The Springdale news., 1918-08-16

two per cent Of the assessed vaiuatioa of all the property in the State. ana to place the proceeds In the State Treasury in fund to be known as the Arkansas Rural Credits Loan Fund"
 Sec. ! Said bonds shall be issued in denominations of 3eseo uoo.ee. S5o0. co and $i 900 GO. and shall bs is- sued in series of sio.oOo.o0 or multi moro than thirty six years: nor shalt said bonds be sold until applications from bona nde purchasers of land az gregating t1o.o0o.o0 have been nied 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 ation by the State Of Arkansas. or any of its subdivisions.
 Sec ( Said State Land Board Ia au- thorized and directed to loan the mon- eys in said Arkansas Rural Credits Loan Fund Co bona hde 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- ceed seventy five per cent Of the ap- praised value Of such lands The cred It of the State shall not be loaned to any person to purchase more than 30 acres Of land. nor land valued at more than s50.00 per acre Nor shall I loan ttI less tfan XgHH Nb nor more than SS.- no 10 he made to any purchaser of land
 Sec 5 Such loans shall not he made i except to owners who Operate. and occupy lands mnrtGaRed and shall he made for the following purposes fal The phvmenAfor lands purchased: ! fb1 the purchase Of live stock and oth- or equipment and the making of im- provements which. in the judgment Of said board will inrrea se the produc- tivtty of such laudz or add to their value as a farm hase Tn degree to | justify such expenditure; and Gel for the satisfaction of encumbrances upon such lands. which. in the Judgment ot 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 appiica- tion the purposes for which such loan Is desired. and upon its approval by the board this statement shall be dsem- 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 seiiing or leasing lands subject to such tn- , cumbranee: but if he shall violate hts 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 ized and directed to require tho repay ment of said loan upon six months no- tice. and said note or contract shall contain a clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing in annual tn- stallments on the amortization plan. ..lA tvr,t ko4r AA sums will cover the interest rato and will liQuidate the debt in a period to be agreed on between said board and the applicant. said period to be not less than five nor more than thirty six years: but any debtor may liaui- date any part or all of his indebtedness in amounts of $50.00 or mu1tiples there Of upon any amortization payment date
 Sec g. 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- quire each applicant to pay an initial charge of 1 per cent of the loan grant ed. the minimum charge to be 5000 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 afore- said bonds, and all operating and other expenses arising from the administra- ton of said system of rural credits. shall be placed in the State Treasury and become a part of a fund to be known 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- | eFuing from loans made from said Ar La Credits Fund shall be added to it and become part of it. The said Arkansas Rural Credits Reserve Fund shkl be irredueibie. eH- the administration of said system Of rural credits.
 Sec 10 The Legislative Assembly shall provide in such detail as It shall deem advisable for the carrying out and administering of the provisions or this amendment. and shall provide ad eauate safeguards against the use or such loans AS an aid to the pnrchas- ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of tho terms operate" and occupy used herein. In the absence of such legis- lation. and subject to the same after its 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 hefein cphtAlhen
 Sec IL 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-executing, and shall take effect and be In operation 50 days af- 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 for or against the above amendment
 Witness my official signature this. the 24th day of April. 1918
 fSeall TOM !. TERRAL.
 Secretary Of State.