The Home news., 1918-06-21
FOR AMENDMENT NO. 1B. AGAINST AMENDMENT NO. 16.

AGAINST AMENDMENT NO. 10,
 Be 1t Resolved by the House of Rep Pesentatfves and the Senate of the State of Arkansas, the Majority of Both Houses Agreeing Thereto:
 That the following is hereby pro- posed as an amendment to the Consti- tuition of the State of Arkansas, and the same being submitted to the elec- tors of the State for approval or re- lection at the next general election for Senators and Representatives if a majority of the electors voting at such same shall become a part of the Con- ~-itution of the State of Arkansas, to- wit:
 Section l. Notwithstanding the lim- ,tation contained in Section i of Arti- lie 16 of the Constitution, the credit of the State may be loaned and in- 1ebtedness 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 .o 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, ard to place the proceeds in the State Treasury in fund to be known as the Arkansas Rural Credits Loan Fund"
 Sec. 3. said bonds shall be issued in denominations of $25oo $1oo.oo. sued in series of $1o,Ooo.o0 or multi ples thereof, drawn to mature Tn not more than thirty-six years; nor shall said bonds be sold until applications from bona fide purchasers of land ag- gregating $10.000.00 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 atton by the State of Arkansas, or any of it's 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 fde 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 seventy-f1ve per cent of the ap- praised value of such lands. The cred it of the State shall not be loaned to any person to purchase more than 30 acres of land, nor land valued at more than $50.0o per acre Nor shall a loan of less than $300.00 nor more than s. 000.00 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: Ca The payment for lands purchased (b) the purchase of live stock and oth- CT equipment and the making of im- 2r"vennents which. in the Judgment of said board. will increase the produc- tivity of such lands or add to thear val'o as farm home in a degree to justify such expenditure: and (c) for the satisfaction of eneumbl ancos 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- ton the purposes for which such loan Is desired, and upon its approval by the board this statement shall be deem ca 8 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 if he shall violate hie said contract by applying the money borrowed to purposes other than tho*e stated in his application or enumerated herein, or if he shall lease such lands Ing the conditions and purposes pro- vided for herein, said board is author lzed and directed ts require the repay Ioe0t Rf Eaid loan ppon six months' mo-