The Mena weekly star., 1918-10-03
FOR AMENDMENT NO. IB. AGAINST AMENDMENT | NO. 1J

state of Arksnsas, the Majority c both Houses Agreeing Theretot
 That the following is hereby pro- posed as an amendment to. the Const. tuition of the State of Arkansas. and the same being submitted Co the eiec- lection at the next general election for Senators and Representatives. If q ma jority of the electors voting at such same shall become a part of the Con- stitution of the State of Arkansas. to- wit:
 Section. i. Notwithstanding the lin itation contained in Section 1 Of Arti- cle 16 of the Constitution, the credit S ss s.ass b be nad nfee valuation of ali property n the state to to- be p loaned upon upon the security of farm lands within the State, subject to the limitations herein contained.
 Section 2. The Governor, Secretary of State and State Land Commissioner shall constitute the State Land Board, which board is hereby authorized and bonds in the name of the State to be known. as Arkansas Farm Credit Bonds" in an amount not to exceed of ali the property in the State. and to place the proceeds in the State Treas ury in fund to be known as the Ar kansas Rural Credits Loan Funt"
 Section 3. Said bonds shall De issued in denomin ations of s25.00, s100.00. S50000 and h.000;u0 and shall be is- thereof, drawn to mature in not more than thirty-six years. nor shall said bonds be sold, until applications from ing $10.Q00.00 have been filed with and approved by the State Land Poard. Said bonds shall bear interest at the shall be exempt from taxation by the state of Arkansas. or any of It's sub divisions.
 Section 1. Said State Land Board is authorized and directed to loan the moneys in said Arkansas Rural Credits Loan Fund to bona Iiue purchasers of farm lands in Arkansas upon notes se- cured by mortgages or deeds of trust constituting first liens. on such farm lands In amounts which shall not ex- ceed seventg-tfve per cent of the ap- praised value os such lands. The cred | 1t of the State shall not be loaned to | any person to purchase more than 8e | acres of land. nor land valued at more | than Sb0.00 per acre. Nor shall loar | of less than s200.00 nor more ,ha. l land.
 Section 5. Such loans shall not be made except, to, owners who operate, 1 and occupy" lands mortgaRed and shall be made for the following pur poses, (a) The payment for lands pur. chased CD the pnrenase of livestock improvements which In the judgment of said board. will increase the pro- a value as % farm T home m a'd desree .o snetp to Justify such expenditure; and (c) for the. satisfaction of incumbrapces upon said board, were incurred or or assumed % S by said applicant for the aforesaid pur- poses.
 Section G. Every applicant for farm loan shall state clearly in his appiica- tion the purposes for which such loan Is desired, and upon It's approval by cd e part of the nots CT contract un- der which the loan ss granted. But no enumerated herein shall fnvaiidate a loan when once made. nor shall any thing herein contained te- deemed to or leasing lands subject to such in cumbrance; but If he shall violate his said contract by applying the moneys stated In his application or enumerated herein, or If he shall lease such lands or sell them to any person not fulfill yided for herein. said board is author ized and directed to require the r5pay- ment of said loan upon six monthg nos contain clause providing therefor.
 Section I Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan such instaliments being fixed at such sums a5 will cover the interest rate and win lauIdate the de6t n a,s psriodd and the applicant. said period to. be not less than five nor more than thirty-six geSr5 put ar any M dePtor bs msg m amounts of s5O.00 or muitipies fheI e. of upon any amortization payment
 Section 8. The rate of interest on loans shall be five per cent per annum: provided, that no Farm Credit Bonds vlded further that the board snail re- quire each applicant to pay an initial charge of l per cent of the loan sraut. ed. the minimum charge to be Si0.00 to cover the cost of appraisal an ex- animation of title
 Section g. All surplus funds accruing rural credits herein provided for after paying interest acci ding on the afora- said bonds, and all operating and other ton of said systsm of rural credits shall be placed in the State Treasury and become part of q fund to be Reserve Fund" Said Arkansas Ruf al Credits Reserve fund shall Dc loaned on farm lends in the manner herein Credit Loan Fund and the interest nc cruing from loans made from said Ar. kansas Rural Credits Reserve Fund shall be added to 1t and become a part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducih'e. ex- cept that 1t may be drawn upon to. ry imburse the State for. loss. incurred in the administration of said system O. rural credits
 Section IUs The lf Ei8latlt6 AkSem- bly, shall provide in s1ch detail as f shall deem advisable for the carrying out and administering of the provisions of this amendment, and shall provide adequate safeguards against the use of such loans ss an aid to the purchas- ing and holding of lands for the pur poses of speculation. Such safeguards shall include clear definitions of the terms Operate" and occupy used herein. In the absence of such legis- lation. and subject to the same after its enactment, the State Land Board shall proceed to administer said sys- tenn of rural credits under. rules and regulations provided hv Itself. but sub ject to the provisions herein contained.
 Section II. The provisions of the Constitutton of Arkansas in cun 1fct with this amendment are hereby re pealed, in so far only as they conflict herewith. The provisions ot this amendment shall be seif-executing. an1 shall take effect and he in operation. 60 days after thsir approval aud adoption by the people of Arksnsaa.
 Approved by the Governor and nied iin the ofnce of the Secretary of State March IT, 1917.
 Each eieetor may vote for or RgRinef the above amendment
 Witness my official signature thif the. gath day of April 1918
 fSeaD TOM ], TERRAI.
 Secretary of State