The Glenwood post., 1916-10-07

A BILL FOR AN ACT IN RELATION
TO THE INVESTMENT OF THE
PUBLIC SCHOOL FUNDS.
Be It Enacted by the People of the
State of Colorado:
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 commission rs
First-In interest bearing war
IS Of the State of Colorado.
Seconl-ln the bonds Of the r7
State Of Colorado;
Thirdly loans On un:ncumber-
cd cultivated farm lands within
tie Safe of Colora 10, and in man
ner hereinafter provided;
Fourth-1n bonds of school dis
tricts within the State of Colorado.
Fifth-In bonds of the several
counties, cities, town or city, and
citv 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
shall be purchased at a price not
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 suct
land, and then only on lands of which
the appraised value is not less than
$500 per acre and in sums of not 70
exceed So 10000 to any one person
such loans shall be made for - least
one and not more than five years, and
shall be evidenced by promissory notes
bearing six per cent f6Te) interest pei
annum payable annually until due, with
interest at the rate of eight per cent
tSTo) per annum after maturity OF
both principal and delinquent interest
Sdlu pTO"lSsoIN HOttS W bt sttuIt tu "
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
farm lands shall be made direct to the
state board of land commissioners upor
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
the 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
ined and appraised, and if, in thei.
Judgment. the security is ample AMI
the applicant in all respects comes
within the terms of the provisions ot
this act. they may approve the loan;
provided, however, that in the event
that the loan is made on irrigate'
lands, such requirements shall be made
hv the board of land commissioners al
shall secure to the state first lien upor
all water and water rights for the irri
gation of said lands.
When the application is approved by
the state board of land commissioners
the register shall complete the contract
by taking promissorv note payable
70 the State Of Colorado and secured
by a deed of trust upon the land ir
manner and form as above mentioned
and he shall forthwith transmit thu
deed of trust to the county clerk ant
recorder of the proper conrtv fo- re
rordng AZ soon AS the dce' Of trust
is returned from the county clerk anf
recorder with the usual certificate Of
record. the register shall transmit the
note and deed Of trust AMI all Other
securities in question to the state treas
urer. who shall thereupon pay to the
applicant the amount of mrn"v named
in said note. The state hoard of land
commissioners shall in each ease require
from the anplicant an abstract of title
to the land certified to include the
deed of trust. which said abstract shal
also be deposited with the state treas
urer in connection with the note and
deed Of trust.
Failure to pay any or all taxes whel
the same are DUE or failure to pay the
interest upon the said note in accorl
ance with the terms of the note, shall
render the principal due AMI payable
anything in the note or deed of trust
to the contrary Notwithstanding.
When a loan has been made and the
borrower desires to renew the same for
one or not more than five years it 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
, M m ci shall nrlar hut suah