The courier-index., 1918-08-16

/
stitution of the state OF Arkansas To-
caotion Il Notwithstanding the linz
/ gtatfon contained IN Section Of At ~
eIe Is OF the Constitution. the credlI
| 81 the state may be loaned ana n.
| debtedness incurred to an amount not
exceeding two per cent OF the assess
| ed valuation OF all the property IN tne
state for the purpose OF pros.u nit5,
FUNDS TO be loaned upon the security
~ farm lands within the State. suoJect
to the limitations herein contained.
Gee 3. The Governor. Secretary or
State and State Land Commissione,r
shaII constitute the State Land Board
which board is hereby authorized ana
directed to issue and sell or pledge
bonds in the name of the State, TO pc
Lnown as Arkansas Farm Credit
Ronds." in an amount not to exceed
tvvo ner cent OF this assessed valuation
~ ali the property in the State. ana
fo plsce the proceeds I'm the State
Treasury In q fund to be known as tn
Arkansas Rural Credits Loan Fund
Sec Z Said bonds shall be issued
4, Denominations OF $500. 10000.
$500. 90 and 81 10000, and shall be is-
sued in series OF 100000 or multi
pies thereof, drawn to mature In not
more than thirty-six years; nor snelI
saId bonds be sold until applications
from bona ode purchasers Of land ag--
eregating SO 100000 have been hled
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
alton by the State OF Arkansas, or any
Of its subdivisions
sec 4. Said State Land Board fs au-
thorlzed and directed TO loan the mon
eys In said Arkansas Rural Credits
Loan Fund 20 bona fde purchasers of
farm lands In Arkansas. upon notes Sc
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
Il OF the State shall not be loaned to
any person to purchase more than 80
acres of land. nor land valued at more
than 5000 per acre. Nor shall loan
OF lass than $4,000 nor more than So
10000 be made to any purchaser OF
land.
Sec. S. Such loans shall not be made
except TO owners who operate" and
occupy lands mortgaEed and shall
ba made FOR the following purposes:
(a) The payment for lands purchased;
(b) the purchase of live stock and 9TH
err equipment. and the making OF I'M
prevements which, in the Judgment OF
safd boa-d will increase the produc
ttyfty OF such lands or add TO thei-
value as farm home In degree to
Justify such expenditure: and (cj TO-
thu satisfaction OF sncumbrances 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 n farm
loan shall state clearly In his applica-
ton the purposes for which such loan
is desired. and upon it's approval by
the board this statement shall be DEEM
ed n part OF the note or contract under
which the loan Is granted But no
failure to apply such FUNDS 70 the
purposes stated in such application or
f1wfa 10 q
loan when once made. nor shall any
thing herein contained be deemed 20
prevent any farm owner from selling
or leasing lands subject TO such IN
cumbrance: but II he shall violate MS
said contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumeratsd
herein. or IL he shall lease such iands
or sell them TO any person not ruinll-
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 q clause providing therefor.
Sec. r Such loans shall be repaid
with interest accruing in annual in
staIlments on the amortization plan.
such tnstsilments being nxed 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 dive nor more than thirty
six years: but any debtor may. haui-
date any part or all OF his Indebtedness
in amounts OF 5000 or muItfples there
OF upon any amortization payment
date.
Sec .. The rate OF interest on loans
shall be Ave per cent per annum; pro-
vided. that no Farm Crsdit Bonds shall
be sold for less than par. and pro-
vided further that the board shall re-
quire Zach applicant to pay an initial
charge OF I per cent OF the loan grant
ed. the minimum charge to be $1,000
to cover the cost OF appraisal and ex-
animation OF title.
Sec. .. All surplus funds accruing
from the operation Of the system OF
rural credits herein provided for. after
paying interest accrutng on the afore-
said Sonds. and all operating and other
expenses arising from the administra-
ton OF said system Of rural credits.
shall be placed in the state Treasury
ana Decome part or rund TO De
known al the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
Credits Reserve. Fund shall be loaned
on farm Iands in the manner herein
provided for the Arkansas Rural
Credit Loan Fund. and the interest ac-
kansas Rural Credits Reserve Fund
shall be added to It and become part
OF 1t. The said Arkansas Rural Credits
Reserve Fund shall be irreducibie. ex-
cept that it may De Drawn upon TO re-
inburse 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
his amendment. and shall provide ad-
equate safeguards against the use or
such loans an aid to the purchas-
ng aud holding of lands for the pur-
noses OF speculation. Such safeguards
hall include clear definitions OF the
erms Operate" and occupy used
erein. In the absence of such legis-
alton. and subject to the same after
IS enactment the State Land Board
hall proceed to administer said sys-
ON of rural credits under rules and
equations provided by itself. but sub
Get to the provisions herein contained.
Sec. IL. The provisions OF the Con-
ttitution OF Arkansas in conflict with
his amendment are hereby repealed. in
40 far only they conflict herewith.
rhe provisions OF this amendment
shall be self-executing. and shall take
feet and be In operation 60 days af-
er their approval and adoption by the
tcople of Arkansas
Approved by the Governor and fled
n the office OF the Secretary OF State.