The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1893-01-27
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Fzoyi5io-.s Of &. Islii Z 5roduosd 81 the SEN
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Provisions OF a Islii q sroduoad sn the ssn-
ate iuF f~apuilr f---slas-
Senator Beunison's bin, recently IN
trOduced la the seuute for. popular
loans embodies rhe ideas advanced by
Gov LeHel1ing some time ago. 1t Is
entitled AN act regulating the loan
ing OF money in Kansas and autuorlA-
ing the state to Insure the payment
thereof The bill provides fox a Io-aH
commission of three mem bers, not more
than two Of whom shah be from the
same political party, who shall be ap-
pointed by the executive council Eacn
OF the commissioners is TO be paid a
salary of -, 500 a year and travelling e2z-
penBes- The commission is empOyVerasi
to loan any money in the state treasury
belonging TO the school fund at a rate
Of interest not exceeding hve
per cent The second section Of
the bill empowers the commission
to negotiate aud sell real estate mort
cages on Kansas homesteads in the
name of and In behalf OF the state OF
Kansas and guarantee the payment OF
the same, both principal and interest
1t IS provided that mo real estate mort
cages shall be made to draw more than
I've per cent interest per uuuum,
which sum shall be made payable to
and collected by the state OF Kansas
through the said commission" IL IS
also provided that the loan commission
shall not guarantee the payment of any
real estate mortgage drawing higher
rate Of interest from the state to the
purchaser than four per cent. per an
mum, and the board is given authority
70 guarantee the payment of mortgages
in any rate lower than I've per cent
The third section empowers the com
mission s'to issue debeutures by and in
the name of the state at a rate of inter
est not exceeding four per cent upon
real estate mortgages upon Kansas
homesteads, taken and held by the
state. dollar for dollar, to the amount of
the mortgage owned and held by the
state, and shall hold the mortgages as
security for the debeutures for and in
behalf Of the state, ana receive and
pay out the proceeds from the state de-
beutures to the mOrtgagors-"
The various boards Of county com
missioners are made an examining
board to investigate and pass upon ap-
plications for real estate loans
Section 1G provides that said loan
commissioner shall have fun power to
pledge the credit of the state of Kansas
for the payment of ali moneys coming
due on mortgages or debsntures by it
guaranteed or issued, and the credit
and honor of the state shall stand by
the guarantee Of the said commissioned,
the issue of debenlures as fully as
though the state had issued and sold
her bonds.
Sec. II. said loan commissioner shall
have power to provide for The payment
OF interest on its debentures and guar
anteed loans through agencies in east
ern cities aud Eurobe, but no additional
expense shall attach thereby, either TO
the state of Kansas or to the mOrtgagOrs-
Sec is. In case OF foreclosure and pur-
chase of real estate by the state as here
in provided, the real estate so purchased
shall be the property of the state of
Kansas and shall be disposed of in like
manner as the school bonds are at the
time being disposed Of but the proceeds
from any such sales shall go into and
belong to the special fund created by
this act, and shall be loaned on
real estate by the loan commission as is
herein provided. Provided the deferred
payments on the sale of such lands
shall not draw a greater rate of inter
est than five per cent per annum.
The loan commission is prohibited
from making loans in any county not
having been organized for ten years
and from making any loans on town or
city property in towns having less than
/ 500 inhabitants