The Springdale news., 1918-07-19

kept busy, Dut the minister OF foreign
trade has snap.
Bonds" in AZ amount not 10 eTcee6
two per cent OF the assessed valuation
OF all the property In the State. and
Treasury In a fund to be known as tho
Arkansas Rural Credits Loan Fund
Sec s. Said bonds shall be issued
in denominations of $500 $4,000.
$4,000 and 100000. and shall be Is
sued In series of 5000 90 or multi
pies thereof. drawn to mature in not
more than thirty-six years: nor shall
said bonds be sold until applications
from bona hde purchasers OF land ag-
gregating 100000 have been fled
with and approved by the State Land
Board. Said bonds shall bear interest
at the rate OF four per cent per an
mum. and shall be exempt from tax
alton by the State of Arkansas or any
OF Its subdivisions
Sec. T. Said State Land Board Is au-
thorized and directed to loan the mon
eys in said Arkansas Rural Credits
Loan Fund TO bona fde purchasers of
farm lands in Arkansas. upon notes Sc
cured by mortgages or deeds OF trust
constituting first liens on such farm
lands in amounts which shall not ex-
ceed seventy-five per cent OF the ap-
praised value of such lands. The cred
it OF the State shall not be loaned TO
acres OF land. nor land valued at more
than $50 90 per acre. Nor shall a loan
Of less than $4,000 nor more than So
Hn0n 10 be made to any purchaser OF
land.
Sec. s. Such loans shall not be made
except to owners who Operate" and
occupy" lands mortgaged and shall
be made for the following purposes:
fa1 The payment for lands purchased:
fb) the purchase of live stock and 9TH
nd ha Ii Of i'm
provements which In the Judgment OF
said board. will increase the produce
tivity OF such lands or add to their
value as a farm home In a degree to
Justify such expenditure: and (c) for
the satisfaction of encumbrances upoA
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 q farm
loan shall state clearly In his appliea-
ton 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
failure to apply such funds to the
purposes stated in such application or
enumerated herein shall fnvalidate
loan when once made, nor shall any
thing herein contained be deemed to
prevent any farm owner from selling
cumbrance: but II he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumereteo
herein. or II he shall lease such lands
or sell them to any person not fulhll-
ing the conditions and purposes pro-
yided for herein. said board Is author
lied and directed to require tho repay
ment of said loan upon six months no.
tice, and said note or contract shall
At
Sec. Z. Such loans shall be repaid
with interest aceruing in annual In
sts1lments on the amortization plan.
such instailments being hxed at such
sums as will cover the interest rate
and will liquidate the debt in q period
to be agreed on between said board
and the applicant. said period to De
not less than i've 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. s. The rate of interest on loans
shall be five per cent per amman; pro-
vided. that no Farm Credit Bonds shall
be sold for less than par. and pro-
vided further that the board shall re-
quire each applicant to pay an initial
charge OF l 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. g. All surplus funds accruing
from the operation of the system of
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 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 &C
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added 10 il and become part
of It, The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that IL may be drawn upon to re-
the administration of said system or
rural credits.
Sec. 10. The Legislative Assembly
shall provide in such detail as II shall
deem advisable for the carrying out
and administering of the provisions or
this amendment and shall provide ad-
equate safeguards against the use OF
such loans as aid to the purchas-
ing and holding OF lands for the pur-
poses of speculation. Such safeguards
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. 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 II, 1917.
Each elector may vote for or against
the above amendment.
witness my official signature this.
the Gath day of April 1918,
TSeau TOM J. TERRAL.
Secretary of StatA-