Sharp County record., 1918-05-24
, ,..aA.fantinn nf ananmhrances upoI

- Subtraction OF ensumbrances upos
BuEA lands, which, in the judgment o.
Sat4 board, were incurred or assumed
Oy aid applicant for the aforesalo
purposes.
gsa g. Every applicant for farm
loaN shall state clearly in his appllea-
ttaa the purposes for which such loan
10 Sssired, and upon its approval by
Tie beard this statement shall be deem
"a part of the note or contract under
WAeeA the loan Is granted. But NO
fAifafe TO apply such funds ta tht
purposes stated in such application OF
san0erated herein shall inva!idate
loea when once made, nor shall any.
thtn9 herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to sueh IN
cunbrance; but II he shall violate MS
SAID contract by applying the moneys
Borrowed TO purposes other than those
7tated In his application or enumerated
asre4A or II he shall lease such lands
or sell them to any person not tulnlI-
ing me conditions and purposes pro-
ytded for herein, said board Is author
iEed and directed to require the repay
nent or said loan upon six months no.
lice, ana said note or contract shaH
contain clause providing therefor
Sec 7. Such loans shall be repaid
With interest accruing in annual IN
such installments being fxed at such
sums as will cover the interest rate
and will liquidate the debt in period
10 Do agreed on between said board
ana the applicant, said period to be
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 $4,000 or multiples there
or upon any amortization payment
date.
Sec. 8. The rate of interest on loans
shall be Ave per cent per annum; pro-
vided. that no Farm Credit Bonds shall
Dc sold for less than par; and pro-
Vfeed further that the board shall re-
1ufre each applicant to pay an initial
barge OF l per cent of the loan grant
a, the minimum charge to be $1,000
% cover the cost of appraisal and eX-
animation OF title.
Sec. 9. All surplus funds accruing
rom the operation OF the system Of
'ural credits herein provided for, after
paying interest accruing on the afore-
laid bonds and all operating and other
expenses arising from the administra-
ion OF said system OF rural credits
shall be placed in the State Treasury
ana become a part Of a FUND to he
known as the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
Jredits Reserve Fund shall be loaned
provided for the Arkansas Rural
Credit Loan Fund, and the interest ac-
'ruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become a part
II II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, eX-
iept that II may be drawn upon to re-
mburse the State for loss incurred in
he administration OF said system Of
"ural credits.
Sec. 10. The Legislative Assembly
hall provide In such detail as it shall
ieem advisable for the carrying out
nd administering OF the provisions Of
his amendment, and shall provide ad-
'quate safeguards against the use OF
uch loans as an aid to the purchas-
ng and holding OF lands for the pur-
1oses of speculation. Such safeguards
hall include clear definitions Of the
erms operate" and occupy" used
lerein. In the absence Of such legis.
alton, and subject to the same after
Is enactment, the State Land Board
hall proceed to administer said sys-
EN- Of rural credits under rules and
equations provided by Itself but sub
ect 10 the provisions herein contained
Sec. Il. The provisions Of the Con-
tltution Of Arkansas In conflict with
his amendment are hereby repealed, in
far only as they conflict herewith
he provisions OF this amendment
hall be self-executing, and shall take
feet and be In operation 60 days af-
er their approval and adoption by the
leople OF Arkansas.
Approved by the Governor and hled
n the office OF the Secretary OF State
farch II, 1917
Each elector may vote for or against
he above amendment
witness my official signature this,
he cath day OF April, 1918.
tSenll TOM J. TERRAL
Secretary OF State