The Home news., 1918-05-24

re~entatives 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 Constl- tuition of the State of Arkansas, and the same being submitted to the eleo- tors of the State for approval or re- lection at the next general election for Senators and Representative IT a 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 linn ftation contained in Section 1 of Arti- cle 1e of the Constitution, the credit of the State may be loaned ana ln- dcbtedness 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 limita tions 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 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
 
 Treasury in a fund to be known as the Arkansas Rural Credits Loan Fund"
 Sec. 3. Said bonds shall be issued in denominations of $25.00, $100.00. sued in series of $10.00o.00 or multi ples 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 az gregating $10,00000 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- alton by the State of Arkansas. or any of its 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 se- cured by mortgages or deeds of trust constituting first liens on such farm lands in amounts which shall not ex- ceed seventy-five per cent of the ap- praised value of such lands. The cred it of the State shall not be loaned to any person to purchase more than 80 acres of land. nor land valued at more than SEQ GO per acre. Nor shall Q loan Of less than s2oo. co nor more than Ss,- ooo % be made to any purchaser of land
 Sec g. Such loans shall not be made except to owners who operate" and
 
 he made for the following purposes: 1 fal The payment for lands purchased; | (b) the purchase of live stock and oth- CT equipment. and the making of i'm .rovements which in the Judgment of 1 said board. will increase the produc- l tivsty Of such lands or add to thesr val'-n as farm horne in a degree to tusttfr such expenditure: and Gel for tAs satisfaction of eneumb, Ancss upon such lands. which, in the Judgment of said board. were incurred or assumed
 by said applicant for the aforesaid purposes
 Sec. 6. Every applicant for a farm | loan shall state clearly In his applfca- tfon the purposes for which such loan l is desired, and upon it's 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 a | loan when once made. nor shall any l thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such in l said contract by applying the moneys borrowed to purposes other thrn thn". l stated in his application or enumerated | herein. or if he shall lease such l" 7cs 1 or sell them to any person not Yulhll- ing the conditions and purposes pro- vided for herein said board is au'h h"r- ized and directed to require the repay. 1cant of said loan uDen six months ra-