held at such times and places as the Governor or a majority of the Commission may determine. It shall be provided by the proper authorities with suitably furnished offices at the seat of Government.

Section 3. The Industrial Commission shall operate, manage and control the Bank of South Dakota, locate and maintain its places of business, of which the principal place shall be within the State, and make and enforce orders, rules, regulations and by-laws for the transaction of its business. The business of the Bank, in addition to other matters herein specified, may include anything that any bank may lawfully do, except as herein restricted but this provision shall not be held in any way to limit or qualify either the powers of the Industrial Commission herein granted, or the functions of said Bank herein defined. The Industrial Commission shall meet within twenty days after the passage and approval of this Act to begin the organization of the Bank.

Section 4. To accomplish the purpose of this Act, the Industrial Commission shall acquire, by purchase, lease or by exercise of the right of eminent domain, as provided by Section 13, of Article 6 of the Constitution of the State of South Dakota, all requisite property and property rights, and may construct, remodel and repair buildings.

Section 5.. The Industrial Commission shall obtain such assistance as in its judgment may be necessary for the establishment, maintenance and operation of the bank. To that end it shall appoint a manager, and may appoint such subordinate officers and employees as it may judge expedient. It may constitute such manager its general agent, in respect to the functions of said Bank, but subject, nevertheless, in such agency, to the supervision, limitation and control of the commission. It shall employ such contractors, architects, builders, attorneys, cashiers, tellers, clerks, accountants, and other experts, agents and servants as in the judgment of the commission the interests of the State may require, and shall define the duties, designate the titles, and fix the compensation and bonds of all such persons so engaged; provided, however, that subject to the control and regulations of the commission, the manager of the Bank shall appoint and employ such deputies, cashiers, tellers, and subordinates, and such contractors, architects, builders, attorneys, clerks, accountants and other experts, agents and servants, as he shall, in his judgment, deem are required by the interests of the Bank. The total compensation of such appointees and employees, together with other expenditures for the operation and maintenance of the Bank, shall remain within the appropriation and earnings lawfully available in each year for such purpose. All officers and employees of the Bank engaged upon its financial functions, shall, before entering upon their duties, respectively furnish good and sufficient bonds to the State in such amount and upon such conditions as the commission may require and approve; but the bond of the Manager shall not be less than fifty thousand dollars. Such bond shall be filed with the Secretary of State.

Section 6. The Industrial Commission may remove and discharge any and all persons appointed in the exercise of the powers granted by this Act, whether by the Commission or by the Manager of the Bank, and any such removal may be made whenever in the judgment of the Commission the public interests require it; provided, however, that all appointments and removals contemplated by this Act shall be so made as the Commission shall deem most fit to promote the efficiency of the public service.

Section 7. The Bank shall be open and shall proceed to transact business whenever there shall be delivered to the Industrial Commission

bonds in the sum of two million dollars issued by the State as hereinafter provided for such purpose. The fund procured by the negotiation and sale of such bonds is hereby designated and shall be known as the capital of said Bank.

Section 8. The State Treasurer is hereby directed forthwith to prepare for issue, and the Governor and the State Treasurer are hereby authorized, empowered and directed to issue, negotiable bonds of the State of South Dakota in the aggregate amount of two million dollars. They shall be executed by the Governor and the State Treasurer under the Great Seal of the State and shall be attested by the Secretary of State. The Auditor and Secretary of State shall endorse and sign on each bond a certificate showing that it is issued pursuant to law and is within the limit of indebtedness allowed for such purposes. The bonds so issued shall be designated "Bonds of South Dakota, Bank Series."

Section 9. The bonds so issued shall be payable to the purchaser or bearer. They shall be issued in denominations of from five dollars to ten thousand dollars, and shall be payable in not less than ten or more than thirty years from the passage of this Act. They shall bear interest at a rate not exceeding six per cent per annum from their date until maturity, payable semi-annually on the first day of January and of July in each year; and coupons shall be attached to each bond evidencing the amount of interest payable at each first day of January and July until maturity. Principal and interest shall be payable at the office of the State Treasurer in Pierre. The terms of said bonds, as to values of denominations, periods of maturity and rates of interest, shall be fixed by the Governor in his sound judgment, within the limitations above stated. Every such bond and coupon must be presented for payment at the office of the State Treasurer within six years from the date of its maturity, and no such bond or coupon shall bear interest after maturity unless payment thereof shall not be made upon due presentation for payment. All said bonds shall be exempt from State, county and municipal taxes of any and all kinds.

Section 10. The said issue of bonds is authorized for the purpose of making delivery thereof to the Industrial Commission of South Dakota as hereinafter provided.

