Arkansas true Democrat., 1858-01-05
How to Obtain Titles to Lands Mortgaged for Btoek in the Real Estate Bank.

for Btoek in the Real Estate Bank. As we are often asked how title can be o5- taned to lands mortgaged for stock in the Real Estate Bank, we will give the law upon the subject. In order to make it perfectly inteillgi- ble we will also give an extract from the Go- vernor's message in which the recommendation of the passage of the law is contained. The extract is as follows:
 "It is recommended that suitable law be enacted. making the State Treasurer, by virtue of his office, a trustee, and requiring him, Tn hs capacity as such trustee, to receive and safely hold in trust any of the bonds of thls State,
 issued to and sold by the Real Estate Bank ot the State of Arkansas, which may, from tune to time, be so deposited with him to protect any lands mortgaged for stock Tn said bank, whether by the depositor or any one else. The bonds when so deposited should continue to draw n- terest as other unredeemed bonds, and the prin- cipal and interest of the bonds should remain se- cure from being withdrawn, or, in any manner, made liable for any other debt until the amount of the liability of mortgaged lands intended to be protected shall have been finally ascertained; !; and then the bonds and interest, or so much as shall be found necessary to pay of the incum- brance upon the mortgaged lands, should be ap- piled by the treasurer to the payment of the debt; and any excess ot such funds so deposited should then be refunded to the depositor The treasurer, in his capacity as such trustee should grant duplicate certificates of every such depo- sit, particularly designating the bonds by their numbers aud otherwise and stating the amount of the interest due on the bonds when deposit ed; designating the mortgaged lands intended to be protected by such deposit, by the proper numbers and areas, and showing by whom the lands mad been mortgaged for stock in the Real Estate Bank of the State of Arkansas, and at what value they were appraised when mort gagged. One of the certificates so granted should be deposited with the Auditor another with the Receiver in Chancery of the Real Estate Bank, and the third held by the deposi- tor"
 In pursuance of this recommendation law was passed allowing individuals to deposit bonds with the State Treasurer to protect from sale any land mortgaged for stock in the Real Estate Bank. Tho law will be found in sections and 9 of "an act to amend an act to establish sepa rate court of chancery at the seat of goUernment," etc., approved January 18th, 1857, and is as fol- lows:
 SEC. 8. Any person who may have given any stock mortgage to the Real Estate Bank of the State of Arkansas or the representatives of any such person may provide fund for the re- den ption eff the lands mbraced in the mortgage by deposting with the State Treasurer any bonds or coupons that were issued by the State to the bank, and that were sold by the bauk; and when such bonds and coupons shall have Become payable, and sufficient amount thereof, with the interest accrued, shall have been de- posted to pay the amount of stock and accrued interest for which the lands were mortgaged, such depositor or his representatives shall be entitled to have the mortgage cancelled, and to hold and to have right te the lands free from any lncumbrance on account of such mortgage, and such depostor or his representatives may apply to the court of chancery having jursdlc tion of the matter for confirmation of his title.
 SEC. 5. The deposit with the treasurer of the bonds provided for in the preceding section, shall not be taken as payment into the trea- surv of the State, and shall not work cancel lation or satisfaction of the bouds but the trea- surer shall hold them trustee for the de- positor, for the State and for all parties con- cerned, and such bonds shall draw interest as other outstanding unredeemed bonds, till final
 
 the stock mortgage, as provided for in the fore going section Aud in such settlement, if there | be any excess of bonds and interest over the 1 stock debt and interest, the depo>itor shall have such excess refunded to him. And on deposit | of bonds and coupons as provided for the trea- surer shall give to the depositor three certif- | cates describing the bonds and coupons depos- | ited. by whom, and against what lands depos- ! tpd Of y,bi ,ll file in the auditors office, one with the receiv- CT of the assets of the Real Estate Bank, and one shall be retained by the depositor and for receiving each deposit and giving certificates thereof the treasurer shall receive three dol lars, to be pad by the depositor.
 This law is good one, and those who own lands mortgaged for stock in the Real Estate Bank, nill do well to avail themselves of its. provisions. By so doing they will protect their land from sale under the mortgage, and secure a title against all contingencies. And now is the time to purchase the bonds and make the deposit The bonds can be purchased at about fifty per cent. below par. If the owners of these mortgaged lands wait few years longer they will be compelled to pay off the mortgage in specie, or purchase bonds nearly at par, or permit their lands to be offered at public sale.
 Sufficient amount should be deposited to pro- tect the lands with certainty, and when the pro rata liability against such lands is ascertained, the amount would be paid out of the deposit, and the surplus if any, refunded to the deposit tor, and satisfaction of the mortgage entered. The pro rata liability of each stock holder will not exceed in amount, ill any event, one-half the stock subscription for which his lands were pledged. The proper amount therefore to de- posit would be one-half of what the lands de- sired to be protected were mortgaged for This amount in bonds and coupons could be obtained at fifty per cent discount, and thus with sum in specie, one-fourth the amount of the mort gage, bonds sufficient could be purchased to protect the mortgaged lands from sale.
 Some few far-seeing individuals, we learn have already purchased bonds to make the de- posit.
 The Real Estate Bank itself owns many lands which arc mortgaged to the State for stock in the bank, and which were taken for debts due the bank, subject to the mortgage. By refer ence to the Governors message it will be seen that the aggregate value of these lands owned by the bank is nine Hundred and sirty- jour Mou- sand, seven hundred and .ttty-sevea dollars. They comprise some of the finest lands, both cleared and woodland in the State, and it is the inter- est of both the bank and the State, that they should be sold and brought under cultivation. They are therefore for sale, and title can be ob- tained by purchasing the interest of the bank and depositing bonds with the state treasurer to provide against their sale under the mortgage. By purchasing of the bank and pursuing this course, settlers and planters could obtain at a very reasonable rate the finest lands in the State-lands that were selected and entered by the early settlers of the territory when they had