The Home news., 1918-07-12
FOR AMENDMENT NO. 15. AGAINST AMENDMENT NO. 1b.

Be It Resolved by the House of Rep resentatiyes 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 elec- tors of the State for approval or re- jection at the next general electlon for Senators and Representatives, 1T a majority of the electors voting at such election adopt such amendment, the anne shall become 8 part of the Con- -itution of the State of Arkansas, to- >vit
 Section l. Notwithstanding the lim- tatlon contained in Section 1 of Art1-
 le 1e of the Constitution, the credit of the State may be loaned and in- .iebtedness incurred to an amount not exceeding two per cent of the assess d 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. g. 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 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 Treasury in fund to be known as the Arkansas Rural Credits Loan Fund"
 Sec. 3. Said bonds shall be issued in denontnattons dno oS of $25eo sioooo % 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 from bona fde purchasers of land az 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. A. 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-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 80 acres Of land, nor land valued at more han $50 % per acre. Nor shall a loan of less than $20000 nor more than $3,- oooo % be made to any purchaser of land
 Sec g. Such loans shall not be made except to owners who operate" and "occupy" lands mortgaged and shall be made for the following purposes: (a) The payment for lands purchased (b> the purchase of live stock and oth- ar equipment, and the making of im- movements which. in the judgment of said board will increase the produc- ivity Of such lands or add to thetr val,-A as farm home in a degree to justify srch expenditure; and Gel for the satisfaction of encumbl Ances 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 tho board this statement shall be deenl- ed a 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 thing herein contained be deemed to 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 money borrowed to purposes other than thos stated in his application or enumerated or sell them to any person not fulfill ing the conditions and purposes pro- vfded for herein, said board is author tzed and directed te require the repay InsDt n1 said loan upon six months Ee-