Section 25. The Bank of South Dakota may deposit funds in any bank or banking association within or without the State upon such terms and conditions as the Industrial Commission shall determine.

Section 26. The Bank of South Dakota may transfer funds to other departments, institutions, utilities, industries, enterprises or business projects of the State, which shall be returned with interest to the Bank. It may make loans to counties, cities or political subdivisions of the State, or to State or national banks, or to individuals, associations, and private corporations, on such terms, and under such rules and regulations, as the Industrial Commission may deretmine; and it may make loans or give its credit to any individual, association or private corporation, secured by duly recorded first mortgages on real estate in the State of South Dakota in amounts not to exceed one-half the value of the security, or secured by warehouse receipts issued by the Industrial Commission or by any licensed warehouse within the State, in amounts not to exceed ninety per cent of the value of the commodities evidenced thereby. It shall not, however, loan on real estate security more than thirty per cent of its capital, nor in addition thereto, more than twenty per cent of its deposits. Additional funds, that may be required for such real estate loans, shall be procured from the sale of State bonds as may be provided by law.

Section 27. The industrial Commission shall prescribe the forms of application for a mortgage loan on real estate, and shall provide for appraisal of the proposed security. Until otherwise provided by the Commission, when an application for a mortgage loan on real estate is made, it shall be referred to the Commissioner of School and Public Lands, for appraisal of the proposed security. The Commissioner of School and Public Lands, shall thereupon promptly cause it to be appraised in the same manner as school lands are appraised, and upon completion of such appraisal shall return the application, together with the appraisal, to the Bank. Thereupon the Bank shall promptly determine whether to grant or refuse any part or all of such loan. Provided, that no loans shall be made to any but actual farmers residing at the time on the premises to be mortgaged.

Section 28. Every such mortgage shall contain an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of annual installments sufficient to cover, first, a charge on the loan at a rate not exceeding the interest rate in the last series of real estate loan bonds issued, if any, by the State of South Dakota; second, a charge for administration and surplus, at a rate not exceeding one per cent per annum on the unpaid principal, said two rates combined constituting the interest rate on the mortgage; and, third, such amounts to be applied on the principal as will extinguish the debt in not less than ten nor more than thirty years; provided, however, that advanced payment of one or more annual installments, for the reduction of the principal, or the payment of the entire principal, may be made at any regular installment date; and, provided further, that in case of a crop failure which reduces he mortgagor's reasonable crop income by one-half, all payments under said mortgage may, in the discretion of the Industrial Commission, be extended for one year, upon condition that on the payment of all installments, such further annual payment shall be made as will pay the interest, with interest thereon, for the years for which no payments were made. The Industrial Commission shall determine whether a mortgagor is entitled to an extension of the payment of any installment under the provisions of this section.

Section 29. Every such mortgage, and the note or other obligation thereby secured, shall run to "The Manager of the Bank of South Dakota, his successors in office or his assigns," as payee and mortgagee, and shall contain a recital that it is executed and delivered in conformity with and upon the conditions expressed in this Act, designated by its title and the date of its approval. After having been duly recorded in each county in which the lands therein described are situated, every such mortgage shall be delivered to the Manager of said bank and together with said note or other obligation shall be held by the Manager as a part of the assets of the bank, or shall be otherwise disposed of, as hereafter provided. If so held, payments upon the note or other obligations secured by said mortgage shall be made to the Bank of South Dakota, and whenever it shall have been fully paid, the Manager shall promptly satisfy and discharge the mortgage lien of record and deliver the mortgage cancelled, with a satisfaction thereof to the person entitled to receive it.

Section 30. Every such mortgage, together with the note or other obligation, thereby secured, may be sold and assigned upon the payment to the bank of the full value thereof, and upon such sale and assignment, the Manager may endorse either with or without recourse. In that case payments upon said note or other obligation shall be made to the person entitled to receive them; but each such assignment shall be made subject to the provisions concerning extension of the time of payments on account of crop failures as provided in Section 28 of this Act, and subsequent action of the Industrial Commission in that regard shall be binding upon the assignee of such mortgage; provided, however, that after assignment of such mortgage extensions of payments for a yearly period shall be limited in total number to not more than one for every period of five years or fraction thereof during which such mortgage has to run after the date of assignment.

