The Mena weekly star., 1918-08-29
FOR AMENDMENT NO is A GA INST A M lcNl M MN | AIn {


 That the following is hereby pro- pose as an amendment to the Const- tuition of the State of Arkansas ana the same being submitted co the efec- tors of the State for approval pr r.s- lection at the next general election for Senators and Representatives, if a ma | JorltN or the electors voting at suen election adopt such amendment. tne same shall become part of the Con | wit:
 Section. l. Notwithstanding the lin. itation contained in Section ! of Arti- ! oI the state may be loaned and indebt- ednsss incurred to an amount not ex- valuation of all property n the State | for the purpose of providing funds to be loaned upon the security of farm lands within the State. subject to the ! limitations herein contained.
 Section g.. The Governor. Secretary shall constitute the State Land Board which board is herety authorized and directed to issue and sell or pledge known " as % "ArRensas % '"i Farm Sn'' credis s ns | Bonds, In an amount not to exceed two per cent of the assessed valuation pace the in in the the se state Treas aPe | ury in fund to be known as the Ar kansas Rural Credits Loan Fun |" Section 3. Said bonds shall De issued | S500.00 and s1.d0o.u0 and shall be is- sued in series of siO.OoO.Oo or muitipiss than thirty-six yearsi nor shall said bonds be sold until applications from ing s10.Q00:e0 have been filed with and approved by the State Land Poard Said bonds shall bear interest at the shall be exempt from taxation by the State of Arkansas. or any of It's sub
 section l. Said State Land Board ,s |. authorized and directed to loan the moneys in said Arkansas Rural Credits farm lands in Arkansas. upon notes se- cured by mortgages or deeds of trust constituting first liens on such farm i 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 to purchase more than 80 acres or land, nor land valued at more than soo.Oo per acre Nor shall loan | Of less chan $200.00 nor more tha S3.0Oo.00 be made to any purchaser oi land.
 Section 5. Such loans shall not be | made except to owners who "opCrate" and occupy" lands mortgaged, and shall be made for the following pur- poses, (a) The payment for lands pur- chased; Ch) the purchase of livestock and other equipment and. the making | improvements. which. in the judgment of said board, will increase the pro ductivity of such lands or add to their 4 value as a farm home in a degree to Justify such expenditures. and tc) for such lands. which. in the judgment of said board, were incurred or nssumed by said applicant for the aforesaid pur-
 Section G. Every applicant for a farm loan shall state clearly in his applica- 1soa daisg tse purposes na & Tor which such loan CT the board this statement shall be deem- ed part of the note or contract un-
 o apey such unds to us enumerated herein sSali lnyslisate a . thing herein % contained be be deemed deem dni to prevent. any farm owner from selling or leasing lands subject to such h in. said contract by applying the moneys borrowed to purposes other than those herein, or if he shaii lease such such lands a6e ing the conditions and purposes pro ized and directed 10 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 accruing in annual in such installments G being n fixed i0a a, sue, sue, , sums as will cover the interest rat. and. will liquidate the debt in a perio. n and the applicant. said perio,. to be no |, less than i've nor more than thirty-si years, but any debtor may liquida.! ' ' amounts of $50. co or r7 muitipies there the of upon any amortization paynen v Section s. The rate of interest ol loans shall be five per cent per annum
 provided, that no Farm Credit Bond shall be sold for less than par: and pro
 vided further that the board snail re
 quire each applicant to pay an initia charge of l per cent of the loan s.-ant
 ed, the minimum charge to be $I00 to cover the cost of appraisal an ex
 animation of title.
 Section g. All surplus funds accruins i. from inc 0ngra flnQ the rural credits herein pr ovided for aftel paying interest accruing on the afore expenses arising from the administra' } shall be placed in the state Treasury ! known as the ''Arkansas Rural credii Reserve ssi,s Fund Fund" said Arkaansas Ar RuiA . provided for the Arkansas Rura Credit Loan Fund and the Interest ac- kansas Rural Credits Reserve Fund shall be added. to 1t and become a part of it. The said Arkansas Rural Credits cept that :; may be drawn upon to re imburse the State for loss incurred in the administration of said system 0. Section 10. The Legislative Assem- ply shall eroyide n s.lch detail as l' out and administering of the provisions of this amendment, and shall provide adequate safeguards against the use of such loans as an aid to the purchaF- ing and holding of lands for he pUr poses of speculation Such safeguards shall include clear definitions of the terms Operate" and occupy used herein. In the absence of such iegis- lation. and subject to the same after it's enactment. the State Land Soar shall proceed to administer said sys- tenn of rural credits under rules and reg nlations provided fy itself. but sub ject to the provisions herein contained
 Sec ton IT. The provisions of the Constitution 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-executinr. au ] shalI take effect and he in operation GO days after their approval aud adoption by the people of ArlSs Dsas.
 Approved by the Governor and died in tic office of the s cretAry of State March IT. 1917.
 Each elector may v"te for or against ] the above amendment
 the 24th day of April 1ylS
 tSeal) TOM J. TERRAI. Adv.--First Pub. May 2. 1918. Last. Pub. Oct. 31. 1912
 rRc POSED ny INITIATIVE II PETITION.
 II PROPOSED CONSTITUTIONAL AMENDMENT NO. i3.