The courier-index. (Marianna, Ark.) 1917-current, 1918-06-21

the satisfaction OF encumbranceg upQpl
such lands which, in the Judgment OF
said board weye. incurred or assumed
by said applicant for the aforesaid
purposes Is-ta
Sec. 6. Every applicant for a farm
loan shall state clearly In his applica-
ton the purposes for which such loan
IS desired: and upou ltSs approval by
&c 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
loan when once made. nor shall any
thing herein contained be deemed 10
prevent sfny farm owner from selling
or leasing lands subject to such 1n-
cumbrance. brt il 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 ne shall lease such lands
or sell them to any person not fufhll-
ing the conditions and purposes pro-
vided for herein. said board Is author
ICED and directed to require the repay
ment Of said loaL upon six months no.
tfce. and said note or contract aha
contain clause providing therefor
Sec. 7. Such loans shall be fspsl u
with interest accruinr In annual IN
stallments on the amortization plan.
such installments being nxed at sueo
sums will cover rhe interest rate
% be agreed on between said board
and the applicant said period 10 be
not less than fve nor more than thirty
six years. but any debtor may liqui-
date any part or all OF his debtedness
n amounts Of 5000 or multiplcs there
ef upon any amortization payment
date.
4 Sec. 8. The rate OF interest on loans
shall be ave per cent per annumt prog
4 ided, that no Farm Credit Bonds shall
>e sold for less than par, aud pro-
sided further that the board snail re-
ouire each applicant to pay an initial
charge OF per cent of the loan Graili-
ed. the minimum charge TO be $1,000
20 cover the cost of appraisal and ea-
animation OF title. :
Sec. 8 All surplus funds accruing
from the operation OF The system OF
rural credits herein provided for after
payins interest accruing on the aAJre-
aid topds, and all operating ana other
expenses arising from the adniinistra-
Ion OF said system OF rural credits.
shall be placed in the State Treasury
and become a part OF fund TO be
known az 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
shall be added TO 1t and become part
Reserve Fund shall be irreduciblA, es-
ept that II may be drawn upon TO re-
imburse the State for loss incurred in
he Administrations OF said system OF
ural credits
Sec. 10 The Legislative Assembly
shsil provide In such detail AZ II shall
'eem advisable for the carrying out
nd administering OF the provisions or
his amendment, and shall provide adj
quate safeguards against the use Of
uch loans az an aid, to the purchase
s.irg ard holding, of lands for the pur-
,ses of specuia ton. Such safeguards
all include clear definitions OF the
rms operate" and occupy used
arein In the absence of such leBis-
fion. and subject TO the same after
8 enactment the State Land Board
hall proceed to administer said sys-
IN OF rural credits under rules' and
EQUATIONS provided by itself. but sub
Sec. IL The provisions OF the Con-
titufion OF Arkansas In conflict with
his amendment are hereby repealed. in
% far only az they conflict herewith.
he provisions OF this amendment
Z bah be self executing. and shall take
feet and be In operation 60 days af-
1r their approval and adoption by the
.eople OF Arkansas
Approved by the Governor and fled
the office of thss Sec rotary OF State
1rch IL 1917.
Each e4ector may .ote-4of or against
2 above amendment.
witness my official signature this.
ne 24th' day OF April 1918.
[SsAlJ TOM ]. ,TERRAL.
Secretary Of State.