The herald-advance. (Milbank, S.D.) 1890-1922, 1904-11-04
(Re1ating to Investmen ts of School and
Other EduCationa1 MoneYSl

(Re1ating to Investments of School and
Other Educational Moneys)
1. That Section IL of Article 8 of the Consti-
tuition of the State of South Dakota be amended
SO as to read as follows:
IL. The moneys of the permanent school
and other educational funds shall be invested
only in first mortgages upon good improved
farm lands within this state, as hereinafter pro-
vided or in bonds of school corporations within
this state or in bonds of the United States or of
the State of South Dakota or of any organized
county, township or incorporated city in said
state. The legislature shall provide by law the
method OF determining the amount of said funds
which shall be Invested from time to time in
such classes of securities respectively, taking
care to secure continuous investments as far as
possible.
All moneys of said funds which may from time
to time be designated for investment in farm
mortgages and i'll the bonds of school corpora
tons, or in bonds of organized counties, town
ships or Incorporated cities within this state,
shall for snch purpose be divided among the or
gained counties of the state in proportion to
population as nearly as provisions by law to
secure continuous investment may permit The
several counties shall hold and manage the same
as trust funds, and they shall be and remain re-
sponsible and accountable for the principal and
interest OF all such moneys received by them from
the date of receipt until returned becanee not
loaned; and in case Of loss of any money so ap-
portionedt to any county such county shall make
the same good ont Of it's common revenue.
Counties shall invest said money in bonds of
school corporations, counties, townships or
cities, or in first mortgages upon good improved
farm ianOS WltHlQ CnelT limits reSpect1VoIy. Inc
amount of each loan shall not exceed one. third
of the actual value of the lands covered by the
mortgage given to secure the same, such value to
be determined by the board of county commits
sioners of the county In which the land is SIT
uated. and in no case shall more than five thous-
and ($5. O00) dollars be loaned to any one person,
firm or corporation, and the rate of interest shall
not be less than five per cent per annum and
shall be such other and higher rate as the legis-
lature may provide and shall be payable semi.
annually on the first day of January and July:
/ ppnVInFD th0 at WhQnavpr Z hero a r q mnnnuc IF 40 RI
fund in any county amounting to one Thousand
dollars that cannot be loaned according to the
provisions of this section and any law pursuant
thereto, the said sum may be returned to the
state treasurer to be entrusted to come other
county or counties, or otherwise invested under
the provisions of this section.
Each county shall semi-annually, on the first
day of January and July, render An account Of
the condition OF the funds intrusted to it to the
auditor of state, and at the same time pay to or
account to the state treasurer for the interest
due on all funds intr listed to it.
The legislature may provide by general law
that counties may retain from interest collected
In excess OF five per centum per annum upon all
said funds entrusted to them, no: to exceed one
per centum per annum. But no county shall be
exempted from the obligations to make semi
annual payments to the state treasurer of inter
eet at the rate provided by. law for such loans,
except only said one per centum. and In no case
shall the interest. 80 to be paid, be less than five
per centum per annum.
The legislature shall provide by law for the
safe investment OF the permanent school and
other educational funds and for the prompt col
lection of interest and income thereof, and to
ton.
2 That the foregoing proposed amendment
10 hereby agreed to and is hereby submitted to q
vote Of the electors of The state, at the next gen
eral election, for their approval" =
Shall the above amendment to the constitution
In relation to the Investment Of School and other
Educational funds be approved and ratified"
In witness whereof. l have hereunto set my
hand and affixed the official seal of Grant county
Ct Milbaak. $. D., this Twenty second day Of
October, A. d. 1904.
! (sEALl G. II. PINCKNEY,
] County Auditor.