New Mexico § 49-6-11 - Investment of funds; permanent school fund established

§ 49-6-11. Investment of funds; permanent school fund established

It shall be the duty of the board of trustees of the town of Las Vegas administering

the Las Vegas grant to invest any and all moneys in its hands or under its control,

or which may be received by said board, except such amount as the district court for

San Miguel county, New Mexico, may from time to time deem necessary to be held to

pay the current and other expenses of said board, as follows: A. in interest-bearing bonds of the United States, or of the state of New Mexico,

or of any county, municipality or political subdivision thereof authorized by law

to issue bonds; B. in first mortgage bonds of any corporation, organized for the purpose of acquiring,

constructing and operating a storage reservoir at the Sanguijuela Arroyo in San Miguel

county, New Mexico, and irrigation works in connection therewith to irrigate lands

on the Las Vegas grant, secured by first mortgage on such reservoir and irrigation

works, and all lands belonging to the Las Vegas grant coming under the said irrigation

system and irrigable therefrom and which bonds shall bear interest at the rate of

not less than six per centum per annum; or in a loan or loans to such a corporation

or to any person, firm or corporation contracting to acquire, construct or operate

such reservoir, water rights pertaining thereto and irrigation works, such loan or

loans to be secured by first mortgage on said reservoir and water rights pertaining

thereto, and irrigation works, and all lands belonging to the Las Vegas grant coming

under the said irrigation system and irrigable therefrom, or by a contract which will

assure the repayment of said moneys, with interest at the rate of not less than six

per centum per annum. Provided, that all bonds purchased under the provisions of this section shall be

first mortgage bonds, and that no bonds or securities shall be purchased or loans

made out of such moneys without the approval of said court. Said moneys when so invested shall constitute a permanent school fund for the purposes

hereinafter stated, the principal of which shall under no circumstances be lessened

or impaired and shall remain inviolate. Such moneys may be temporarily deposited in some bank or banks, designated by said

court and said board of trustees, upon certificates of deposit bearing interest at

the rate of not less than four per centum per annum.