Section V. That Section 1067, of the Political Code of the State of Montana, be, and the same is hereby amended so as to read as follows:

Section. 1067. Whenever it is shown by the affidavit of a creditable witness, or otherwise comes to the knowledge of the court, judge, board, person or body whose duty it is to approve the official bond of any officer, that the sureties on any bond given pursuant to the provisions of this article as amended by this Act, or any one of them have since such bond was approved died, removed from the State, becomes insolvent, or from any other cause have become incompetent or insufficient sureties on such bond, the court, judge, board, officer or other person may issue a citation to such officer, requiring him on a day therein named, not less than five nor more than ten days after date, to appear and show cause why such office should not be vacated, which citation must be served and return thereof made as in other cases. If the officer fails to appear and show good cause why such office should not be vacated, on the day named, or fails to give ample additional security, the court, judge, board, officer, or other person must make an order vacating the office, and the same must be filed as provided by law.

Section VI. That Section 1073, of the Political Code of the State of Montana, be, and the same is hereby amended so as to read: as follows:

Section 1073. Whenever any sureties on the official bond of any officer wish to be discharged from their liability, they and such officer may procure the same to be done, if such officer will execute a new bond in accordance with the provisions of this Article as amended by this Act, in like form, penalty and conditions and to be approved and filed as the original bond. Upon the filing and approval of the new bond, such first sureties are exonerated from all further liability; but their bond remains in full force as as to all liabilities incurred previous to the approval of such new bond. The liability of the principal and surety or sureties in such new bond is in all respects the same, and may be enforced in like manner as the liability of the principal and sureties of the original bond.

Section 7. That Section 1084, of the Political Code of the State of Montana, be, and the same is hereby amended so as to read as follows:

Section 1084. The provisions of this Article, as the same shall be in force after amendment by this Act, shall apply to all official bonds, and to the bonds and undertakings of receivers, executors, administrators and guardians, and to bonds and undertakings given in injunction proceedings, and to all bonds and undertakings required by law to be given and approved by any court, judge, board, person or body, and, except as to requirements of such approval, the provisions shall apply to all bonds given or required by law to be given in attachment proceedings, criminal actions or proceedings, bail bonds, appeal bonds, and all bonds given or required to be given in any legal proceedings or actoin in any court of this State.

Approved March 7th 1899.

Arcaded

SUBSTITUTE NO. 1 FOR HOUSE BILL NO. 36.

An Act to Permit Foreign Surety Companies to do business in this
State, and regulating the method thereof.

Be it enacted by the Legislative Assembly of the State of Montana :
Section I. Any surety company with a paid up capital of two
hundred and fifty thousand dollars, and having assets equivalent to
said sum, incorporated under the laws of any State of the United.

9-13 States, other than this State or under the laws of any foreign, country,

either solely or among other things for the purpose of transacting business as surety on obligatoins, bonds or undertakings of persons or corporations, may transact such surety business in this State, upon complying with the provisions of this Act, and not otherwise. Every such surety company must, before commencing to do business in this State, comply with the law regulating foreign corporations, except that it need not file copies of its charter, statements, appointment of agent or reports, in counties other than the one in which is located its office or principal place of business within this State. Thereupon, such surety company may present to the State Auditor proof satisfactory to him that it has complied with this Act and that it is a surety company entitled to do business in this State under the provisions hereof, and upon payment to him of the license fee required of general insurance companies by the laws of this State, he shall issue it a license authorizing it to transact business, within this State. The moneys arising

from the issuance of such license shall be paid into the State Treasury and disposed of as are other moneys arising from license taxes. No license shall be issued to any such surety company whenever its liabilities shall exceed its assets, and whenever the Auditor shall become satisfied that the liabilities of any surety company, to which license has been issued, exceed its assets, he shall send a notice in writing, to the secretary of such company stating the fact and requiring the deficiency to be paid up within ninety days from the date of such notice, and if it is not so paid up within the time limited, he shall issue a certificate setting forth the amount of such deficiency, and the license of such company is thereby cancelled. The said certificate shall be published in a daily paper printed at the City of Helena once a week for three weeks, and from the date of the first publication of such certificate such company shall be prohibited from doing business within this State. In ascertaining the condition of any such company under the provisions of this Act, the Auditor shall allow as assets only such as are authorized under existing laws at the time, and shall charge as liabilities, in addition to eighty per cent of the capital, stock, all outstanding indebtedness of the company, and a premium reserve equal to fifty per centum of the premiums charged by said company on all risks then in force.

