SECTION 385:10-1-6. Conservancy districts

  Farm loan applicants whose land lies within an organized conservation district must agree to comply with the soil conservation program of the district and submit with his application the certificate of such agreement of compliance signed by an officer of the local soil conservation district. Form will be furnished with the application.

(1)   Assessment of taxes. The fact that lands are located within a conservancy district will have no effect on the eligibility of the lands for a loan from the Commissioners, provided the abstracter certifies that there has been no assessment of taxes by the district on such lands.

(2)   Assessments released. If assessments have been made on the lands by the district and the assessments have been paid and the lien for such assessments has been released, the lands will be acceptable as security for a school land loan.

(3)   Assessments not released. If assessments have been made on the lands by the district and have not been paid but no bonds have been issued, the lands will be eligible for a loan, since the assessment can be paid in full from the proceeds of the loan and the lien released.