The Home news. (McCrory, Ark.) 1915-1922, 1918-09-06
FOR AMENDMENT NO. Is.
AGAINST AMENDMENT NO. IL.

BE 1t Resolved by the House of Rep
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, ana
the same being submitted to the cleo
tors of the State for approval or re-
lection at the next general election
for Senator'S and Representatives, II
majority of the electors voting at such
election adopt such amendment, the
same shall become a part of the Con-
e+itution Of the State of Arkansas, to-
wit:
Section /. Notwithstanding the linn
Itation contained In Section 1 of Art1-
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
cd 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 al the property In the State, and
to nIace the proceeds in the State
Treasury in a fund to be known as the
"Ar'1ansas Rural Credits Loan Fund"
Sec. 3. Said bonds shall be issued
in denomin tons Of $500, $4,000,
sued in series of 100000 or multi
pies thereof, drawn to mature in not
more than thirty-six years; nor shall
said bonds be sold until applications
from bona fide purchasers of land ag-
gregating 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
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 f1de purchasers Of
farm lands in Arkansas, upon notes Sc
constituting hrst liens on such farm
lands in amounts which shall not ex-
coed seventy-f1ve 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 sc
acres Of land, nor land valued at more
than $4,000 per acre. Nor shall loax
Of less than 100000 nor more than S..
900 no be made to any purchaser o.
Sec 5. Such loans shall not be made
except to owners who Operate" and
occupy lands mortgased. and shall
be made for the following purposes
ta) The payment for lands purchased
(b) the purchase of live stock and 9th
or equipment. and the making Of Z i'm.
r-nvements which, in the Judgment al
said board, will increase the produc.
tivfty OF such lands or add to theS,
valve as q farm home in a degree tt
Justify such expenditure: and (c) 70,
tAs satisfaction Of sncumb, noes upo1
such lands. which. in the Judgment OF
said board. were incurred or assumed
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 loar
Is desired, and upon it's approval BY
the board this statement shall be deem.
ed part Of the note or contract unde,
which the loan Is granted But nc
failure to apply such funds to tn,
purposes stated in such application Of
enumerated herein shall mvalidate Q
loan when once made, nor shall any.
thing herein contained Be deemed t.
prevent any farm owner from selline
or leasing lands subject to such in.
cumbrance; but II he shah violate hi,
said contract by applying the money.
borrowed to purposes other than tho~.
stated In hts application or enumerated
herein, or II he shall lease such land,
or sell them to any person not fulfill.
ing the conditions and purposes pro.
vidsd for herein. said beard IL author.
lied and directed to require the repay.
ment ar said loan nDon SIX months no