The Home news., 1918-07-05
FOR AMENDMENT NO. IS. AGAINST AMENDMENT NO. 16.

Be It Resolved by the House of Rep resentatives and the Senate Of the State of Arkansas, the Majority or 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 submitted to the elec- tors of the State for approval or re- lection at the next general election for Senators and Representatives. if a
 majority of the electors voting at such election adopt such amendment, the same shall become a part of the Con-
 @itution of the State of Arkansas, to-
 wit:
 Section 1. Notwithstanding the lim- .tation contained in Section l of Arti-
 ele 16 of the Constitution, the credit
 )f the State may be loaned ana ln- debtedness incurred to an amount not exceeding two per cent of the assess ed valuation of ali the property in the State for the purpose Of provio1ng funds to be loaned upon the security of farm lands within the State, subject to the limitations herein contained. :.
 Sec. g. The Governor. Secretary of State and State Land Commissioner shall constitute the State Land Board,
 which board is hereby authorlzed ana directed to issue and sell or pledge bonds in the name of the State, to DC 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
 to place the proceeds in the State
 Trea sury in a fund to be known as the
 "Arkansas Rural Credits Loan Fund. :"
 Sec 3. Said bonds shall be issued
 s5oo.oO and s1,ooo.oo, and shall be is-
 sued in series of $10,000.00 or multi
 ples thereof, drawn to mature in not
 more than thirty-six years; nor shall
 said bonds be sold until applications
 ha nf a c.
 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
 ation by the State of Arkansas, or any of it's subdivisions.
 Sec. A. Said State Land Board Is au- thorized and directed to loan the mon
 Loan Fund to bona fde purchasers of farm lands in Arkansas, upon notes se- cured by mortgages or deeds of trust | constituting first liens on such farm 1 lands in amounts which shall not ex- l ceed seventy-f1ve per cent of the ap- l praised value of such lands. The cred | 1t of the State shall not be loaned to l any person to purchase more than 80
 acres of land, nor land valued at more l than s500O per acre. Nor shall a loan | of less than s2e0.00 nor more than s. 1 o00.00 be made to any purchaser of | land
 l Sec. 5. Such loans snail not be made | except to owners who operate" and occupy" lands mortgaged. and shall l be made for the following purposes: l (a) The payment for lands purchased: | (b) the purchase of live stock and oth- ar equipment, and the making of i'm l >rnvements which. in the Judgment of 1 said board will increase the produc- 1 tivity of such lands or add to hetr l zalra as a farm home in degree to Justify such expenditure; and (c) for
 ths satisfactien of enoum bi ances upon
 such lands. which. in the Judgment of l said board, were incurred or assumed by said applicant for the aforesaid l purposes.
 Sec. 6. Every applicant for a farm | tion the purposes for which such loan | is desired, and upon its approval by l the board this statement shall be deem | ed a part of the note or contract under | which the loan is granted. But no l failure to apply such funds to the l purposes stated in such application or l enumerated herein shall invalidate a l loan when once made, nor shall any l thing herein contained be deemed to | prevent any farm owner from selling l or leasing lands subject to such in l cumbrance; but if he shall violate his said contract by applying the moneys borrowed to purposes other than th ose | stated in his application CT enumerated herein, or if he shall lease such lands or sell them to any person not fulfill ing the conditions and purposes pro- vided for herein, said board Is auth or ised and directed to require the repav- meDt nf Eaid loan upon six months Ec=