1. Any person desiring to obtain a loan from the State Permanent School Fund on agricultural land shall:
(a) Make written application to the State Board of Finance; and
(b) At the same time, furnish to the State Board of Finance a full and complete abstract of title to the property offered as security for the loan.
2. If the abstract is approved by the Attorney General and it appears that the person offering such mortgage has an exceptional title free from all encumbrances, the State Board of Finance forthwith shall appoint an appraiser or appraisers to view the land and improvements thereon and make a report to the State Board of Finance of the value thereof. The person desiring to obtain the loan shall pay the cost of the appraiser or appraisers which may be incurred, not to exceed $5 per day and expenses.