CHAPTER 123.

CORPORATE SURETYSHIP ON BONDS.

An Act to amend section 3, chapter 65, laws of Utah, 1899, entitled: "An Act in relation to corporate suretyship on bonds and other obligations, providing for the acceptance as surety of corporations qualified to act as such, the release of such surety, the safe depositing of assets for which surety may be liable, the charging by fiduciaries and litigants of the expense of procuring such surety.

Be it enacted by the Legislature of the State of Utah:

SECTION 1. That section 3 chapter 65, laws of Utah 1899, be, and the same is hereby amended to read as follows:

Sec. 3. Secretary of State to issue certificates to corporation qualified. Effect of certificate. That upon production of proof to the Secretary of State by such company that it possesses the qualifications by this act required, and that it has complied therewith he shall issue to such company, and to each of its agents in this State his certificate that it is authorized for the ensuing year to become and be accepted as sole surety on all bonds, undertakings and obligations provided for in this act, and said certificate of the Secretary of State,shall be accepted by all courts or officers authorized to take, or before whom sureties are required to justify upon exception to the sufficiency of said company as a complete justification, and shall be equivalent to the justification required of individual sureties by law; all bonds undertakings and obligations shall be accompanied by an affidavit of qualification made by some officer or agent duly authorized by the company in substantially the following form:

being first duly sworn, on oath deposes and says that he is the (officer or agent) of said company, and that he is duly authorized to execute and deliver the foregoing obligation: that said company is authorized to execute the same and has complied in all respects with the laws of Utah, in reference to becoming sole surety upon bonds, undertakings and obligations."

Provided, that the Secretary of State at any time after the issuance of such certificate and during the period for which such certificate is issued, when it shall appear to him, that any such company has become insolvent, and is not entitled to do business as such shall cancel such certificate and refuse further to allow such company to transact business in this State.

Approved this 17th day of March, 1905.

CHAPTER 124.

DRAINAGE DISTRICTS.

An Act to amend sections, 760, 761, 762, 763, 764, 765, 766, 767, 768, 769, 770, 771, 772, 773, 774, 775, 776, 777, 778, and 779, Revised Statutes of Utah, 1898, relating to drainage districts.

Be it enacted by the Legislature of the State of Utah:

SECTION 1. That sections 760 to 779, both inclusive, Revised Statates of Utah 1898, be, and they are hereby amended to read as follows:

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760. Who may propose organization. Whenever fifty or more persons constituting a majority, of the holders of title or of evidence of title, to lands susceptible of one mode of drainage from a common source and by the same system of works, desire to provide for the drainage of the same, they may propose the organization of a drainage dis- Laws 1907 trict under the provisions of this act. The equalized county assessment roll completed last preceding the presentation of a petition for the organization of a drainage district shall be sufficient evidence of title for the purposes of this act.

761. Petition. Presentation. Organization. A petition shall first be presented to the Board of County Commissioners of the county in which the lands, or the greatest portion thereof, are situated, signed by the required number of holders of title, or of evidence of title, and shall set forth and particularly describe the boundaries of the proposed district, and shall pray that the same may be organized under the provisions of this title. The petition shall be presented at a regular meeting of the Board of County Commissioners and, for at least two weeks before the time at which the same is to be presented, shall be posted in three or more public places in the district or published in some newspaper published or having a general circulation in the county, together with a notice stating the time at which the same will be presented. If any portion of the proposed district shall lie within another county or counties, then the petition and notice shall, as above provided, be posted or published in a newspaper, published or having a general circulation in each of such counties.

762. Hearing. Boundaries of district. Boundaries of district. When the petition is presented, the Board of County Commissioners shall hear it, and may adjourn the hearing from time to time, not exceeding four weeks in all. On the final hearing any person whose lands are susceptible of drainage by the proposed system, and who expresses in writing a desire to be included within that system, may upon application to the Board and in

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its discretion, have his lands included in the district. On the final hearing the Board shall by resolution establish and define the boundaries of the district as proposed in the petition or as amended as hereinbefore provided, fix the number of directors, which shall not be less than three nor more than five and who shall be free-holders and residents of the county, and provide for the election of such directors and the or ganization of said district as hereinafter provided.

763. Election called. The Board shall then give notice of an election, for the purpose of determining whether or not the proposed district shall be organized. The notice shall describe the boundaries established, and shall designate a name for the district. It shall be posted or published, as prescribed in the case of a petition, and shall state the time and place of the election and that ballots shall be cast containing the words "drainage district-yes," or "drainage districtno," and the names of persons to be voted for as directors. No person shall be entitled to vote at any election held under the provisions of this title, unless he shall be a free-holder in the district. The Board of County Commissioners shall appoint the judges for the first election.

