Sec. 41. Annual Report to be Published. The secretary, under the direction of the board, shall annually, on the first day of January in each year, make a full report of the board's transactions, showing the amount of lands in each county belonging to the state, to what fund they belong, their value to the amount sold or leased during the year. Said report shall contain such other items of information concerning the state lands as the board may deem proper, and the board shall report the same to the governor.

Sec. 42. Rights Protected. Sale of Land for Right of Way. Nothing in this act shall be construed as to impair the vested or accrued rights of any ditch or irrigation company, or any person owning any ditch or ditches, on or passing through any state lands, or to prevent the sale of more than one hundred and sixty acres for a continuous right of way, or for stations and building grounds within the state for a common carrier, or for canal or irrigation companies or associations.

Sec. 43. State Land Holdings Compacted. Exchange of Lands. In order to compact, as far as practicable, the land holdings of the state, the board is hereby authorized to exchange any of the land held by the state for other land within the state held by other proprietors; and upon resolution of the board, the governor is hereby authorized to execute and deliver the necessary patents to such other proprietors and receive there from proper deeds of the lands so exchanged; provided, that no exchange shall be made by the board until a patent for the land so received in exchange shall have been issued by the government of the United States to such proprietors or their grantors.

Sec. 44. Testimony in Contests. Notice. Where contests arise as to the preference rights of claimants for lands under the control of the board of land commissioners, the board shall have full power to direct the taking of testimony concerning the points involved, which shall be reported in full to said board. It shall be the duty of the secretary of the board to notify the parties to the contest of the findings and conclusions of said board.

Sec. 45. Members May Subpoena Witnesses and Administer Oaths. Any member of the board may issue subpoenas to compel the attendance of witnesses and the production of books and papers before him or the board, and may administer oaths in the performance of his official duty.

Sec. 46. Application for Survey of Unsurveyed Lands. The governor is hereby authorized and directed, by and with the consent of the state board of land commissioners, to make application to the commissioner of the general land office for the survey of public unsurveyed lands for the purpose of satisfying the public land grant to this state, in accordance with the provisions of chapter 301, 28 U. S. statutes at large pp. 394, 395.

Sec. 47. Deferred Payments. All deferred payments for the sale of university lands shall be made in accordance with the con

tracts of sale, to the secretary of the board, in the manner provided in this act for other payments.

Sec. 48. Title 62 Repealed. Title 62 of the Revised Statutes is hereby repealed, excepting section 2337 thereof, which section shall remain in force until all applications filed by virtue of the same are fully disposed of. This repeal shall not affect any rights accrued under the said title.

Sec. 49. This act shall take effect upon approval.
Approved March 9, 1899.

CHAPTER 65.

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 Such Surety May be Liable, the Charging by Fiduciaries and Litigants of the Expense of Procuring Such Surety and Repealing All Laws in Conflict Therewith.

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

SECTION 1. Corporate Suretyship to be Accepted on Certain Bonds and Undertakings. That whenever any bond, undertaking, recognizance, or other obligation is by any law of the state of Utah, or the charter, ordinances, rules or regulations of any municipality, city government, common council, board of county commissioners, any savings bank, state bank or private bank, or any corporation, board, body, organization or public officer, required or permitted to be made, given, tendered or filed with surety or sureties, and whenever the performance of any act, duty or obligation, or the refraining from any act, is required or permitted to be guaranteed, such bond, undertaking, obligation, recognizance or guarantee may be executed by a company qualified to act as such surety or guarantor, as hereinafter provided; and such execution by such company of such bond, undertaking, obligation, recognizance or guarantee shall be in all respects a full and complete compliance with every requirement of law, charter, ordinance, rule or regulation now in force or which may hereafter be enacted, that such bond, undertaking, obligation, recognizance or guarantee shall be executed by one surety, or by one or more sureties, or that such sureties shall be residents or householders, or freeholders, or either or both, or possess any other qualifications.

Sec. 2. Qualifications of Corporation. That such company to be qualified to so act as surety or guarantor under this act, must be authorized under the laws of the state where incorporated, and its charter, to guarantee the fidelity of persons holding places of public or private trust, and to guarantee the performance of contracts other than insurance policies, and to execute bonds and undertakings required or permitted in actions or proceedings, or by law allowed;

must comply with the requirements of law of this state applicable to such company, in doing business herein; must have an unimpaired and safely invested capital of at least $250,000, fully paid in, in cash; must have at least $100,000 invested in good dividend-paying or interest bearing stocks or securities created under or by virtue of the laws of the United States, or the laws of the state where it is incorporated, or of good, solvent, dividend-paying corporations, which said stocks or securities shall be at or above par in value, and be deposited with or held by the insurance commissioner or superintendent or other corresponding officer of the state where such company is incorporated or such officer in some other state, in trust for the benefit of the holders of the obligations of such company; must have good available assets in excess of its liabilities, which said liabilities, however, shall, for the purpose of this act, be taken to be its capital stock, its outstanding debts, and a premium reserve at the rate of 50 per centum of the current annual premium of all outstanding risks in force; must also file with the secretary of state a certified copy of its charter or act of incorporation, a written application to be authorized to do business under this act, and a statement, signed and sworn to by two of its officers, stating the amount of its paid up cash capital, particularizing each item of the investment, the amount of premium on existing bonds upon which it is surety, the amount of liability for unearned portion thereof, estimated at the rate of 50 per centum of the annual premium on all outstanding obligations for one year or less, and pro rata for terms of more than one year; stating also the amount of its outstanding debts of all kinds, and such further statement, similarly verified as may be by the laws of this state required by such company in transacting business herein; and if such company be incorporated under the laws of any other state than this state, it must appoint an attorney in this state, on whom process of law can be served and, in addition thereto file with the secretary of state a written instrument, duly signed and sealed, certifying such appointment which shall continue until another attorney be substituted; provided, that before any company shall be allowed to do business under this act twentyfive thousand dollars of the one hundred thousand dollars above specified shall be deposited by such company in the office of the secretary of state of this state for the purpose of protecting residents of this state who are holders of such company obligations.

