The Springdale news., 1918-05-10
"If it happened it's in Tie News. e

"f it happened it's in Tie News" e9nd@> fn n-1-1s1o- an sSoG6f noT Y srcseIT two per cent of the assessed valuation of all the property in the State. and to place the proceeds in the State Treasury in a fund to be known as the Arkansas Rural Credits Loan Fund ;"
 Sec B Said bonds shall be issued in denominations of s2s.06 sfO0 % s5000o and s1 00n00. and shall be Is sued in series of s10 000 co or multi ples thereof drawn to mature in not more than thirtX-six years: nor shall said bonds be sold until applica tions from bona fde purchasers Of land az gregating sl0 ono 00 have been filed with and approved by the State Land Board. Said bonds shall bear interest at the rate of four per cent per an mum. and shall be exempt from tax aton by the State of Arkansas or any of it's subdivisions.
 Sec. l. Said State Land Board Is au- thorized and directed to loan the mon Loan Fund to bona fde purchasers of farm lands in Arkansas. upon notes SC cured by mortgages or deeds of trust constituting first liens on such farm lands in amounts which shall not ex- eeed seventy five per cent Of the an praised value Of such lands The cred it Of the State shall not be loaned to any person 10 purchase more than S1 acres of land, nor land alued al more than si0.dh per acre. Nor shall a loan Of less than s200.00 nor more than B. 0G000 be made to any purchaser Of land
 Sec 5. Such loans shall not be made except to owners who operate" and occupy" lands mortgaged. and shall he made for the following purposes. fa) The payment for lands purchased: tb1 tho purchase of live stock and oth- CT equipment. and the making of irn- .f It said board. will increase the produe- tivity Of such lands or add 10 their value as farm home in degree to 'tustify such expenditure; and tc) for the satisfaction of eneumbrances upon such lands, which, in the judgment of said board, Were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. G. Every applicant for a farm loan shall state clearly in his appliea- ton the purposes for which such loan is desired. and upon it's approval by 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 or enumerated herein shall inyalidate loan when once made, nor shall any thing herein contained be deemed 10 prevent any farm owner from selling or leasing lands subject to such in- cumbrance; but if he shall violate nis said contract by applying the. moneys borrowed to purposes other than those stated in his application or enumerated herein, or if he shall lease such lands or sell them to any person not fulhll- 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 no- tce. and said note or contract shall contain clause providing therefor.
 Sec. '. Such loans shall be repaid with interest aeeruing In annual fn- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in n period to be agreed on between said board and the applicant, said period to he not less than five nor more than thirty six years; but any debtor may llqui- date any part or all of his indebtedness iH amounts of S50e0 or multiples there of upon any amortization payment date.
 See. 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 te pay an initial charge Of l per cent Of the loan grant ed. the minimum charge to be Slo.uo to cover the cost of appraisal and eN- 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 afofe- said bonds, and all operating and other expenses arising from the administfa- tion of said system Of rural credits. shall be placed in the State Treasury and become part Of a fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall he 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 kansas Rural Credits Reserve Fund shall be added ta fl and become a part of it The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- eept that it may be drawn upon 10 re- fmburse the State for loss incurred in the administration of said system CT 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. equate safeguards against the use or 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 legts-
  it's enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by itself, but sub ject to the provisions herein contained
 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. The provisions of 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 IF. 1917.
 Each elector may vote for or against the above amendment
 Witness my official signature this. the 24th day of April 1918.
 fseaH TOM T TERRAL.
 Secretary of State.