Cleveland County herald., 1918-08-08

the satisfaction of encumbrances upon
such lands, which, in the judgment o!
said board, were incurred or assum1SS
by said applicant for the atoresAi"
purposes.
Sec 6. Every applicant for a farm
loan shall state clearly in his appiiio
ton the purposes for which sucn Nv
is desired, and upon its appIo'ai
the board this statement SHAH De ,dsr
ed part of the note or contract IN 10
which the loan is granted. Pu' ~.
failure to apply such funds 20 ~
purposes stated in such appilcatioi
enumerated herein shall invaluas
loan when once made, nor shal
thing herein contained be deemeu
prevent any farm owner from sehine
or leasing lands subject to sucn NC
cumbrance; but If he shall Vloldte -
said contract by applying the
borrowed to purposes other than those
stated In his application or enume,aS
herein, or IL he shall lease sucn l 1nv.
or sell them to any person not Iu.
Ing the conditions and purposes Pr
vided for herein, said board is author
lied and directed to require tho repay
ment of said loan upon six months MI
tfce. and said note or contract sh""
contain clause providing there.or
Soc. 7. Such loans shall be repair
with interest accruing in annual M
stallments on the amortization plan
such fnstallments being hxed AT suen
sums as will cover the interest rats
=
TO De agreed on between said poeIo
and the applicant. said period to De
| not less than hve nor more than thirty"
six years; but any debtor may nQul-
date any part or all of his Indebtedness
in amounts of $4,000 or multiples there.
or upon any amortization payment
date.
Sec. 8. The rate OF interest on loans
yided. that no Farm Credit Bonds shall
pc sold for less than par; and pro-
v1ded further that the board shall re,
quire each applicant to pay an initial
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
rural credits herein provided for: after
paying interest accrufng on the aforc-
said bonds and all operating and other
expenses arising from the administra-
shall be placed in the State Treasury
ana become part of q fund to be
known as the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
on farm lands in the manner herein
provided for tho Arkansas Rural
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 a part
OF 1t. The said Arkansas Rural Credits
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 adj
eQuate safeguards against the use OF
such loans as an aid to the purehas-
ing and holding OF lands for the pur-
poses OF speculation. Such safeguards
shall include clear definitions of the
forms operate" and occupy" used
herein. In the absence Of such legis-
1ation, and subject to the Same after
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
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 az
ter their approval and adoption by tn Q
people of Arkansas.
Approved by the Governor, and ilec
In the office of the Secretary of State,
March II, 1917.
Each elector may vote for or against
the above amendment.
Witness my official signature this.
the oath day Of April, 1918
tSeal1 TOM J. TERRAL,
Secretary of State,