make any false or fraudulent statement or representation in or with reference to any application for membership, or for the purpose of obtaining money from or benefit in any society transacting business under this act, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more than one year, or both, in the discretion of the court; and any person who shall willfully make a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society for the purpose of procuring payment of a benefit named in the certificate of such holder, and any person who shall willfully make any false statement in any verified report or declaration under oath required or authorized by this act, shall be guilty of perjury, and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury. Any person who shall solicit membership for, or in any manner assist in procuring membership in, any fraternal benefit society not licensed to do business in this state, or who shall solicit membership for, or in any manner assist in procuring membership in any such society not authorized as herein provided, to do business as herein defined in this state shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than fifty nor more than two hundred dollars. Any society, or any officer, agent or employee thereof neglecting or refusing to comply with or violating any of the provisions of this act, the penalty for which neglect, refusal or violation is not specified in this section, shall be fined not exceeding two hundred dollars upon conviction thereof.

§ 31a. Penalty for officer, etc., borrowing funds. Any officer, director, agent or employee of any fraternal benefit society who shall directly or indirectly for himself or as partner or agent of others borrow any of the funds of such society or become indorser or surety for loans to others or in any manner be obligor for moneys borrowed or loaned by such society shall be guilty of a felony. [New section added June 1, 1917; Stats. 1917, p. 1651.]

§ 31b. Penalty for officer, etc., receiving reward for aiding loan. Any officer, trustee, agent or employee of a fraternal benefit society who asks or receives or consents or agrees to receive any commission, emolument, gratuity or reward or any money, property or thing of value for his own personal benefit, or of personal advantage, for procuring or endeavoring to procure for any person, firm or corporation any loans from the trust funds of, or funds belonging to, a fraternal benefit society shall be guilty of a felony. [New section added June 1, 1917; Stats. 1917, p. 1651.]

§ 32. Repeal of conflicting acts. All acts and parts of acts inconsistent with this act are hereby repealed.

This act is not unconstitutional as impairing the obligations of a contract: Machado v. Ellison, 35 Cal. App. 337, 169 Pac. 917.

ACT 687.

An act authorizing and empowering unincorporated, benevolent or fraternal societies to purchase, receive, manage and sell real estate without incorporating.

[Approved April 24, 1911. Stats. 1911, p. 1093.]

§1. Benevolent societies may hold real estate necessary for business purposes.

§1. Benevolent societies may hold real estate necessary for business purposes. All unincorporated benevolent or fraternal societies or associations are and every lodge or branch of such society or association is hereby authorized and empowered, without incorporation, to purchase, receive, own, hold, mortgage, manage and cell all such real estate and other property as may be necessary for the business purposes and objects of the said society or association or lodge or branch, subject to the laws and regulations of said society or association or lodge or branch and of the grand lodge thereof; and also to take and receive by will or deed all property not so necessary, and to hold the same until disposed of within a period of ten years from the acquisition thereof; provided, that all conveyances transferring or in any manner affecting the title to real estate owned or held by said society or association shall be executed by its presiding officer and recording secretary under its seal after resolution duly adopted by said society or association anthorizing such conveyance.

Actions against associates: See Code Civ. Proc., § 388.

ACT 688.

An act to regulate the organization of fraternal insurance associations. [Approved June 3, 1913. Stats. 1913, p. 372.]

1. Fraternal fire insurance associations.

$2. Formation.

3. Limitation on insurance. For members only. Seventy-five per cent cash value.

§4. Powers.

§ 5. By-laws.

6. Obligation to pay pro rata.

$7. Classification of property. Not to insure property in cities.
§8. Ascertainment of loss.

§1. Fraternal fire insurance associations. Secret, fraternal societies, having lodges, councils or granges in this state, and conducting their business and securing their membership on the lodge, council or grange system exclusively, and having ritualistic work and ceremonies in their societies, lodges, councils or granges, may form an association of the members of their order or society, binding themselves to contribute to each other's loss by fire.

§2. Formation. Such association shall be formed by filing a verified certificate in the office of the secretary of state and by filing a like certificate in the office of the clerk of each county in which a member has property insured in said association; such certificate shall state generally the objects of the association, and shall state its principal place of business, the names of its officers, who shall

be members of said association having property insured therein; such certificate shall be signed by said officers and verified by at least three of them.

§ 3. Limitation on insurance for members only seventy-five per cent cash value. An association formed as prescribed in sections 1 and 2 of this act may insure the property of its members against loss or damage by fire for an amount not exceeding forty-five hundred dollars on any one risk, and no risk of more than thirty-five hundred dollars shall be binding until risks to the amount of two hundred thousand dollars have been written and all premiums paid thereon, and no risk of more than fifteen hundred dollars shall be binding until risks to the amount of one hundred thousand dollars have been written and all premiums paid thereon, and no risk of any amount shall be binding until risks to the amount of seventy-five thousand dollars have been written and all premiums paid thereon. And no risk shall be written by such association except for members in good standing on the books of the order or society forming the association and a suspension or withdrawal from membership in such order or society will suspend the insurance risk until the member is restored to good standing in said order or society and in said association, provided, that a restoration to membership after suspension therefrom shall in no case be construed as extending the term of the risk. No risk written by such association shall be for an amount in excess of seventy-five per centum of the cash value of the property insured, and no concurrent or additional insurance shall be allowed.

§ 4. Powers. Such association by and in its own name may sue and be sued, may loan such funds as it may have on hand in such manner as its articles of association and its by-laws have provided for; may own sufficient real estate for its business purposes, and such other real estate as may be necessary to purchase on foreclosure of its mortgages; provided, such real estate so obtained by foreclosure shall be sold and conveyed within five years from the time title vests in said association.