Section II. Whenever any bond, undertaking, recognizance or other obligation is by law, or the charter, ordinance, rules or regulations of any municipality, 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 guaranty may be executed by a surety company qualified to act as surety or guarantor as above provided, and such execution by such company of such bond, undertaing, obligation, recognizance or guarantee shall be in all respects a full and complete compliance with every requirement of the law, charter, ordinance, rule or regulation, that such bond, undertaking, obligation, recognizance or guaranty shall be executed by one surety or by one or more sureties, or that such surety shall be a resident, or householder, or freeholder, or either or both, or possessed of any other qualifications; and all courts, judges, heads of departments, boards, bodies, municipalities and public officers of every character shall accept and treat accordingly such bond, undertaking, obligation,

recognizance or guaranty when so executed by such company, as conforming to and fully and completely complying with every such requirement of every such law, charter, ordinance, rule or regulation.

Section III

That from and after the passage of this Act the 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 directed to be filed or which may have jurisdiction of such trustee, committee, guardian, assignee, receiver, executor or administrator or fiduciary, 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 fiduciary which may occur after the date of the order relieving such surety to be granted as herein provided for and to require such trustees, committee, guardian, assignee, receiver, executor or administrator or fiduciary, to show cause why he should not account and said surety be relieved from such future liability as aforesaid and said principal be required to give a new bond; and thereupon, upon filing of said petition, said court shall issue such order returnable at such time and place and to be served in such manner as said court shall direct and may restrain such trustee, committee, guardian, assignee, receiver, executor or administrator or fiduciary from acting excepting 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 said court must make an order releasing said surety filing the petition as aforesaid, from liability upon the bond for any subsequent act or default of the principal; and in default of said principal thus accounting and filing such new bond said court must make an order directing such trustee, committee, guardian, assignee, receiver, executor or administrator or fiduciary, to account in due form of law and that if the trust fund or estate shall be found or made good and paid over or properly secured such surety shall be discharged from any and all further liability as such for the subsequent acts or omissions of the trustee, committee, guardian, assignee, receiver, executor or administrator or fiduciary after the date of such surety being so relieved or discharged, and discharging such trustee, committee, guardian, assignee, receiver, executor or administrator.

Section IV That it shall be lawful for any executor, administrator, receiver, trustee, curator, or other fiduciary, or party of whom a bond,

undertaking or other obligation is required with surety or sureties to agree with the surety or sureties thereupon for the deposit for safe keeping of any and all moneys and other depositable assets for which such surety or sureties may be held responsible, if such deposit is otherwise proper, with a bank, safe deposit or trust company, authorized by law to transact business as such in this State, or other depository approved by the court in which such bond is filed, or a judge thereof, in such manner as to prevent the withdrawal of such moneys and assets or any part thereof, without the written consent of such surety or sureties or an order of such court or judge, made on such notice to such surety or sureties, as such court or judge may direct.

Section V Any company which shall execute any bond or undertaking as surety under the provisions of this Act, shall be estopped, in any proceeding to enforce the liabilities which it shall have assumed to incur, to deny its corporate power to execute such instrument or assume such liability.

Section VI That if any such company shall neglect or refuse

pay any final judgment or decree rendered against it upon any such

bond, undertaking, recognizance, or other obligation made or guaran-246-190teed by it under the provisions of this Act, from which no appeal, writ of error or supersedeas has been taken for ninety days after the rendition of such judgment or decree, it shall forfeit all right to do business. under this Act and the Auditor shall revoke its license.

Section VII. That all Acts and parts of Acts inconsistent with this Act be and the same are hereby repealed.

Approved February 24 1899.

HOUSE BILL NO. 43.

An Act to provide for an assistant for the Register of the State Land Office; to fix the salary thereof and designate the fund from which he shall be paid.

Be it enacted by the Legislative Assembly of the State of Montana :

Section I. The Register of the State Land Office is hereby authorized to Appoint, subject to the approval of the State Board of Land Commissoiners, a Deputy Register, who shall, under the direction of the Register of the State Land Office, perform such duties as may properly be done by the Register.