The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-11-29
WOULD LOAN TO
FAR M Err ON HIS
P0STDATE CHECK.
Bill introduced Yesterday Re-
quires North Dakota Bank
to Extend Aid
UNWINDS MUCH RED TAPE
Enables Dr0uth-Stricken Agri-
culturists to Borrow With
out Technically
UNWINDS MUCH RED TAPE

Taking advantage Of the decision re-
Gently handed down by q majority of
the members of the supreme court,
holding post-dated checks to be bills
Of exchange which are entirely salts.
factory as collateral for loans, Reps.
Mikkelson and Durkee on Fri
day introduced bill which
will enable farmers in drout.1
stricken areas to borrow ffom
the Bank of North Dakota on
their post-dated checks, just as Towl:-
ley, the Consumers United Stores Co,
the Brinton newspaper syndicate and
other inner circle enterprises have bor-
rowed from the Scandinavian Amer.
can bank on such security.
The bill follows:
For an act authorizing and directing
the Bank Of North Dakota to make
loans upon post dated checks to North
Dakota drouth stricken farmers.
Whereas, Various parts of North
Dakota have for the third successiv,
year been stricken with drouth caus'
ing a complete crop failure, and
Whereas, Many farmers will be un-
able to crop their land unless suppl I'd
with seed and feed for the cOmiI-,
year due to such crop failure, and
Whereas, The several counties III
which such successive crop failures
have occurred are now bonded practic'
ally to the debt limit thereof on &C
ofh lao, f,,ni c1, Il IL
to farmers therein during prior years,
and .. ... -..
Whereas, The available security and
collateral of such droutll stricken
farmers have been practically exhaust
cd on account of such crop failures foE
the past succeeding three years, aud
Whereas, The Supreme Court of
North Dakota la, held that post dated
checks are negotiable Instruments SIN
liar to bills Of exchange payable at 4
future, date and may be used as co.
lateral paper the same as other negoi'
able Instruments
Now Therefore, BE 1t Enacted by
the Legislative Assembly Of The STATE
Of North Dakota:
l. That the Bank OF North Dakota
is hereby authorized and directed to
loan to farmers in the drouth strlckel
portions OF North Dakota not exceed
ing Five Hundred Dollars ($50O00) &c
each farmer applying for such loa'
upon post dated check to be draw
in favor of the Bank Of North Dakot1
by such farmer.
=. APPLICATIONS for such loans shall
be made upon blanks prescribed aEG
furnished by the Bank Of North Dako
ia, which APPLICATION blanks shall con-
tain certificate to be signed by q
member Of the Board Of County Com
missioncrs of the county in which each
applicant resides. said certificate to be
to the effect that such applicant IS a
resident of said county, and that on ac
count of past crop failures, i'll tit
opinion of such official, the said apnl
cant is necdful Of and entitled to the
loan applied for.
3. No such application, approved
by member Of the Board of County
Commissioners Of the proper county
for loan upon post dated check
duly signed by q bona fide resident OF
this state, shall be denied or refused by
the Bank of North Dakota on account
of the fact that the real or person
al property, or both Of said applicant
is heavily incumbcrCd, or for any Othc'
reason. Nor shall any security or coz
lateral other than such post date,
check of any kind be required of such
applicant, either by way OF mortsa$'
upon personal or real property, or DotD
or by requiring an endorser upon salo
post dated check.
4. Within five days after receiving
such application the Bank OF Nortl
Dakota, through it's proper officer, shall
mail draft payable to the Count;
Auditor Of the county in which the a.;
plicant and borrower resides, all,
thereupon it shall become the duty Of
the County Commissioners and Aud!
tor of said county to purchase at thu
lowest possible price the seed and feed
or either, required by the borrower a
indicated in his application, to thf
amount Of such loan.
5. Said post dated checks may l'
? made payable at any time at the option
OF the borrower, not later, however
than November /, 1920.
6. The rate of interest upon suCl
loans evidenced by such post datet
checks shall not exceed two and one
quarter per cent per annum or one
quarter per cent more than Is paid y
the Bank Of North Dakota on publi'
funds deposited therein and carried as
deposits subject to check
Z. Repeal. All acts and parts o.
acts in conflict herewith are hereb!
!. repealed.
g. Emergency. This act is hereby
declared to be an emergency lneasur'
and shall be in full force and erect OF
and after its passage and APPROVAL