Cleveland County herald. (Rison, Ark.) 1888-current, 1918-08-29

the satisfaction Of encumbrances 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 farm
loan shall state clearly in his appnca-
tlon the purposes for which such ioan
rs desired and upon Its appfo'al Ny
the board this statement shall be aeeIn-
ed part of the note or contracI uhuol
which the loan is granted. bul ho
failure to apply such funds TO tne
purposes stated in such application VI
enumerated herein shall invandate
loan when once made, nor snail any
thing herein contained be deemed 70
prevent any farm owner from seliins
or leasing lands subject to sucn IN
cumbrance; but If he shall violate ms
said contract by applying the moneys
borrowed to purposes other than tnose
stated'fn his applicat ton or enumerated
herein, or II he shall lease such lanos
or sell them to any person not nur NIL
ing the conditions and purposes pro-
vided for herein, said board Is autnor-
lied and directed to require the repay
ment Of said loan upon six months no,
contain a clause providing therefor.
Sec. Z. Such loans shall be repaid
with interest accruing in annual IN
stallments on the amortization plan,
sums as will cover the interest rate
and will 1iQuidate the debt In perloo
to be agreed on between said board
and the applicant, said period to Do
six years; but any debtor may nQui-
date any part or all OF his indebtedness
In 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-
vided, that no Farm Credit Bonds shall
be sold for less than par; and pro-
vtded further that the board shall re-
quire each applicant to pay an initial
charge of 1 per cent ofNthe loan grant,
ed. the minimum charge to be $1,000
to cover the cost Of appraisal and e1-
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-N
! 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 part of fund to be-
Reserve fund" Said Arkansas Rural
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rural
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to 1t ond become a part
of 1t. The said Arkansas Rural Credits
|
cept that 1t 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 1T shall
deem advisable for the carrying out
and administering of the provisions OF
! this amendment and shall provide adj
equate safeguards against the use ot
such loans es 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 the absence OF such lcgis-
lation, and subject to tho same after
It's enactment, tho State Land Board
shall proceed to administer said sys-
! tenn of rural credits under rules end
regulations provided by itself, hut sub-
ject to the provisions herein contained,
Sec. Il. The provisions of the Con-
stitution of Arkansas in conflict with
| this amendment are hereby repealed, ia
so far only as they conflict herewith.
The provisions Of this amendment
shall be self-executing, and shall take
effect and be In operation 60 days az
| ter their approval and adoption by tb )
people of Arkansas.
Approved by the Governor, and = led
Ain the office OF the Secretary of 8 ate
March II, 1917.
| Each elector may vote for or rainst
the above amendment.
Witness my official signatu re thi,
the oath day Of April 1913.
lSeall TOM ]. TT .RRAI.
Secretary of State