Cleveland County herald. (Rison, Ark.) 1888-current, 1918-09-19

the satisfaction of encumbrances upon
such lands, which, in the judgment OF
said board, We're incurred or assumed
by said applicant for the aforesaid
purposes.
Sec 6. Every applicant for a farm
loan shall state clearly in his appllca-
tlon the purposes for which such loan
Is desired, and upon it's approval by
the board this st6tsfnent shall be deem
ed part OF the note or contract under
which the loan is granted. But nc
lalIure to apply such funds TO the
purposes stated in such application OF
enumerated herein shall invalidate
roam when once made, nor shall any
lnlng herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to such In
cumbrance: but IL he shall violate his
salo contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerated
herein, or II he shall lease such lenda
or sell them to any person not fulfill
ing the conditions and purposes pro-
v1ded for herein, said board Is author
lied and directed to require tho repay
ment of said loan upon six months no.
tice, and said note or contract shall
contain clause providing therefor.
Sec. Z. Such loans shall be repaid
with interest accruing In annual In
stallments on the amortization plan.
such installments being fixed 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 to be
not less than fve nor moro than thirty
SIX years: but any debtor may lfqut-
GATE any part or all of his Indebtedness
In amounts of $4,000 or multiples there
date.
Sec. s. The rate OF interest on loans
snail be five per cent per annum; pro-
yided, that no Farm Credit Bonds shall
" Af1d FTNVO
vided further that the board shall re
qufre 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 sx
animation OF title.
Sec. 8. All surplus funds accruing
from the operation of the system of
rural credits nersin 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,
snail be placed in the State Treasury
ana become a part of 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 &ural
Credit Loan Fund, and the interest ac-
kansas Rural Credits Reserve Fund
shall be added to 1t end become part
OF 1t. The said Arkansas Rural Credits
reserve Fund shall be irreducible, ex-
cept that 1t may be drawn upon to re-
lmburse the State for loss incurred in
the administration of said system of
rural credits.
Sec. 10. The Legislative Assembly
shall provide in such detail es it shall
deem advisable for the carrying out
and administering of the provisions OF
this amendment, and shall provide adj
equate safeguards against the use of
such loans as 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 legis-
latfon, 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 herein contained.
Sec. IL. The provisions of the Con-
stttution of Arkansas In conflict with
this amendment are hereby repealed, in
go far only as they conflict herewith.
The provisions or this amendment
shall be self-executing. and shall take
effect and be In operation GO 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 II, 1917
Each elector may vote for or against
the above amendment.
Witness my official signature this,
the cath day Of April, 1918.
tSeal1 TOM ]. TERRAE,
Secretary OF State.