CHAPTER 252.

(H. B. 218.)

RELATING TO HIGHWAY SIGNS.

AN ACT Entitled, An Act Prohibiting the Molestation of Official Signs and Marks Upon or Along Public Highways and Providing Penalties Therefor.

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

Section 1. It shall be unlawful for any person to deface, obliterate, remove or in any manner molest or interfere with any road sign, mileage post or directing device placed upon the Highways of this State under the direction or by permission of the Highway Authorities of the State or of the United States, under whose jurisdiction said road is placed by law. Any person found guilty of violating the foregoing provisions shall be deemed guilty of a misdemeanor.

Provided, that this Act shall in no wise affect the provisions of Section 53, Chapter 333, Session Laws of 1919. Approved February 28, 1921.

Holidays

CHAPTER 253.

(S. B. 5.)

ESTABLISHING LEGAL HOLIDAYS.

AN ACT to Amend Section 21 of the Revised Code of 1919 Pertaining to Public Holidays.

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

Section 1. That Section 21 of the Revised Code of 1919 is hereby amended to read as follows:

Section 21. Legal Holidays, No Civil Process Served.] The first day of every week, known as Sunday; the first day of January, commonly known as New Years Day; the twelfth day of February, the anniversary of the birthday of Lincoln; the twenty-second day of February, the anniversary of the birthday of Washington; the thirtieth day of May, commonly known as Memorial day; the fourth day of July, commonly known as Independence Day; the first Monday in September, commonly known as Labor Day (unless some other day should be appointed by the governor); the eleventh day of November, commonly known as Armistice day; the twenty-fifth day of December, commonly known as Christmas day; and every day on which an election or primary election is held throughout the state and every day appointed by the president of the United States, or by the governor of this state for a public fast, thanksgiving or holiday, shall be observed in this state as a legal holiday. Aside from Sundays, the observance of which is provided for in title 4, no public business, except in case of necessity, shall be transacted on any one of the said days, and no legal process in civil cases shall be served on any of said days.

Approved January 29, 1921.

Home Building Department

CHAPTER 254.

(H. B. 315.)

CREATING THE STATE HOME BUILDING DEPARTMENT.

AN ACT Entitled, An Act Creating a State Home Building Department, Defining its Powers and Duties, Providing for the Loaning of Money and Extending of Credit to the People of the State Upon Real Estate Security for the Purpose of Assisting in the Building of Homes by the People of this State, Authorizing the State to Borrow Money on Bonds and Warrants Secured by the Good Faith and Credit of the State for Such Purposes, and Providing for and Establishing and Maintaining Said System of Credits and Providing for the Necessary Officers and Employes, Their Compensation, Expenses and Supplies.

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

Section 1. A State Home Building Department is hereby created to be controlled and managed by the Rural Credit Board hereinafter referred to as the Board. Such board shall perform the duties imposed upon it by this act, in addition to those which it already possesses, and the business of this department shall be separate and distinct from all its other business.

Section 2. Such department shall be maintained for the purpose of loaning money and extending credit to the people of this state upon real estate security, to be used in the building of homes in the manner and upon the terms and conditions provided by this act.

Section 3. The board may employ with the approval of the Governor, such officers, assistants, clerks, and employees as may be necessary to conduct the business of this department, and shall have power to define their duties and fix the bond and compensation of each; the board may also provide the necessary fixtures, stationery and supplies.

Section 4. The principal officer employed by the board for this department shall be known as the Home Building Commissioner who shall be the custodian of all property received by this department except such as is placed in the hands of the Treasurer.

The said commissioner shall keep an accurate account of all the proceedings and transactions of the department, shall execute all checks, make all reports, requisitions and statements and perform all the other duties that may be required of him by the board.

Section 5. The board is hereby authorized to borrow money and to issue and dispose of warrants and bonds payable by the state as follows: A. Such bonds and warrants shall be executed in the name and on behalf of the state and shall be signed by the Governor, the Rural Credit Commissioner and the Treasurer of the board and shall be attested by the Secretary of State with the Great Seal of the State. The bonds and warrants so issued shall in no case exceed the sum of five hundred thousand dollars ($500,000.00) during any biennial period, the first of which shall end on December 31st, 1922. They shall be issued in such denominations as the board may determine and in any event not less than one hundred dollars ($100.00), and bear such rate of interest as shall be fixed by the board, payable annually annually or semi-annually. The board shall fix the date or dates on which such bonds and warrants

shall become due and payable; they shall run for specific minimum and maximum periods and be subject to payment and retirement at the option of the board at any time after five years from date of their issue. Principal and interest shall be payable at a place designated by the board.

