The Monticellonian. [volume] (Monticello, Ark.) 1870-1920, 1918-06-07

-, satis.facttou of eicnfabFaHccs upon
sI3eh Iau0a. WHieh, III tie judgment OF
said board were Incurred CT assumed
BY said applicant for the aioresaio
purposes. to,,
loan shall state clearly in his appllca-
ton the purposes for which sucn ioah
is desired and upon its approval py
the board this statement shal! De aee 5
cd a part of the note or CONTRACT uhaei
which the loan is granted But no
failure to apply such FUNDS 70 me
purposes stated in such Application OF
enumerated herein shall lhNelluate "
loan when once maze, nor shdi 9hs
thing herein contained De atehie i,; ~
prevent any farm owner from selliHS
or leasing lands subject to such m
cumbrance. but if he shall Violate ms
said contract by applying the moles
borrowed to purposes other thah thoS9
stated ii his application or enulneFateu
herein or if he shall lease such lands
or sell them to any person not Iulilii-
ing the conditions and purposes pro-
vided Tor herein. said board rs authoI-
lied aud directed to require the repay
ment of said loan upon six months no
tiee and said note or contract snail
contain clause providing therefor.
Sec :. Such loans shall be repaid
with interest aeeruing III annual IN
stallments on the amortlzaIloh Pia pan,
such instaiiments being fixed at such
sums as will cover the interest rate
and win fiquidate the debt in a period
to be agreed on between sara eoaro
and the applicant, said PERIOD TO 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 5000 or multiples there
OF 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 SHAH
be sold for less than par; ana pro-
vided 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 slO.oo
to cover the cost of appraisal and ex-
animation of title
Sec. Q. All surplus funds accru1ng
from the operation of the system or
rural credits herein provided for. after
paying interest accruiug on the afore-
said bonds. and all operating ana other
expenses arising from the administra-
ton Of said system Of rural credits,
shall be placed in the State Treasury
and become a part of fund to be
known a. 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 ae-
cruing from loans made from SAID Ar
kansas Rural Credits Reserve Fund
SNAIL De aQQeu 10 II anu ptSoiilt d
of it. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. eN-
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
shall provide in such detail as 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
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-
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 Il. 1917.
Each elector may vote for or against
the above amendment.
Witness my official signature this,
he Gath day Of April, 1918.
tSea1l TOM J. TERRAL.
Secretary of State.