Cleveland County herald., 1918-05-30

the SAT- STAG efon of encumbrances upon
such lands, which, In the judgment Of
said DO ard. " ere incurred or assumed
oy said app icant for the aforesaid
purposes.
Sec. 6. I1' cry applicant for farm
loan shall s. ate clearly in his appllca-
cion the pW poses for which such loan
Is desired, and upon its approval by
me BOARD t lis statement shall be deem
ed part / the note or contract under
which the loan is granted. But no
failure 'I1 apply such funds to the
purposes stated in such application OF
eHumer' at ed herein shall invalfdale
van nv n once made, nor shall any
lhlng ne rein contained be deemed 10
prever 1T any farm owner from sellns
or le ASH lg lands subject to such IN
cumb rar ce; but if he shall violate ms
sara col tract by applying the moneys
oorr owe to purposes other than those
stated III his application or enumerated
he1ein, or II he shall lease such landa
or sell them to any person not fulhli-
IN the conditions and purposes pro-
vlned for herein, said board is autnor-
l4ed and directed to require the repay
lnent of said loan upon six months no.
uce, and said note or contract shall
contain "a clause providing therefor. :,
Sec. = Such loans shall be repaid
with int crest accruipg in annual In
stalim emf the amortization plan.
such lhS AILMENTS 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
and the applicant, said period to be
not sss than five nor more than thirty
SIX 'ears; but any debtor may liqui-
gate any part or all OF his indebtedness
IN a. MOUNTS of $4,000 or multiplcs ther
date
S. s. The rate of interest on loans
sha be five per cent per annum pro-
Ivid' Id. that no Farm Credit Bonds shall
foy RI
wa sd further that the board shall re-
qul re- each applicant to pay an initial
cnf TgN, of l per cent of the loan grant
Cd tn minimum charge to be $1,000
to Gov er the cost of appraisal and ex
ar linnton of title
Sec Q. All surplus funds accruing
IT ON the operation of the system Of
r iral credits herein provided for. after
aging interest accruing on the afore-
aid DO nds, and all operating and other
&penss arising from the administra-
mon OF said system of rural credits,
shall b placed in the State Treasury
and be come part Of fund to be
known as the Arkansas Rural Credit
Reservc Fund" Said Arkansas Rural
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rural
Credit L oan Fund, and the interest ac-
cruing rom loans made from said Ar
kansas. Rural Credits Reserve Fund
snail Sc added to 1t and become n part
or 1T. tt e said Arkansas Rural Credits
REESE we FUND shall he irreducible. ex-
cept that it may be drawn upon to re-
imb' arse the State for loss incurred in
the adnrl nistration of said system of
rur 81 crolits
Sec. 10. The Legislative Assembly
81 all provide in such detail as it shall
d eem advisable for the carrying out
nd administering of the provisions of
.his amendment. and shall provide adj
equate safeguards against the use of
such loans an aid to tho purcbas-
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 Iegis-
lation, and subject TO the same after
its enactment, the State Land Board
shall proceed to administer said sys-
tenn of rural credits under rules and
regulations provided by Itself, but sub
ject to the provisions herein contained
Sec. II. The provisions of the Con-
stltutton OF Arkansas in conflict with
this amendment are hereby repealed, in
SO far only as they conflict herewith.
The provisions of this amendment
snail be self-executing, and shall take
erect and be in operation so days af-
Ter their approval and adoption by the
people of Arkansas
Approved by the Governor and filed
IN the office OF the Secretary of State,
March II. 1917.
Each elector may vote for or against
the above amendment.
Witness my official signature this,
ahe oath day of April. 1918.
lSea1 TOM J. TERRAL,
Secretary of State.