The Springdale news. [volume] (Springdale, Ark.) 1887-1990, 1918-09-27

the satisfaction or encumbrances upon
such lands, which. In the Judgment Of
said board. We're incurred or assumed
by said applicant for the aforesaid
purposes
See. t. Every applicant for a farm
loan shall state clearly in his appliea-
ton the purposes for which such loan
is desired. and upon its approx al by
the board this statement shall be deem
ed a part OF the note OF 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 invalidate
loan when once made. nor shall any
thing herein contained be deemed TO
prevent any farm owner from selling
or leasing lands subject to such IN
eumbrance. but If he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerated
herein, or II he shall lease such lands
or sell them to any person not fulhil-
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
tice. aud said note or contract shall
contain a clause providing therefor.
Sec 7. Such loans shall be repaid
with interest aeeruing in annual in
stallments on the amortization plan,
such instaliments being fixed al such
sums as viii cover the interest rate
to be agreed on between said board
and the applicant. said period 10 be
not less than five nor more than thirty
six years; but any debtor may lidui-
date any part or all Of his iHdebte dress
IN amounts Of $1,000 or multiples there
Of upon any amortization payment
date
Sec. 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-
vlded further that the board shall re-
quire each applicant TO pay an initial
charge OF per cent OF the loan grant
ed, the minimum charge to be 5000
to cover the cost OF appraisal and ex-
animation OF title
Sec. 8. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for. after
paying interest aecraing oil the afare-
said bonds. and all operating and other
expenses arising from the admialstra-
ton Of said system OF rural credits
shah be placed in the State Treasury
and become a part OF Il fund to he
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 10 IL and become part
Reserve Fund shall be irredueible, e&-
eept that IL may be drawn upon to re-
tmburse 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 OF
this amendment and shall provide adj
equate safeguards against the use OF
such loans as an aid 10 the purchas-
ing and holding OF lands for the pur-
poses of speculation Such safeguards
shalt include clear definitions OF the
terms operate and occupy" used
herein. In the absence or such legis-
Ia ton 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
jeet 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 nled
In the office OF the Secretary OF State.
March H. 1917
Each elector may vote for or against
the above amendment.
witness my official signature this.
the gath day OF April 1918.
fSeail TOM ]. TERRAL.
Secretary OF State