The Springdale news., 1918-06-28

IF it happened it's in The News
Bonds" in al. amount not TO exceed
two per cent of the assessed valuation
of all the property in the State, and
to place the proceeds in the State
Treasury In fund to be known the
Arkansas Rural Credits Loan Fund
Sec. 3 Said bonds shall be issued
In denominations OF $500 3foo0
$4,000 and 100000. and shall be Is
sued in series OF $40. 100000 or multi
pies thereof. drawn to mature In not
more than thirty-siI years: nor shall
said boAds be SOLD until applications
from bona hde purchasers OF land sg-
grsgatins $4,000 90 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 hde purchasers OF
farm lands in Arkansas, upon notes Sc
cured by mortgages deeds of trust
| constituting first liens on such farm
lands in amounts which shall not ex-
eeed seventy-fve per cent OF the APP
praised value OF such lands. The cred
II OF the State shall not be loaned To
/ any person to purchase more than so
acres OF land, nor land valued AT more
than $4,000 per acre. Nor shall a loan
OF less than 100000 nor more than SIS
I 10000 be made to any purchaser OF
| land.
Sec. g. Such loans shall not be made
except to owners who operate" and
! occupy" lands morteaged. and shall
he made for the following purposes:
| (al The payment for lands purchased:
tb) the purchase OF live stock and 9th
er equipment and the ma king OF i'm
provements which. in the Judgment OF
/ said board. will increase The produc-
/ tivtty OF such lands or add to their
value a farm home in degree to
] Justify such expenditure: and te) for
the satisfaction of encumbrances upon
such lands, which, in the judgment OF
said board. were incurred or assumed
! by said applicant for the aforesaid
| purposes.
Sec s. Every applicant for a farm
! loan shall state clearly in his appHca-
| ton the purposes for which such loan
is desired, and upon its approval by
the board this statement shall be deem
ed 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 inyalidate q
loan when once made. nor shall any
thing herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to such in
eumbrance; but IL he shall violate his
said contract by applying the moneys
! borrowed to purposes other than those
stated in his application or enumerated
herein or If he shall lease such lands
! or sell them to any person not fulhii-
!, ing the conditions and purposes pro-
/ Vided for herein. said board Is author
! lied and directed to require the repay
ment of said loan upon six months mo-
! tice and said note or contract shall
contain q clause providing therefor.
Sec. 7. Such loans shall be repaid
{ xuy1A Tat ,funSx t.
stallments on the amortization plan.
! such installments being fixed at such
sums as win cover the interest rate
and will liquidate the debt in period
| to be agreed on between said board
and the applicant. said period to be
not leas than fve nor more than thirty
six years: but any debtor may liqui-
date any part or all OF his Indebtedness
in amounts of 5000 or multiples there
of upon any amortization payment
Sec. g. The rate of interest on loans
shall be fve per cent per annum; pro-
vided, that no Farm Credit Bonds shall
j be sold for less than par; and pro-
vided further that the board shall re-
quire 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. g. All surplus funds accruing
! from the operation of the system OF
rural credits herein provided for, after
paying interest accruing on the sfore-
: said bonds, and all operating and other
expenses arising from the administra-
j ton OF said system of rural credits.
shall be placed In the State Treasury
! and become a part OF fuhd 10 De
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 TO il and become part
+ OF ". The said Arkansas Rural Credits
j Reserve Fund shall be irreducible. eN-
cept that il 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 it shalt
deem advisable for the carrying out
and administering Of the provisions of
this amendment, and shall provide az.
equate safeguards against the use or
such loans as an aid to the purehas-
ing and holding Of lands for the pur-
poses of speculation Such safeguards
shall include clear definitions or the
terms operate and occupy used
herein In the absence Of such legls-
lation and subject 10 the same after
its enactment, the State Land BOARD
shall proceed to administer said sys-
tenn of rural credits under rules ana
regulations provided by itself. but sub
/ ject to the provisions herein contained
Sec. H. The provisions OF the Con
: stitution OF Arkansas in conflict with
this amendment are hereby repeated IN
so far only as they conflict herewith.
The provisions Of this amendment
! shall be seIf-executing. and shall take
effect and be in operation 60 days ar
ter their approval and adoption by the
people OF Arkansas.
Approved by the Governor. and Med
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 cath day OF April 1918.
Iseai1 TOM J. TERRAL.
Secretary OF State.