Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-01-24
Bill Proposes to Loan
School Land Funds
to Farmers.
LOW INTEREST RATE


OKLAHOMA CITY, Jan. 2S.- state
school land funds would be loaned TO
owners Of improved farm londs IN
Oklahoma at five per cent annual IA-
tcrest. secured by first mortgage, UNI
der the terms OF hill introduced ~
the house Of representatives. by lhe
mdominatable Luther HARRISON OF
Seminole county.
The measure, which is known as
the "Oklahoma Home ownership
nm" is one Of the most practical
picces Of proposed legislation nitro
duced at this session, ana c\sn II II
did not bear the endorsement OF lhe
administration, would no doubt stand
a splendid chance of becoming law
Plan Bond Issues.
Mortgages secured by loaninE the
school land money would be the baAS
Of state bond issues for the purpose
Of rcpleuishng the loan iund from
time to time, under the provisions OF
the bill, and these bonds could he puI-
chased by insurance and trust com
panics, school districts, cues loN'-
ships and the state.
The measure provides that money
thus loaned can he borrowed by
farmers solely for three purposes,
/. To assist the borrower to pay
FOR a home,
.. TO pay OF an existing mortgage
upon the home.
3. 10 mako permanent improve
meuts upon the home farm,
The bill authorizes the comlnlS-
sionors OF the land office to invest
all moneys now on hand or that may
lands known as state educational IN
stitution lands" and "uew college
lands" i'm first mortgages ON improved
farm property.
Not 10 exceed $4,000 can be loaned
10 one individual or family and the
value Of the lands and its improve
ments upon which tho loan is made
must he double the amount OF the
loan.
Twenty Year Notes,
The borrower must give 2O-ycar
notes and pay four per cent OF the
priucipal every six months, loRethtr
with five per cent annual interest
For the purpose of securing Adul-
tiouaI funds with which to make these
loans the land office commissioners
are authorized TO issue and sell at not
less than par bonds drawing four ana
onp-half per cent interest aad TO
pledgc for the payment Of same all
notes and mortgages taken for the
loans from said fund. The bonds VIII
bo known ms "Ollahoma ownership
bonds" All payments on the princi-
pal oC any loan shall be credited to
The sinking fund for the payment OF
the bonds at maturity.
MAY Invest Funds.
ANY bank, trust or Insurance com
pauy, organized ulder the laws OF the
state. may invest it's capital or surplus
I'm these bonds Any state, county
city. town. township or school district
may invest It's sinking funds in the
bonds which mature prior to tho du.
date Of the bonded Indebtedness oi
said state, county city town, town
shin or school district for payment OF
which such sinking fund ls created.
Any premium upon the bonds sold
and the onc-half per cent difference
between the four and oue-half pei
cent paid upon the bonds and the
five per cent Interested collected on
the loans shall be paid into fund
TO be known as the maintenance
fund" from which shall be paid az
expenses Of losning this fund and the
sale OF the bonds.
There is clause in the bill which
provides FOR an annual Inspection OF
the fund by the state examiner and
inspector, who must furnish copy
OF his annual report on same to each
borrower from the fund and To cacl
holder of the bonds.
The bill does not carry an emcr'
geucy clause.