security, unincumbered except by prior loans from the association, or upon the stock of such association to the extent of its withdrawal value; to make annual or semi-annual distributions of its earnings, and to do all other things that may be necessary to effect its purposes and conduct its authorized business.

395. Bonds of secretary and treasurer. The treasurer and secretary, before entering upon their duties, shall give good and sufficient bonds for the faithful performance of the same and for the safe keeping and proper application of all money or property coming into their hands, and the same shall be approved by the board of directors. All such bonds shall be increased or additional sureties required by the board of directors when the same becomes necessary to protect the interests of the association or its members, but no director shall be accepted as a surety on such bonds, and the directors shall be individually liable for loss to the association or members caused by their failure to comply with the provisions of this section. ['90, p. 9*.

396. Payments. Withdrawals. A borrower may repay a loan at any time upon duly complying with the provisions of the charter and by-laws in relation to the payment of loans; and any stockholder wishing to withdraw from the corporation shall have power to do so by giving thirty days' notice of his intention to withdraw, when he shall be entitled to receive the amount paid in by him and such interest thereon, or such proportion of the profits thereon, less all fines and other charges, as the by-laws may determine; provided, that at no time shall more than one-half of the funds of the treasury of the corporation be applicable to the demands of withdrawing stockholders without the consent of the board of directors, and that no stockholder shall be entitled to withdraw whose stock is held by the association for security. Upon the death of a stockholder, his legal representative shall be entitled to receive the full amount paid in by him on all shares not borrowed upon or pledged to the association as collateral security and legal interest thereon after deducting all charges that may be due on the stock; but no fines shall be charged to a deceased member's account from and after his decease, unless the legal representative of such decedent assume the future payment of the dues., ['90, p. 9*.

Examination of building and loan associations, 2441-2445.

397. Foreign companies. Statement. It shall be unlawful for any building and loan association not organized under the laws of this state, to transact business herein unless the company shall have obtained a certificate of authority from the secretary of state, and shall have filed with the secretary of state a certified copy of its articles of incorporation or charter and by-laws. together with a statement subscribed and sworn to by the manager or by an officer of the company, showing:

1.

The amount of authorized capital, and the par value of each share.

2. The number of shares sold during the year.

3. The number of shares canceled and withdrawn during the preceding year. A statement of receipts and disbursements during the preceding year. Salaries paid each of its officers.

4.

5.

6.

A statement of its assets and liabilities at the end of the year, and the nature thereof in general terms.

7. Any other fact which the secretary of state may require.

Upon receipt of such statement, the secretary of state, if he believes that the association is properly managed, that its financial condition is satisfactory, and that its business is conducted upon a safe and reliable plan, shall issue a certificate of authority to such corporation.

398. Annual statement. Publication. On or before the first day of March in each year, every building and loan association doing business in this state, whether domestic or foreign, shall cause to be filed in the office of the seeretary of state. the statement required in the next preceding section, and shall

cause a copy thereof, duly certified by the secretary of state, to be published at least four times in some newspaper published in this state and having a general circulation therein, such publication to be completed on or before the first day of May, and proof thereof filed in the office of the secretary of state.

399. Examination, refusal to submit to. If any domestic building and loan association shall refuse to submit to examination by the bank examiner, the secretary of state shall advise the attorney general, who shall proceed to wind up its affairs; and if any foreign association refuse, the secretary of state shall revoke its certificate of authority.

400. Unlawful methods. Deception. Unsafe condition, etc. When, in the opinion of the secretary of state, any such corporation is conducting its business illegally, or in violation of its articles of incorporation or by-laws, or is practicing deception upon its members or the public, or is pursuing a plan that is injurious to the interests of such members, or if he is satisfied that its affairs are in an unsafe condition, he shall notify its directors or managers, and if it shall not immediately amend its course or put its affairs upon a safe basis, he shall in the case of a domestic corporation advise the attorney general thereof, who shall take the necessary steps to wind up its affairs, and in the case of a foreign corporation he shall revoke its certificate of authority.

401. Initial statement. Within sixty days after the taking effect hereof, each building and loan association doing business in the state shall file with the secretary of state the statement herein before required, and each such foreign association shall file a copy of its articles and by-laws therewith, and shall obtain its certificate of authority, or on failure or refusal to do so, shall forfeit its right to do business.

402. Agents acting without authority. Refusal to file statement. Any officer or agent of any building and loan association that shall do or attempt to do any business for any such association which does not hold a certificate of authority therefor as in this chapter provided, or which shall fail or refuse to file with the secretary of state the annual statement herein required, shall be deemed guilty of a misdemeanor for each and every offense.

CHAPTER 5.

INSURANCE CORPORATIONS.

