The Home news., 1918-10-18


 repealed.
 FOR AMENDMENT NO. IS.
 AGAINST AMENDMENT NO. 16.
 Be It Resolved by the House of Rep resentativess 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, and the same being subraitted to the elec- tors of the State for approval or re- lection at the next general election for Senators and Representatives if 8 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 lfm- itation contained in Section of Arti- cle 16 of the Constitution. the credit of the State may be loaned and 1n- 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 pc 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, ard to place the proceeds in the State Treasury in 6 fund to be known as the ~Arkansas Rural Credits Loan Fund"
 Sec. 3. Said bonds shall be issued in denominations of $25.0o $10o.o0. s5oooO and s1,ooooo, and shall be is- sued in series of $1o,00o.00 or multi more than thirty six years; nor shall said bonds be sold until applications from bona fde purchasers of land ag- gregating .$10,000.00 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 ation 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 fide 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 y-f1ve 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 30 acres of land. nor land valued at more than s50oo per acre. Nor shall a loan of less than s200.00 nor more than 4S,- 000.00 be made to any purchaser of land
 Sec. 5. 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 purcha sed: (b) the purchase of live stock and oth- CT equipment, and the making of i'm erovements which. in the judgment of said board will increase the produc- tivtty of such lands or add to thetr valre as a farm home in a degree to justify such expenditure: and Gel for the satisfaction of encumbr@nces 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 applica- ton the purposes for which such loan 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 prevent any farm owner from selling or leasing lands subject to such in- { cumbrance; but if he shall violate his said contract by applying the moneys l borrowed to purposes other than those stated in his application or enumerated herein. or If he shall lease such lands | or sell them to any person not fulfill ing the conditions and purposes pro- l vfded for herein, said board is author l ized and directed to require the repay