Cleveland County herald., 1918-06-20

the satisfaction OF encumbrances upon
such lands, which, In the judgment of
Salo board, were incurred or assumed
oy said applicant for the aforesaid
purposes.
Sec 6. Every applicant for farm
loan shall stat3 cIuariy in his applica-
ton the purposes for which such loan
is desired, and upon its approval by
the BOARD this statement shall be deem
ca part of the note or contract under
Whlch the loan is granted. But no
laiiure to apply such funds to tho
purposes stated In such application or
enumerated herein shall invalidate
loan when once made, nor shall any
thlng herein contained be deemed to
prevent any farm owner from selling
or leasing lands subject to such in
cumorance; but If he shall violate mis-
SAID contract by applying the moneys
borrowed'to purposes other than those
stated In dis application or enumerated
herein, or IL he shall lease such lands
or sell them to any person not fulhll-
ing the conditions and purposes pro-
Vldcd Tor herein, said board is author
lied and directed to require the repay
ment or said loan upon six months no.
tice, and said note or contract shall
contain clause providing therefor.
Sec. Z. Such loans shall be repaid
with interest accruing in annual In
stailments on the appreciation plan,
such tnstallments being fixed at such
sums az will cover the interest rate
to be agreed on between said board
ana the applicant, snid period to be
not less than f1ve nor more than thirty
SIX years; but any debtor may 1iqui-
date any part or all of his Indebtedness
in amounts of 5000 or multiples there
date.
Sec. 8. The rate of interest on loans
shai be fve 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-
qulre each applicant to pay an initial
charge of 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. 9. All surplus funds accruing
from the operation OF the system of
fura credits herein provided for. after
paying interest accruinS on tbs 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
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-
crHlaE from laans made from said Ar.
kansas Rural Credits Reserve Fund
shall be added to 1t and become a part
OF 1t. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that 1t may be drawn upon to re-
1mburse the State for loss incurred in
the administration of said system of
rural credits.
Sec. 10, The Legislative Assembly
shall Rrovide in such detail 1t 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 purchns-
Ing and holding of lands for the nur-
poses of speculation, Such safeguards
shall include clear definitions of the
terma "eFerate" and occupy" used
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
regula tons 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 or this amendment
snail be selfTexeouting, 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 nay official signature this,
the s4th day of April, 1918.
tSeal] TOM ]. TERRAL,
Secretary Of State.