I developed my own solution as follows, but thanks.
#!/bin/bash
# script to make user home directories
#
#--- Variable Declarations ---#
DATA1=/dir1/users.txt
DATA2=/dir1/user2.txt
DEST=/dir1/home
declare -a userarray
declare -a delarray
#--- M A I N ---#
# Values assigned to delarray will be used to purge directory
# after new directores made. Carefull of keywords as deletions
# are based upon any directory containing the following strings.
delarray=(toptools admin service kchd KCHD)
# Take user list and remove all line breaks. Then move all
# characters to lower case. Output the result to $DATA2
cat "$DATA1" | tr '\n' ' ' | tr 'ABCDEFGHIJKLMNOPQRSTUVWXYZ' 'abcdefghijklmnopqrstuvwxyz'> $DATA2
# Read each string from $DATA2 into array
read -a userarray < $DATA2
# Loop to create directory for each user within the userarray.
# Makes the directory, performs chmod, and returns confirmation.
for user1 in "${userarray[@]}"
{
if test ! -e "$DEST/$user1";
then mkdir $DEST/$user1;
chmod 777 $DEST/$user1;
echo "$user1 's home directory created";
fi
}
# Loop to remove directories designated in delarray.
for user2 in "${delarray[@]}"
{
rm -rf $DEST/*$user2*
}