Cleveland County herald., 1918-05-09

The satisfaction of encumbranceS upon
such lands, which, In the judgment of
said board. were incurred or assumed
oy said applicant for the aforesaid
purposes.
Sec. 6. Every applicant for a farm
loan shall state clearly in his appllca-
tion the purposes for which such loan
is desired, and upon its approval by
the board this statement shall be deem
ed a part of the note or contract under
which the loan Is granted. But no
lallufe to apply such funds to inc
purposes stated In such application or
enumerated herein shall invaiidate
loan when once made, nor shall any
thing herein contained be deemed TO
prevent any farm owner from selling
or leasing lands subject to such IN
cumbrance; but il he shall violate MS
said contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumerated
herein, or III he shall lease such LANDS
or sell them to any person not fuinll-
ing the conditions and purposes pro-
vided for herein. said board is author
lied and directed to require the repay
ment of said loan upon six months no
tee, and said note or contract shall
contain clause providing therefor.
Sec. Z. Such loans shall be repaid
with interest accruing in annual in
stallments on, the amortization plan,
such installments being fixed at such
sums as will cover the interest rate
to be agreed on between said board
and the applicant. said period to be
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 multiplcs there
or upon any amortization payment
date.
Sec. s. The rate of interest on loans
shall be five per cent per annum; pro,
vided, that no Farm Credit Bonds shall
be sold for less than par; and pro-
v1ded further that the board shall re-
quire each applicant to pay an initial
charge of l per cent of the loan grant
cd, the minimum charge to be $1,000
to cover the cost of appraisal and ex-
animation OF title
Sec. .. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for, after
paying interest accruing on the aforc-
said bonds, and all operating and other
expenses arising from the administra-
ton of said system of rural credits
shall be placed in the Stnte Treasury
and become a part of fund to be
known as 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 II and become n part
Reserve Fund shall be irreducible. 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. 10. The Legislative Assembly
shah provide in such detail as it shall
deem advisable for the carrying out
and 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 legis-
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-
this amendment are hereby repealed. in
so far only as they conhict 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 II, 1917.
Each elector may vote for or against
the above amendment
Witness my official signature this,
the Gath day OF April. 1918
lSeall TOM ]. TERRAL,
Secretary of State.