The Mena weekly star., 1918-08-15
FOR AMENDMENT NO. IS. AGAlNST AMENDMEN l No u

rerentntives and the Senate Of tL b"tk Houses Agreeing 1herrtoi
 That the following Is hereby pro- | posed as an amsndment to the Constl- | tuton of the State of Arkansas and | the same being submitted to the cleo | tors Of the State for approval or r.- lection at the next general election fo- Senators and Representatives if a ma Jority of the electors voting at such election adopt such amendment. tne same shall become a part of the Con wit:
 Section. i. Notwithstandine the lin. ftation contained in Section i Of Arti- cle ld of the Constitution the credit Of the state may be loaned and indebt- ceeding two per cent of the assessed valuation of all property the State for the purpose of providing funds | lands within the state subject 10 the l iimitations herein contained.
 of state and stafe land GommisiIon shall constitute the state Land Roard. which board is hereby authorized and bonds in the name If 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 10 place tho proceeds in the State Trcas- ury in a fund to be known as the Ar kansas Rural Credits Loan Fun l."
 section 8. Said bonds shall be issued ln denominations of S25.00. Sl00,00. fNfNsNN anu bAsuNN.HN ana SnAii be fE sued in series Of sio, ,000.00 or multipiss ! thereof drawn to mature in not more than thirty-six years; nor shall said bona. nde purchasers of land aggregat- ing Sl00O0.00 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
 Section |. Said state Land Board is authorized and directed to loan the moneys In said Arkansas Rural Credits Loan Fund to bona fsde purchasers of 1 farm lands in Arkansas. upon notes se- | cured by mortgages or deeds of trust constituting hrst liens on such farm lands in amounts which shall not ex- ! ceed seventy-ffve per cent of the ap- praised value O. such lands. The cred it of the State shall not be loaned to any person 10 purchase more than so acres or land, nor land valued at more ess ssO SaD Rer ssSoo GeT nor sha more SsS land.
 Section g. Such loans shall not he made except to. owners who "oporate' i and occupy lands mortgaRed and shall be made for the following pur
 poses; ta) The payment for lands pur- | chasedi tbJ the purchase of livestock and other equipment, and the making improvements, which. in the Judgment 1 ductivity of such lands or add to their | value as farm home in a degree to justify such expenditures, and (c) for i the satisfaction of incum brances upon i such lands, which. in the judgment Of ! said board. were incurred or assumed 1 by said applicant for the aforesaid pur poses.
 Section Every applicant for farm ] loan shall state clearly In his applica- ! ton the purposes for which such loan l x desired and upon lts approval by the board this statement shall be deem /, ed part of the note or contract un- ! failure to apply such funds to the nur. poses stated in such application or 1 snumerated herein shall invhlidate loan when once made, nor shall any l thing herein contained be deemed to l prevent any farm owner from selling 1 cumbrance. but if he shan violate his | said contract by applying the moneys | borrowed to 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 | ing the conditions and purposes pro | ized and directed to require the repay | ment of said loan upon six months nos
 tice. and said note or cantract shall
 Section '. Such loans shall be repaid | with interest aceruing in annual in-
 Sediments ueh on the ,n a,mer,ixatdion ad elay 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 not less than i've nor more than thirty-sis II years, but any debtor may Huuidats . amounts or s5o.6o or or muitipies there
 date.
 fl Section 8. The rate of interest oi | loans shall be five per cent per annum . provided. that no Farm Credit Bond l vided further that the board snail re . quire eack applicant to pay an in'tla
 charge of 1 per cent of the loan arlnt
 ed, the minimum charge to be $l0.0l | tu cover the c0St Of appraisal anl eN
 Section 9 All surplus funds aeeruins
 from the operation of the system oi
 rural credits herein pr ovided for after
 paying interest aeeruing on the aforo- said bonds, and all oaeratiEH and other ton of said sys'am of rural credits shall be placed in the State Treasury | and become Q part of fund to be
 known as the "Arkansas Rural Credit
 Credits Reserve fund shaii be s0 loaned | provided for for tbe Arkansas Rural 1 Credit Loan Fund and the interest ac-
 eruing from loans made from said Ar,
 kansas Rural Credits Reserve Fund
 shall be added to it and become a part
 of it The said Arkansas Rural Credits
 Reserve Fund shall be irreducih'e, ex-
 imburse the State for loss incurred in
 the administration of said system O;
 section 10. The Ltgialatlye Assem-
 bly, shall provide Tn such detail as t' | shall deem advisable Tor the carr NinE
 out and administering of the provisions Of this amendment, and shall provide
 adequate safeguards against the use of l such loans as an aid to the purchas-
 ing and holding of lands for the nur poses Of speculation Such safeguards shall include clear definitions of the terms operate" and occupy used herein. In the absence of such legis- lation. and subject to the same after
 it's enactment, the State Land Boai q shall proceed t0 administer said sys-
 tenn of rural credits under rules and
 regulations provided fv itself. but suh- ject to the provisions herein contained. Section II. The provisions of the T Constitution of Arkansas In conflict with this amendment are hereby res pealed, in so far only as they conflict herewith. The provisions of thts
 amendment shall be self-executing. and
 shall take effect and he in operation GO
 days after their approval aud adoption
 by she people of Arl<eDsas.
 \ Approved by the Governor and nIad
 fin the office of the Secretary or State March IT, 1917.
 Each efector may Vote for or against
 the above amendmens
 III Witness my official signature thV the 24th day of April 1915,
 tSeal) TOM J. TERRAI. |, Secret ar ef .slsAe. Il Adv--First Pub May g. 1918. Last. Pub. Oct. 31. 1912
 PROPOSED BY INITIATIVE