The courier-index. (Marianna, Ark.) 1917-current, 1918-06-14

the satisfaction of encumprances upon
such lands, which. in the judgment OF
said board were incurred or ASSUMED
by said applicant for the aforesaid
purposes.
Sec. 6. Every applicant for a farm
loan shall state clearly in his applica-
ton the purposes for Which such loan
is desired and upon its approval py
the board this statement shall be deem
ed q part OF the note or contract under
which the loan is granted But no
failure 10 apply such funds TO the
purposes stated in such Application or
enumerated herein shall invaiIdate a
loan when once made. nor shall any
thing herein contained be deemed 10
prevent any farm owner from seIilng
or leasing lands subject TO such IN
cumbrance; but IL he shall violate his
said contract by applying the moneys
borrowed TO purposes other IMAM those
stated in his application or enumerated
herein, or IL he shall lease such lands
or sell them TO any person not fuinll-
ing the conditions and purposes pro-
vided for herein. said board is author
lied and directed to require the repay
Inent Of said 1oaL upon six months no.
tice. and said note or contract shaii
contain a clause providing therefor.
Sec. 7. Such loans. shall be repaid
with interest accruing In annual IN
stallments on the eInortixation plan
such installments being 1xed at such
sums as will cover The interest rate
and will liquidate the debt in a period
to be agreed on between said board
and the applicant said period 70 ne
not less than fve DOR more than thirty
six years: but any debtor may liQui-
date any part OF all OF his indie bt dness
in amounts OF 5000 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 shall re-
guire each applicant 10 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. g. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for after
paying interest accruinR on the afore-
said sonds. 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 a part Of fund TO be
known as the Arkansas Rural Crcdlt
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-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to il and become part
of IL. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
cept that ii may be drawn upon 20 re-
imburse 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 ii shall
ieem advisable for the carrying out
nd administering of the provisions or
his amendment. and shall provide adj
equate safeguards against the use OF
UGH loans as an aid 10 the purchas-
ng and holding OF lands for the pur-
soses OF speculation. Such safeguards
all include clear definitions or the
nrms operate" and occupy used
rein. In the absence ~ such leEis-
ition. and subject TO the same after
rs 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 to the provisions herein contained
Sec. IL. The provisions OF the Con-
'itution OF Arkansas in conflict with
his amendment are hereby repealed, IN
far only as they conflict herewith
| rhe prov isinns of this amendment
fleet and be in operation 60 days AZ
| ~ heir approval and adoption bx the
itople Of Arkansas
Approved by the Governor, and Med
| the office OF the Secretary OF State
torch II 1917
Each electof may rote for or against
4 above amendment
Witness my officiaf signature this
hN gath day of April 1918
| Seal TOM = TERRAIA
Secretary OF State