Cleveland County herald., 1918-08-15

The satisfaction OF encumnrances upon
such lands. which, in the judgment OF
said board, were incurred or assumed
by said applicant for the aforesaid
purposes.
SEQ. 6. Every applicant for farm
loan shall state clearly in his app!lca-
ton the purposes for which such loan
is desired, and upon it's approval py
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 OF
enumerated herein shall invahdate a
loan when once made, nor shall any
thing herein contained be deemed to
prevent any farm owner from sellnS
or leasing lands subject to sucn IN
cumbrance; but IL he shall violate MS
said contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumerated
herein, or II he shall lease such lands
or sell them to any person not fulnll-
ing the conditions and purposes pro-
vided 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 a 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 eucn
sums as will cover the interest rate
to be agreed on between said board
and the applicant. said period 70 be
not less than Ave nor more than thirty
six years; but any debtor may ltQui-
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-
yided, that no Farm Credit Bonds shall
be sold for less than par; and pro-
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 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 bends, ana 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 a 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
Credit Loan Fund, and the interest ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
snail be added to 1t and become part
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 es 1t shall
deem advisable for the carrying out
and administering OF the provisions OF
this amendment, and shall provide ad-
equatc 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 Iegis-
!ation, and subject to the same after
its enactment, the State Land Board
shall proceed to administer said sys-
TEN of rural credits under rules and
regulations provided by itself, but subs
Jsct to the pfo*sfssa herein contained
Sec. IL. The provisions Of the Cor =
this amendment are hereby repealed in
so far only as they conflict herev It'll.
The provisions of this amend, nent
shall be self executing, and shall TAKE
erect and be In operation 60 do vs. af-
ter their approval and adoption by tn a
people of Arkansas.
Approved by the Governor, and f1ed
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 oath day of April, 1918
lSeall TOM J. TERRAL.
Secretary of State.