The Springdale news., 1918-05-03

IGoGd> >ff17~77e1-o in S6 965161 551 7o s7Seed two per cent ef the assessed valuation ! of all the property in the State and to place the proceeds in the State Treasury in fund te be known as the Arkansas Rural Credits Loan Fund"
 Sec 3. Said bonds shall be issued i in denominations Of S25.00 $100 %, $50000 and %. and shall be Is sued in series Of st0 00O.00 or multi pies thereof, drawn to mature in not more than thirty-six years; nor shall said bonds De sold until applications from bona fde purchasers of land az gregating $t0.0oo 00 have been lied with and approved by the State Land Board. Said bonds shall bear interest at the rate Of four per cent per an nun, and shall be exempt from tax ation by the State Of Arkansas. or any of it's subdivisions
 Sec 4 Said State Land Board is au- thorized and directed to loan the mon eFs in said Arsaasas Rural Credits Loan Fund to bona fde purchasers of farm lands in Arkansas. upon notes se= cured by mortgages or deeds of trust constituting first liens on such farm ! lands in amounts which shall not ex~ eeed seventv-hse per cent Of the ap- praised value af such lands The cred II Of the State shall not be loaned to 1 any person h purchase more than s0 acres of land. ner land valued at more than $50 6o per aere. Nor shall loan of less than $2o0.06 nor more than g. coo 00 be made 10 any purchaser of | land.
 See . Such loans shall not be made except to owners who Operate" and "occupY" lands mort ragged and shall he made for the following purposes. Cal The payment for lands purchased: fb) the purchase of live stock and ath- CT equipment and the ma king Of i'm provements which. In the judgment of said board will increase the produc- tivity of such lands or add 10 their value as q farm home in a degree to Justify such expenditure; and (e) for the satisfaction of encumbranees upon such lands, which, in the judgment of by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for q farm , loan shall state clearly in his applica- 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 invalidate loan when once made. nor shall any thing herein contained be deemed to prevent any farm owner from selling CT leasing lands subject to such in cumbrance; but if 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 fulfill ing the conditions and purposes pro- Yided for herein. said board is author ized and directed to require the repay ment of said loan upon six months. mo- tlee, and said note or contract shall contain clause providing therefor.
 Sec. 2. Such loans shall be repaid with interest accruing in annual tn- siailments on the amortization plan. such installments being fixed al such sums as will 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 less than five nor more than thitty- six years. but ant debtor may liaui- date any part or all of his indeht edness in amounts of S50.06 or multiples there of upon any amortization payment date.
 See. B. The rate Of interest on loans shall be five per cent per annum' pro vided, that no Earm Credit Bonds shall be sold for less than par. and pro vided further that the board shall re. quire each applicant to pay an initial charge of Der cent of the loan grant ed, the minimum charge to be 5000 10 cover the cost of appraisal and ex- animation of title.
 Sec. 2. All surplus funds accruing from the operation of the system Of rural credits herein provided for. after paying interest accruinR on the afore- said bonds. and all operating and other expenses arising from the administra- tion Of said system of rural credits. shall be placed in the State Treasury and become part of a 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 provided for the Arkansas Rural Credit Loan Fund and the interest ae- eruing from loans made from said Ar, kansas Rural Credits Reserve Fund shall be added to it and become part Of it. The said Arkansas Rural Credits Reserve Fund shall be irreducible, eN- cept that t 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 snail deem advisable for the carrying out and administering Of the provisions or this amendment. and shall provide ad- equate safeguards against the use of 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 of the terms operate and occupy used herein. In the absence of such IeEis- lation. 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 ject to the provisions herein contained
 Sec. II. 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 he in operation 60 days ar 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 IT. 1917
 Each elector may vote Tor or against the above amendment
 Witness my official signature this. the 24th day of April, 1918
 rSeal1 TOM I. TERRAI.
 Secretary of State.