Sec. 3. Secretary of State to Issue Certificate to Corporation Qualified. 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. 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.

Sec. 4. Annual Statements. That such company shall also annually, before the first day of March, file with the secretary of state, in addition to, but in connection with the statement required by section 407, Revised Statutes of Utah, 1898, its statement and proofs similar to that herein before, in sections 2 and 3 of this act, provided for, made to the 31st day of December next preceding, and shall also furnish him with a certificate from the officers with whom the deposits, in section 2 of this act specified, or required to be made, describing such securities so deposited and the manner in which they are held and stating that such securities are fully worth one hundred thousand dollars; and upon the filing of such statement and proofs, said secretary of state shall issue to such company, and each of its agents in this state his certificate that such company is qualified and authorized for the ensuing year, as in section 3 of this act provided.

Sec. 5. Money Deposited in a Fiduciary Capacity May Only be Drawn by Consent of Surety or Order of Court. That it shall be lawful for any receiver, assignee, guardian, trustee, committee, executor, administrator, curator or other fiduciary, or party, of whom a bond, undertaking or other obligation is required, to agree and arrange with his surety or sureties for the deposit for safe keeping, of any and all moneys, assets and other property, for which he is or may be responsible, with a bank, savings bank, safe deposit of trust company, authorized by law to do business as such, and in such manner as to prevent the withdrawal or alienation of such money, assets or other property, or any part thereof, without the written consent of such surety or sureties, or an order of the court, or a judge thereof, made on such notice to such surety or sureties, as the court or judge may direct.

Sec. 6. Surety May Apply to Court to be Relieved. Such surety, or the representative of any surety, upon the bond of any trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary, may apply by petition to the court wherein said bond is filed, or which may have jurisdiction of such trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary, or to a judge of said court, praying to be relieved from further liability as such surety for the acts or omissions of the trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary, which may occur after the date of the order relieving such surety, to be granted as herein provided for, and to require such trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary, to show cause why he should not account and such surety be relieved from such further liability as aforesaid, and such principal be required to give a new bond; and thereupon, upon the filing of such petition, the court, in term time, or a judge thereof, in vacation, shall issue such order, returnable at such time and place, and be served in such manner as such court or judge may direct, or may restrain such

trustee, committee, guardian, assignee, receiver, executor, or administrator, or other fiduciary from acting, except in such manner as it may direct to preserve the trust estate; and upon the return of such order to show cause, if the principal in the bond account in due form of law and file a new bond duly approved, then such court or judge must make an order releasing such surety filing the petition, as aforesaid, from liability upon the bond for any subsequent act or default of the principal; and in default of such principal then accounting and filing such new bond, such court or judge must make an order directing such trustee, committee, guardian, assignee, receiver, executor or administrator, or other fiduciary to account in due form of law within ten days, and that if the trust fund or estate shall be satisfactorily accounted for and delivered or properly secured, such surety shall be discharged from any and all further liability, as such, and the subsequent acts or omissions of the trustee, committee, guardian, assignee, receiver, executor or administrator, and discharging and revoking the appointment of or removing such trustee, committee, guardian, assignee, receiver, executor or administrator or other fiduciary; provided, that upon the discharge of any such surety from liability upon such bond, such surety shall refund or repay the pro rata unearned part of the premium paid for the execution of the bond.

Sec. 7. Expense of Obtaining Surety to be Included as Costs. Any receiver, assignee, guardian, committee, trustee, executor, administrator or other fiduciary, required by law, or the order of any court or judge to give a bond or obligation as such, may include, as a part of the lawful expense of executing his trust, such reasonable sum paid a company authorized under this act so to do, for becoming his surety on such bond or obligation, as may be allowed by the court in which he is required to account, or a judge thereof, not exceeding, however, one per centum per annum on the amount of such bond or obligation.

Sec. 8. Id. In all actions at law or in equity a party entitled to recover costs may include and tax as a part of his proper costs, such reasonable sum as may have been expended by him as a premium to any surety company for executing or guaranteeing any bond, undertaking or obligation therein, not exceeding one per centum per annum on the amount of any such bond, undertaking or obligation.

Sec. 9. Surety Cannot Deny its Power to Execute Liability. No company, having signed any such bond, undertaking or obligation, shall be permitted to deny its corporate power to execute such instrument, or incur such liability, in any proceeding to enforce liability against it thereunder.

Sec. 10. Repeal. All laws and parts of laws in conflict herewith are hereby repealed, except that this act shall in no way repeal, abrogate or alter chapter 6 of title 12 of the Revised Statutes of Utah, 1898.

Approved March 9, 1899.