Sharp County record., 1918-07-12

IA zattsfaetion Of eneambrances upoI
sash lands, which, in The luuglhemr ei
snil board, were incurred OF assume
~ ssiS snnlicant for the atoTesalu
Go. !. Every applicant for uIaddl Iarm
losa shall state clearly IN ms ap app1lC Loan
tl1R the purposes for which such - ~
is 6ssired, and upon its appfoNsSI a.! y!
tas board this statement shalI pe 'o5ar
ed q cart of the note or contract No
walsh the loan is granted. tbe
fsll5re to apply such 1unus tion or
purposes stated in such apphcatioh
sasSnerated herein shall invalGaIe
loas when once made, nor shaL an!
tbIxx herein contained be deeileu "
prevent any farm owner from H ir
or easing lands subject to sucH IL
cumbrance; but if he shall vlolate I-s
ssi4 contract by applying tne h4 those
borrowed to purposes other than to6 tnV6
stated in his application or enumefatsu
aeYets, or II he shall lease such lanas
or ssll them to any person not luIIl1
ing the conditions and purposes pIo
vidsd for herein, said board IS authoi
lied and directed to require the
!nent Of said loan upon six months M
tIce, and said note or contract sI"ii
contain a clause providing thele4oi,
Sec. Z. Such loans shall pc r1pa.u
with interest accruing In annue!
stallments on the amortization plalt'
such installments being fixed al sutn
sums as will cover the interest ratS
and will liquidete the debt in perloG
to be agreed on between SAID ooaLu
and the applicant, said PERIOD 10 ue
not less than five nor more than tn!rlg
six years; but any debtor may HquI-
date any part or all Of his Indebtedness
in amounts Of $4,000 or multiples there-
Of upon any amortization pay'1eh'
Date.
Sec. 8. The rate of interest on loans
shall be Ave per cent per annumi pro-
vided, that no Farm Credit Bonds shaH
be sold for less than par; and pro
vided further that the board shan re-
cuire each applicant to pay an hIu%'
charge Of / per cent of the loan grant
81, the minimum charge to be $loOo
10 cover the cost of appraisal and eA-
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 atore-
said bonds and all operating and otheF
expenses arising from the admlnlslra-
ton Of said system of rural credits
shall be placed in the State Treasury
and become a part of a fund to be
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 ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to ii and become part
OF IT, The said Arkansas Rural Credits
Reserve Fund shall be irreducible, eX-
cept that It may be drawn upon to re-
imburse the State for loss incurred in
the administration Of said system or
rural credits
Sec. 10. The Legislative Assembly
shall provide in such detail as it shall
deem advisable for the carrying out
and administering of the provisions or
this amendment, and shall provide ad.
equate safeguards against the use Of
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 legis'
lation, and subject to the same after
its enactment, the State Land Board
shall proceed to administer said sys-
TEN Of rural credits under rules and
regulations provided by itself, but sub.
ject to the provisions herein contained.
Sec. II. The provisions Of the Con-
stitution Of Arkansas in conflict with
his 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 GO 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 elector may vote for or against
| the above amendment
witness my official signature this,
the cath day OF April, 1918
[Seal1 TOM J. TERRAL,
Secretary Of State,