Section 11. In furtherance of the purposes declared by this Act, it is hereby made the duty of the Governor and the State Treasurer after the issue, execution, sealing and attestation of said bonds, to deliver them to the Industrial Commission, in such denominations and amounts, bearing interest at such rates, and running to such periods of maturity as may be determined by the Governor, in his discretion, upon consideration of such recommendations as the Commission may make in regard thereto. The Industrial Commission is empowered authorized and directed, in connection with and in addition to its other powers and duties, to act as the agent of the State for the negotiation, sale and delivery of said bonds. It shall sell them for cash in such manner and at such terms as in its sound discretion it shall deem most advantageous to the interests of the State. The Commission is hereby authorized to receive all moneys paid by buyers of said bonds, upon the sale thereof, and upon receipt of the purchase price to deliver to each purchaser the bonds by him purchased. Upon such delivery of bonds so purchased and paid for, the faith and credit of the State of South Dakota is pledged for the payment thereof, both principal and interest, to the lawful holder and owner thereof upon presentation for payment, according to law. The moneys so derived and received from the sale

of said bonds shall constitute the fund to be designated as the capital of the Bank of South Dakota, and shall be so employed by the Industrial Commission. Nothing in this Act, however, shall be construed to prevent the purchase of any of said bonds with any funds in the Bank of South Dakota.

Section 12. From time to time the Industrial Commission shall, out of the earnings derived from the operation of the Bank of South Dakota, pay to the State Treasurer such moneys as the Commission shall deem available to devote to the purpose of paying said bonds and interest. In making such payment the Commission shall file a statement with the State Treasurer specifying the purpose of such payment. When moneys shall have been so paid to the State Treasurer, he shall apply the same to their specified purpose as hereinafter directed.

Section 13. At the time of each annual meeting of the State Tax Commission hereafter, the Industrial Commission shall deliver to said board an exact written statement of all bonds issued under the provisions of this Act outstanding at that time, including therein the dates of maturity, interest rates and all other information proper to enable the Tax Commission intelligently to comply with the provisions of this Act in regard to tax levies. On the basis of such information the State shall annually levy a tax, at the time other taxes are levied, sufficient in amount to pay such interest on said bonds as will become due during the year beginning on the next ensuing first day of January, and said tax shall be collected in the same manner as other State taxes are collected. In determining, however, the amount of the tax sufficient for such purpose the Tax Commission shall take into account whatever moneys, if any, shall then have been paid to the State Treasurer by the Industrial Commission as provided in Section 5 of this Act, for the specific purpose of paying such interest. The Tax Commission shall apply to the State Treasurer for information as to the amount of such moneys, and he shall forthwith supply the information requested. If the amount of such moneys shall equal or exceed the amount of interest on said bonds payable during said year beginning on the next ensuing first day of January, then no tax shall be levied by the Tax Commission for that purpose; but if the amount of such moneys shall be less than the amount of the interest on said bonds payable during said year, then the Tax Commission shall deduct the amount of said moneys in the possession of the Treasurer from the amount of the interest so payable, and shall levy the tax hereinbefore in this section provided for at least the difference between said amounts.

Section 14. Whenever it shall appear to the Tax Commission from the information contained in any statement delivered to it by the Industrial Commission at any annual meeting of said Commission, as provided in Section 13 above, that there will mature, within a period of five years from such annual meeting, any of the bonds provided for in this Act, the Tax Commission shall thereupon, at such annual meeting, levy a tax in an amount equal to one-fifth of the amount of the principal of such bonds; provided, however, that in determining the amount of such tax, the Tax Commission shall take into account whatever moneys if any shall have been paid to the State Treasurer by the Industrial Commission for the specific purpose of paying the principal of said bonds when due, as provided in Section 12 of this Act. The Tax Commission shall apply to the State Treasurer for information as to the amount of such moneys and as to the times when paid to him. If the amount of such moneys, paid to the Treasurer since the date of the last preceding tax levy made by the Tax Commission, shall equal or exceed one-fifth of

the amount of the bonds so to mature, then such tax shall not be levied, but if the amount of such moneys, paid to the State Treasurer since the date of the last preceding tax levy, shall be less than one-fifth of the amount of said bonds so to mature, then the Tax Commission shall deduct the amount of such moneys, so paid, from such one-fifth of said bonds, and shall levy the tax, hereinbefore in this section provided, for the difference. It is the intention of this section to provide that in each of the last five years, before the maturity of any of said bonds, a State Tax shall be levied which, together with such moneys as shall during the next preceding year have been paid to the State Treasurer by the Industrial Commission for the purpose, shall be at least sufficient to pay one-fifth part of the principal of said bonds.

