The Dermott news., 1918-07-11

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 farm
loan shall state clearly in his applica-
ton the purposes for which such loan
Is desired. and upon It's approval oy
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 invalidhte
loan when once made, nor shall any
thing herein contained be deemed TO
prevent any farm owner from selilhs
or leasing lands subject to such n
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 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 the repay
ment OF said loan upon six months No
tlce, and said note or contract shall
contain clause providing therefor
Sec. Z. Such loans shall he repaid
with interest accrulnG in annual IN
Stallments on the amortization ptah
such iustallmcuts being hNed a. such
sums as VIII cover the interest rate
and Will lquidate the debt IN a period
to be agreed on between said board
and the applicant said period to be
not less than i've nor more than thirty
SIX years; but any debtor may liaul-
date any part or all of hi indebtedness
in amounts OF $4,000 or multiples there
Of upon any amortization payment
date
Soc s The rate or interest on loans
shaU be five per cent per annum; pro-
vided that no Farm Credit Bonds shall
h4a fnp I'm
Vldcd 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 $1,000
to cover the cost OF appraisal and eN-
animation OF title.
Sec. .. All surplus funds accruing
from the operation OF the system or
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
known as 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 ae-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to ii and become part
OF III, Inc SAID Arkansas hurRi circuits
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 II 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 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 tho absence of such legis-
| iation, 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
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.
i The provisions or this amendment
shall be self-executing. and shall take
effect and be in operation 60 days af
| ter their approval and adoption by the
people of Arkansas.
Approved by the Governor. and filed
| In the office OF the Secretary OF State.
March II. 1917.
Each eiector may vote for or against
the above amendment.
! witness my official signature this.
the 3<th day of April. 1918.
fSeail TOM ]. TERRAL.
| Secretary OF State.