Cleveland County herald. (Rison, Ark.) 1888-current, 1918-08-22

ths satisfaction Of encumbrances upon
such lands, which, in the Judgment o.
said board, were incurred or assuneu
by said applicant for the AFORESAID
purposes.
Soc g. Every applicant for = farm
loan shall state clearly in his appiice
ton the purposes for which sucn ioS.
10 desired, and upon its appioV. "
ed part Of the note or contracI uhu %
which the loan Is granted 6u' .ho
failure to apply such FUNDS 70 liz
purposes stated in such nppllcntion
enumerated herein shall invanua.
loan when once made. nor snan -
thing herein contained DO dcemeu,
prevent any farm owner from seAins
or leasing lands subject to sucn ~.
cumbrance; but II he shall violate Ms
said contract by applying the mone
borrowed to purposes other than those
stated in his application or snumeieeo
herein, or II he shall lease SUCH ieHs
or sell them to any person not Iulnn
ing the conditions and purposes pro
videA for herein. said board Is author
ixed and directed to require the fepey
ment Of said loan upon six months ny
ttce. and said note or contract sn@"
contain clause providing thereaor.
Sec. Z. Such loans shall pc repnlo
with interest accrufng in AnnusL IN
stallments on tho amortization plan,
such. installments being nxed AZ suen
sums as will cover tho interest rae
to be agreed on between said board
and tho applicant, said period 70 Do
not less than fve nor moro than tnirty
six years: but any debtor may iioui-
in amounts Of 5000 or multiples there.
date.
Sec. 3. The rate OF interest 81 lean.
vided, that no Farm Credit Bonds shall
be sold for less than par; ana pro.
vided further that the board shall re,
quire each applicant to pay an inltlei
oharEe of l per cent of the loan gram.
ed, the minimum charge to be $1,000
to cover thu cost of appraisal and sx-
animation OF title.
Sec. g. All surplus funds accruins
from the operation Of tho system OF
rural credits herein provided for. after
paying interest accruins 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 a part of q 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
Credit Loan Fund. and the interest ae-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to It and become a part
Reserve Fund shall be irreducible. OK
cept that It may be drawn upon TO re-
imburse tho 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 tho provisions of
this amendment, and shall provide ad
cquate safeguards against the use OF
such loans as an aid to the purchase
Ing and holding OF lands for the pur-
poses of speculation. Such safeguards
shall include clear definitions Of tho
terms operate" and occupy" used
herein. In the absence OF such 1egis-
1ation, and subject to tho same after
It's enactment. the State Land Board
shall proceed to administer said sys-
tenn OF rural credits under rules and
regulations provided by itself, but SUBJ
tect to the provisions herein contained.
Sec. II. The provisions of the Con-
stitution of Arkansas in conflict with
this amendment are hereby repealed, In
The provisions OF this amendment
shall be self executing, and shall take
effect and be in operation co days af-
ter their approval and adoption by the
people of Arkansas
Approved by the Governor. and hled
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 z4th day of April. 1918.
tSeall TOM J, TERRAL..
Secretary OF State.