J. MILLARD TAWES, Governor                       1141

312.    Time for Completing Organization.

No preliminary certificate granted under the provisions of this
section shall be valid after one year from its date or after such
further period, not exceeding one year, as may be authorized by the
Commissioner upon cause shown, unless the five hundred (500)
applicants hereinafter required have been secured and the organiza-
tion has been completed as herein provided. The articles of incorpo-
ration and all other proceedings thereunder shall become null and
void in one year from the date of the preliminary certificate, or at
the expiration of the extended period, unless the society shall have
completed its organization and received a certificate of authority to
do business as hereinafter provided.

313.    Initial Solicitations and Qualifications.

Upon receipt of a preliminary certificate from the Commissioner,
the society may solicit members for the purpose of completing its
organization, shall collect from each applicant the amount of not
less than one regular monthly premium in accordance with its table
of rates as provided by its constitution and laws, and shall issue to
each such applicant a receipt for the amount so collected. No society
shall incur any liability other than for the return of such advance
premium, nor issue any certificate, nor pay, allow, or offer or promise
to pay or allow, any death or disability benefit to any person until:

(1)   Actual bona fide applications for death benefits have been
secured aggregating at least five hundred thousand dollars ($500,-
000) on not less than five hundred (500) lives;

(2)   All such applicants for death benefits shall have furnished
evidence of insurability satisfactory to the society ;

(3)   Certificates of examinations or acceptable declarations of
insurability have been duly filed and approved by the chief medical
examiner of the society;

(4)   Ten (10) subordinate lodges or branches have been estab-
lished into which the five hundred (500) applicants have been
admitted;

(5)   There has been submitted to the Commissioner, under oath
of the president or secretary, or corresponding officer of the society, a
list of such applicants, giving their names, addresses, date each was
admitted, name and number of the subordinate branch of which each
applicant is a member, amount of benefits to be granted and pre-
miums therefor; and

(6)   It shall have been shown to the Commissioner, by sworn state-
ment of the treasurer, or corresponding officer of such society, that
at least five hundred (500) applicants have each paid in cash at least
one regular monthly premium as herein provided, which premiums
in the aggregate shall amount to at least twenty-five hundred dollars
($2,500), all of which shall be credited to the fund or funds from
which benefits are to be paid and no part of which may be used for
expenses. Such advance premiums shall be held in trust during the
period of organization and if the society has not qualified for a cer-
tificate of authority within one year, as herein provided, the pre-
miums shall be returned to the applicants.