The Mena weekly star., 1918-10-17
FOR AMENDMENT No. IS. AGAINST AMENDMENT | NO, IS

He " tesotvea DF the House Of Wep- state of ArkRnsas, the Majority both Houses Agreetng 1heretos
 That the following is hereby pro tution Of the State Of Arkansas. ard the same being submitted to the cleo tors Of the, State for approval or r-- lection at the next general election for Senators and Representatives. if ma jority of the electors voting at such election acopt such amendment. enc same shall become part Of the Con stitution of the state of Arkanaas, to-
 Section. i. Notwithstanding the lin. itation contained in Section l of Arti- cle 16 of the Constitution. the credit of the state may bs loaned and indebt- edness incurred to an amount not ea valuation of ali property the state for the purpose of prov idinR funds to be loaned upon the security of farm lands within the State, subject 10 the limitations herein contained.
 Section 2. The Governor. Secretary Of State and state Land Commissioner shall constitute the State Land Board, which board is hereby authorized and bonds in the name If the State to De Bonds" in an amount not to exceed two per cent of the assessed valuation of all the the property in the state, and to ury in fund to be known as the Ar kansas Rural Credits Lean Fun a"
 Section 8. Said bends shall be Issued S5OOo0 and si,50e.se and shall be Is, sued in series of $l0,000.o0 or multipias thereof, drawn to mature in not more bonds. be sold until applications rom bona hde purchasers of land aEEi iegat, ing S1o.ooo.0o have been filed with ani Said bonds shall bear interest at the rate of four per cent per annum. . | 1 shall be. exempt from taxation by .a AA rtf Assff sRf tfes a4ala
 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 SC. cured by mortgages or deeds of trust lands in amounts which shall not ex. | ceed seventy-fve per cent of .he ap' | praised value os such lands The cred ! 1t of the State shall not be loaned {, | any person to purchase more than 8
 acres of land. nor land valued at nor
 sean ,oss sso9S S per ,ses sene ao NOT shal, iSa
 ss.0o0.00 be made to any purchaser ] made, except to. owners who "oporate | and occupy" lands mortRaRed am shall be made for the following pur
 poses: (a) The payment for lands pur | chased; (bl the purchase of livestocl and other equipment. and the makfns | improvements. which. in the judgmen
 ductivity Of of such lands or add to to tRei, | value as farm home in degree tt | justify such expenditures. and tc) foi
 such lands. whicS in 'pfsRSnS the judgment TpSl Q | said board. were incurred or assumed
 by said applicant for the aforesaid pur-
 Section 6. Every applicant for farm loan shall state clearly in his applica. | tion the purposes for which such loan tse desirSd h ana ., upon its nspphevSsa r Sa. ns der which the loan is granted But nc raiinre nas % to apply such . funds , tc the pur. enumerated herein shall invalidate Q loan when once made. nor shall any thing herein contained be. deemed to or leasing lands subject to such If cumbrancei but If he shall violate hle said contract by applying the moneys stated in his application or enumerated herein, or if he shall lease such innds or sell them to any person not fulfill vided for herein, said board is author. ized and directed to require the rspay- ment of said loan upon six months no contain n clause providing therefor.
 Section [ Such loans shall be repaid with interest accruing In annual in- stalfments on the amortization nlaf such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in a period Co be agreed on between said board and the applicant. said period to be nei less than five nor more than thi-iy-six years. but any debtor may liquidate snx Rar' Of co sf or a matpes ths, of upon any amortization payment date.
 Section s. The rate of interest on loans shall be five per cent uer annum provided, that no Farm Credit Bonds shall be sold for less than par; and pro- vided further that the bonfd snail re- quire each applicant to pay an Initial charge of i per cent of the loan grant ed. the minimum charge to be SlO.00 to cover tho. cost of appraisal anl ex
 Section 9, Ali surplus funds accruing from the operation ot the system Of paying interest aecf ning on the. afors- said bonds, and all operating and other expenses arising frcm tho administra- shall be placed In the state Treasury known as the ."Arkansas Rural Credit credits Credits Reserve Sp fund n se' shaii be loaned @ provided for. the .Arkansas Rural cruing from loans made from said Ar. shall be added to t and become 2 part Reserve Fund snail be irreducih's. ex- cept that it may be drawn upon to fs tmburSe the State Tor loss incurred In the administration of said system O. rural credits.
 bly shall provide in such detail as it shall deem advisable for the carrying out and administering of the provisions of this amendment. and shall provide adequate safeRuards against the use of such ioans 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 terms operate and 'uecups used herein. In the absence Of such legis- lation. and subject to the same after shall proceed to administer said sys- tenn of rural credits under. rules and regulations provided hv itself. but sub ject to the provisions herein contained
 Section H. The provisions Of the Constitution of Arkansas ln conflict with this amendment are hereby rs pea1ed, in so far only as they conflict herewith. The provisions Of this amkndmant shall be self-exscutinP. ani shall take effect and he in operation SC days after their approval aud adoptfou by the people Of Arkeazaa
 Approved by tho Gnvermor and filed tn the once eI the Secretary pf State March IT. 1917.
 Each elector may vote for or aGxineJ the above amendmnnf