B. The form of said warrants and bonds shall be such as the board may prescribe, and shall bear as an imprint across the face thereof the words "Home Building Bonds of South Dakota," and they shall be negotiated by the board in such manner as it may deem expedient, provided, however, that no bond shall be sold for less than its par value.

Section 6. All personal property, mortgages, notes or other evidences of debt acquired or held by this department shall be held in trust for the payment of money borrowed by this State for the purpose of establishing and maintaining this system of credits, and shall never be diverted to any other purposes; provided that such board may invest and re-invest the proceeds of the same in first mortgage loans as provided by this act when not required for immediate payment of warrants or bonds or interest.

Section 7. The whole amount of bonds and warrants outstanding at any time shall never exceed by more than five per cent the total amount of cash on hand and in banks, and mortgages then held and in the possession of such board computed at their face value, and exclusive of the reserve fund provided for by this act.

Section 8. If at any time there shall not be sufficient funds in the treasury to pay such bonds or warrants or interest thereon at maturity, or when the same shall become due it shall be the duty of the Tax Commission upon request of such board forthwith to levy a tax upon all taxable property of the state to pay the same when due, which tax shall be extended and collected in the same manner as other taxes. Whenever such tax shall have been levied, it shall be the duty of the State Auditor upon request of the board to issue his warrant or warrants as such board may direct, bearing interest not to exceed seven per cent per annum and to register the same drawn upon the fund to be derived from such special levy, in an amount which, with the interest provided for in such warrant, will not exceed the amount that will be realized from such levy, and deliver the same to such board and such warrants may then be sold by the board.

Section 9. Ali money derived from such special levy or from the sale of special warrants issued thereon shall be placed in a special fund to be designated as "Home Building Interest and Sinking Fund" and shall be used only for the payment of bonds, warrants and interest thereon as the same become due. All the money derived from such special levy is hereby appropriated for the payment of warrants drawn on such fund, and for the payment of any bonds or warrants drawn on such fund, and for the payment of any bonds or warrants, or interest thereon, at maturity.

Section 10. All the proceeds from the sale of bonds or warrants issued by the board and all receipts of the board for this department whether from payment of loans, interest or from whatever source except as provided in the preceding section and also except as to the reserve hereinafter provided for, shall be reported in detail and paid into the state treasury monthly or oftener and credited to a special fund to be designated as the "Home Building Fund," to be used and expended by the board for the purposes authorized by this act.

Section 11. The State Treasurer shall be the treasurer of this department. He shall perform all the duties of such office and be

subject to such regulations as may be adopted by the board for this department, and which shall not be inconsistent with his official duties. He and his surities shall be liable on his official bond for the faithful discharge of such duties. The treasurer shall have authority to receive and receipt for all moneys arising from any source under the provisions of this act. He shall keep separate accounts of the several funds provided for by this act. At once, on receiving money from any source, he shall notify the Home Building Commissioner of the amount, the source from which received and the fund to which credited. Disbursements from all funds belonging to this department shall be made by the Treasurer upon the order of the Home Building Commissioner. Such order shall be issued only upon itemized and verified vouchers approved by the board. It shall be the duty of such Home Building Commissioner and Treasurer, at least every thirty days, to file in the office of the State Auditor a verified and itemized account of all disbursements showing the persons to whom the money has been paid, the amount of each payment and for what purposes, and the cancelled vouchers upon which such money was disbursed shall be filed in the office of the State Auditor in like manner. Such accounts shall show the balance on hand at the time such account is rendered.

Section 12. Funds of this department shall be subject to the provisions of Sections 6872 to 6887 inclusive of the Revised Code of 1919, the same as other funds in the state treasury except that interest earned thereon shall be credited to the "Home Building Fund."