§ 5. By-laws. Such association may make, such by-laws, not inconsistent with the laws of this state, as may be necessary for its government and for the transaction of its business, and such association merely creating a mutual bond and agreement of its members to participate in each other's loss by fire does not come under the insurance laws of California. Outside of the requirements of this act, their own regulations and those of the order to which they belong are sufficient.

§ 6. Obligation to pay pro rata. All persons insured shall give their obligation to the association, binding themselves, their heirs and assigns, to pay their pro rata share, proportioned to the amount of insurance in the association held by them, at the time of the loss to the association, of the necessary expenses and of loss by fire which may be sustained by any member thereof during the time for which their respective policies are written, and said policies may be canceled by either party thereto, in which case settlement or adjustment shall be made in accordance with the terms of the by-laws of the

association, and they shall also at the time of effecting the insurance pay such a percentage in cash, and such other charges, as may be required by the rules or by-laws of the association.

§7. Classification of property. Not to insure property in cities. All such associations must classify the property insured therein at the time of issuing policies thereon under different rates, corresponding as nearly as may be to the greater or less risk from fire loss which may be attached to the several kinds of property insured. No such association shall issue policies of insurance on any property within the limits of cities of the first, first and a half, second, third, fourth, fifth and sixth classes; provided, that no dwelling shall be insured within the corporate liimts of any city or town exposed by any other building within one hundred feet or by any risk other than a dwelling or private barn within two hundred feet of the risk assured.

§ 8. Ascertainment of loss. Such association shall provide in its by-laws for the ascertainment of loss or damage by fire, and for the payment thereof.

ACT 689.

An act to provide whole family protection for members of fraternal benefit societies.

[Approved April 20, 1917. Stats. 1917, p. 144. In effect July 27, 1917.] 1. Fraternal benefit society may insure children. Total benefits pay

able.

2. Conditions of benefit certificate.

3. Reserve required.

4. Separate financial statement.

$5. Specified payments.

$6. Continuation of certificate.

§ 1. Fraternal benefit society may insure children. Total benefits payable. Any fraternal benefit society authorized to do business in this state and operating on the lodge plan, may provide in its constitution and by-laws, in addition to other benefits provided for therein, for the payment of death or annuity benefits upon the lives of children between the ages of two and eighteen years at next birthday, for whose support and maintenance a member of such society is responsible. Any such society may at its option, organize and operate branches for such children and membership in local lodges and initiation therein shall not be required of such children, nor shall they have any voice in the management of the society. The total benefits payable as above provided shall in no case exceed the following amounts at ages at next birthday at time of death, respectively, as follows: Two, thirty-four dollars; three, forty dollars; four, forty-eight dollars; five, fifty-eight dollars; six, one bundred forty dollars; seven, one hundred sixty-eight dollars; eight, two hundred dollars; nine, two hundred forty dollars; ten, three hundred dollars; eleven, three hundred eighty dollars; twelve, four hundred sixty dollars; thirteen to fifteen, five hundred twenty dollars; and sixteen to eighteen years, where not otherwise authorized by law, six hundred dollars.

§2. Conditions of benefit certificate. No benefit certificate as to any child shall take effect until after medical examination or inspection by a

licensed medical practitioner, in accordance with the laws of the society, nor shall any such benefit certificate be issued unless the society shall simultaneously put in force at least five hundred such certificates, on each of which at least one assessment has been paid, nor where the number of lives represented by such certificate falls below five hundred. The death benefit contributions to be made upon such certificate shall be based upon the "standard industrial mortality table" or the "English life table number six" and a rate of interest not greater than four per cent per annum, or upon a higher standard; provided, that contributions may be waived or returns may be made from any surplus held in excess of reserve and other liabilities, as provided in the by-laws; and provided, further, that extra contributions shall be made if the reserves hereafter provided for become impaired.

§ 3. Reserve required. Any society entering into such insurance agreements shall maintain on all such contracts the reserve required by the standard of mortality and interest adopted by the society for computing contributions as provided in section two, and the funds representing the benefit contributions and all accretions thereon shall be kept as separate and distinct funds, independent of the other funds of the society, and shall not be liable for nor used for the payment of the debts and obligations of the society other than the benefits herein authorized; provided, that a society may provide that when a child reaches the minimum age for initiation into membership in such society, any benefit certificate issued hereunder may be surrendered for cancellation and exchanged for any other form of certificate issued by the society, provided that such surrender will not reduce the number of lives insured in the branch below five hundred, and upon the issuance of such new certificate any reserve upon the original certificate herein provided for shall be transferred to the credit of the new certificate. Neither the person who originally made application for benefits on account of such child, nor the beneficiary named in such original certificate, nor the person who paid the contributions, shall have any vested right in such new certificate, the free nomination of a beneficiary under the new certificate being left to the child so admitted to benefit membership.

§ 4. Separate financial statement. An entirely separate financial statement of the business transactions and of assets and liabilities rising therefrom shall be made in its annual report to the insurance commissioner by any society availing itself of the provisions hereof. The separation of assets, funds and liabilities required hereby shall not be terminated, rescinded or modified, nor shall the funds be diverted for any use other than as specified in section three, as long as any certificates issued hereunder remain in force, and this requirement shall be recognized and enforced in any liquidation, reinsurance, merger or other change in the condition of the status of the society.

§ 5. Specified payments. Any society shall have the right to provide in its laws and the certificate issued hereunder for specified payments on account of the expense or general fund, which payments shall or shall not be mingled with the general fund of the society as its constitution and by-laws may provide.

§ 6. Continuation of certificate. In the event of the termination of membership in the society by the person responsible for the support of