The Monticellonian., 1918-06-14

tie satisfaction OF eacGnloTa aces upon
such lands, which in The judgment 81
said board, were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec C. Every applicant for farm
loan shall state clearly in his appilca-
ton the purposes for when such roam
is desired, and upon its approval by
the board this statement shall be deem
ed part of the note or contract under
which the loan is granted But TO
failure to apply such funds TO the
purposes stated in such application or
enumerated herein shall iuvalidate
loan when once made, nor snail any
thing herein contained be deemed 10
prevent any farm owner from sehlns
or leasing lands subject to such m
cumbraRee; but if he shall violate ms
said contract by applying the moneys
borrowed to purposes other than moss
stated IN his application or enumerateu
herein. or If he shall lease such lanuS
or sell them to any person not 1ulHll-
ing the conditions and purposes pro-
vided for herein, said board is author-
lied and directed to require the repay
ment a. said loan upon six months no,
tice. and said note or contract shali
contain clause providing therefor.
Sec I Such loans shall be repaid
with interest acerutng in annual IN
stallments on the amortization plan
such installments being hXed at such
sums as will cover the interest rate
and viii iiauidate the debt in a period
to be agreed on between said board
and the applicant, said period 10 De
not less than five nor more than thirty
six years; but any debtor may liqui-
date any part or all of his Indebtedness
in amounts of $4,000 or multiples there
of upon any amortization payment
date.
Sec. g. The rate OF interest on loans
shall be five per cent per annum; pro-
vided chat no Farm Credit Bonds shall
be sold for less than par; and pro-
yided further that the board snail re-
quire each applicant to pay an initial
charge Of 1 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.
See. Q. All surplus funds accruing
from the operation Of the system or
rural credits herein provided for after
paying interest aeeruing on the afore-
said bonds. and all operating and other
expenses arising from the administra-
ton of said system of rural credits.
shall be placed in the State Treasury
and become part OF fund TO pc
known rs the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rural
Credit Loan Fund. and the interest ac-
cruing 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
Reserve Fund shall be lffedGclble, ex-
cept that it may be drawn upon to re-
imburse the State for loss incurred in
the administration of said system of
rural credits.
Sec 70. The Legislative Assembly
shall provide in such detail 1t shall
deem advisable for the carrying out
and administering of the provisions of
this amendment, and shall provide ad-
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 legis-
lation and subject to the same after
its enactment. the State Land Board
shall proceed to administer said sys-
TEN OF rural credits under rules and
regulations provided by itself, but sub
ject to the provisions herein contained.
Sec. Il. The provisions of the Con-
stitution of Arkansas in conflict with
this amendment are hereby repealed in
SO far only as they conflict herewith.
The provisions of this amendment
shall be self-executing, and shall take
effect and be in operation 60 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 L. 1917.
Each elector may vote for or against
the above amendment
Witness my official signature this.
the 9th day of April. 1918.
ISea1l TOM J. TERRAL.
Secretary Of State.