The Mena weekly star., 1918-08-22
FOR AMENDMENT NO. IS. AGAINSI AM IlNIlM I,N L Mo 1 :.

He It Resolved by the House of Rem
 resentntive. and the senate of tL
 state or Arknnsas. the Majority of
 both Houses Agreeing 1heretos
 That the following is hereby pro-
 pose pose as an amendment to the Consti-
 the same being submitted co the cleo tors of the State for approval or r-- lection at the next general election fo-
 Senators and Representatives, if a ma Jority Of the electors voting at such election adopt such amendment. the stilution of the State of Arkansas. to- Section 1. Notwithstanding the lin. . itation contained in Section l of Arti- 1 ele lG of the Constitution the credit
 of the state may be loaned and indebt- edness incurred to an amount not eA- I valuation of all property n the State
 Tor the purpose Of providing funds l to be loaned upon the security of farm l lands within the State. subject to the limitations herein contained.
 Section 2 The Governor, Secretary of state and state Land Commissloner shall constitute the State Land Board, | which board Is hereby authorized and | directed to issue and sell or pledge i bonds in the name rf the State to be
 known.. as Arkansas Farm Credit Bonds in an ameup' not to exceed
 or all the property in the State and to l place the proceeds in the State Treas-
 gry in fund to be known as the. Ar kansas Rural Credits Loan Fun l."
 Section 3. Said bonds shall De issued
 in denominations of s25.OO. siOO. 0O 1 S5OO,00 and S1,900.U0 and shall be is- sued in series of $1G,000.00 or multipies
 thereof, drawn to mature in not more
 than thirty-six years nor shall said
 bonds bond e be sold until applications rom
 ing S10.00000 have been filed with and approved by the State Land Poard Said bonds shall bear interest at the | rate of four per cent per annum, and
 shall be exempt from taxation by the state or Arkansas. or any of it's sub Section 1. Said State Land Board is : authorized and directed to loan the moneys in said Arkansas Rural Credits
 fsrnn hfoan ,suas suad to bona noe purchasers of cured by mortgages or deeds of trust
 constituting first liens on such farm
 ceed seventy-ffve per cent of the ap- l praised value oS such lands. The cred
 t of the State shall not be loaned to | any person to purchase more than SC
 acres of land, nor land valued at more
 of less than s200.OO nor more Ina | land
 Section 5. Such loans shall not be
 made except to owners who "opOrate"
 and occupy" lands mortgaged. and shall be made for the following pur-
 poses: (a) The payment for lands pur-
 snadsea snd a sol the purchase of livestock | improvements which, in the Judgment !, of said board. will increase the pro-
 value as Q farm home in a degree to | justify such expenditure; and tc) for
 the, satisfaction of incumbrances upon
 said board, were incurred or or assumed
 by said applicant for the aforesaid pur-
 Section 6. Every applicant for a farm
 loan shall state clearly In his appiica- l tion the purposes for which such loan
 IS desired; and upon It's approval by ed part of the note or contract un-
 der de, which the loan Is Eranted. But no
 enumerated herein shali invaiidate a
 loan when once made. nor shall any
 prevent. any, farm owner from selling or leasing lands subject to such in
 cumbrance; but if he shall violate hls borrowed to purposes other than those
 stated In his application or enumerated
 herein; or if he shall lease such lands l ing the conditions and purposes pro 1 vided for herein, said board is author
 ized and directed to require the rspay-
 ment of said loan upon six months no, | tice, and said note or cantract shall | contain clause providing therefor.
 l Section Such loans shall be repaic with interest accruing in annual in stallments on the amortization plar such installments being fixed at Sucl and will liauidate the debt in perio to be agreed on between said boar and the applicant. said period to be no years. but any debtor may liquidar amounts Of $50 % or ' muitipies there
 Sateu. up0" any amer ''1a''0n 'a'ne' / Section B. The rate of interest or loans shall be five per cent per annum provided. that no Farm Credit Bendi
 shall be sold for less than par; and pro 1 vided further that the board snail re 1 quire each applicant to pay m initia ] charge of l of the loan s raftf
 ed the minimum charge to be sI0.0t | 10 cover the cost of appraisal anl ex
 Section 9. All surplus funds accruins l from the operation ot the system oi | rural credits herein pr ovided for. after paying interest accruing on the afore- | said bonds, and all operating and other | expenses arising from the administra- 1 ton, of said syst sm of rural credits and become part of a fund to be | known as the "Arkansas Rural Credit
 res. Rese@ye ahG sS sha 5e aans Ra
 provided for. the Arkansas Rural | cruing from loans made from said Ar | kansas Rural Credits Reserve Fund | shall be added to 1t and become a part | of it. The said Arkansas Rural Credits | Reserve Fund shall be irreducih'e. ex- | cept that 1t may be drawn upon to re- | imburse the State for loss incurred in | the administration of said system O. l section 10. The Lt gislatIve Assem- ! hly shall eroyide m sich detail it shall deem advisable for the carrying | 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 purchas- | ing and holding of lands for the pur | poses of speculation Such safeguards | shall include clear definitions of the 1 terms Operate" and "occupy" used | herein. In the absence of such legis- ! lation. and subject to the same after | it's enactment the State Land Boai | 1 shall proceed to administer said sys- tenn of rural credits under rules and | regulations provided f.v itself. but sub | iect 10 the provisions herein contained. | Cons.it1tion of Arkansas in conflict | with this amendment are hereby re- | pealed, in so far only as they conflict | herewith. The provisions of this 1 amendment shall be self-executing. and 1 shall take effect and be in operation GO | days after their approval aud adoption | by she people of ArlSnpsas.
 1 Approved by the Governor and filed | in tie office of the S cretdry of State March IT. 1917.
 Each eiector may Vote for or against | the above amendment
 | Witness my official signature thR | the 24th day of April 1915.
 l tSeaD TOM ]. TERRAL. | SegretArst ot | Adv First Pub. Mas ?. 1918.
 1 Last. Pub. Oct. S1. 1912
 rRG .osTD ny tsITI iTN E | PETITION.