Sharp County record., 1918-05-31

. nsssfastien Of ensombrancss upo,
sNeA lands, which, in the Judgment oi
80 beard, were incurred or assumea
by Aid applicant for the atorssaia
puIDeoss.
"a G. Every applicant for a farm
loa0 shall state clearly in his appilca-
ttoo Tie purposes for which such loan
10 eostrsd and upon its approval oy
tie beard this statement shall be deem
ed . part of the note or contract unoeE
whesA the loan is granted. But nc
failure to apply such funds 10 the
purposes stated in such application OF
s0omerated herein shall invalidate .
loo0 when once made, nor shall any
tAiAg herein contained be deemed 70
prevent any farm owner from sslllns
or leasing lands subject to such IN
cumbrance; but II he shall violate BIS
said contract by applying the moneys
borrowed to purposes other than tnoss
stated In his application or snumerateo
hsrsiA Or II he shall lease such lands
or sell them to any person not fulnll-
ing he conditions and purposes pro-
vidsd for herein, said board 10 author
lied and directed to require the repay
ment Of said loan upon six menths no,
tice, and said note or contract shah
contain q clause providing therefor.
Sec. Z. Such loans shall be repaid
with interest accruing In annual In
stallments on the amortization plan,
such installments being nIed at such
sums ~ Will cover the interest rate
and will liquidate the debt in period
to b agreed on between said board
ana the applicant, said period to De
not less than hve 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
Of upon any amortization payment
date.
Sec. g. The rate Of interest on loans
shall bs ave per cent per annum; pro-
vidsd, that no Farm Credit Bonds shall
be sold fer less than par; and pro-
vfdsd further that the board shall re-
qvire each applicant to pay an initial
charge of l per cent of the loan grant
Cd. 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
rural credits herein provided for, after
paying interest accruing on the afore-
said bonds, and all operating and other
expenses arising from the adminlstra-
tion OF said system Of rural credits,
shall be placed in the State Treasury
and become a part of fund to be
known as the Arkansas Rural Credit
Credits Reserve Fund shall be loaned
on farm lands In the manner herein
crowded for the Arkansas Rural
Credit Loan Fund, and the interest ac-
crutng from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to 1t and become a part
Of II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that It may be drawn upon to re-
In 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
squate safeguards against the use OF
Ing and holding Of lands for the pur-
poses OF speculation. Such safeguards
shall include clear definitions OF the
terms operate and occupy" used
herein. In the absence Of such legis,
lstion, and subject to the 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 sub
tect to the provisions herein contained
Sec. II. The provisions OF the Con-
stitutlon of Arkansas In conflict with
This amendment are hereby repealed, IN
90 far only as they conflict herewith.
The provisions OF this amendment
shall be self-erecuting, and shall take
effect and be In operation so days af-
ter their approval and adoption By the
people OF Arkansas.
Approved by the Governor, and fled
IN the ottlee OF the Secretary Of State
March IL 1917.
Each elector may vote for or against
the above amendment
witness my official signature this
the 2lth day OF April, 1918
t5eal1 TOM ]. TERRAL,
Secretary Of State