The Dermott news. (Dermott, Ark.) 1910-1977, 1918-07-25


such lands, which. I'm the judgment OF
said board were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec g.. 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 by
the board this statement shall be deem
ed a 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 OF
enumerated herein shall inva1idate
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
cumbrance: but IL he shall violate MS
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerateo
herein. or IL he shall lease such lands
or sell them to any person not fulnll-
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 no.
tiee and said note or contract snail
contain clause providing therefor
See. T. Such loans shall be repaid
with interest acCruing In annual IN
stallments on the amortization plan
such inStallments beins fixed nj Such
sums as viii cover tho interest rate
and viii iiauidate the debt in a period
10 be agreed on between said board
and the applicant. said period TO be
not less than five nor moro than thirty
six years; but any debtor may ltqut-
date any part or ali of his indebtedness
ia amounts OF $1,000 or multiples there
OF upon any amortization payment
date
Sec s. The rate OF interest on loans
shall be Ave per cent per annum; pro-
Nided. that no Farm 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 l 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. .. 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 administra-
shall be placed In the State Treasury
and become a part OF 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 ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be. added to II and become part
OF II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
cept that II may be drawn upon to re-
imburse the State for loss Incurred in
the administration OF said system OF
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-
eduate safeguards against the use OF
such loans az an aid TO the purchas-
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 tho absence OF such legis-
lation. and subject to the same after
It's enactment. the State Land Board
shall proceed to administer said sys-
regulations provided by itself. but sub
icct to the provisions herein contained.
Sec. IL The provisions OF the Con-
stitution of Arkansas in conflict with
this amendment are hereby repealed, In
80 far only as they conflict herewith.
The provisions of this amendment
shall be seif-exeouting. and shall take
effect and be in operation SO days az
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 IL. 1917.
Each elector may vote for or against
the above amendment.
witness my official signature this,
the atth day OF April. 1918.
fseai1 TOM j. TERRAL,
Secretary OF State.