The Monticellonian., 1918-05-03

tho satisfaction OF encumbr aiice.' upo sc
such lands, which, In the judgment ~
said board. were incurred or assunlGid5
by said applicant for the afoFe9a'0
purposes. s.,.,,,
Sec 6. Every applicant for a farm
loan shall state clearly in ms appiioa
ton the purposes for which shch io1'l.
is desired and upon its approNal ~
the board this statement shall be deem
ed a part of the note or CONTRACT uhue1
which the loan is granted but
failure to apply such funds 70 ~
purposes stated in such appiica no.
loan when once made, nor snail dhy
thing herein contained be deeiheu -
prevent any farm owner from seiitue
or leasing lands subject TO such
cumbrance; but if he shall violate ~.
said contract by applying the mohese e
borrowed to purposes other thah tho9
stated in his application or ehulhei a =,
herein, or IL he shall lease such Iaa ANY
or sell them TO any person not 1ulili-
ing the conditions and purposes pro
vided for herein. said board is author
lied and directed to require the repa!
ment OF said loan upon six months no
tice and said note or contract sIaa1'
contain clause providing therefor.
Sec. 7. Such loans shall be repair
with interest accruing in annual IN
stallmcnts on the amortlzatioh piaitt'
such installments being fixed Al sueh
sums as will cover the interest IAte
md Will liquidate the debt In peflo9
TO be agreed on between said board
and the applicant, said period 70 pe
not less than five nor more than thlfty
six years; but any debtor may llqul-
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 annum; pro-
vided. that no Farm Credit Bonds shall
be sold for less than par; and pro-
vided further that the board SHAH re,
auire each applicant to pay an initial
charge Of l per cent of the loan grant
ed. the minimum charge to be Sl0.oo
to cover the cost of appraisal and eX-
animation of title.
Sec. 8 All surplus funds accruing
from the operation of the system OF
rural credits herein provided for. after
paying interest accruing on the afore-
said bonds. and all operating and other
expenses arising from the administra
ion of said system of rural GREATS,
shall be placed in the State Treasury
and become part of fund TO De
known as the Arkansas Rural Credlt
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-
cruink from loans made from said Ar
kansas Rural Credits Reserve Fund
shallHbe added to it and become part
of 1t, The said Arkansas Rural Credits
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
shall provide in such detail as ii 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
terms Operate" and occupy" used
lation, and subject to the same after
It's enactment, the State Land Board
shall proceed to administer said sys-
TEN 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-exeeuting. 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.
lsealI TOM J. TERRAI.
Secretary Of State,