The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1912-01-04
LAND BOARD ADOPTS NEW LOAN
SYSTEM FOR SCHOOL FUNDS
Interest Kate Increased to Seven Per CentBoard Will
Also Investigate Charges of its own
Short Comings

school fund must be based on
Z per cent interest rate, instea,
OF 6 per cent as heretofore.
Resolutions to this effect an,
covering many other importan
changes were unanimously adopt
ed by the State Land board Las
week as follows:
New Rules of the Board.
Resolved, That after Januar,
1, 1912, no farm loan will be ap
proved for over $4,000 to any on,
individual, and no appraisement.
for over $500 an acre will be an
proved. This applies also t,
extensions and renewals.
Resolved, That on all loans OF
farm lands allowed after Januar,
], 1912, the rate of interes
charged shall be Z per cent pei
annum and the rate of interest
on school bonds shall be Del
cent.
Resolved, That on and after
January |, 1912, all applications
for farm loans shall be cOnsidere,
and granted, or rejected, in the
exact order in which they are
filed with the register, who shall
place date of receipt of applica.
tion upon it as soon as it comes
into his hands; and
BE it further resolved, That tn,
register is hereby directed to at.
tach a statement to each blank
application sent out, clearly set
ting forth that all applications
will be considered in turn and
that any fee or commission paid
to any agent or representative of
the borrower can have no posi-
'ble bearing on the application
and would be money thrown
away; but the borrower shall pay
for the preparing of all papers,
including applications, abstract
and mortgages and the recording
OF all instruments, including
state mortgage, that are necessary
to show full and complete title,
and further, pay all necessary ex-
pense OF the appraiser.
When abstract ON application
for farm land shows an unsatis-
fled mortgage ON land offered as
security, and when the applica-
tlon shows that the money is
borrowed to pay off said first
loan, the borrower shall be re-
CURED to execute mortgage to
the state and have the same re-
corded and abstract brought
down to date, showing the same.
The borrower may then request
escrow in any bank in Boise City
to be forwarded to bank holding
the release of said mortgage in
escrow, to be delivered upon the
surrender of former notes and
delivery of release of former
mortgages. The borrower, how
ever, to be at all expense for
recording said release and show
ing same on abstract.
In the matter of interest rates
it was pointed out that even at
Z per cent for farm loans and 6
per cent for school bonds the
board would still be below the
regular money market rates of in
terest. 1t was asserted, too, that
the land board was not a char
liable institution; that it was sup
posed to be doing business on
business principles, and that
while it was willing to do all in
Its power to assist worthy far
mers and to build up the schools
still the money in its hands was
from trust funds and should be
handled as other conscientious
trustees would handle other trust
funds.
Weed Out the Bad Ones.
In the matter of the applica-
tions for loans now on hand, ap-
proximating 100000, it was de-
cided to classify them; rule out
all that cannot be allowed be-
cause of their size or other objec-
tions; to communicate with all
other applicants to determine if
they still desired their loans, and
In this way clear the tables. Sec
retary of State Clifford and State
Register Jenness were appointed