The Ontario Argus. (Ontario, Or.) 1???-1947, 1916-06-22
AMENDMENT TO
CONSTITUTION
Rate of Interest and Method
of Providing Farm
Loans Set Forth.


for system of rural credits has been
completed by the committee appoint
ed by the state credits conference al
Salem last month and will be sub.
mitted to the voters at the election
next November.
Members of the committee that
drafted the measure are. c. e. Spence
master OF the State Grange; j. d.
Brown, president of the Farmers
Union, and r. II. Burchard, president
OF the Oregon Federation of Labor.
Tho essential particulars of the bill
are as follows: Administration of the
rural credits system shall be in the
hands OF the state land board, con
sisting OF the governor, the secretary
OF state and the state treasurer. The
board IL authorized to issue bonds
not TO exceed two per cent of the as
sessed valuation OF the state in de-
nominations ranging from S25 to
$4,000, and in series of 100000
each The bonds are to run from
10 TO 35 years and TO bear four per
cent interest They are to be exempt
from taxation and TO be security for
all public funds. The interest and
principal are guaranteed by the state.
Loans are to be made on property,
approved by the board. and on first
mortgage OF trust deed security. but
no loan shall exceed so per cent OF
the appraised value OF the land. nor
$50 on any one acre. nor 5000. In
the aggregate. to any one individual,
An amortization plan Is provided
"a. liquidato the debt in from 10 TO SO
years. The equal annual payments
are to cover interest. principal. ap-
portionments TO u reserve fund and
operating expenses.
Interest on the loans shall be per
cent higher than the interest on the
bonds, thus providing the reserve
fund and operating expenses. The
reserve fund Is TO meet losses and its
funds are TO be invested In the states
own rural credit bonds. the proceeds
from which again are 10 revert to the
reserve fund.
Applicants for loans must pay one
half OF one per cent OF the principal
that they apply for. this payment to
cover cost OF preliminary investiga-
tions.
The text OF the bill In full follows:
In addition 20 tho rights conferred /,
upon the legislative assembly TO lend I
the credit OF the state found in sec
tion OF article XI OF the constitu-
tion OF Oregon, the state land board |
is hereby empowered TO and shall es-
tablish a system of farm credit und-
er the terms hereinafter provided.
The state land board shall issue and
sell or pledge general obligation
bonds OF the state OF Oregon 10 be
known as oregon farm credit bonds
in an amount not TO exceed two per
cent OF the assessed valuation of all
the property In the state. These
bonds shall be issued in denomina-
tions OF S25. 500. $500. $1,000 and
$4,000. and in series OF 100000
or multiples thereof, They shall be
drawn to mature in from 10 to S5
years, aud shall bear interest at the
rate OF four per cent per annum.
payable annually. They shall be ex-
empt from all taxes leyied by the
state of Oregon or any OF its subdi-
and shall be security for all
public funds,
The interest and principal OF Ore
gon farm credit bonds shall be un-
guaranteed by the state
Of Oregon. Each series of bonds
shall be issued and sold or pledged
only upon receipt of approved appli-
cations for a like amount OF farm
loans by the state land board.
The state land board shall place
the proceeds from the Oregon farm
credit bonds in the farm credit loan
fund, which shall be lent for the pur-
chasing of farm lands, for the satis- I
faction of membranes upon farm
lands, for purchasing equipment and
improvements which will. in a
he opinion of the board, after ade- I
luate investigation, add to the pro- /
luctiveness of the farm and to its /
lalue as a farm home. G
Such loans shall be made upon d
notes secured by first mortgages or
leeds of trust on farm lands and
ihall not exceed in amount so per
,ent of the valuation of the property
pledged as security as appraised by =
he board after approving the appli-
,ation for loan, such valuation to
x exclusive of perishable improve
nents; nor shall any amount ex-
,eeding $50 per acre to be lent on
iuch lands; nor shall an aggregate q