The Mena weekly star., 1918-05-02
FOR AMENDMENT No. IS. AGAINST. AM MicNDMleN | No l5

FOR AMENDMENT No IS
 AGAINST. AMleNDMlsNT I No. l.
 He If Resolved by the House of ltcp- reeentafiVes and the seHate of tue
 state of Arkansas, the Majority of both Houses Agreeing IhcretOs
 That the following is hereby pro- posed as an amendment to the Consti- tuition of the State of Arkansas and the same being submitted to the elec- l tors of the State for approval or re- lection al the next general election for Senators and Representatives. If a mo . | Jority of the electors voting at such election adopt such amendment. the same shall become part of the Con
 wit;
 Section l. Notwithstanding the lin. ; | itatton contained in section i of Artl- cle l6 of the Constitution. the credit of the state may be loaned and indebt- edness Incurred to an amount not eN- cecding two per, cent of the assessed 1 valuation of all property n the state | Tor the purpose of prov iding funds
 Co be loaned upon the security of farm 1 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, i which board is hereby authorized and | directed to issue and sell or pledge 1 bonds In the name of the State to be known as Arkansas Farm Credit l Bonds in an amount not to exceed | two per cent of the assessed valuation
 place the proceeds in the State Treas ! ury in a fund to be known as the "Ar- kansas Rural Credits Loan Fund" Section 8. Said bonds shall be issued | in denominations of S25.00. s100.0 00 | S500.00 and $1,000o0 and shall be is- i sued in series of $10,000.00 or multiples thereof drawn to mature in not more | than thirty-six years. nor shall said bonds be sold until applications rom | bona tide purchasers of land aggreg gat- ing Sl0000O0 have been filed with and approved by the State Land Poard Said bonds shall bear interest at the 1 Af ma. Af4f tasag 4R nm and shall be exempt from taxation by the State of Arkansas. or any Of it's sub
 Section l. Said State Land Board Is
 authorized and directed to loan the moneys 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 1 lands in amounts which shall not ex- ceed seventy-tfye per cent of the ap- | praised value of such lands. The cred | it of the State shall not be loaned to l any person to purchase more than 80
 acres Of land. nor land valued at more
 than S5O.Q0 per acre. Nor shall loan | of less than s200.00 nor more than 1 s2.0o0.00 be made to any purchaser of | land.
 | made except to owners who "oporate" | and occupy" lands mortgageds and
 shall be made for the following pur-
 chased tb) the purchase of livestock | and other equipment and the making | improvements which, in the Judgment | of said board, will increase the pro- | ductivity of such lands or add to their value as farm home In degree to
 justify such expenditure;. and Co for | the satisfaction of incumbrances upon 1 such lands. which. In the judgment of | said board, were incurred or assumed | by said applicant for the aforesaid Dur-
 Section G. Every applicant for a farm loan shall state clearly in his applica- 1 ton the purposes for which such loan Is desired, and upon it's approval by the board this statement shall be deem ed part of the note or contract un- | failure to apply such funds to the pur- | poses stated in such application or enumerated herein shall invalidate l loan when once made, nor shall any i thing herein contained be deemed to prevent. any. farm owner from selling | cumbrance but if he shall violate his
 said contract by applying the moneys l borrowed 10 purposes other than those stated in his application or enumerated herein, or if he shall lease such lands or sell them to any person not fulfill | vided for herein, said board Is author ized and directed to require the rapay-
 ment of said loan upon six months no. tice, and said note or cantract shall contain clause providing therefor.
 Section z Such loans shall be repaid with interest aecruing in annual in- stallments on the amor ization plan, such miscellaneous being fixed at such
 sums as will cover the interest rate l ana VIII fiQul1Att the QeDI III A DtflOu
 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 liquidate any part or ali Of his indebtedness in l amounts of $50.00 or multiples there- of upon any amortization payment Section S. The rate of interest on
 loans shall be i've per cent per annum mum
 shall be sold for less than par and pro- yided further that the board snail re- l quire each applicant to pay an initial 1 charge Of per cent or the loan Rrant- ed. the minimum charge to be sl0.00 l to cover the cost of appraisal and ex animation of title.
 | from the operation of the system Of 1 rural credits herein provided for. after said bonds. and all operating and other | expenses arising from the administra- | tion of said system of rural credit3,
 shall be placed in the. State Treasury | and become a part of a fund to be | known as the "Arkansas Rural Credit
 Reserve Fund saie Arkansas lba,, sa ,aans1 R,al | on farm lands in the manner herein | provided for the Arkansas Rural
 cruing from loans made from said Ar | kansas Rural Credits Reserve Fund
 shall be added Co 1t and become a part
 of 1t. The said Arkansas Rural Credits Reserve Fund shall be irredueihie, ex- 1 cept that it may be drawn upon to re- | imburse the State for loss Incurred m 1 biAr NAipAA tA reAtN f9StNt'f Nt
 section 10 The Legislative Assem- bly, shall provide Tn sdch detail as it
 shall deem advisable for the carrying i out and administering Of the provisions 1 of this amendment. and shall provide adequate safeguards against the use or | such loans as an aid to the purchas~ ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions Of the 1 terms operate" and occupy used herein. In the absence of such legls- | lation. and subject to the same after l it's enactment the State Land Board l shall proceed to administer said sys- | tenn Of rural credits under rules and 1 reg ulations provided hv itself. but sub i ject to the provisions herein contained. Section 1l,~ The provisions of the l Constitution of Arkansas in conflict with this amendment are hereby re- pcaled, in so far only as they conflict herewith. The provisions of this anne endment shall be self-executinP. and shaif take effect and he in operation 60 l days after their approval and adoption | by the people of ArlSensas
 Approved by the Governor, and flled l In the office of the Secretary Of State, March IT. 1a17
 Each elector may vote for or 9Raipst l the above amendment
 Witness my official signature this 1 the 24th day of April 1918.
 tSeaD TOM ]. TERRAI., Secretary oI tAate. l Adv First Pub May Z, 1918
 | I.nQt Dirh CApf qf 1919