The circle banner. [volume] (Circle, Mont.) 1914-1939, 1924-08-22

ness of the security, but also the
character and earning capacity of
the applicant and to the purpose of
the loan; and provided further that
so long as the available funds are
inadequate to meet the demand, pre-
ference 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 (of Article 21). 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
vocational 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 III. 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 such
full liability. The State may itself
provide for insurance on any proper
ty constituting security for its loans.
Section 9 (of Article 2D. 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 administration toge-
Their with the aforesaid funds consti-
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 shall
not apply to the Public School Funds
of The State, which school fund
shall be administered separately as
already prescribed by the constitu-
ton.
Section IL (of Article 21). The
State shall be entitled to receive as
compensation for the administration
of all the funds administered under
this act one twentieth 1-20) 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 1-20) 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
State. The balance of the interest
collected shall be the net earnings
and shall be credited pro rata to
each and every fund constituting the
Montana Trust and Legacy Fund
that was in the keeping of the State
on January LIST of that year, based
on the total thereof on that date, and
shall be added to each such fund, or
held available for the beneficiaries
as the case may be. Sums due bene-
ficiaries shall be paid out during the
ensuing month of January, as far as
practicable.
Section IL (of Article 21). All
the net earnings accruing to the
State Permanent Revenue Fund
shall annually be added thereto until
it has reached the sum of One Hun
dred Million Dollars ($100,000,000.0
Thereafter only one twentieth of the
annual net earnings shall be added
to the fund itself, and the remaining
nineteen twentieths of the net earn
ings shall be used for the general ex-
penses of the State.
Section Is (of Article 21). All
the net earnings accruing to the
State Permanent School Fund shall
duAually NC duu0u IuGT6LO Until II
has reached the sum of Five Hun
dred Million Dollars (s50O,000, O00.0O)
Thereafter only one twentieth of
annual net earnings shall be added
to the fund itself, and the remaining
nineteen twentieths shall annually
be apportioned to the school districts
of the State on the basis of the ag-
gregate actual school attendance in
each district during the preceding
school or calendar year by persons
between the ages of six and eighteen
years and shall be used exclusively
for educational purposes, subject to
such regulations and limitations as
may be prescribed by law.
Section ID (of Article 21). All
the net earnings accruing to the Per-
manent Revenue Fund for the Uni
versity of Montana shall annually be
added thereto until it has reached
the sum of One Hundred Million
Dollars ($1OO,OOO, OOO.OO). Thereafter
only one twentieth of the annual net
earnings shall be added to the fund
itself, and the remaining nineteen
twentieths shall be apportioned to
all the educational institutions then
oo,,, ici tho TTnivocai+.x ar.