S-391                 _______________________________________________

                                                   SENATE BILL NO. 5174

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senators Hansen, Barr, Gaspard, Bauer, Anderson, Bailey, Warnke, Lee and von Reichbauer

Read first time 1/19/87 and referred to Committee on Agriculture.

AN ACT Relating to investment by the state investment board in the Washington land bank; amending RCW 31.30.070 and 43.33A.080; and repealing RCW 31.30.080.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 7, chapter 284, Laws of 1986 and RCW 31.30.070 are each amended to read as follows:

          Loans originated by the Washington land bank or in which it participates with another lender((, including principal and all accrued interest the payment of which has been deferred pursuant to RCW 31.30.080,)) shall not exceed sixty-five percent of the appraised value of the real estate security, and shall be secured by first liens on interests in real estate of such classes as may be provided by rule promulgated pursuant to RCW 31.30.010.  The value of security shall be determined by appraisal under appraisal standards prescribed by such rules.  Additional security may be required to supplement real estate security.

        Sec. 2.  Section 8, chapter 3, Laws of 1981 and RCW 43.33A.080 are each amended to read as follows:

          The state investment board may invest those funds which are not under constitutional prohibition in:  (1) Farm ownership and soil and water conservation loans fully guaranteed as to principal and interest under the Bankhead-Jones farm tenant act administered by the United States department of agriculture; and (2) the Washington land bank established by chapter 31.30 RCW.

NEW SECTION. Sec. 3.  Section 8, chapter 284, Laws of 1986 and RCW 31.30.080 are each repealed.