The Springdale news., 1918-08-02

A. C. Langford of Fort Smith. De- ceased was an old Confederate soldier and was known all over Benton Coun- ty.
 Bonds. in al amount not 10 eIceed two per cent of the assessed valuation of all the property In the State, and to place the proceeds In the State Treasury In fund to be known as tho Arkansas Rural Credits Loan Fund"
 Sec ,. Said bonds shall be issued in denominations of ,25oo, s1oo.Oo. s500.0o and si,00o00. and shall be is- sued in series Of 100000 or multi ples 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 gregating sf0.000.00 have been nled with and approved by the State Land Board. Said bonds shall bear interest at the rate of four per cent per an- nun. and shall be exempt from tax etion by the State of Arkansas or any of it's subdivisions.
 Sec. 4. Said State Land Board Is au- thorized and directed to loan the mon eys in said Arkansas Rural Credits Loan Fund 70 bona hde purchasers of farm lands in Arkansas, upon notes se- cured by mortgages or deeds Of trust constituting first liens on such farm lands in amounts which shall not e1-
 
 praised value of such lands The cred tt Of the State shall not be loaned to any person to purchase more than 80 acres of land. nor land valued at more than s5o0o per acre. Nor shall loan nf less than s200- 20 nor more than g. ooo 20 be made to any purchaser of land.
 Sec. 5 Such loans shall not be made except to owners who Operate" and Occupy" lands mnrteaged and shall he da fnr Tn fa1 The payment for lands purchased: tb1 the purchase of live stock and oth- er equipment. and the making of fm- prevements which. in the judgment of said board, will increase the produc- tivity of such lands or add 10 their value as farm home in degree to justify such expenditure; and tc) for 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 a farm loan shall state clearly in his appliea- tion the purposes for which such loan is desired. and upon its approval by the board this statement shall be dsem- 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 invalidate .
  thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such tn- cumbrance: but if he 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 fuInl- ing the conditions and purposes pro- yided for herein, said board is author tx1 N4@ tD .i~A rAr ment of said loan upon six months no- tice. and said note or contract shall contain a clause providing therefor.
 Sec. !. Such loans shall be repaid with interest accruing in annual fn- stallments the amortization plan. such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in period to be agreed on between 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 $5000 or multiples there of upon any amortization payment date.
 Sec. g. 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 l per cent Of the loan grant ed the minimum charge to be Sl0-oo to cover the cost of appraisal and ex- 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- 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 a part of fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned on farm lands Tn the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest ae- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to 1t and become a part Of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreductble. ex- cept that 1t may be drawn upon to re- imburse the State for loss incurred in the administration of said system or 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 or this amendment, and shall provide ad- 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- lation, and subject to the same after it's 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 stitution of Arkansas in conflict with this amendment are hereby repealed in so far only as they conflict herewith The provisions of this amendment shall be seif-executing. and shall take effect and be In operation SO days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor, and filed .k Al.a aArr. Al a fa