The Mena weekly star., 1918-09-05
FOR AMENpMT.NT NO. IS. AllA INSI AM klNllAI LrN No 1


 posea as an amendment to the Constt- tuuon Of tho State of Arkansas and the same being submitted to the elec- tors Of the state for approval or rs lection at the next general election for Senators. and Representatives. if a ms -Qrity of the electors voting at such t4ection adopt such amendment. tne rs-.ae shall become a part of the Con- sttutioH Of the State of Arkansas. to-
 Section. l. Notwithstandine the lin. itation contained in Section l of Arti- Gle l6 of the Constitution. the credit or the state may be loaned and indebt- edness incurred to an amount not eA- valuation of all property the stale to be loaned gs upon the security security of farm sITs lands within the State. subject to 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 fin the name If the State to be known as Arkansas Farm Credit Bonds,' in an amount not to exceed two per cent of the assessed valuation or all the property in the State. and 10 place the proceeds Tn the State Trcas- ury in a fund to be known as the Ar kansas Rural Credits Loan Fun b"
 Section B Said bonds shah be issued Tn denominations of s2500 s1OO. 0O s5oo.00 and sl,J0Q.V0 and shall be is- sued in series Of s10.000.00 or muitipies thereof, drawn to mature in not more than thirty-six years: nor shah said bonds be sold until applications rom Ing $l0.o00.00 have been filed with ani approved by the State Land Poard Said bonds shall bear interest at the shall be exempt from taxation by hs ths state state or Arkansas, or any of its sub
 Section f. Said State Land Board is authorized and directed to loan the moneys m said Arkansas Rural Credits Loan Fund to bona fide purchasers of Iarm lands In Arkansns upon notes se- cured by mortgages or deeds of trust constituting first liens on such farm lands in amounts which shall not ex- praised value Of such lands. The cred 1t of the State shall not be loaned 10 any person to purchase more than so acres or land, nor land valued at more than 5000 per acre. Nor shall a loan of less than s20O.O0 nor more ,has SS.O9o.0o be made to any purchaser Ji
 Section 5. Such loans shall not bs made except to owners who "opCrate" and occupy lands. mortesged. and poses. (a) The payment for lands pur- chased; tb) the purchase of livestock and other equipment. and the making of said board. will increase the pro. auetivity or such lands or add to their value as farm home in a degree to the. satisfaction of incumbrances upon such lands. which. in the iudSmenf nf said board, were incurred or assumed by said applicant for the aforesaid pur-
 Section 6. Every applicant for a farm iooan shall state clearly In his applics- s desire8 aa pon s'eh ite appssa.i srsn Ios1 the board this statement shaif be dserf- ed p.rt cf the note or contract un. & fsuFs so sbely sns snch s ns so s Sus no poses stated In such application or senumereted herein shall Invalldate thing herein "ce centained i nos bs desmes ss sn prevent any farm owner from seiIinT or leasing lands subject to such in- said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerated me herein si,; s Hr 1T he shall lease such lands ing the conditions and purposes pro- yided for herein. said board Is author ,zed ,,Ie ana ,r directed to reouire the spay- tice, and said note or cantraet shall eogtain a clause providing therefor. ,,ise isseetlon is ', such loans shall be repaid stallments on the amortization plan such instailments being fixed at such and win iiauidate the debt in period to be agreed on between said board and the applicant, said period to be not less than five nor more than thirty-six
 
 o s5ooo or 1ls mnitipies of upon any amortization payment
 Section 8. The rate of interest on loans shall be five per cent per annum: provided, that no Farm Credit Bonds shall be sold for less than par: and pro vided further that the board snail re- quire each applicant to pay an initial charge of l per cent of the loan siraut- to cover the cost of appraisal an l ex- animation of tisle.
 Section g. All surplus funds accruins rural credits herein pr ovided for after paying interest accf uing on the afore- said bonds, and all operating and other ton of said system of rural credits shall be placed In the State Treasury and become part of a fund to be Reserve Fund" Said Arkansas Rul al | Credits Reserve fund shall be loaned | Dn farm lands in the manner herein | ersGesd redt oa5 Tor Fund the and jAFbks1sas Rurs cruing from loans made from said AT. 1 kansas Rural Credits Reserve Fund 1 shall be added, to It and become a part | lf it The said Arkansas Rural Credits | Reserve Fund shall be irreducib'e. ex- | sept that II may be drawn upon to re- | mburse the State for. Ioss. Incurred in
 ssction i0 The Legislative Ass.m- ply shall fsFovtde m Bdch detail as if | shall deem advisable for the carving | ,ut and administering of the provisions | ,f this amendment, and shall provide | adequate safeguards aRainst the use Of such loans as an aid to the purchas- poses of speculation Such safeguards .hall include clear definitions of the ierms operate" and occupy used | lerein. In the absence of such legis- | ations and subject to the same after | ts enactment the State Land Board | 'hall proceed to administer said sys- em of rural credits under rules and | -eK uiatioIis provided i>v itself. but sub- ect to the provisions herein contained. | i. Sec ton. II. The provisions of the | of Arkansas in conflict | with this amendment are hereby re Dealed, in so far only as they conflict < shall be self executing. and | shall take effect and he in operation 60 | lays after their approval and adoption i ly the people of Arkansas.
 Approved by the Governor and filed | n the office Of he s. cretdry of State | March IT, 1917. Each eleetor may v"fe for or age sinst | he above amendment
 Witness my official signature this [ he 24th day of April 1913.
 (Seal) TOM J. TERRAE.
 SecrctaF Adv-First pab. Mas 2. 1918.
 Last Pub Oct. 31. 1912
 rHe Po~fsD ny INITIATIVE
 PETITION.
 RRoPOsFn CONSTITUTIONAL
 AMEeN .DyIENT 10. 13.