The courier-index. (Marianna, Ark.) 1917-current, 1918-08-23

wit:
Section 1. Notwithstanding the linn
itation contained in Section / OF Arti-
Gle 16 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
funds to be loaned upon the security
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
directed to issue and sell or pledge
bonds In the name of the State, to be
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. 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
from bona ffde purchasers OF land ag-
gregating 100000 have been filed
with and approved by the State Land
Board. Said bonds shall bear interest
mum, and shall be exempt from tax
alton by the State of Arkansas, or any
Of it's subdivisions.
Sec. f. 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 Sc
cured by mortgages or deeds of trust
constituting first liens on such farm
lands in amounts which shall not ex-
fv- Of
praised value If such lands. The cred
1t of the State shall not be loaned to
any person to purchase more than 80
acres of land, nor land valued at more
than $4,000 per acre. Nor shall a loan
of less than $4,000 nor more than So
900 90 be made to any purchaser OF
land.
Sec. s. Such loans shall not be made
except to owners who Operate" and
occupy" lands mortgaged and shall
be made for the following purposes:
Cal The payment for lands purchased:
(b) the purchase of live stock and 9TH
er equipment and the making of i'm
provements which. in the Judgment of
said board will increase the produc-
tivity of such lands or add to their
value as a farm home ia a degree to
Justify such expenditure: and (c) for
the satisfaction Of encumbrances upon
such lands, which, in the judgment OF
said board. were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec s. Every applicant for farm
loan shall state clearly in his apphca-
ton the purposes for which such loan
is desired, and upon its approval by
the board this statement shall be deem
ed q part Of the note or contract under
which the loan is granted. But no
failure to apply such funds to the
purposes stated in such application or
enumerated herein shall invalidate q
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 IL he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerated
herein, or II he shall lease such LANDS
or sell them to any person not fulfill
| ing the conditions and purposes pro-
vided for herein, said board Is author
| lied and directed to require the repay
| ment of said loaE upon six months no.
| tice. and said note or contract shall
| contain q clause providing therefor.
| Sec. Z. Such loans shall be repaid
| with interest accruing In annual in
| stallments on the amortization plan.
| such installments being hxed Mt such
| sums as will cover the interest rate
| and win liQuidAte the debt in period
| to be agreed on between said board
and the applicant. said period to be
| not less than hve nor more than thirty
date any part or all of his Indebtedness
in amounts of 5000 or multiples there
| OF upon any amortization payment
date.
shall be hve per cent per annum; pro-
vided, that no Farm Credit Bonds shall
| be sold for less than par; and pro-
| vided further that the board sha. re-
| quire each applicant to pay an initial
| charge of 1 per cent of the loan grant
| ed, the minimum charge to be $1,000
| to cover the cost OF appraisal and ex-
| animation Of title.
Sec. g. All surplus funds accruing
| from the operation OF the system OF
rural credits herein provided for. after
| paying interest accruing on the afore-
| said bonds, and all operating and other
| expenses arising from the administra-
ton Of said system Of rural credits,
and become part of fund to be
known as the Arkansas Rural Credit
| Reserve Fund" Said Arkansas Rural
| Credits Reserve Fund shall be loaned
! on farm lands IN the manner herein
provided for the Arkansas Rural
Credit Loan Fund. and the interest ac-
| cruing from loans made from said Ar
| kansas Rural Credits Reserve Fund
| shall be added to it and become a part
| of It, The said Arkansas Rural Credits
| Reserve Fund shall be frreducible. ex-
| cept that 1t may be drawn upon to re-
| imburse the State for loss incurred in
The administration OF Salu system VI
| rural credits.
Sec. 10. The Legislative Assembly
| shall provide In such detail as 1t shall
! deem advisable for the carrying out
| md administering Of the provisions OF
| this amendment and shall provide adj
| equate safeguards against the use OF
| such loans as an aid TO the purchas-
| ing and holding of lands for the pur-
ooses OF speculation. Such safeguards
| shall include clear definitions OF the
| erms Operate" and occupy" used
| oerein. In the absence OF such legis-
| alton, and subject tc the same after
/ its enactment. the State Land Board
| hall proceed to administer said sys-
EN- OF rural credits under rules and
| equations provided by itself. but sub
| ect to the provisions herein contained.
Sec H. The provisions OF the Con-
| .titution OF Arkansas in conflict with
| this amendment are hereby repealed, in
| 30 far only as they conflict herewith.
| The provisions of this amendment
/ shall be self-executing, and shall take
| feet and be i'm operation 60 days af-
| err their approval and adoption by the
,eople of Arkansas.
Approved by the Governor, and filed
y the office OF the Secretary of State