The Mena weekly star., 1918-05-16
.tLIution of the slate of Arkansas. to.

stitution of the State of Arkansas. to- |. Section 1. Notwithstanding the iin : itation contained in Section 1 of Arti- cle l6 of the Constitution tile credit or tse state may be loaned and indebt- ceeding two per cent of the asssssed valuation of all property n the State for the purpose of providing funds lands within the State. subject to the limitations herein contained.
 of state and state Land Land uS commissioner gs1neg shall constitute the State Land Board, which board Is hereby authorized and bonds in the name of the State to be hnown as Arkansas Farm Credit Bonds" in an amount not to exceed of all the property in the state and to place the proceods in the State Treas- ury in fund to be known as the Ar kansas Rural Credits Loan Fund"
 Section 3. Said bonds shall be issued ln denominations of $2500 Sl00.00. 5000 % and sl,oo0;oo and shall be is- thereof drawn to mature in not more than thirty-six years; nor shall said bona e be s9rs an rem ing slO.90Q;00 have been filed with and approved by the State Land Poard Said bonds shall bear interest at the rate of four per cent per annum, and shall be exempt from taxation by the state of Arkansas, or any of it's sub divisions.
 Section f. Said State Land Board is authorized and directed to loan the moneys tn said Arkansas Rural Credits Loan Fund to bona fide purchasers of farm lands in Arkansas. upon notes Be- cured by mortgages or deeds of trust constituting first liens, on, such farm lands in amounts which shall not ex- ceed seyenty-fFve 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 so acres Of land, nor land valued at more than sS0.00 per acre. Nor shall loan $S,0oO.00 be made to any purchaser of
 Section 5. Such loans shall not be and occupy lands mortgaged and shall be made for the following pur- chased; (b) the purchase of livestock and other equipment, and the making improvements which. in the Judgment ductivity of such lands or add to their value as q farm home in a degree to justify such expenditure; and tc) for the satisfaction of incumbrances upon such lands, which. in the judgment of said board, were incurred or assumed Dy said applicant for the aforesaid pur-
 Section G. Every applicant for a farm iGan iaa th shall state clearly ,n his appiica Is desired and upon its approval by the board this statement shall be deem ed a part of the note or contract un- der which the loan is granted But no failure to apply such funds to the pur- poses stated in such application or loan when once made, nor shall any thing herein contained be deemed to re or leasine lands s1nieet nit om to sueh esiik in- mbrance; but If he shall violate hls 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 vidpd for herein, said board Is author ized and directed to require the repay ment of said loan upon six months no- tice, and said note or cantract shall contain a clause providing therefor.
 Section [ Such loans shall be repaid stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate to be agreed on between said board and the applicant. said period to be not less than five nor more than thirty-six years, but any debtor may llquidate any part or all of his indebtedness In amounts of s5O00 or multiples there- Gs Gate' upon any amortization payment
 Section 8. The rate of interest on loans shall be five per cent per annum shall be sold for less than par; and pro- vided further that the board snail re- charge Of l per cent of the loan sraast- ed, the minimum charge 10 be $lO.OO 10 cover the. cost of appraisal and ex-
 Section g. All surplus funds accruing from the operation of the system Of rural credits herein pr ovided for. after paying interest accruing on the afore- said bonds, and all operating and other expenses arising from the administra- shall be placed in the State Treasury and become part or lunq to De Reserve RnSMv aT FunS ,ng d'S sald Arkansas Rn.ai Credits Reserve fund shall be loaned on farm lands in the manner herein Credit Loan Fund and the interest ac- cruing from loans made from said Arr kansas Rural Credits Reserve Fund of it. The said Arkansas Rural Credits Reserve Fund shall be irreduclb'e. ex- cept that tt may be drawn upon to re- imburse the State Tor loss Incurred in the administration of said system or
 sction 10. The Legislative Ass ern- bly, shall provide Tn sdch detail as it shall deem advisable for the carving out and administering of the provisions of this amendment, and shall provide adequate safeguards against the use of such loans as an aid to the purchas- poses of speculation. Such safeguards shall include clear definitions of the terms operate and oscupy ussd lation, and subject to the. same after it's enactment, the State Land Boar shall proceed to administer said sys- tenn of rural credits under rules and regulations provided nv itself, but sub ject to the provisions herein contained.
 Section II. The provisions of the Constitution of Arkansas in conflict with this amendment are hereby re- pealed, in go far only as they conflict herewith. The provisions of this amendment shall be self-executinr and shall take Effect and he in operation 60 days after their approval aud adoption by the people of Arlxansas-
 Approved by. the Governor and fled in the office of the Secretary of State. March IT, 1917.
 Each elector may vote for or gSsnst the above amendment
 Witness my off1cial signature this the 24th day of April 1915.
 (Seal) TOM J. TERRAL.