The Glenwood post., 1917-11-24
INVESTMENT OF PUBLIC
SCHOOL FUNDS

The bill in relation to the investment
Of public school funds has been de-
elared constitutional hy the supreme
court of the state, AMI we are now pre-
pared to Immediately put into effect
the provisions of this bill.
You are requested to carefully con
slider the following quotations from the
bill, to the end that you may not De
put to unnecessary work, inconvenience
and expense. After carefully consider
ing the limitations under which the
board necessarily works in compliance
with this law, you will promptly advise
us if you desire to continue the appli
cation, and if so we will furnish yon
with necessary application blanks
Section l, paragraph 3, provides tina.
the school funds may be invested
"By loans on unincumbered farm
land within the state of Colorado, and
in the manner hereinafter provided"
Section of the Act provides:
"Investment by loans on cultivated
farm land within the state of Colorado
shall be made only to persons who are
actual residents on such land, and then
only on lands of which the appreisel
value is not less than $500 per acre
and in sums not to exceed s2,50O.0O to
any one person; such loans shall be
made for at least one and not more
by promissory notes bearing six per
cent interest per annum, payable an
nually until due, with interest at the
rate of eight per cent per annum after
maturity on both principal and delin-
quent interest, said promissory notes to
be secured by deed of trust to the
public trustee of the county wherein
the land is situated, in favor of the
state of Colorado, 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
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 security for the loan. Upon receipt
of the application the State Board of
Land Commissioners shall unless they
1isapprove the loan in the first in
stance, cause the land to be thoroughly
examined and app aised, and if. in their
judgment, the security is ample and the
applicant in all 'espects comes within
the terms of the provisions of this Act
they may approve the loon: provided,
however, that ir the event that :he
loan Is made on irrigated lands, such
requirements shall be made BY the
Board Of Land Commissioners as shall
secure to the state first lien upon I'll
water and water. rights for the irriga-
ton Of said lands.''
Also
"The State Board Of Land C,nmis-
sloners shall in each case require from
the applicant an abstract Of title to TIE
labd.DF Fog "Hr I+l'
GAN expenses Of appraisement and
examination Of the land, the examina-
tiN Of title, tn. recording of the deed
o. trust, and an. other expenses neces-
sci. for making said loan, shall be paid
by the applicant and the State Board
of Land Commissioners may from time
to time, require of said applicant, such
deposit as may be necessary to dcfray
said expenses.n ~
"The State Board of Land Commits
sioners may, at its discretion, require
the applicant, when the loan is made,
to carry appropriate insurance on the
buildings on the premises covered by
the deed Of trust in favor of the State
of Colorado, such insurance policy to
be placed in the custody Of the treasur.
er Of the state with the note, abstract
and deed Of trust, and the failure Of
the applicant to pay premiums upon
said policy Of insurance whom the sane