The Home news. (McCrory, Ark.) 1915-1922, 1918-08-16
FOR AMENDMENT NO. Is.
AGAINST AMENDMENT NO. IL.

he TT Resolved by the House of Rep
resentatives and tho 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 constr
tuition of the State of Arkansas, ana
the same being submitted to the cleo
tors of the State for approval or re-
lection at the next general election
for Senators and Representatives, II
majority of the electors voting at such
election adopt such amendment, the
anne shall become part OF the Con-
-itution OF the State of Arkansas, to-
Wit:
Section 1. Notwithstanding the linn
tation contained in Section l OF Arti-
lie 16 of the Constitution, the credit
# the State may be loaned and In
lobtodness incurred to an amount not
xceeding two per cent Of the assess
i valuation of all the property In the
tate for the purpose of providing
.unds to be loaned upon the security
# farm lands within the State, subject
% the limitations herein contained.
Sec. 2. The Governor, Secretary OF
tate and State Land Commissioner
hall constitute the State Land Board
which board is hereby authorized and
directed to issue and sell or pledge
,onds in the name of the State to pc
lnown as Arkansas Farm Credit
Bonds" in an amount not to exceed
Two per cent Of the assessed valua ton
Of all the property in the State, and
70 pace the proceeds in the State
treasury in a fund to be known as the
Sec. 3. Said bonds shall be issued
m denomina lions of $1,000, 500. 90,
$500 90 and 100000, and shall be is
@ued in series of 100000 or multi
oles thereof, drawn to mature In not
more than thirty-six years; nor shall
,oid hh jnn
from bona fide purchasers Of land ag-
rregating 100000 have been filed
with and approved by the State Land
Board. Said bonds shall bear interest
at the rate Of four per cent per an
mum, and shall be exempt from tax
alton by the State Of Arkansas, or any
NJ it's subdivisions.
Sec. 4 Said State Land Board is au-
thorized and directed to loan the mon
ays in said Arkansas Rural Credits
Loan Fund to bona f1de 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-
iced sevon+v-fve per cent of the ap-
praised value Of such lands. The cred
il of the State shall not be loaned to
any person to purchase more than so
cres Of land. nor land valued at more
Nan $50 90 per acre. Nor shall loan
,f less than $4,000 nor more than S.
~" y" ne maze TO any purchaser OF
land
Sec. 5. Such loans shall not be made
except to owners who Operate" and
"occupv" lands mortgaged and shall
he rnada for the following purpos es:
(a1 The payment for lands purchased.
(hl the purchase Of live stock and 9th
or equipment and the making Of I'M
movements which, In the trd~nent Of
>a'd hoa"d will Increase the prod1c-
tivitv OF such lands or add to their
val'-o as farm horne in degree to
Justify such expenditure; and (c) for
the satisfaction OF encumbl ~nces upon
such lands, which, in the judgment OF
said board, were incurred or assume q
by said applicant for the aforesaid
purposes.
sec. 8. Every applicant for a farm
loan shall state clearly in his applica-
ton the purposes for which such loan
Is desired, and upon its approval by
the board this statement shall be deem
ed 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 g
loan when once made. nor shall any
thing herein contained be deemed tc
prevent any farm owner from SELLING
or leasing lands subject to such In
cumbrance but II he shall violate h
borrowed to purposes other than th0~
stated In his application or enumcratc
herein, or II he shall lea~e such iYrS~
or sell them to any person not fulfill
ing the conditions and purposes pro
vided for herein, said board Is author
lied md directed to require the ronav
neot nl Gaid-1oan upon six months Il.