The circle banner., 1924-09-19

loan or investment, consideration
snail be given, not only to the ample
ness of the security, but also tns
character and earning capacity oi
the applicant and to the purpose oil
the loan; and provided further that
so long as the available funds are
inadequate to meet the demand, pre-
terence shall be given TO the smaller
loans. The rate of interest shall al
ways be a reasonable rate, consider
ing character of the loan or invest
ment, but different rates may be
charged for different classes of loans
and investments.
Section tor Article 21l. 1t is the
meaning and intention of this Arti-
Gle that all investments of these
funds shall be confined exclusively
to safe loan investments, drawing a
fixed rate of interest and being in
aid of home making, farming and ed
ucational work, or otherwise con-
ducive to the progress and well be-
ing of society.
All long term investments shall be
| on the amortization plan. Further
regulations and limitations concern
| ing these investments shall be pro-
vided by law.
Section (of Article 2D. When
ever the security given for loan is
liable to the damage or destruction
by fire, the insurance company ac-
cepting the risk shall be absolutely
liable to the State for the full a.
mount of the policy, and the policy
itself shall specifically recite sucn
full liability. The State may itself
provide for insurance on any proper
ty constituting security for its loans
Section 8 (of Article 21). The
Legislative Assembly may provide
other and additional ways and means
for beginning or increasing any OF
the funds created or authorized by
this Article.
Section 10 (of Article 21). The |
State of Montana shall accept for in I
vestment and administrator toge-
ther with the aforesaid funds consti-
tuting the Montana Trust and Le I
gacy fund, but as separate parts
thereof, sinking funds, permanent
funds, and cumulative funds belong
ing to the State and its political
subdivisions, and also other funds
designated by the Legislative AS
sembly, when requested to do so by
the authorities having the care and
custody OF such funds. All such
funds and the accrued interest, less
the State compensation hereinafter
fixed, shall be repaid when due.
The provisions of this section snail
not apply to the Public School Funds
of The State, which school fund
shall be administered separately as
already prescribed by the constitu-
tion.
Section IL (of Article 2D. The
State shall be entitled to receive as
for the administration
Of all the funds administered under :
this act one twentieth Q-20) of all :
the interest collected thereon each
year. On the last day of December
Of each year, the State Treasurer
shall transfer to the State General
Fund such one twentieth Q-20) of all
the interest collected during the
year, less all the losses ascertained
during the year, which losses shall
be deducted from the one twentieth
constituting the compensation of the l
state. The balance of the interest l
collected shall be the net earnings i
and shall be credited pro rata 10
zach and every fund constituting the !
Montana Trust and Legacy Fund
hat was in the keeping OF the State :.
IN January 1st of that year, based .
IN the total thereof on that date, and II
hall be added to each such fund. or
leld available for the beneficiaries =
IS the case may be. Sums due bene- =
lciaries shall be paid out during the ~
nsuing month of January, as far as .
practicable.
Section IL (of Article 2D. All
he net earnings accruing to the II
'tate Permanent Revenue Fund l,
hall annually be added thereto unlll u
has reached the sum OF One Hun
red Million Dollars ($1OO, ,OOO.0UJ
hereafter only one twentieth of tue u
nnuaI net earnings shall be added
} the fund itself. and the remaining al
lneLeen twentieths of the net earn 2
lgs Shall be used for the general ex- al
enses of the State. m m
Section IL (of. Article 2I). All =
le net earnings accruing to the
tate Permanent School Fund snail hs
nnually De added thereto until IL - -
as reached the sum OF Five Hun ~
ed Million Dollars $500, ,O00, ,OOOOO) III
hereafter only one twentieth oi
lnuai net earnings shall be added ,.
8 the fund itself, and the remaining
neteen twenteths shall anluaiI,
} apportloned to the school districts III
the State on the basis of the AK
egate actual school attendance in
lch district during the preceans
hool or calendar year by persons
tween the ages of six and eighteen IN
'ars and shall be used exclusively
r educational purposes, subject 10
ch regulations and limitations as
ay be prescribed by law.
Section Ia (of Article 2I. All RI
9 net earnings accruing to the Per -
anent Revenue Fund for the Uni
rsity of Montana shall annually be =,
ded thereto until it has reached - -
e sum OF One Hundred Million W.
Hare (e100 000 00a oaA nv. - a.. WI