654 ARTICLE 48A.

tion, in accordance with the by-laws of the society, nor shall any such bene-
fit certificate be issued unless the society shall simultaneously put in force
at least five hundred such certificates, on each of which at least one assess-
ment 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 certificates 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 stand-
ard: 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 may be
made if the reserves hereafter provided for become impaired. Any society
entering into such insurance agreements shall maintain on all such con-
tracts the reserve required by the standard of mortality and interest
adopted by the society for computing contributions, and the funds repre-
senting the benefit contributions and all accretions thereon shall b© 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 obli-
gations of the society other than the benefits herein authorized: Provided,
however, that when a child reaches the age of eighteen years and fails to
apply for regular membership into the society, any benefit certificates
issued to it must be surrendered for cancellation, and any reserve upon
such certificate shall be paid to the party responsible for the payments of
assessments as a cash value.

Provided, further, 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 pro-
vided 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the person who originally made application for benefits on account of such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 certifi-
cate, the free nomination of a beneficiary under the new certificates being
left to the child so admitted to benefit membership. An entirely separate
financial statement of the business transactions and of assets and liabilities
arising therefrom shall be made in its annual report to the insurance com-
missioners 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
other use other than as herein specified 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 or status of the society.

No fraternal association and/or society shall be permitted to continue
business in this State after June 1st, 1927, whose last examination or
annual report shows that it is less than ninety per cent. (90%) solvent.