Section 1.

Notwithstanding the limitations contained in section 7 of article XI of the constitution, the credit of the state of Oregon may be loaned and indebtedness incurred to an amount not exceeding 3 per cent of the assessed valuation of all the property in the state, for the purpose of creating a fund to be loaned or to be paid to female employees of the war department who served in the signal corps of the army or marine corps of the United States, or in the army of any of the allies of the United States, and in the American expeditionary forces, and to residents of the state of Oregon who served in the army, navy or marine corps of the United States between April 6, 1917, and November 11, 1918, or for a period of not less than ninety days between February 14, 1898, and August 7, 1899, and were honorably discharged from service, which fund shall be known as the “world war veterans’ state aid fund.’’
Bonds of the state of Oregon containing a direct promise on behalf of the state to pay the face value thereof with the interest therein provided for, may be issued to an amount authorized in section 1 hereof for the purpose of creating said world veterans’ state aid fund. Said bonds shall be a direct obligation of the state and shall be in such form and shall run for such periods of time and bear such rates of interest as shall be provided for by statute. No person shall be eligible to receive money from said fund except the following:
Any male or female who was enlisted, inducted, warranted or commissioned after June 3, 1915, or who reenlisted subsequent to June 3, 1915, and who served honorably in active duty in the army, navy or marine service of the United States, or in the army of any of the allies of the United States, at any time between the sixth day of April, 1917, and the eleventh day of November, 1918, and any female employe of the war department who seryed in the signal corps of the army or marine corps of the United States and in the American expeditionary forces at any time between the sixth day of April 1917 and the eleventh day of November, 1918 and who at the time of entering into such service was a resident of the state of Oregon and who has been honorably separated or discharged from said service or has been furloughed to a reserve, shall be entitled to receive from the proceeds of such bonds as a cash bonus the sum of fifteen dollars ($15) for each month or major fraction thereof that such person was in active service between the sixth day of April, 1917, and the eleventh day of November, 1918, not exceeding a total of five hundred dollars ($500), or shall be entitled to borrow from said funds not to exceed four thousand dollars ($4,000), which loan shall be secured by a mortgage upon real estate in an amount not exceeding 75 per cent of the appraised value of said real estate, but which loan may be reduced by statute; provided, that the provisions contained herein for a loan shall apply to any person who servetjLin the army, navy or marine corps of the United States for a period of not less than ninety days between February 14, 1898, and August 7, 1899, and who at the time of entering into such service was a resident of the state of Oregon and who has been honorably discharged from service. The legislative assembly may provide that the bonus to which any deceased person may have been entitled hereunder, had he or she lived, shall be paid to any relative of such deceased person. The unmarried widow, or dependent father or mother of any person who died in the service and who would have been entitled to a loan hereunder, had such person lived, shall be eligible to receive the loan.