The courier-index. (Marianna, Ark.) 1917-current, 1918-09-06

lection at the next general erection
for Senat tors and Representatives, II
majority of the electors voting at such
election adopt such amendment. the
same shall become part OF the Con-
stitution of the State OF Arkansas. to-
wit:
Section /. Notwithstanding the linz
itation contained in Section ! OF Arti-
Gle 16 OF the Constitution, the credit
OF the State may be loaned and in
aebtedness incurred to an amount not
exceeding two per cent OF 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. 2. The Governor, Secretary of
State and State Land Commissioner
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 be
known as Arkansas Farm Credit
Bonds" in an amount not to exceed
two per cent OF the assessed valuation
Of all the property in the State, and
to place the. proceeds in the State
Treasury in a fund to be known as the
Arkansas Rural Credits Loan Fund"
Sec. 3. Said bonds shall be issued
$4,000 and 81 10000, and shall be is
sued in series of 100000 or multi
Piles thereof. drawn to mature in not
more than thirty-six years; nor shall
said bonds be sold until applications
from bona fide purchasers of land ag-
gregating 100000 have been filed
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-fve per cent of the APP
praised value of snch lands. The cred
IL of the State shall not he loaned to
any person to purchase more than so
acres of land nor land valued at more
than $4,000 per acre. Nor shall loan
of less than son0.o0 nor more than $3,-
10000 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 purchased ::
(b) the purchase of live stock and 9TH
err equipment. and the making OF i'm
provements which. in the Judgment of
said boa~d. will increase the produc-
tivity of such lands or add to thei-
value as a farm home ia a degree to
Justify such expenditure: and (c) for
the satisfaction OF encumbrances 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 farm
loan shall state clearly in his applica-
is desired, and upon Its approval by
the board this statement shall be deem
ed part OF the note or contract under
which the loan is granted. But no
failure to apply such funds to the
purposes stated in such application or
enumerated herein shall invalidate a
loan when once made. nor shall any
thing herein contained be deemed TO
prevent any farm owner from selling
or leasing lands subject to such In
cumbrance; but II he shall violate his
said contract by applying the moneys
borrowed to purposes other tnan those
stated in his application or enumerated
herein. or II he shall lease such lands
or sell them to any person not fulnii-
ing the conditions and purposes pro-
vided for herein said board is author
ICED and directed to require the repay
ment of said loaL upon six months no.
tice, and said note or contract shall
contain a clause providing therefor.
Sec. z. Such loans shall be repaid
with interest accruing I'm annual in
stallments on the amortization plan.
such installments being hxed at such
sums as will cover the interest rate
and will liquidate the debt in a period
to be agreed on between said board
and the applicant. said period to be
not less than fve nor more than thirty
six years; but any debtor may liqui-
date any part or all of his Indebtedness
n amounts of 5000 or multiples there
Of upon any amortization payment
date.
Sec. 8. The rate Of interest on loans
shall be Ave per cent per annum; pro-
vided. that no Farm Credit Bonds shall
be sold for less than par: and pro-
vided further that the board shaE re-
Iuire each applicant to pay an initial
charge of 1 percent OF the loan grant I
ed. the minimum charge to be $1,000
TO cover the cost of appraisal and ex-
animation OF title.
Sec. g. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for. after
paying interest accruing on the afore-
aid bonds, and all operating and other
expenses arising from the administra-
ton of said system of rural credits
shall be placed in the State Treasury
and become part of fund to be
known as the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rurai
Credit Loan Fund, and the interest &C
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to IL and become a part
of II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
cept that II may be drawn upon to re-
mburse the State for loss incurred ir
he administration of said system OF
rural credits.
Sec. 10 The Legislative Assembly
shall provide in such detail as 1t shall
leem advisable for the carrying out
md administering of the provisions OF
his amendment. and shall provide ad.
4quate safeguards against the use OF
such loans as an aid TO the purchas-
ng and holding OF lands for the pur-
,oses OF speculation. Such safeguards
hall include clear definitions OF the
erms Operate" and occupy" used
| erein. In the absence of such legis-
ltion, and subject to the same after
is enactment, the State Land Board
hall proceed to administer said sys-
EN- OF rural credits under rules and
equations provided by itself but sub
ect to the provisions herein contained
Sec. II. The provisions OF the Con
| ,titution OF Arkansas in conflict witt
| this amendment are hereby repealed, In
so far only as they conflict herewith