The courier-index., 1918-09-13

lection az the next general election
 for Senators and Representatives. if
 majority of the electors voting at such election adopt such amendment the same shall become a part of the Con-
 stitution of the State of Arkansas. to- wit:
 Section 1. Notwithstanding the lim- itation contained in Section 1 of Artf- cle 16 of the Constitution, the credit
 of the State may be loaned and in- debtedness 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 De
 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. ,. Said bonds shall be issued
 in denominations of $25.0o. t100.0o. s500.00 and q 100000, and shall be is- sued in series of 310,000.00 or multi ples thereof. drawn to mature in not
 
 said bonds be sold until applications from bona fde purchasers of land ag- gregating $10.000.09 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 ation by the State of Arkansas, or any of it's subdivisions.
 Sec. A. 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 se- cured by mortgages or deeds of trust constituting first liens on such farm lands in amounts which shall not ex- ceed seventyfve per cent of the ap- praised value Of such lands. The cred 1t of the State shall not be loaned to any person to purchase more than so acres of land. nor land valued at more than S50.00 per acre. Nor shall loan
 of less than $2o0.o0 nor more than B.
 000.00 be made to any purchaser of l land.
 except to owners who Operate" and occupy" lands mortRaped and shall be made for the following purposes: (a) The payment for lands purchased. . | (b) the purchase of live stock and oth- CT equipment. and the making of inn provements which. In the judgment of
 said boasd will increase the produc- tivity of such lands or add to thei-
 value as a farm home in degree to justify such expenditure: and Gel for
 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- | ton the purposes for which such loan Is desired and upon its approval by
 the board this statement shall be deem ed 8 part of the note or contract under which the loan js granted. But no failure to apply such funds to the | purposes stated in such application or | enumerated herein shall iDNalidate loan when once made. nor shall any thing herein contained be deemed 10 | prevent any farm owner from selling | or leasing lands s0bJect to such 1n- cumbrance; but if he shall violate h)s | said contract by applying the moneys
 borrowed to purposes other than those | stated in his application or enumerated | herein. or if he shall )ease such lands or sell them to any. person not fulfill | ing the conditions and purposes pro- vided for herein. said board IS author ized and directed to require the repay | ment of said loaL. upon six months no- 1 tiee. and said note or contract shall
 contain a clause providing therefor.
 Sec. 7. Such loans shall be repa'd d | with interest accruiDg in annual in-
 stallments on the amortization plan. such installments being fxed at such
 sums as will cover the interest rate | and will liQuidate the debt in s period | to be agreed on between said board | and the applicant said period 10 be not less tha five nor more than thirty | six years: but any debtor may iqui- l date any part or all of his inde bte dness
 in amounts of 360.00 or multiples there | of upon any amortization payment
 date.
 Sec. [. The rate of interest on loans
 shall be nve 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 sha.. re- | quire each applicant to pay an initial | charge of l per cent of the loan grant =
 ed. the minimum charge to be $1o.0o | to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accruing | from the operation of the system or 1 rural credits herein provided for after | paying interest accrufng on the afore- | said bonds, and a1f operating and other
 expenses arising from the admin stra : l tion of said system of rural credits. | shall be placed in the State Treasury
 and become part Of fund to pc | 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 D. the, Arkansas Rural | cruing from loans made from said Ar ! kansas Rural Credits Reserve Fund
 shall be added 10 il and become a part of It. The said Arkansas Rural Credits | Reserve Fund shall be ffreducible, ex- | cept that it may be drawn upon to re- mburse the State for loss incurred In | the administration of said system of | rural credits.
 Sec. 10 The Legislative Assembly | shall provide in such detail it shall | leem advisable for the carrying out | nd administering of the provisions Of | his amendment. and shall provide ad- | equate safeguards against the use Of | such loans as an aid to the purchas- l 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. Tn the absence of such legis- | ltion, and subject to the same after | ts enactment the State Land Board hall proceed to administer said sys-
 em of rural credits under rules and | egulations provided by itself. but sub act to the provisions herein contained. Sec. II. The provisions of the Con | 'titution of Arkansas in conflict with | his amendment are hereby repealed. in | SO far only as they conflict herewith. | The provisions of this amendme nj | ba he alf-executinp and shall take