The courier-index., 1918-08-09

the subtraction OF oncum ORANGES upon
such lands. which. in the judgment OF
by said applicant for the aforesaid
purposes. aa
Sec 6. Every applicant for farm
loan shall state clearly in his appl1ca-
ton the purposes for which such loan
is desired, and upon it's approval by
the board this statement shall be deem
eG part of the note or contract unoer
which the loan is granted But no
failure 10 apply such funds TO the
purposes stated in such application or
enumerated herein shall tnvaiidate
loan when once made. nor shall any
thing herein contained be deemed 10
prevent any farm owner from sehlhs
or leasing lands subject TO such IN
cumbrance: but IL he shall violate MS
said contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumerated
herein. or IL he shall lease such lanos
or sell them to any person not fulfill
ing the conditions and purposes pro-
vided for herein. said board Is author-
lied and directed to require the repay
ment of said loaE upon six months no.
tice. and said note or contract snail
co2sain clause providing THEREFOR
Sec. Z. Such loans shah be repaid
with interest accruing in annual M
stallments on the amortization plan.
such instaliments being hxed at such
sums as will cover the interest rate
and will liouidate the debt in a period
10 be agreed or between SAID boaId
and the applicant said period 70 be
not less than I'VE nor more than thirty
six years: but any debtor may iiqui-
date any part or all OF his Indebtedness
In amounts OF 5000 or multiples there
OF upon any amortization payment
date.
Sec. q. The rate of interest on loans
shall be hve 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 shan re-
quire each applicant to pay an initiai
charge OF ! per cent OF the loan grant
ed. the minimum charge 10 be $1,000
to cover the cost OF appraisal and ea-
animation Of title.
Sec. .. All surplus funds accruing
from the operation of the system of
rural credits herein provided for. after
paying interest accruing on the afore-
said BONDS. and all operating and other
expenses arising from the administfa-
ton of said system of rural eredits
shall be placed in the State Treasury
and become q part OF fund TO be
known as the Arkansas Rural Credit
Reserve Fund" Said Arkansas Rural
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 IL and become part
of IL. The said Arkansas Rural Credits
Reserve Fund shall be frreducible. ex-
| eept that IL 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
-hafl provide In such detail as II shall
deem advisable for the carrying out
and administering Of the provisions az
this amendment, and shall provide ad-
equate safeguards against the use or
such loans, as an aid TO the purchas-
'ng and holding OF lands for the puI-
/ 5oses OF speculation Such safeguafus
hall include clear definitions OF the
erms operate" and occupy" used
alton, and subject to the same after
IFS enactment, the State Land Board
ehaH proceed TO administer said sys-
tenn of rural credits under rules and
equations provided by itself, but sub
oct to the provisions herein contained.
Sec. H. The provisions of the Con-
stitution OF Arkansas In conflict with
! this amendment are hereby repealed, in
/ 90 far only as they conflict herewith.
The provisions OF this amendme MT
| shall be self-executing. and shall take
effect and be In operation so days ar
| ter their approval and adoption by the
| people OF Arkansas.
| + Approved by the Governor. and ft1ed
| N the office OF the Secretary OF State,
| March ~ 1917.
Each eleetor may s~oic for or against
4 he above amendment.
/ Witness my official signature this,
| he 24th day OF April, 1S1e.
| IHsMl1 TOM J. TERRAI.
| Secretary OF 6tate.