The Home news. (McCrory, Ark.) 1915-1922, 1918-05-10
FOR AMENDMENT NO. IL.
AGAINST AMENDMENT NO. Is.

BE 1t Resolved by the House of Rep
Fesentatiyes and the Senate OF the
State of Arkansas. the Majority OF
Both Houses Agreeing Thereto'
That the following is hereby pro-
posed as an amendment to the COnsti-
tuition of the State Of Arkansas, ano
the same being submitted to the cleo
tors Of the State for approval or re-
lection at the next general election
for Senators and Representatives II q
majority of the electors voting at such
election adopt such amendment the
same shall become a part OF the Con-
s%itution of the State of Arkansas to-
wit:
itation contained in Section l OF Art1-
Gle 16 of the Constitution, the credit
Of the State may be loaned and In.
dcbtedness incurred to an amount not
exceeding two per cent or the assess
ed valuation Of all the property in the
State for the purpose OF providing
funds to be loaned upon the security
of farm lands within the State, subject
to the limitations herein contained.
Sec. e. The Governor, Secretary OF
shall constitute the State Land Board,
which board is hereby authorized and
directed to issue and sell or pledge
bonds in the name Of the State to pc
Bonds in an amount not to exceed
two per cent of the assessed valuation
of all the property in the State, ard
to place the proceeds in the State
Treasury in q fund to be known as the
Arkansas Rural Credits Loan Fund
Sec. 8. Said bonds shall be issued
in denominations Of $500, $4,000,
$4,000 and 100000, and shall be is
sued in series of 100000 or multi
pies thereof, drawn to mature in not
said bonds be sold until applications
from bona fide purchasers Of land ag
gregating 100000 have been fled
with and approved by the State Land
Board. Said bonds shall bear interest
at the rate of four per cent per an
mum, and shall be exempt from tax
alton by the State Of Arkansas, or any
Of its subdivisions.
Sec. 4. Said State Land Board is au-
thorized and directed to loan the mon
eys in said Arkansas Rural Credits
Loan Fund to bona fide purchasers OF
farm lands in Arkansas, upon notes Sc
cured by mortgages or deeds Of trust
constituting first liens on such farm
lands in amounts which shall not ex-
coed seventy-f1ve per cent Of the ap-
praised value Of such lands. The cred
it of the State shall not be loaned to
any person to purchase more than 80
acres Of land. nor land valued at more
than $50 90 per acre. Nor shall loan
Of less than 100000 nor more than $3.-
0n0 90 be made to any purchaser Of
land
Sec. 5. Such loans shall not be made
except to owners who Operate" and
OCCUPY" lands mortgaged. and shall
be made for the following purposes
(a) The payment for lands purch q sed
(b) the purchase of live stock and 9th
ar equipment. and the making Of i'm
rrnvements which. in the Judgment Of
said board. will increase the produc-
tivity of such lands or add to their
val''n as farm home in a degree to
justify such expenditure; and (c) for
the satisfaction Of encumbt ances upon
such lands, which, in the judgment OF
said board. were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec. 6. Every applicant for a farm
loan shall state clearly In his applica-
ton the purposes for which such loar
Is desired, and upon it's approval by
the board this statement shall be deem
ed part of the note or contract under
which the loen Is granted But nc
failure to apply such funds to tbs
purposes stated in such application Oh
enumerated herein shall invalidate q
loan when once made, nor shall any
thing herein contained be deemed tc
prevent any farm owner from selling
or leasing lands subject to such in
cumbrance; but II he shall violate hi.
borrowed to purposes other than thosf
stated in his application or enumerated
herein, or IL he shall lease such lands
or sell them to any person not fulfill
ing the conditions and purposes pro-
vided for herein, said board is author
iced and directed to require the repay
1uent Of said loan upon six months no