Section 31. Every such mortgage, together with the note or other obligation thereby secured, may be assigned, and upon order of the Industrial Commission shall be assigned, to the State Treasurer of the State of South Dakota as security for bonds to be issued by the State as provided by law. In case of such assignment all payments due upon said note or other obligation shall be made to the State Treasurer, and the money so by him received shall be by him held or disbursed as may be provided by law. If while any such mortgage so assigned to the State Treasurer is in his hands, the note or obligation thereby secured shall have been fully paid, the State Treasurer shall so certify to the Manager of the Bank, who shall thereupon proceed to satisfy said mortgage in the same manner as though said note or other obligation had been paid directly to the bank. In case of such assignment to the State Treasurer of any such mortgage, the provisions contained in Section 19 of this Act, respecting extensions on account of crop failure, shall be effective and shall be applied.

Section 32. The powers and duties of the Rural Credits Commission shall be assumed as speedily as possible by the Bank of South Dakota.

Section 33. All business of the bank may be conducted under the name of "The Bank of South Dakota." Title to property pertaining to the operation of the bank shall be obtained and conveyed in the name of "The State of South Dakota, doing business as the Bank of South Dakota." Written instruments shall be executed in the name of the State of South Dakota, signed by any two members of the Industrial Commission, of whom the Governor shall be one, or by the Manager of

the Bank of South Dakota within the scope of his authority so to do as defined by the Industrial Commission.

Section 34. Civil actions may brought against the State of South Dakota on account of causes of action claimed to have arisen out of transactions connected with the operation of the Bank of South Dakota, upon condition that the provisions of this section are complied with. In such actions the State shall be designated as "The State of South Dakota, doing business as the Bank of South Dakota," and the service of the process therein shall be made upon the Manager of said bank. Such actions may be brought in the same manner and shall be subject to the same provisions of law as other civil actions brought pursuant to the provisions of the Code of Civil Procedure. Such actions shall be brought, however, in the county where the Bank of South Dakota shall have its principal place of business.

Section 35. The State Examiner shall personally or through deputy examiners visit the Bank of South Dakota at least twice annually, and shall inspect and verify the assets in its possession and under its control, with sufficient thoroughness of investigation to ascertain with reasonable certainty whether the valuations are correctly carried on its books. He shall investigate its methods of operation and accounting. He shall report the results of each such examination and investigation to the Industrial Commission as soon as practicable, and to the Legislature at its next ensuing session and to the Guaranty Fund Commission. Section 36. There is hereby appropriated out of the general funds of the State, not otherwise appropriated, one hundred thousand dollars, or so much thereof as may be necessary, to carry out the provisions of this Act. This appropriation is hereby made available immediately upon the passage and approval of this Act. The Industrial Commission shall, out of the earnings of the bank make provision for accumulating a fund with which to replace in the general fund of the State, the amount received by the Commission under this appropriation, as may be directed by the Legislature.

Section 37. All Acts and parts of Acts inconsistent with this Act are hereby repealed.

Approved March 12, 1921.

CHAPTER 133.

(H. B. 229)

RELATING TO ENTERING A BANK WITH INTENT TO COMMIT A FELONY.

