The Springdale news., 1918-08-09

Bonds" in all amount not 10 excesA
 two per cent of the assessed vaiuation
 of all the property in the State. ana to place the proceeds in the State Treasury in fund to be known the Arkansas Rural Credits Loan Fund" Sec !. Said bonds shall be issued in denominations of 325.oo, S1oo.oo. $500 % and Il. 900 90. and shall be is-
 sued In series Of 310. .0000 % or multi ples thereof. drawn to mature in not more tltan thirty-six years: nor shall said bonds be sold until appiica tions from bona fde aurchasers of land az
 gregating $1o.00e.00 have been filed
 with and approved Dx the State Land
 Board. Said bonds shsH bear interest at the rate of four per cent per an
 mum. and shall be exempt from Is
 ation by the State of Arkansas. orst
 of its subdivisions.
 Sec. i. Said State Land Board isa thorized and directed 10 loan the nj
 eys in said Arkansas Rural Credi1s Loan Fund to bona hde Durcha sers of
 farm lands in Arkansas. upon notes se- cured by mort gaEes OF deeds of trust constituting first liens on such farm lands in amounts which shall not ex- eeed seventF-fVe per cent of the ap- praised value of such lands. The cred
 II of the State shall not be loaned to
 any person to purchase more than 30
 acres of land. nor land valued at more than s50.00 per acre. Nor shall a loan nf less than s200 10 nor more than B.
 mo no be made 10 any purchaser of land
 Sec 5 Such loans shall not be made except to owners who "operate'' and
 Occupy" lands mnrtgaged and shall
 be made for the following purposes: fa1 The payment for lands purchased:
 fb) the purchase of live stock and oth-
 er equipment. and the making of i'm
 provements which. In the Judgment of [ said board. will increase the produc-
 tivtty of such lands or add to their
 value as farm home in a degree to
 justify such expenditures: and (c) for the satisfaction of encumbrances upon such lands. which. in the Judgment oe 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 applica- 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 . loan when once made, nor shall any
 thing herein contained be deemed to prevent any farm owner from selling
 or leasing lands subject to such in cumbrance: but if he shall violate his
 said contract by applying the moneys
 borrowed to purposes other than those
 stdltu III ms dppl1CatiOn or euufnoTotG0
 herein. or if he shall lease such lands
 or sell them to any person not fulhii- ing the conditions and purposes pro-
 vided for herein. said board is author ized and directed to require the repay
 ment of said loan upon six months mo-
 tice, and said note or contract shall
 contain a clause providing therefor.
 Sec. I. Such loans shall be repaid
 with interest accruing in annual fn-
 stallments on the amortization plan. iys= =f llFJaa mt hain a
 sums 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 Ave nor more than thirty six years: but any debtor may liaui- date any part or all of his indebtedness
 in amounts of 5000 or multiples there Of upon any amortization payment date
 Sec. S. 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 1 per cent of the loan grant ed the minimum charge to be 5000 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 aecruing on the afore- said bonds, and all operating and other
 expenses arising from the adfnfnistra- ton of said system of rural credits.
 shall be placed in the State Treasury
 and become part Of a fund to be
 known IS the Arkansas Rural Credit
 Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned
 on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest ac- cruing from loans made from said Ar [ IK.. Nv.d shall be added to 1t and become part of it. The said Arkansas Rural Credits i Reserve Fund shall be irreducible. eK- cept that it may be drawn upon to TO- 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 or this amendment. and shall provide ad- eauate safeguards against the use of such loans as an aid to the purchas- 1 ing and holding of lands for the pur- poses of speculation. Such safeguards
 shall include clear definitions of tho terms operate" and occupy" used herein. In the absence of such iegis- 1 iation. and subject to the same after i it's enactment, the State Land Board l shall proceed to administer said sys- i tenn of rural credits under rules and i regulations provided by itself. but sub i ject to the provisions herein contained. 1 Sec H. The provisions of the Con 1 stitution Of Arkansas in conflict with | this amendment are hereby repealed. in i so far only as they conflict herewith. 1 The provisions of this amendment l shall be self-executing, and shall take i effect and be in operation SO days af- i ter their approval and adoption by the | people of Arkansas.
 Approved by the Governor. and filed
 in the office of the Secretary Of State. l March IF. 1917.
 Each eIector may vote for or against 1 the above amendment
 Witness my official signature this, i the 24th day of April. 1918
 rSeall TOM J. TERRAL.