The Mena weekly star., 1918-05-23
stltution of the state of Arkansas. to-

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 Section 1. Notwithstanding the lin ftation contained in Section l of Arti- cie fG of the Constitution. the credit of the state may be loaned and indebt- edness incurred to an amount not eS- if yaiSation 'Tf of ali property n m tSe state to be loaned upon the security of farm limitations herein contained.
 Section q, The Governor, Secretary shall constitute the State Land Board. which board is hereby authorized and directed to Issue and sell or pledge known as "ArEansas Farm Credit Bonds" in an amount not to exceed two per cent of the assessed valuation place the proceeds in the state Treas,- ufy in fund to be known as the Ar kansas Rural Credits Loan Fund"
 Section & Said bonds shall pe. Issued $500 co and S1 100000 and shall be is- sued in series of sl0,000.0O or multiples than thirty-six years: nor shall said bona fide purchasers of land aggregat- 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 bN the State of Arkansas, or any of It's sub divisions.
 Section Said, state Land Board is moneys 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 seyenty-ffye 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 go acres of land nor land valued at more than Sb0 00 NNr ahnD loan of less than $2O0.00 nor more than S3.000.00 be made to any purchaser Of
 Section 5. Such loans shall not be made except to owners who operate and occupy lands mortgaEed, and poses: (a) The payment for lands pur- chased: (b) the purchase of livestock m ands other eaulpm,snt ana the maaRing an of said board. will increase the pro- ductiyity of such lands or add to their justify such expenditure: and Gel for the satisfaction of incumbrances upon such lands. which, in the, Judgment of by said applicant for the aforesaid pur-
 section G. Every applicant for farm loan shall state clearly In his applica- ton the purposes for which such loan is desired, and upon it's approval by ed a part of the note or contract un- der which the loan Is granted. But no failure to apply such funds to the nur- poses 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 selnng or leasing lands subject to such In cum brance but if he shall violate his sand 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 fulhll- in tsan1ffinnE and puTDOSeG pro- yided for herein, said board IS author ized and directed to require the repay ment of said loan upon six monthS no- tiee, and said note or cantract snail
 Section [ Such loane shall be reuaid stalIments on the amortization plar such installments being fixed at such sums as VIII cover t the lnitersss ie sneriod rd to be agreed on between said board and the applicant, said period to be moi less than five nor more than tbirtt SIX years. but any debtor may liduidate anV part or all of his inde htedpeSs in amounts of S5o00 or multiples there of upon any amortization naYinent
 Section s. The rate of interest onI loans shall be five per cent per annumn provided. that no Farm Credit Bonds shali be sold for less than par; and pro- vided further that the board snail re, quire each applicant 10 pay an initial charge of l per cent of the loan s.-aat1 ed. the minimum charge to be $lO.0O to cover the cost of appraisal ani ex-
 Section g. All surplus funds accruing from the operation of the system oI rural credits herein pr rovided Tor. after paving interest accruinR on the afore- said bonds. and all operating and other expenses arising from the administra-
 ba lon G1 be sana paced ii1 in the @ state Treasury known as the ."Arkansas Rural Credit Credits Reserve fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural cluing from loans made from said Ar kansas Rural Credits Reserve funa shall be added to t ana pec1me e"ral dredits pdi Reserve Fund shall be irreducih'e. ex- cept that 1t may be drawn upon to rs- the administration of said system of
 IS ae sction ei1' 10. The Legislative Asssm- shall deem advisable for the carrying out and administering of the provisions of this amendment. and snai, prosides such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation snis, sudh saieessafthbs es ths herein i9 the absence ,s of such such ieFis es,sr it's enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided nv itself, but sub feet to the provisions herein contained.
 Section II. The provisions of the Constitntion of Arkansas in conflict with this amendment are hereby re- pealed, in so far only as they conflict herewith The provisions of this amendment shall be self-executing. an1 shall take effect and be in operation bO days after their approval aud adoption by tho people of ArlSansas
 Approved by the Governor and nled in the office of the Secretary of State, March IT, 1917
 Each eiector may vote for or against the above amendment
 Witness my official signature thF the 24th day of April 1913.
 fSeall TOM J. TERRALs
 Secretary af state. Adv First Pub. May 2. 1918.
 Last Pub. Oct 21. 1sls