AN ACT Entitled, An Act Making it a Felony for Any Person to Enter Any Room Wherein, in Whole or in Part, a General Banking Business is Carried On, or Wherein in Whole or in Part, a Business of Receiving Securities, Evidence of Debts or Any Other Valuable Papers on Deposit or for Safe-keeping, in Which There is at That Time a Human Being, With Intent to Commit a Felony Therein by Means of Threats, Force or Violence, and Prescribing the Punishment Therefor.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. Imprisonment For Bank Robbers.] Every person, who with intent to commit a felony therein by means of threats, force or violence, shall enter at any time, any room wherein in whole or in part a general banking business is carried on, or any room wherein, in whole or in part, the business of receiving securities, evidence of debt or any other valuable papers for deposit or safe-keeping is carried on, or wherein, in whole or in part, a business of general banking and receiving securities, evidence of debt or any other valuable papers, on deposit or for safe-keeping, is carried on, in which room there shall be at the time a human being, shall be guilty of a felony and punished by imprisonment in the State Penitentiary for not less than ten years or life. in the discretion of the court.

Section 2. Whereas, this Act is necessary for the immediate preservation of the public peace and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage and approval.

Approved March 4, 1921.

CHAPTER 134.

(H. B. 335)

RELATING TO DEPOSITORS' GUARANTY FUND.

AN ACT Entitled, An Act to Amend Section 9020, South Dakota Revised Code of 1919, Relating to Banks and Banking, and Declaring an Emergency.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. That Section 9020 of the South Dakota Revised Code of 1919 be and the same is hereby amended to read as follows:

Section 9020. Deposits Payment.] When any bank doing business under the provisions of this chapter suspends or becomes insolvent, the Superintendent of Banks shall forthwith proceed to determine the amount necessary to pay the unsecured depositors and holders of exchange in good faith, in full, and cause the same to be certified to the Depositors' Guaranty Fund Commission, which shall thereupon draw against the Depositors' Guaranty Fund on deposit in the several banks in the amount thus certified, and the Treasurer of such com

mission shall immediately transmit the amount to the Superintendent of Banks, to be applied in payment of the deposits and out-standing exchange due such depositors and holders of exchange in good faith; provided, that if there should not be sufficient funds in the Depositors' Guaranty Fund to pay such claims, such Commission shall issue a certificate of indebtedness, negotiable in form, against the Depositors' Guaranty Fund, and in favor of such bank, drawing interest at the rate of not to exceed seven per cent per annum, which certificate of indebtedness shall become due and payable on the first day of March next succeeding the date of issue thereof and shall be paid out of the first money accruing to the Depositors' Guaranty Fund. Such certificates of indebtedness may be sold or assigned at not less than their face value by the Superintendent of Banks and the proceeds used by him for the purpose of paying the deposits of such bank which are legitimate claims against the Depositors' Guaranty Fund. Such certificates may, however, in the discretion of the Guaranty Fund Commission, be issued payable to the depositors of such bank for the amounts of their approved claims, drawing interest at a rate of five per cent per annum. Such drafts against the Depositors' Guaranty Fund shall be prorated, as nearly as may be, among the several solvent banks wherein such fund is kept and maintained, in accordance with the amounts thereof held by such banks respectively.

Section 2. Whereas, this Act is necessary for the immediate support of the State Government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

Approved March 2, 1921.

CHAPTER 135.

(H. B. 32)

RELATING TO SUPERINTENDENT OF BANKS.

AN ACT Entitled, An Act to Amend Section 8918 of the Revised Code of 1919, Relating to Banks and Banking, and Declaring an Emergency.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. That Section 8918 of the South Dakota Revised Code of 1919 be amended to read as follows:

Section 8918. Superintendent of Banks, Deputy, Clerks, Officers.] The Superintendent of Banks shall be appointed by the Governor, by and with the advice and consent of the Senate, and such appointment shall be for a term of four years, or until his successor shall have been appointed and qualified, unless sooner removed by the Governor for good cause; provided, that no person shall be eligible to the office of Superintendent of Banks without first having had at least three years actual, practical experience in the general banking business, or served for a like period in the banking department of this or some other state. The Superintendent of Banks may, with the consent and approval of the Governor, appoint a Deputy Superintendent of Banks and such Examiners, Special Examiners and Examiners in Charge as he shall deem necessary to assist him or his deputy in the discharge of the sev

Laws-15.