The Home news., 1918-09-27
FOR AMENDMENT NO. 16. AGAINST AMENDMENT NO. IS.

Be 1t Resolved by the House eff Rep State of Arkansas, the Majority of Both Houses Agreeing Thereto'
 That the following is hereby pro- posed as an amendment to the constr tuition of the State of Arkansas, ana the same being submitted to the elec- tors of the State for approval or re- lection at the next general electlon for Senators and Representative ~1f a majority of the electors voting at sucn 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 nrn- itation contained in Section l Of Arti- cle Is 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 Tn the State for the purpose of providing funds to be loaned upon the security of farm lands within the Stste, subject ao the limitations herein contained.
 Sec 2. The Governor Secretary of State and State Land Commissions 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 ana 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 denominations of $25.00, $100.0O. $500 0o and $1,oo0.o0. and shall be is- sued in series of s1oooo.oo or multi more than thirty-six years: nor shall said bonds be sold until applications from bona f1de purchasers of land ag- sregating $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 alton by the State of Arkansas. or any of it's subdivisions.
 Sec f. Said State Land Board Is au- thorized and directed to loan the mon eys in said Arkansas Rural Credits Loan Fund to bona ftde 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 1t of the State shall not be loaned to any person to purchase more than 30 acres of land nor land valued at more than s5000 per acre. Nor shall a loan of less than .00 nor more than e4,- ono co 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: fa) The payment for lands purchased fh> the purchase of live stock and oth- CT equipment. and the making of i'm rrovements which, in the Judgment of s2id board will increase the produc- tivtty of such lands or add to thetr valrA az farm home in a degree to justify such expenditures; and (c) for the satisfaction of sncumbfAnees upon 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 applioa- ton the purposes for which such loan IS desired, and upon its 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 fnvalidate 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 borrowed to purposes other than thos stated in his application or enumerated herein, or if he shall lease such Ia rds or sell them to any person not fulffll- ing tho conditions and puTpesee pro- vided for herein. said beard h author fsed and directed te require tho repay naant ac said loan nreR six months no