Section 15. To identify and distinguish the funds provided and available for the payment of the bonds issued pursuant to this Act, there is hereby created and established, as a part of the moneys of the State received and kept by the State Treasurer, a fund to be designated the "Bank Bond Payment Fund." All moneys received by the State Treasurer, whether from the proceeds of taxes, or from payments made by the Industrial Commission or from legislative appropriation, or otherwise, which shall be by law or by other authoritative designation made applicable to the payment of the said bonds, or interest thereon, shall be by him kept in said fund distinct from all other moneys, and shall be disbursed by him only for the particular purpose or purposes for which such moneys shall be delivered to him; and no other appropriation shall ever be made of the moneys in said fund until the said bonds shall be fully paid. But this Act shall not be construed as preventing the State Treasurer from depositing said funds in the Bank of South Dakota, as provided by law with respect to all public funds.

Section 16. There is hereby appropriated all of the moneys obtained as proceeds of the taxes provided for in Sections 13 and 14 above, and all moneys paid to the State Treasurer by the Industrial Commission as specified in Section 12 above, and all moneys constituting the Bank Bond Payment Funds, or so much thereof as may be from time to time necessary, to pay the interest and principal upon the said bonds as payments thereon, shall become due; and whenever any of said bonds, or any coupons thereon, being due, shall be presented for payment, the State Treasurer shall pay the same out of the fund applicable thereto. If for any reason the said fund shall for the time being, be insufficient the Treasurer shall supply the deficiency out of any other available moneys of the State in his custody; but in that case he shall as soon as possible, out of the Bank Bond Payment Fund, return the amount of such deficiency to the source whence taken.

Section 17. The Industrial Commission may establish branch banks in any city or cities within the State, and upon petition of 30 per cent of the electors of any city it shall establish such branch bank in such city within three months after the receipt of such petition.

Section 18. All State, county and rural credits, township, municipal and school district funds, and funds of all penal, charitable, educational and industrial institutions, and all other public funds shall be, by the person having control of such funds, deposited in the Bank of South Dakota within three months from the passage and approval of this Act, subject to disbursement for public purposes on checks drawn by the proper officials in the manner now or hereafter to be provided by law; provided, however, that on a proper showing made by any official having control of public funds, except those of the State, the Industrial Commission may permit a postponement of the deposits of

such funds or any part thereof in the Bank of South Dakota, the period of such postponement not to exceed six months.

Provided, further, that where branch banks have been established in any city or cities within such county the funds of the county, townships, municipalities and school districts within such county, shall be deposited with such branch banks.

And provided, further that if any such funds are now loaned by authority of law under a contract terminating at a future time, then the deposit of such funds in the Bank of South Dakota shall not be required until two months after the time of expiration of such contract. Any person who shall violate any of the provisions of this section shall be guilty of a misdemeanor and upon conviction therof shall be punished by imprisonment in a county jail for not less than ninety days, and by a fine of not less than one hundred dollars.

Section 19. Whenever any of the public funds hereinbefore designated shall be deposited in the Bank of South Dakota, as hereinbefore provided, the official having control thereof, and the sureties on the bond of every official, shall be exempt from all liability by reason of loss of any such deposited funds while so deposited.

Section 20. The Bank of South Dakota may receive deposits from any source, including the United States Government and any foreign or domestic individual, corporation, association, municipality, bank or government. Funds may be deposited to the credit of the bank of South Dakota in any bank or agency approved by the Industrial Commission.

Section 21. All deposits in the Bank of South Dakota are hereby guaranteed by the State. Such deposits shall be exempt from State, county and municipal taxes of any and all kinds.

Section 22. Funds deposited by State Banks in the Bank of South Dakota shall be deemed "available funds" and shall not be loaned or used for speculative or non-productive purposes, nor shall the funds of the Bank of South Dakota to be loaned for speculative purposes. For banks that make the Bank of South Dakota a reserve depository, it may perform the functions and render the services of a clearing house, including all facilities for providing domestic and foreign exchange, and may re-discount paper, on such terms as the Industrial Commission shall provide.

Section 23. The Industrial Commission, unless otherwise limited by law, shall from time to time fix the rates of interest allowed and received in transactions of the Bank. Such rates shall be as nearly uniform and constant as practicable, and shall not be fixed or changed to work any discrimination against or in favor of any person or corporation. But in respect to time deposits received by the Bank, transactions may be reasonably classified as to the amounts and the duration of time involved, and a reasonable differentiation of interest rates based on such classification may be allowed. When interest is allowed on any deposits it shall not be less than one or more than seven per cent. The Industrial Commission shall also fix reasonable charges, without unjust discrimination, for any and all services rendered by the Bank.

Section 24. All checks and other instruments and items of exchange payable on demand, sent by the Bank of South Dakota to any State bank or banking association in South Dakota, for collection, shall by such State bank or banking association remitted for at par to the Bank of South Dakota. Any person or corporation who shall violate any of the provisions of this section shall be guilty of a misdemeanor.