640 CORPORATIONS. [ART. 23

and not for profit. Each such association shall have a lodge system,
with ritualistic form of work and a representative form of government,
and shall make provision only for the payment of benefits in case of
sickness, disability or death of its members, subject to their compliance
with its constitution and laws. The fund from which the payment of
such benefits shall be made and the fund from which the expenses of
such association shall be defrayed shall be derived from fees, assess-
ments and dues collected from its members. Payments of death bene-
fits may be made only to the widow, children, grandchildren, mother,
father, brother, sister, grandparent, aunt, uncle, niece, nephew,
first cousin, next of kin who would be distributees of the member's
personal estate if he died intestate, to an affianced husband or affianced
wife of the member, or to persons dependent upon the member for food,
lodging, clothing or education, and to none other; provided, that pay-
ment can only be made to a beneficiary by reason of dependency when
it is established by documentary proof to the satisfaction of the execu-
tive officers of such association that the fact of such dependency, as
herein provided, existed at the member's death, and no benefit certifi-
cate shall issue designating a beneficiary by way of dependency, unless
such dependency shall be fully set forth, in writing, and established by
documentary proof to the satisfaction of said executive officers, prior to
the issuance thereof. A benefit shall not be assignable except to the
beneficiaries above specified, and then only by the consent of such
association, attested by its seal and the signature of its supreme secre-
tary and its supreme executive officer; but the member may surrender
his benefit certificate and have a new one issued to any one or more
of the beneficiaries, as above specified, in the manner provided by the
constitution and laws of such association. Such associations shall be
governed by the provisions of section 229 to section 242, both inclusive,
of this article, and shall be exempt from the provisions of the insur-
ance laws of this State, and no law hereafter passed shall apply to them
unless they be expressly designated therein; provided, that any cor-
porations or associations, orders or societies, operating on the lodge
system and having ritualistic work in their lodges, councils or socie-
ties, whose business it is, in whole or in part, to pay, at the expiration
of a fixed period of not less than five years, a sum not exceeding the
maximum amount named in their certificates, or paying dividend, with-
drawal, surrender or old age benefits, or paying such certificates at the
expiration of life expectancy, may conduct their business in this State
under the provisions governing fraternal beneficiary societies, orders
or associations, with this exception, that no such corporation or associa-
tion shall be permitted to begin, do or continue business in this State,
until it shall have first deposited' with the insurance commissioner of this
State, the sum of ten thousand dollars in dividend-bearing securities,
satisfactory to said commissioner, as a guarantee for the payment of
certificates issued by it, which deposit shall be constantly maintained
at that amount; provided, however, that any such corporation or asso-
ciation organized under the laws of any other State, which may have,