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Section 13. The difference between the rate of interest paid by the state for money borrowed, and the interest received by the state for money loaned shall be not to exceed one and one-half per cent. One-half of one per cent thereof shall be placed in a separate fund to be designated as the "Home Building Expense Fund.' All salaries and expenses of officers and employes, and all other necessary expenses of the department in transacting its business shall be paid from this fund. Provided, however, that any appropriation which may be made by the legislature for these purposes shall be placed in this fund.

The remainder of such excess interest shall, when collected, be deposited by the State Treasurer in a separate fund to be designated the "Home Building Reserve Fund" and shall be used for the purpose of reimbursing cities and towns for losses under the provisions of this act, and the reserve fund belonging to any city or town shall never be used to reimburse any other city or town for losses, nor shall it be diverted to any purpose other than that authorized by this section, even temporarily.

Section 14. The loans authorized by this act shall be made upon the following terms and conditions:

A. The applicant must be a resident of this state, the head of a family and must be the owner in fee simple of the lot upon which the home is to be built, which lot must be within the limits of a city or town within this state and must be free and clear of all incumbrances; provided, however, that special assessments for city improvements payable in installmnets shall not be considered incumbrances within the meaning of this section.

B. The amount loaned to any one borrower shall never exceed four thousand dollars ($4,000.00) and the total amount loaned to husband and wife shall in no case exceed that sum. Sale of the property upon which loan has been obtained shall not make the borrower eligible for a new loan until his former loan has been fully paid.

C. No loan under this act shall be for an amount exceeding eighty per cent (80%) of the cost of building the home. This cost shall include the total expense of completing the structure, including foundation and basement, heating, lighting, plumbing, decorating and all permanent fixtures. The applicant shall possess the other twenty per cent (20%) of the cost of construction in cash, which amount must be paid to the city or town Treasurer within five days after date of approval of loan by Board, and be placed in municipal Home Building Fund provided in this act.

D. Each loan shall be secured by a first mortgage upon the real estate on which the home is to be constructed. Loans shall be payable in not more than 12 years and shall bear interest at a rate which shall be not to exceed one and one-half per cent (12%) above the rate paid by the board on the money borrowed for the purpose of this act.

E. The mortgagor shall agree to pay all taxes and assessments that may be levied upon said premises, before the same shall become delinquent, and to keep the buildings upon said premises safely insured for the benefit of the State in a sum equal to the total amount due under the mortgage at all times, against loss by fire, lightning and tornado, and deliver such insurance policies to the board. In case of the mortgagor's failure to pay said taxes or assessments before the same become delinquent, or to pay the premiums for insurance on said buildings, such payments may be made by the board and the amount so paid with interest at the rate of eight per cent from date of payment shall be added to and deemed a part of the money secured by said mortgage. The mortgagors shall relinquish all their rights of homestead in the premises and warrant that they are the owners in fee of said premises and that the same are free of all incumbrances except as to special assessments payable in installments as provided by subdivision "A" hereof. In case of default in the payment of the principal sum of money or any part thereof or interest thereon at the time or times specified for payment thereof in the mortgage, or in case or non-payment of any taxes, assessments, or insurance as provided for in the mortgage, or in case of breach of any covenant or agreement contained therein, then and in either case the whole principal and interest of said note shall at the option of the board, immediately become due and payable and said mortgage may be foreclosed by action or by advertisement as provided in Title Two of the Revised Code and the foregoing provisions which shall be contained in said mortgage, shall be deemed as authorizing and constituting a power of sale as provided in said Title and any act amendatory thereof.

F. Such mortgages shall be in the form prescribed by Section. 1566, Revised Code, to which the board may add any other terms and conditions which they may deem to be in the interest of the state. In case of foreclosure, the period of final redemption shall be three months.

G. For the purpose of determining the amount of Insurance that shall be required for the protection of the state during the course of construction, the amount due under the mortgage shall be deemed to be the amount that has been advanced from time to time upon estimates as hereinafter provided. The standard mortgage clause, with full contribution, shall be attached to all policies.

Section 15. Applications for such loans shall be made upon forms to be prescribed by the board and shall contain all of the information required by the board. It must appear therefrom that the applicant has no understanding or agreement for the sale of the property, and, that the loan is desired for the benefit of himself and his dependents and