectible from the members of the associations in accordance with the provisions of its bylaws.

SEC. 10. Any association incorporated by or under the provisions of this act, or any one heretofore incorporated accepting of the provisions of the same, as hereinafter provided, is hereby authorized and empowered to purchase at any sheriff's or other judicial sale, or at any other sale, public or private, any real estate upon which such associations may have or hold any mortgage, judgment, lien or other incumbrance, or in which said association may have an interest; and the real estate so purchased, or any other that such association may hold, they shall have power to sell, convey, lease or mortgage at pleasure to any person or persons whatsoever, and all sales of real estate heretofore made by such association to any person or persons, are hereby confirmed and made valid.

SEC. 11. The associations may by proper bylaws provide for the retirement of unpledged shares of any series at any time by enforcing withdrawals of same, provided that the shares to be so retired shall be determined by lot, and that the holders of the same shall be paid the full value of their shares as determined by the last annual or semi-annual distribution of profits, less all fines and a proportionate part of any unadjusted loss.

SEC. 12. When each unpledged share of a given series reaches its par value, all payments of dues thereon shall cease, and the holder thereof shall be paid out of the funds of the association its par value with such rate of interest as shall be determined by the bylaws, from the time the board of directors have declared such shares to have matured until the time of payment. Provided, that at no time shall more than one-half (4) the receipts of the association be applicable to the payment of matured shares without the consent of the board of directors. The order of payment of matured shares shall be determined by the board of directors.

SEC. 13. Whenever any member shall be six (6) months in arrears for non-payment of dues upon unpledged shares the secretary of the association shall give him notice thereof in writing, with a statement of his arrearages, by mailing the same to him at the last post office address given by him to the association, and if he shall not pay the same at the second regular monthly meeting thereafter, the board of directors may at their option declare his shares forfeited, and at the time of such forfeiture the withdrawal value thereof shall be determined and stated, and the defaulting member shall be entitled to withdraw the same without interest within one (1) year, upon the same conditions as shall be required of withdrawing shareholders.

SEC. 14. Such association may borrow money for the purpose of making loans, paying withdrawals or refunding existing indebtedness, not exceeding, however, fifty (50) per cent of its then accumulated assets and as security for the same its board of directors may pledge or mortgage such portion of its mortgage loans or other assets as they may deem expedient. Any association having a surplus in its treasury for which there is no demand for loans, withdrawing shareholders, matured stock or other obligations, may loan the same to another similar association organized under the provisions of this act, or having accepted of the same as hereinafter provided, subject to the provisions of this section on the part of the borrowing associ ation. No association shall borrow or make loans authorized by this section except by a two-thirds vote of its board of directors, such vote to be recorded by ayes and nays in its regular minutes, and such association at any time when it shall have a

ciation upon real estate security on such terms and at such rates of interest, not in excess of twelve (12) per cent per annum, as its board of directors may determine. SEC. 15. Profits and losses shall be distributed at least annually to the shares then outstanding in proportion to their holding value, as distinguished from their withdrawing value. At each periodical distribution of profits, the board of directors may reserve and carry as undistributed profits, in the nature of a guaranty fund any sum from the net profits that in their discretion seems wise to be applied upon any future losses that may occur, which fund shall not be deemed a part of the full value of stock in liquidating, surrendering or withdrawing shares.

SEC. 16. No transfer of shares shall be binding upon the association until the same shall have been made upon its books; and the transferee thereof shall take the same charged with and shall be responsible for all the obligations, liabilities and conditions attaching thereto, or secured by said stock.

SEC. 17. Such association shall have power to adopt bylaws not inconsistent with the provisions of this act, defining the duties of officers and committees, times of meetings, mode of determining and declaring the withdrawal value of shares, and regulating all other matters pertaining to their business. Such associations may in their original bylaws confer authority on their board of directors to make amendments thereto.

