The Springdale news. [volume] (Springdale, Ark.) 1887-1990, 1918-06-21


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If it happened it's in The News.
Bonds, In al amount not TO exceed
two per cent OF the assessed valuation
OF all the property In the State. and
to place the proceeds in the State
Treasury In a fund TO be known as the
"Arksnsas Rural Credits Loan Fund"
Sec. s Said bonds shall be issued
1900 90 and 81 900 co. and shall be Is
sued In series of $40. 0000 or multi
plee thereof drawn to mature in not
more than thirty-six years: nor shall
said bonds be sold until applications
from bona fde purchasers Of land az
grssating 100000 have been aied
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 tai
alton by the State OF Arkansas or any
OF Its subdivisions.
Sec. l. Said State Land Board Is au-
thorized and directed to loan the mon
eys in said Arkansas Rural Credits
Loan Fund to bona fde purchasers OF
farm lands in Arkansas. upon notes Sc
cured by mortgages or deeds Of trust
constituting frat liens on such farm
lands in amounts which shall not ex-
coed seventy five per cent of the ap-
praised value of such lands The cred
any person to purchase more than so
acres Of land nor land valued at more
than $1,000 per acre. Nor shall loo
ef less than $500 90 nor more than So
000 90 be made to any purchaser OF
land.
Sec 5 Such loans shall not be made
except 10 owners who operate" and
occupy" lands mortgaged and shall
be made for the following purposes:
Ca1 The payment for lands purchased.
NJ. ~ Of
er equipment. and the making OF I'M
pravenente which In the Judgment OF
said board viii increase he pFeduc-
tivttv OF such lands or add 10 their
value as farm home in a degree to
Justify such expenditure; and (c) for
the satisfaction OF eneumbrances upon
such lands. which. in the judgment OF
SAID board. were incurred or assumed
by said applicant for the aforesaid
J. opposes.
Sec 6. Every applicant for a farm
loan shall state clearly in his appllce-
ton the purposes for which such loan
is desired. and upon its approval by
the board this statement shall be deem
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 inyalidate
loan when once made, nor shall any
thing herein contained be deemed to
prevent any farm owner from seilng
or leasing lands subject to such in
cumbrance, but If ne shall violate his
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 fulhll-
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
tices and said note or contract shall
contain a clause providing therefor.
Sec. T. Such loans shall be repaid
with interest accruing In annual in
staliments on the amortization plan,
such installments being fxed at such
sums as will cover the interest rate
and will fiquidate the debt in a period
to be agreed on between said board
and the applicant. said period to be
not less than I'VE nor more than thirty
six years; but any debtor may liQui-
date any part or all OF his Indebtedness
In amounts OF 5000 or multiples there
of upon any amortization payment
date
Sec 8. 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 ! per cent OF the loan grant
ed the minimum charge To be slo.oo
10 cover the cost or appraisal ana OK
animation of title.
Sec g. All surplus funds accruing
from the operation Of the system or
rural credits herein provided for. after
paying interest accraing on the afore-
said bonds, and all operating and other
expenses arising from the administra-
tion OF said system OF rural credits,
shall be placed in the State Treasury
and become part OF a 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-
crung from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to ii and become part
of 1t 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
rural credits
Sec 10. The Legislative Assembly
shall provide in such detail as Il shall
deem advisable for the carrying out
and administering Of the provisions or
this amendment and shall provide ad-
equate safeguards against the use or
such loans as an aid 10 the purehas-
ing and holding OF lands for the pnT-
poses of speculation. Such safeguards
shall include clear definitions OF the
herein In the absence OF such fegis-
latlon and subject 10 the same after
its enactment, the State Land Board
shall proceed TO administer said sSs,
TEN or rural credits under rules and
regulations provided by itself. but sub
1ect to the provisions herein contained.
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
rrl. nf
shall be self-exeeuting. and shall take
effect and be in operation 60 days ar
ter their approval and adoption by the
people of Arkansas.
Approved by the Governor and fled
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.
ISeall TOM ]. TERRAL.
Secretary of State.