403. Organization. Rights and duties. Capital. Any number of persons not less than five, at least one of whom shall be a resident of this state, may associate to establish an insurance company under the provisions of chapter one of this title respecting corporations for pecuniary profit, and all the rights, privileges, and powers, and all the duties and obligations of such corporations and of the officers and stockholders thereof, shall be as provided in said chapter one, and in chapter two of this title respecting assessments, except as in this chapter otherwise provided. The secretary of state shall not issue a certificate of incorporation to any insurance company, other than those organized on the mutual or assessment plan, unless it shall appear by affidavit that the subscribed capital shall have been paid to the extent of at least one hundred thousand dollars; prorided, that any part of the paid up capital stock may be paid in any real or personal property in which insurance companies are permitted to invest their capital or funds, as hereinafter provided, the value thereof to be determined by affidavit as provided in chapter one of this title. [C. L. $$ 2394*, 2462*.

404. Mutual companies. Assets. In the case of mutual insurance companies, the certificate of incorporation shall not issue until it shall appear to

the secretary of state by affidavit of at least three of the incorporators that at least fifty persons, two-thirds of whom at least shall be residents of this state, shall have paid to the proper officer of the proposed corporation at least twenty-five per cent of the annual premiums, on policies in the proposed company aggregating one-quarter of a million dollars, together with the several notes of the policy holders for the remainder of said premiums, which premiums shall aggregate not less than ten thousand dollars. [C. L. § 2463*.

405. Assessment companies. Guaranty fund. Corporations for the purpose of furnishing life idemnity or pecuniary benefits to the widows, orphans, heirs, relatives, devisees, or legatees of deceased members, or accident or permanent disability indemnity to members thereof, where the funds for the payment of such benefits are secured in whole or in part by assessment upon the surviving members, may be organized to do business in this state under the provisions of this chapter; provided, that it shall not be necessary for such corporations to have any subscribed stock, but that the certificate of incorporation shall not issue until it shall appear to the secretary of state, by affidavit of at least three of the incorporators, that a guaranty fund of not less than five thousand dollars in cash or bonds approved by the state treasurer, has been deposited with the state treasurer for the security of the policy holders has been actually paid in, and that bona fide applications have been secured for at least two hundred and fifty thousand dollars insurance from not less than one hundred persons, and that two per cent on such insurance has been paid to the treasurer of such corporation.

Mont. Civ. C. ?? 700*-1*.

406. Investment of capital. Every insurance company organized or existing under the laws of this state shall invest its capital and funds in the bonds of the United States, of this state, or of any county, municipality, or school district thereof, or of any other state or territory within the United States in which such company is authorized by law to transact business; in real property or mortgages thereon; in stocks or bonds of any solvent, dividend-paying institution, other than mining corporations, existing under the laws of any state in which such company is authorized by law to transact business; and may change such investments from time to time as the board of directors may deem expedient. Any such corporation may lend its capital or funds, or any part thereof. on the security of the property above named; provided, that the current market value of the security shall be at least fifty per cent more than the sum loaned thereon. [C. L. SS 2400*, 2464*.

407. Annual statement. It shall be the duty of the president, or of the vice president, and the secretary of each corporation doing business in this state as an insurance company, annually, before the first day of March, to prepare under oath and file in the office of the secretary of state a full, true, and complete statement of the condition of such corporation, on the last day of the next preceding calendar year, which statement, as far as conformable with the plan of the company's organization, must exhibit the following facts:

4.

The amount of capital paid in.

5. The property or assets held by the corporation, specifying the value, as near or may be, of the real estate owned by such corporation; the amount of cash on hand and deposited in banks to the credit of the corporation; the amount of moneys, stocks, or bonds, deposited in any state or territory of the United States, or in any foreign country, for the special benefit of the assured therein: the amount of cash in the hands of agents and in the course of transmission; the amount of loans secured by first mortgages on real estate, with the rate of interest thereon, specifying the location of such real estate and its assessed valuation;

the amount of all other bonds and loans and how secured, with the rate of interest thereon; the amount due the corporation on which judgment has been obtained; the amount of stocks and bonds owned by the corporation, specifying the amounts, number of shares, and par and market value of each kind of stock; the amount of stock held by such corporation as collateral security for loans, with amount loaned on each kind of stock, its par and market value; the amount of assessments on stocks and premium notes, paid and unpaid; the amount of interest actually due and unpaid; all other securities and their value; and the amount for which premium notes have been given on which policies have been issued.

6. The liabilities of such corporation, specifying the losses adjusted and due; losses adjusted and not due; known losses unadjusted; losses in suspense and the cause thereof; losses resisted and in litigation; dividends either in scrip or in cash, specifying the amount of each declared, but not due; dividends declared and due; the amount required to safely reinsure all outstanding risks; the amount due banks or other creditors; the amount of money borrowed, and the security therefor; and all other claims against the corporation.