SEC. 18. Any person of sound mind may become a member of such association by taking one or more shares therein, and having his name and post office address recorded upon the books of the association, and whenever he desires his post office address changed ho shall give written notice thereof to the secretary of the association, and in all matters requiring notice to be given to the members of such associations it shall be sufficient to mail such notice or a copy thereof, prepaid, and directed to the member to be notified at his last furnished post office address.

SEC. 19. The filing by a member of his application for withdrawal of stock held by him shall not sever his relation to the association as a stockholder, but such relation shall continue and he shall be subject to all the duties and obligations of a stockholder until the final payment to him by the association of the withdrawal value of his stock; and upon such payment his obligation and liability as a stockholder shall cease, as to the stock so withdrawn.

SEC. 20. All mortgages given to associations formed under this act for loans made or to be made, shall have priority over liens upon the mortgaged premises, and upon the buildings and improvements on such premises, which shall be filed subsequent to the recording of such mortgage in the office of the register of deeds of the county where such premises are situated.

SEC. 21. Any association shall have authority to consolidate with one or more corporations organized under this act or accepting of its provisions, upon such terms as may be agreed upon, when such consolidation shall be deemed advisable by the unanimous vote of the directors of each of the associations so consolidating, and to transfer to such consolidated corporation its entire assets, subject to the vested rights of its members.

SEC. 22. Such associations shall annually in January of each year make to the secretary of state a full report in writing of their affairs and financial condition, setting forth in detail their assets and liabilities as they appeared on the thirty-first (31st) day of December preceding. Such report shall be filed not later than the fifteenth day of January, and be verified by an officer of the association. Every association shall make any further reports which the secretary of state shall require, and in such form and as to such matters relating to the condition and conduct of the business of the association, as the secretary of state shall designate. And it shall be the duty of the public examiner to examine at least once in each year the financial condition of every such association and to make such report of said examination as he is now required to make regarding the examination of banks. Any wilful false swearing in making and verifying such reports by the officers of such association shall be deemed a perjury.

SEC. 23. If any such association shall fail to furnish to the secretary of state any report required by this act, at the time so required, it shall forfeit the sum of ten (10) dollars per day for every day such report shall be wilfully delayed or withheld. The secretary of state may maintain action in his name of office to recover such penalty, and the same shall be paid into the treasury of the state and applied to the expenses of his department.

SEC. 24. All associations organized under the provisions of this act shall be subject to visitation and examination at all times by the public examiner or his deputies, upon the application of three (3) or more members of said association. If it shall appear to said examiner, from the report of any such association, or from any examination by him, that any such association is violating the provisions of this set, or is conducting its business in an unsafe or unauthorized manner, he shall by an order under his hand and seal addressed to such association, direct the discontin-. uance of such illegal and unsafe practices; and whenever any association shall neglect or refuse to comply with such order, or make reports as required, he shall communicate such facts to the attorney general, who shall thereupon be authorized to institute such proceeding as the nature of the case may require.

SEC. 25. All mortgages, obligations, undertakings or conveyances of real property heretofore given to, or mortgages, obligations, undertakings or conveyances of real property, given by, and all contracts entered into with any building and loan association heretofore organized or doing business under the laws of the territory of Dakota or state of South Dakota before the passage of this act, such association having first accepted the provisions of this act, as hereinafter provided, are hereby made and declared to be good and valid to all intents and purposes, the same as though they had been made to associations organized under the provisions hereof. SEc. 26. No such association shall ever issue any preferred or non-contributing stock except fully paid debenture and deposit stock.

SEC. 27. Any building and loan association which has made and filed its articles of incorporation under the laws of the territory of Dakota, or state of South Dakota, and received its certificate of incorporation as by such laws provided, and whose principal place of business is within the state of South Dakota, shall be entitled to all the benefits of this act, and have all the rights, powers and privileges by this act conferred, upon accepting the same by a unanimous vote of its board of directors at a regular meeting thereof, and filing with the secretary of state the certificate of its president and secretary, showing such acceptance, and thereafter such association so accepting shall be deemed to have been duly incorporated at and from the time of the issuing of its certificate of incorporation under the laws of the territory of Dakota, or state of South Dakota, and a certified copy of such certificate of its president and secretary under the hand of the secretary of state, shall be prima facie evidence of such acceptance.

