Cleveland County herald. (Rison, Ark.) 1888-current, 1918-10-03

he satisfaction Of enc1rnhrarces upon
such lands, which, liz the judgment OF
aid boa a. were incurred or assumed
by sad applicant for the aforesaid
PURPOSES.
Sec 6. Every applicant for farm
oan shall state clearly in his appiica-
lion the purposes for which such loan
s desired, and UPON its approNal ps
the board this statement shall be deem
"a part OF the note or contract lha ,.a
which the loan is granted. But no
failure to apply such funds TO the
purposes stated in such application OF
enumerated herein shall inVahdate
loan when once made, nor shall any
thing herein contained be deemed TO
prevent any farm owner from seltlne
or leasing lands subject to such IN
eumbrance. but if he shall violate ms
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumeTateo
herein, or If he shall lease such Ianos
or sell them to any person not 1uihh-
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.
tice, and said note or contract snail
contain a. clause providing therefor
Sec. z. Such loans shall be repaid
with interest accruinE IN annual m
stallments on the amortization plan.
such 1nstallments being fixed at such
sums as will cover the interest rate
and viii liquidate the debt in 2 PERIOD
to be agreed on betw cen said board
and the applicant said period to be
not less than five nor more than thirty
SIX years; but any debtor may liqui-
date any part or all Of his Indebtedness
in amounts OF $1,000 or multipies there
Of upon any amortization payment
date.
Sec. 8. The rate OF interest on loans
shall be five per cent per annun; pro,
vided, that no Farm Credit Bonds shall
be sold for less than par; and pre-
vided further that the board shall re-
quire each applicant to pay an initial
charge of per cent of the loan grant,
ed, the minimum charge to be $1,000
to cover the cost of appraisal and OK
animation OF title
Sec. 8. All surplus funds aeeruing
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 administr&-
| ton of said system of rural credits,
shall oe placed in the State Treasury
and become. part Of fund to be 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 1t and become q part
of it. The said Arkansas Rural Credits
| Reserve Fund shall he irredueihle ex-
cept that 1t may DE drawn upon to re-
imburse the State for loss incurred in
the administration of said system CT
rural credits.
Sec. TO- The Legislative Aaserab bly,
shall provide in such detail IS tt shah
deem advisable for the carrying out
and administering OF the provisions Of
this amendment, and shall provide ad..
eQuate safeguards against the use Of
such loans as an old 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 leEts-
lation, and subject to the same aftsI
its enactment, the State Land Board
tenn of rural credits under rules arc
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, liz
SO far only as they conflict herewith
The provisions of this amendment
shall be self-exeeuting, and shall take
effect and be In operation SO days at
ter their approval and adoption by the
people of Arkansas.
Approved by the Governor, and flei
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 Gath day of April 1918.
[Seall TOM J. TERRAL,
Secretary OF State