The Glenwood post., 1916-10-28

"A DILL fOft AN AL LIN hEAAt.1lOf
TO THE INVESTMENT OF THI
PUBLIC SCHOOL FUNDS.
Be It Enacted by the People of tn
State of Colorado:
Section !. All school funds of tn,
state, whether permanent or income
unless otherwise disposed of by law
shall be invested as directed by tht
state board of land commission rs
First-In interest bearing war
"a" is of the State of Colorado.
Second-ln the bonds of the
State of Colorado;
Thirdly loans On un:ncumber-
4" !tivated farm lanls within
the STATE of Colora 70, and in man
ner hereinafter provided;
F'ourth-Tn bonds of school dis
tricts within the State of Colorado.
Fifth 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
shall be purchased at 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-
land, and then only on lands of which
the appraised value is not less than
$500 per acre and in sums o. not TO
exceed $2,50000 to any one person; !;
such loans shall be made for It least
one and not more than five years, and
shall be evidenced by promissory notes
bearing six per cent 1871 interest per
annum. payable annually until due, with
interest at the rate of eight per cent
tSTo) per annum after maturity on
both principal and delinquent interest,
said promissory notes to be secured by
a deed of trust to the public trustee
of the county wherein the land is sit
unted, 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
farU 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 good title
in fee simple to the lands offered as
the application the state board of.land
commissioners shall, unless they disap-
prove the loan in the first instance
cause the land to he thoroughly exam
ined and appraised, and if, in their
Judgment. the security is ample AMI
the applicant in all respects comes
within the terms of the provisions If
this act. they may approve the loan;
provided, however, that in the event
that the loan is made on irrigated
lands, such requirements shall be made
hv 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
the state board of land commissioners.
the register shall comnlcte the contract
by taking a promissorv note payable
TO the State of Colorado and secured
by deed of trust upon the land in
wanrer and form as above mentioned.
and he shall forthwith transmit the
deed of trust to the county clerk and
recorder of the proper courtv for re-
rnrliprr Az ha J-n1 Of trps I
is returned from the county clerk and
recorder with tho usual certificate Of
record. the REGISTER shall transmit the
note and deed Of trust and all other
securities in question to the state treas-
urer. who shall thereunon 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
urer in connect ton with the note and
deed of trust.
Failure to pay any or all taxes when
the same are due, or failure to pay the
interest upon the said note in accori-
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 lau'l
commissioners shall so order, but such
extension of time shall not operate to