The circle banner., 1924-09-12

loan or investment considerable
snail be given, not only to the ample
ness of the, security, but also I'll
character and earning capacity c
the applicant and to the purpose O
the loan; and provided further tina
SO long as the available funds ar
inadequate to meet the demand, pre-
ference shall be given TO the smalle
! 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 bt
charged for different classes of loans
and investments.
Section tor Article 21l. 1t is the
meaning and intention of this Arti
1 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 a 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 it's loans.
Section 8 (of Article 2l) 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
vestment and administrator toge-
ther with the aforesaid funds constl-
tuting the Montana Trust and Le-
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-
lion.
Section IL (of Article 21). The
State shall be entitled to receive as
for the administration
If all the funds administered under
his act one twentieth Q-20) of all
he interest collected thereon each
ear. On the last day of December
If each year, the State Treasurer
hall transfer to the State General
fund such one twentieth Q-20) of all
he interest collected during tue
year, less all the losses ascertainea
Turing the year, which losses shall
10 deducted from the one twentieth
the compensation of the
state. The balance OF the interest
shall be the net earnings
nd shall be credited pro rata 10
ach and every fund constituting the
1ontana Trust and Legacy Fund
hat was in the keeping of the State
n January 1st of that year, based ,.
n the total thereof on that date, and
hall be added to each such fund. or .
cid available for the beneficiaries
the case may be. Sums due bene- !
clarles shall be paid out during tie
nsuing month of January, as far as
Section IL (of Article 21). All
ne net earnings accruing to the |
tate Permanent Revenue Fund
hall annually be added thereto unlil |.
has reached the sum of One Hun
red Million Dollars ($100,000,00U.UUJ q
hereafter only one twentieth of the !,
nnual net earnings shall be added +
the fund itself, and the remaining .,
lneteen twentieths of the net earn
gs shall be used for the general ex-
snses of the State. u
Section IL (of Article 2D. All
Ie net earnings accruing to the
late Permanent School Fund shan y
lnually be added thereto until ii 4
Is reached the sum of Five Hun 4.
ed Million Dollars $500, 600, ,0OO.OO) u
hereafter only one twent1e,n OF
lnual net earnings shall be adued ,
the fund itself, and the remaining
neteen tWentieths shall annuail, :
apportioned to the school districts
the State on the basis of the az
egate actual school attendance In
-ch district during the preceuIng
hool or calendar year by persons !,
tween the ages of six and eighteen ~
ars and shall be used exclusively
educational purposes, subject 10
ch regulations and limitations as
ny be prescribed by law.
Section Id (of Article 2D. All II
e net earnings accruing to the Per-
anent Revenue Fund for the Uni
rsity of Montana shall annually be r,
ded thereto until 1t has reached I,
Q sum of One Hundred Million =,
liars 100000, 0,O00.OO). Thereafter :, y
ly one twentieth of the annual nef ~ q.