The Mena weekly star., 1918-07-11

of State and State Land commissioner snail constitute the State Land Board, directed to issue and sell or pledge bonds in the name Of the State to be Rno%n eaoSI, as as "Arkansas Farm Credit two per cent of the assessed valuation or all the properiy In the State. and to ury in a fund to be known as the Ar kansas Rural Credits Loan Fun |"
 Section 3. Said bonds shall De issued s500,00 and $l,J00.uo and shall be is- sued in series of S10.000.00 or multipl5s thereof drawn to mature in not more than tmrty-slx years; nor shall said bonds be sold until applications rom bona. hde purchasers of land aggreRat- ing $l0.000.00 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 state of Arkansas. or any of It's sub
 Section | Said State Land Board is authorized and directed to loan the moneys in said Arkansas Rural Credits Loan Fund to bona fiue 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- praised value of such lands. The cred It Of the State shall not be loaned to any person to purchase more than SC than S5O.o0 per acre. Nor shall loan of less chan s2e0.0n nor more .hal $S0oo00 be made to any purchaser a
 Section ,. Such loans shall not be made except to owners who "opCrate" shall be made for the following pur- poses: ta) The payment for lands pur- enaases ana 2, ,b! ,ae pSrehass Of iigsstqcs c l improvements which, in the judgment of said board, will increase the pro auetiyity of such lands or add to their
 value as a farm home in u degree to
 lustify such expenditure; and fcl for
 the h sa,tisdfaeti9n Sf incnnssranees upon
 said board, were incurred or assumed by said applicant for the aforesaid pur-
 Section G. Every applicant for a farm loan shall state clearly in his applica- ] ton the purposes for which such loan ] the board thls statement shall be deem 1 ed part of the note or contract un- 1 der which the loan IS granted Bat no poses stated in such application or enumerated herein shall invalidate thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such in- mbrance: but if he shall violate hls said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerated or sell them to any person not fulfill ing the conditions and purposes pro-
 
 ized and directed to require the ,pay- ment of said loan upon six months no- tiee, and said note or cantraet shall
 Section ' Such loans shall be reDaid with interest accruing iE annual in- stallments 70, on the ,1 amor a sn5ion n,s.n 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 nci less than i've nor more than thirty-six years, but any debtor may liduidate ans amounts nai of ssd6o or OF muitlples the e e date.
 loans shall be five per cent ner annum; | provided that no Farm Credit Bonds shall bs sold for less than par; anu pro quire each applicant to pay an initial charge of Der cent of the loan s.rl,,s. er fne mirirrum -~.rs 70 pc sAs,v' sv te cover the. cost Of aprfaisfi .--.-: s-.
 Section g. Ali surplus funds aecruine from the operation or the system of rural credits herein pr Jvided for after said bonds, and all operating and other expenses arising from the adminisira- shal, u J he salu pIaced in Y the " state treasury known as the "Arkansas Rural Credit Credits Reserve fund shall be loansd on farm lands In the manner herein provided for the Arkansas Rural Credit Loan Fund and the interest ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to t and become q part of 1t. The said Arkansas Rural Credits Reserve Fund shall he irreducih'e, ex- cept that it may be drawn upon to rs imburse the State for loss incurred in the administration of said system O.
 ' ssctlon 10. The l.. gislative AssAn- bly shall provide n nrh detail as i' shall deem advisable for the carr vipk i out and administering of the prnv isions | of this amendment. and shall provide adeQuate safeguards against the use Of such loans as an aid to the purchas- ing and holding of inds for tl poses of speculation Such safeguards shall incltrie clear definitions of the terms "Onerate" and "CceuDv' used herein Tn the absence of such legis l lation and subject to the same after 1 it's enactment, the State Land i;oaId shall prpcsed fo administer said sys- ! regulations provided fv Itself, but sub ject to the provisions herein contained
 Section 1T The provisions of the ConstitIti9n of Arkansas in conflict with this amendment are hereis re pealed In so far only as they carasct amendment shall be sslf-executinI- sn shali take effect and ee in operation @ days fter their approval aud afopfton by The people Of ArlSersas
 Approved by the Governor and Had in the office of the 2 cretary oS State March IT. 1917.
 Each elector may vsfe for or ags'nsf the above amendment
 Witness my on. ial signature thT tho a4th day of Aprit 1918.