The Home news., 1918-10-04
FOR AMENDMENT NO. 1S. AGAINST AMENDMENT NO. 1B.

Be 1t Resolved by the House Of Re1- 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 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 majority of the electors voting at such election adopt such amendment, the same shall become a part of the Con- s&itution of the State of Arkansas, to- wit:
 Section 1. Notwithstanding the lim- itation contained In Section 1 of Arti- cle 1e of the Constitution, the credit of the State may be loaned and in- debtedness 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 of farm lands within the State, subject to 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 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, and to place the proceeds in the State Treasury in fund to be known as the "Arkansas Rural Credits Loan Fund"
 Sec 8 Said bonds shall be issued in denominations. of $25.00, $100.o0, s50000 and $1,000.00, and shall be is- sued in series of S1o,OOo.oo or multi ples thereof, drawn to mature in not more than thirty-six years; nor shall said bonds be sold until applications from bona fde purchasers of land ag- gregating $10,00000 have been filed with and approved by the State Land at the rate of four per cent per an mum, and shall be exempt from tax ation 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 fide purchasers of farm lands In Arkansas, upon notes se- cured by mortgage or deeds of trust constituting first liens on such farm lands in amounts which shall not ex- ceed seventv-fve per cent of the ap- praised value of such lands. The cred 1t of the State shall not be loaned to any person to purchase more than so acres Of land. nor land valued at more than $50 co per acre. Nor shall loan of less than S2OO.UU nor more than $S,- n0n % be made to any purchaser of land.
 Sec. 5. Such loans shall not be made except to owners who operate" and "occupv' lands morteaged and shall be made for the following purposes: (e) The payment for lands purchased; (b) the purchase of live stock and oth- CT equipment, and the making of i'm crovements which in the Judgment of said board. will increase the produc- tivfty of such lands or add to thetr yal,-a as farm home In a degree to iustifv such expenditure: and (c) for the satisfaction of encumbi &nces upon such lands. which. in the Judgment oi said board. were incurred or assunle3 by said applicant for the aforesa'0 purposes.
 Sec. 6. Every applicant for farm loan shall state clearly in his appllca- ton the purposes for which such loan is desired and upon it's approVal Dy the board this statement shall De oeenl- ed a part of the note or contract unoer which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall inyalldate loan when once made. nor shall any thing herein contained be deemeo 10 prevent any farm owner from selling or leasing lands subject to such in cumbrance: but if he shall violate ms said contract by applying the moneys borrowed to purposes other than 'hoSs stated in his application or enumerateo herein. or if he shall lease such ls nds or sell them to any person not Yulni- ing the conditions and purposes pro vided for herein. said board Is author ized and directed to require the repay ment af said loan nnen six manths' Ao=