The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1916-06-01
RURAL CREDIT BILL
TAKES FINAL FORM
Amended Draft Receives Appro.
val of Oregon Attorney
General.

The following draft of the Rural
Credit bill has received the endorse
ment of the committee, representing
the State Grange. Oregon Farmers
Union and State Federation of Labor,
appointed to prepare the measure for
the ballot, and has been approved by
the Attorney General. 1t has been
submitted for publication by DR..
Hector Macpherson, of the o. A. Q.
Bureau of Markets, who assisted in
drawing its provisions.
Section l.
Notwithstanding the limitations
contained in Section 7 of Article X1
of this constitution, the credit Of the
state may be loaned and indebtedness
/, incurred to an amount, not exceeding
two per cent of the assessed valuation
! of all property in the state for the
purpose of providing funds to be loan
ed upon the security of farm lands
within the state, subject to the lin
itations herein contained.
Section 2
The governor, secretary Of state
and state treasurer shall constitute
the State Land Board, which board is
hereby authorized and directed to is
isue and sell or pledge bonds in the
name Of the state to be known as Ore
gon Farm Credit Bonds in an amount
not to exceed said two per cent of the
assessed valuation of all the property
in the state and to place the proceeds
in the state treasury in fund to be
known as the Rural Credit Loan
Fund"
Section 3
Said bonds shall be issued in de-
nominations of $25, $500, $500, and
$1,000 and shall be issued in series
lof $4,000, or multiples thereof,
drawn to mature in not more than
thirty-six years. They shall bear in
terest at the rate of four per cent per
annum and shall be exempt from all
taxes levied by the state of Oregon,
or any of its subdivisions.
Section4-
Said State Land Board is authoriz-
ed and directed to loan the moneys in
said Rural Credit Loan Fund to own
ers of farm lands in Oregon upon
notes secured by mortgages or deeds
of trust constituting first liens on
such farm lands in amounts which
shall not exceed fifty per cent of the
value of such lands nor $50 per acre
on such lands, nor less than 5000 mol
more than $4,000 to any individual
If pending applicants shall at any
time exceed the funds available, pre-.
ference shall be given to loans not ex
ceeding $4,000 in amount.
Section
Such loans shall not be made excep1
to owners who operate and occupy the
lands mortgaged and shall be made
only for the following purposes: (a)
the payment for lands purchased
(b) the purchase of livestock and
other equipment, and the making oi
improvements which in the Judge
ment of said board will increase ths
productivity of such lands or add tt
their value as farm home in de.
gree to justify such expenditure; and
(c) for the satisfaction of encumbran.
ces upon such lands which, in the
judgement of said board, were incurr.
ed or assumed by said applicant fol
the aforesaid purposes.
Section g.
Every applicant for a farm loar
shall state clearly in his application
the purpose for which such loan is de-
sired, and upon its approval by the
board, this statement shall be deemed
a part OF the note or contract undel
which the loan is granted. But nc
failure to apply such funds to the pur.
poses stated in such application, ol
/ as enumerated herein shall invalidatt
loan when once made, nor shall any,
thing herein contained be deemed tt
prevent any farm owner from selling
or leasing lands subject to such en-.
cumbrance; but IL he shall violate hii
aid contract by applying the moneys
borrowed to purposes other thar
those stated in his application or en-
umerated herein, or If he shall lease
such lands or sell them to any person
not fulfilling the conditions and pur.
poses provided for herein, said Board
is authorized and directed to require
the repayment of said loan upon sis