7. The income of the corporation during the previous year, specifying the amount received from premiums exclusive of premium notes; the amount of premium notes received; the amount received for interest; the amount received for assessment calls on stocks or notes, or premium notes; the amount received from all other sources.

8. The expenditures during the preceding year, specifying the amount of losses paid during said term, stating how much of the same accrued prior, and how much subsequent, to the date of the preceding statement, and the amount at which losses were estimated in such preceding statement; the amount paid for dividends to stockholders and policy holders; the amount paid for commissions, salaries, expenses, and other charges of agents, clerks, and other employees; the amount paid for salaries, fees, and other charges of office and directors; the amount paid for local, state, national, and other taxes and duties; the amount jaid for all other expenditures, including printing, stationery, rents, furniture, etc. 9. The largest amount insured in any one risk.

10. The amount of risks written during the year then ending.

11. The amount of risks in force having less than one year to run.

12. The amount of risks in force having more than one and not over three years to run.

13. The amount of risks having more than three years to run.

14. The amount of premiums received in this state during the year.

15. The amount of losses paid in this state during the year.

16. The following question must be answered: "Are dividends declared on premiums received for risks not terminated?”

17. All other items required by the secretary of state. 2466; 96, pp. 339*, 340-1*.

Annual tax statement, 420. Examination of insurance companies, 2441-2445.

[C. L. §§ 2395*,

408. Publication of statement. It shall be the duty of every insurance Corporation doing business in this state, organized under the laws thereof or under the laws of any other state, territory, or country, to publish annually at its own expense, at least four times, in some newspaper having a general circulation in the state, between the first day of March and the first day of May, a statement showing:

1. The name and location of the company.

2. The names of its president and secretary.

3. The amount of its capital stock, if any, and the amount paid up.

4. The amount of its assets.

5. The amount of its liabilities.

6. The amount of its income during the preceding calendar year.

7. The amount of its expenditures during the preceding calendar year.

The amount of losses paid during the preceding calendar year.

8.

9.

The amount of risks written during the year.

10. The amount of risks in force at the end of the year.

This statement shall be prepared by the secretary of state from the aforesaid annual report, and there shall be appended thereto a certificate by him that such corporation has filed in his office a detailed statement of its condition from which the foregoing statement has been prepared, and has in all other respects complied with the laws of the state relating to insurance. [C. L. §§ 2395*–6*, 2466*–7*; '96, pp. 339-41*.

Annual tax statement, 2 420.

409. Foreign company. Attorney. Statements. Any company desiring to transact any business by any agent or agents in this state must appoint one attorney in this state, and must file with the secretary of state a written instrument, duly signed and sealed, authorizing such attorney of such corporation to acknowledge service of process for and in behalf of such company in this state. consenting that such service of process, mesne or final, upon such attorney, shall be taken and held as valid as if served upon the company, and shall also file with the secretary of state a certified copy of its charter or articles of incorporation and by-laws, with amendments thereto, together with a statement under oath of the president or vice-president or other chief officer and the secretary of the company, showing the same facts as are required to be set forth in the annual stateemnts of insurance companies doing business in this state; such statement shall also show to the full satisfaction of the secretary of state that said company, if organized without the United States of America, has deposited in some one of the United States or territories a sum not less than two hundred thousand dollars for the special benefit or security of the insured therein; and shall file, also, a copy of the last annual report, if any, made under any law of the state, territory, or foreign country by which such company was incorporated. [C. L. §§ 2395*, 2466*; '96, pp. 339-41*.

Corporations must have place of business and process agent in this state, Con. art. 12, sec. 9.

410. Id. Certificate of authority. Every insurance company shall procure from the secretary of state at the time of filing its articles of incorporation. a certificate of authority stating that such company has complied with all the requirements of this chapter; and every agent or other person placing insurance or receiving or soliciting applications for insurance, shall procure a like certificate. Every such certificate shall be valid until the first day of March of the succeeding year, and shall be renewed each year on or before the first day of March. [C. L. §§ 2395*, 2466*; '96, p. 339-41*.

411. Doing business without certificate. Any insurance company doing business in this state without having the certificate of authority of the secretary of state shall forfeit to the state one hundred dollars for every day's neglect to procure such certificate; provided, that in no case shall the fine exceed one thousand dollars. Any person placing insurance or soliciting or receiving applications for insurance for any company authorized to transact business in this state, without having his certificate of authority, shall forfeit to the state the sum of twenty-five dollars for each day's neglect to procure such certificate; provided, that in no case shall the fine exceed two hundred and fifty dollars. The penalties provided for in this section shall be recovered by suits instituted in the name of the state by the attorney general or by the county attorney of any county in which the company proceeded against is engaged in the transaction of business, or in which the agent or solicitor resides when the proceeding is brought against him individually.

Iowa, McClain's An. C. (1888) 22 1751-2*.

412. Penalties, generally. Any president, secretary, or other officer or