SEC. 28. Any corporation, company or association organized under the laws of any other state, territory or nation, and having for its title, or for a part thereof, the words "building association," "building and loan association," "savings association," ," "homestead association," or whose stock is payable by an accumulative fund in regular or stated periodical instalments, or whose business is done in a manner similar to that authorized to be done by the laws of this state relating to building and loan associations, shall transact no business of any kind within this state until it shall have complied with the requirements of this act.

SEC. 29. Every such corporation, company or association shall, before transacting any business within this state, make and file with the secretary of state, a statement verified by its president or secretary, showing the assets and liabilities of such corporation, company or association, its principal place of business, the names and addresses of its officers, with a copy of its articles of incorporation, and shall accompany the same with an application for permission to transact business within this state, and shall at the time of filing such report and application pay to the secretary

SEC. 30. Every corporation, company or association described in section 28 of this act and organized or incorporated without the state of South Dakota, before doing any business within this state, shall by an instrument in writing, duly executed, appoint the secretary of state the true and lawful attorney of such corporation, company or association upon whom all lawful process in any action or proceeding by any resident of this state against such corporation, company or association, may be served with the same effect as if such corporation, company or association existed in this state and had been lawfully served with process therein. A certificate of such appointment, duly certified and authenticated, shall be filed in the office of the secretary of state and copies certified by him or his deputy shall be deemed sufficient evidence in regard thereto. Service in favor of a resident of this state upon such attorney shall thereafter be deemed a personal service upon such corporation, company or association.

SEC. 31. Whenever lawful process against such corporation, company or association shall be served upon the secretary of state, under the provisions of this act, he shall forthwith forward a copy of the process served on him by mail, prepaid and directed to the secretary of the corporation, company or association, at the last known post office address of such corporation, company or association. For each copy of process, the secretary of state shall collect the sum of five (5) dollars, which shall be paid by the plaintiff or moving party at the time of such service, the same to be recovered by him as a part of his taxable disbursements if he succeeds in the suit or proceeding.

SEC. 32. No such foreign association shall do business in this state unless it has first mortgage securities of the bona fide value of fifty thousand (50,000) dollars; the ownership of which amount of said securities, by such foreign association shall be authenticated by evidence satisfactory to the secretary of this state.

SEC. 33. When any such corporation, company or association shall have complied with all the requirements of this act, the said secretary shall issue to such corporation, company or association a certificate stating that it has complied with the same and is entitled to do business in the state of South Dakota until the thirtyfirst day of January of the year succeeding. Provided, however, that said secretary of state may at any time revoke such license if it shall by satisfactory evidence appear either:

1. That any statement or report, required or authorized by this act to be made as a condition of doing or continuing such business in this state, is untrue, or

2. That such corporation, company or association is insolvent or the security of its shareholders in this state, by mismanagement or otherwise is rendered unsafe or insecure, or

3. That such corporation, company or association has violated the laws of this state or failed to comply therewith. If such license shall be revoked, as aforesaid, on notice thereof, such association shall cease to do business in this state, but such revocation shall not effect any of the provisions of this act in regard to the service of process.

SEC. 34. Such corporation, company or association shall annually make and file with the secretary of state on or before the twentieth day of January of each year, a statement verified by the oath of its president or secretary, showing in detail its assets and liabilities as they existed on the thirty-first day of December previous; and shall accompany the same with a fee of ten (10) dollars, and on receipt of such report, it appearing that such corporation is solvent, the secretary of state shall issue to said company, a certificate authorizing it to do business within this state until the thirty-first day of January of the succeeding year.

SEC. 35. When by the laws of any other state, territory or nation, any taxes, fines, penalties, licenses, fees, deposits of money or securities or other obligations or prohibitions are imposed on building and loan associations of this state, doing business in such other state, territory or nation, or upon their agents therein, so long as