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 5 per cent of the assessed valuation of all the property in the state, for the purpose of creating a fund to be paid to residents of the State of Oregon who served in the armed forces of the United States between September 16, 1940 and June 30, 1946, and were honorably discharged from such service, which fund shall be known as the “World War II Veterans’ Compensation 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 thereon provided for may be issued to an amount authorized in Section 1 hereof for the purpose of creating said World War II Veterans’ Compensation Fund. Refunding bonds may be issued and sold to refund any bonds issued under authority of Section 1 hereof. There may be issued and outstanding at any one time bonds aggregating the amount authorized by Section 1, but at no time shall the total of all bonds outstanding, including refunding bonds, exceed the amount so authorized. 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 by statute. No person shall be eligible to receive money from said fund except the veterans as defined in Section 3 of this act. The legislature shall and the people may provide any additional legislation that may be necessary, in addition to existing laws, to carry out the provisions of this section.