The Newark journal., 1918-09-26

endment; providing all provisions of
the Constitution OF Arkansas in con-
flict with this amendment be repealed
FOR AMENDMENT NO. Is
AGAINST AMENDMENT NO. Is
Be 1t Resolved by the House of Rep
resentatives 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 Con-
stitution of the State of Arkansas,
and the same being submitted to the
electors of the State for approval or
rejection at the next general election
for Senators and Representatives if
majority of the electors voting at
such election adopt such amendment,
Constitution of the State of Arkan-
sas, to-wit:
Section l. Notwithstanding the
limitation contained in Section / Of
Article 10 of the Constitution, the
credit Of the State may be loaned and
indebtedness incurred to an amount
not exceeding two per cent of the
assessed valuation of all the property
in the State for the purpose Of pro-
viding funds to be loanel upon the
security of farm lands within the
State, subject to the limitations here
in contained.
Section 3 The Governor, Secretary
of State and State Land Commission
er shall constitute the State Land
Board, which board is hereby author
lied and directed to issue and sell
or pledge bonds in the name of the
State to be known as the Arkansas
Farm Credit Bonds" in an amount not
to exceed two per cent of the assess
I'd valuation of all the property in the
State, and 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 $500, $4,000,
$4,000 and 100000 and shall be is
sued in series of 100000 or multi
piles thereof drawn to mature in not
more than thirty-six years; nor shall
said bonds be sold until applications
from bona fide purchasers of land ag-
gregating 100000 have been filed
with and approved by the State Land
Board. Said bonds shall bear inter
est at the rate of four per cent per
annum, and shall be exempt from tax
alton by the State of Arkansas. or
any of its subdivisions
Sec. A. Said State Land Board is
authorized and directed to loan the
moneys in said Arkansas Rural Cred
it's Loan Fund to bona fide purchasers
of farm lands in Arkansas, upon notes
secured by mortgages or deeds of
trust constituting first liens on such
farm lands in amounts which shall not
exceed seventy five per cent of the
appraised value of such lands. The
credit of the State shall not be loan
ed to any person to purchase more
than 80 acres of land nor land valued
at more than $4,000 per acre. Nor
shall loan of less than $4,000 nor
more than 100000 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 pur-
poses: (a) The payment for lands
purchased; OBJ the purchase of live
stock and other equipment, and the
making of improvements which in the
judgment of the board will increase
the production of such lands or add
to their value as a farm home in a
degree to justify such expenditure;
and (c) for the satisfaction of en-
ON hor 10 III.
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
deemed part of the note or contract
under which the loan is granted. But
no failure to apply such funds to the
purposes stated in said 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
his said contract by applying the
moneys borrowed to purposes other
those stated in his application or emu
merated herein, or if he shall lease
such lands or sell them to any per-
son not fulfilling the conditions and
purposes provided herein, said board
is authorized and directed to require
the repayment of said loan upon six
months notice, and said note or con-
tract shall contain a clause providing
therefor
Sec. 7. Such loans shall be repaid
with interest accruing in annual in