Cleveland County herald., 1918-07-04

ths satisfaction of encumbrances 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 farm
loan shall state clearly in his .applioa-
tlon the purposes for which such loan
Is desired, and upon its approval by
tee board this statement shall be de
ed part of the note or contract under
when the loan is granted. But no
Iallure to apply such funds to the
purposes stated in such application or
enumerated herein shall invalidate
Ioan When once made, nor shall any
thlng herein contained be deemed TO
prevent any farm owner from selling
or Teasing lands subject to such IN
cumbrance; but if he shall violate his
SAID contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerated
hereln or II he shall lease such lands
'or sell them to any person not fulhll-
ing the conditions and purposes pro-
Vlded for herein, said board Is author
lied and directed to require the repay
ment of said loan upon six months no.
tice and said note or contract shall
contain clause providing therefor. :,
Sec. Z. Such loans shall be repaid
with interest accrufng in annual in
sta!lments on the amortization plan,
such fnstallments being fixed at such
sums as will cover the interest rate
ana will liquidate the debt in q period
to be agreed on between said board
ana the applicant, said period to be
not less than five nor more than thirty
SIX years; but any debtor may liqui-
GATE any part or all of his indebtedn IS
In amounts of $4,000 or multiples there
date.
Sec. 8. The rate of interest on loans
shall be five per cent per annum; pro-
vlded, that no Farm Credit Bonds shall
pc sold for less than par; and pro-
v1dcd further that the board shall re-
qulre each applicant to pay an initial
charge of ! per cent OF the loan grant
ed, the minimum charge to be $1,000
to cover the cost of appraisal and ex-
animation Of title.
Sec. 9. All surplus funds accruing
from the operation of the system of
rural credits herein provided for. after
paving interest accruing on the afore-
said bonds, and all operating and other
expenses arising from the administra-
ton or said system of rural credits,
shall be placed in the State Treasury
and become part Of fund to be
known as the Arkansas Rural Credit
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rural
Credit Loan Fund, and the interest &C
{GrAlng from loans made from said Ar.
kansas Rural Credits Reserve Fund
shall be added to it and become a part
OF 1t. The said Arkansas Rural Credits
HeserYe Fund shall he irreducible, eX-
cept that tt may be drawn upon to re-
imburse tho state for loss incurred in
the administration of said system Of
rural credits.
SEQ. 10. The Legislative Assembly
shall provide in such detail as 1t shall
deem advisable for the carrying out
ana administering Of the provisions of
this amendment. and shall provide adj
equate safeguards against the use of
such loans as an aid to the purchas-
Ing and holding of lands for the pur-
poses of speculation. Such safeguards
shall include clear definitions of the
terms operate" and occupy" used
herein. In the absence of such legt
lation, and subject to the same a, - :,
It's enactment, the State Land = 1e
shall proceed to administer sa' so,.
tenn OF rural credits under r. sys'
regulations provided by itseJ' h.t III nh'
ject to the provisions here 49, ~ SUP; SUD
Sec. II. The provisiqy Of ~ r lnea
stitution of Arkansas IN con1iat Son.
this amendment are ; ereby renealaS M's =,
so far only as tho, confict bann,,.,. ~
The provisions Z of this apnnSsc -. -, =
snail be seif-ex' cutting, and shail taI.e
erect ana De operation so DAYS ar
yer thelr approval and adoptfon by tbe
people Of Arkapsas ~
approved hS the Governor. and fl,5
~, Nine rne 9lfiSs 81 the Secretary of ST .se'
the above amendment.
Witness nay official sfgr at,,ra .h,.
The gath day OF ARyi' ISIS. s'
tSsa!l TOM ]. TERRAL.
-. Secretary Of Stat..
s,SsNS