The Dermott news., 1918-07-18

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 S. Every applicant for a farm
loan shall state clearly In his applica-
ton the purposes for which such loan
is desired, and upon its approval py
the board this statement shall be deem
ed part OF the note or contract under
which the loan IL granted. But no
failure to apply such funds TO the
purposes stated in such application or
enumerated herein shall tnvaiidate
loan when once made. nor shall amp
thing herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to such IN
cumbrance; but IL he shall violate ms
said contract by applying the moneys
borrowed TO purposes other than thoss
stated In his application or enumerated
herein. or IL he shall lease such lands
or sell them to any person not fulnli-
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 shaii
contain clause providing therefor
Sec. Z Such ioans 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 liduidate the debt In a period
10 be agreed on between said hoard
and the applicant. said period TO be
not less than five nor more than thirty
six years; but any debtor may liqut-
date any part or all OF his indebtedness
in amounts OF $4,000 or multiples there
OF upon any amortization payment
date
Sec s. The rate OF interest on loans
shall be Ave 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-
auire each applicant to pay an initial
charge of 1 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. o. All surplus funds secrutng
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-
ton Of said system of rural credits.
shall be placed In the State Treasury
and become q part OF . fund to be
known ~ the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
Credits Reserve Fund shall be loaned
provided for the Arkansas Rural
Credit Loan Fund. and the interest &C
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to IL and become a part
OF II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
cept that 1t 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 OF
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-
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
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
iect to the provisions herein contained
Sec. IL. The provisions OF the Con-
stitution OF Arkansas in conflict with
this amendment are hereby repealed. Ia
The provisions Of this amendment
shall be self-executing. and shall take
effect and be In operation go days at
ter their approval and adoption by the
people of Arkansas.
/ Approved by the Governor. and nled
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
ths 3Sth day OF April; 1873
| Secretary Of State