764. Canvass of votes cast. Organization completed. The Board of County Commissioners shall meet on the second Monday next succeeding the election and proceed to canvass the votes cast. If upon such canvass it appears that at least two-thirds of all the votes cast are "drainage district-yes," the Board shall, by order entered on its minutes, declare the district duly organized as a drainage district, under the name and style designated, and shall declare the persons receiving, respectively, the highest number of votes for such several officers to be duly elected. No action shall be commenced nor maintained, nor defense made, affecting the validity of the organization, unless commenced or made within one year after the entering of such order. The Board shall cause a copy of the order, duly certified, to be immediately filed for record in the office of the county recorder of each county in which any portion of such lands is situated, and must also immediately forward a copy thereof to the county clerk of each county in which any portion of the district may lie. The organization of the district shall then be complete, and said district shall thereafter constitute a body corporate with power to sue and be sued. Thereafter no other district shall be formed so as to include lands in the organized district. without the consent of the Board of Directors of the latter.

765. Subsequent Elections. Subsequent elections shall be held biennially, and the judges thereof shall be appointed by the Board of Directors of the district. The number of directors may then be changed from three to five, or from five to three by a majority vote of the district electors.

766. Bonds. Each director shall hold office for two years, and until his successor is elected and qualified. He shall first, however, subscribe the official oath and execute an official bond in the sum of five hundred dollars. Such bond shall be approved by the judge of the district court of the county and filed with the county clerk where the organization shall have been effected. Bonds herein provided for shall be in the form prescribed by the law for the official bonds of county officers.

767. Directors. President. Secretary. Term. By-laws. Powers of board. Within thirty days after their election and qualification, the directors shall meet and organize as a board, and shall elect a president, a secretary, and a treasurer, from among their own number. Each of such officers shall hold office during the pleasure of the Board. The Board of Directors shall have power to adopt a code of by-laws governing the conduct of the business and affairs of the district as a corporation in connection with its association with individuals in and outside. of the district and regulating the use of its drainage system by outsiders. It shall also have power to make and execute all necessary contracts, to employ and appoint such agents, officers and employees as may be required, prescribe their duties and generally to perform all such acts as shall be necessary to fully carry out the purposes of this title. The said Board and its agents and employees shall likewise have the right to enter upon any lands to make surveys and may locate the necessary drainage works and the line for any drainage canal or canals, and the necessary branches for the same on any lands which may be deemed best for such location. It shall have the right also to acquire on behalf of said district by purchase or condemnation or other legal means, all lands and other property necessary for the construction, use, maintenance, repair, and improvement of said canal or canals, drains, and works constructed (including canal, drains, or drain-ditches being constructed by private owners) and all necessary appurtenances. In case of necessity for condemnation proceedings the board shall proceed in the corporate name of the district, under the provisions of the laws relating to eminent domain.

768. Duties of President. It shall be the duty of the president to preside at meetings of the board and sign all warrants ordered by it to be drawn upon the treasury for drainage money. In case of the absence or diability of the president, his duties shall be performed by a president pro tem., duly elected.

769. Duties of secretary. It shall be the duty of the secretary to attend meetings of the Board, to keep an accurate journal of its proceedings, to have the care and custody of its records and papers not otherwise provided for, to countersign warrants drawn upon the treasurer, and to prepare and submit to the Board an annual statement, un

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der oath, of receipts and disbursements during the year ending Decemher the thirty-first. He shall receive for his services such compensation as the Board may determine.

770. Duties of treasurer. The treasurer shall subscribe the oath of office and give a bond to the Board, with sufficient sureties and in such sum as it may require, the oath and bond to be approved by the Board and filed with its secretary. The treasurer shall prepare and submit in writing a monthly report of receipts and disbursements, and pay out drainage money only upon a warrant signed by the president, and countersigned by the secretary.He shall likewise perform such other duties as the Board may require, and shall receive for his services an amount to be determined by the Board.

771. Meetings of Board. Records. The Board of Directors shall meet and adjourn from time to time as the business may require. All meetings of the Board must be public, and a majority of the members shall constitute a quorum for the transaction of business. All records of the Board shall be open to the inspection of any freeholder in said district during business hours.

772. Bonds of District. Whenever the Board of Directors deems it expedient it shall have power for the purpose of constructing drains, drainage canals and the like, to issue bonds of the district to run not more than twenty years and to bear interest payable semi-annually at a rate not exceeding 6 per cent per annum, to be called "Drainage District Bonds," and which said bonds shall not be sold for less than their par value, and the proceeds of which shall be used for no other purpose than paying the cost of constructing such drain, drainage canal or other like work; provided, that the aggregate amount of such bonds issued and outstanding may equal but never exceed in amount $3.00 per acre for each acre of land drained by the drainage system of any such district. The said Board of Directors shall by resolution provide for the issuance and disposal of such bonds and for the payment of interest thereon, the creation of a sinking fund for the ultimate redemption thereof, and for the date and manner of the redemption of said bonds.

773. Bonds a lien upon land. Whenever any such drainage district bonds shall be issued in accordance with the provisions of this chapter. such bonds shall constitute a lien upon all of the lands and improvements thereon within the boundaries of the district, and the Board of Directors of said district shall from time to time as hereinafter provided certify to the proper officials the amount of the annual interest charge on such bonds and in addition thereto such an amount as a sinking fund, which shall, in the course of events and ultimately amount to a sufficient sum to redeem said bonds.