The Glenwood post., 1916-10-14

A BILL FOR AN ACT IN RELATION
TO THE INVESTMENT OF THE
PUBLIC SCHOOL FUNDS.
Be It Enacted by the People Of tn,
State Of Colorado: H'' a
Section l. All school funds of the
state, whether permanent or income
unless otherwise disposed of by law
shall be invested as directed by the
state board of land commissions rs
First-In interest bearing war
rats Of the State of Colorado.
Seconl-In the bonds of the
b State of Colorado;
Thirdly loans en- un:ncumber-
rl cultivated farm lands within
tire State of Colora 10, and in man
ner hereinafter provided;
Fourth-In bonds of school dis
tricts within the State of Colorado.
Fifth-In bonds of the several
counties. cities, town Or city, and
city. and counties of the State of
Colorado; provided. however, that
before any moneys are So invested
in bonds of counties. cities, town
or city, and city and counties or
school, districts, the validity of
such bonds shall first be determ-
ined by the attorney general of
the state, and the state board of
land commissioners must be salts
fled that such bonds are in all re-
spects legal and safe investment;
and it is further provided, how
ever, that such bonds or warrants
chn11 1, ~
to exceed par value and the ac-
crued interest thereon.
Section 2. Investment by loans on
cultivated farm lands within the State
of Colorado shall be made only to per-
sons who are actual residents on such
land, and then only on lands of which
the appraised value is not less than
$500 per acre and in sums of not to
exceed $2,500.00 to any one person;
such loans shall be made for st least
one and not more than five years, and
shall be evidenced by promissory notes
bearing six per cent (6To) interest per
annum. payable annually until due, with
interest at the rate of eight per cent
tS%) per annum after maturity on
both principal and delinquent interest,
7hiu HOltS " De StcuIeu pf
a deed of trust to the public trustee
of the county wherein the land is sit
uated, in favor of the State of Colora-
do, upon real estate as above described
Of an appraised value of at least three
times the amount of the sum borrowed.
Applications for loans on cultivated
fairy lands shall be made direct to the
state board of land commissioners upon
blank forms to be provided for that
purpose, and no loan shall ever be made
unless the applicant has a good title
IN fee simple to the lands offered as
security for the loan. Upon receipt OF
;he application the state board of land
commissioners shall, unless they disap-
prove the loan in the first instance.
cause the land to be thoroughly exam
ned and appraised, and if, in their
Judgment. the security is ample and
he applicant in all respect comes
within the terms of the provisions of
his act. they may approve the loan;
provided, however, that in the event
that the loan is made on irrigated
ands, such requirements shall be made
by the board of land commissioners as
shall secure to the state first lien upon
all water and water rights for the irri-
cation of said lands.
When the application is approved by
he state board of land commissioners,
The register shall complete the contract
ov taking a promissory note payable
10 the State Of Colorado and secured
BY deed of trust upon the land in
manner ard form as above mentioned,
=,
deed of trust to the county clerk and
recorder of the proper county for re-
'ording As soon as the deed of trust
is returned from the county clerk and
recorder with the usual certificate Of
record. the register shall transmit the
note and deed of trust and all other
securities in question to the state treas
nrer. who shall thereupon pay to the
applicant the amount of money named
in said note. The state hoard of land
commissioners shall in each case require
from the applicant an abstract of title
to the land certified to include the
deed of trust. which said abstract shall
also be deposited with the state treas
deed of trust.
EdlluTe 10 pay any UT Ill tdAes WHeA
the same are due, or failure to pay the
interest upon the said note in accord
ance with the terms of the note, shall
render the principal due ana payable,
anything in the note or deed of trust
to the contrary Notwithstanding.
When loan has been made and the
borrower desires to renew the same for
one or not more than five years 1T may
be done in manner as the loan was
made in the first instance, but no new
abstract, except continuation of the
same down to the time of extension,
nor examination of title prior to the
original loan, nor new deed of trust
need be required, unless the deed of
trust is to be given upon other lands.
The time of payment, without further
security, may be extended in writing
to be recorded as the original security
was recorded, and before maturity Of
the claim, when the state board Of land
shall so order, but such