Cleveland County herald., 1918-06-27

tho satisfaction Of encumbrances upon
such lands, which, in the Judgment Of
| Gaia board, were incurred or assumed
by said applicant for the aforesaid
! purposes.
Sec. 6. Every applicant for a farm
loan shall state clearly in his applica-
ton the purposes for which such loan
] Is desired and upon its approval by
| the board this statement shall be deem
ed a part OF the note or contract under
| winch the loan is granted But no
failure to apply such funds to the
! purposes stated In such application or
| enumerated herein shall invalidate
roam when once made, nor shall any
th1ng herein contained be deemed TO
prevent any farm owner from selling
or leasing lands subjects to such In
eumbrance; but if he shall violate ms
sara contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumerated
herein, or IL he shall lease such lands
or sell them to any person not fulhll-
ing the conditions and purposes pro-
vlded for herein, said board Is author
lied and directed to require the repay
rnsnt of said loan upon six months no.
tlce, and said note or contract SHAH
contain clause providing therefor.
sec. Z. Such loans shall be repaid
with interest accruing in annual In
sta llments on the amortization PLAN
such fnstallments being fixed at such
sums as will cover the interest rate
to be agreed on between said board
ana the applicant. said period to be
not less than five nor more than thirty
SIX years; but any debtor may liQuf-
date any part or all of his Indebtedness
IN amounts of $4,000 or multiples there
or upon any amortization payment
date.
Sec. s. The rate OF interest on loans
shall be five per cent per annum; pro-
V1ded, that no Farm Credit Bonds shall
pc sold for less than par; and pro-
vided further that the board shall re-
qulre each applicant to pay an initial
charge of per cent of the loan grant
cd the minimum charge to be $1,000
to cover the cost of appraisal and ex-
animation OF title
Sec .. All surplus funds accruing
from the operation OF the system of
rural credits herein provided for. after
paving interest accruing on the afore
said bonds, and all operating and othe
expenses arising from the administra-
tion OF said system of rural credits,
shall be placed in the State Treasury
ana become part of fund to be
known as tho 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 nc
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to 1t and become a part
or 1t. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that 1t may be drawn upon to re-
lmburse the State for loss incurred in
the administration of said system OF
rural credits
Sec. o. The Legislative Assembly
snail provide In such detail as 1t shall
deem advisable for the carrying out
ana administering OF the provisions OF
this arnendmeht, and shall provide adj
equAte safeguards against the use of
suoh loans as an aid to the purchas-
~ hN!I
poses OF speculation. Such safeguards
shall include clear definition. OF the
terms operate" and occupy" used
herein, In the absence of such legis-
latfon, 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
ject to the provisions henein contained
Sec. II. 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 so days ar
ter their approval and adoption by the
people of Arkansas
Approved by the Governor, and filed
~ the offiee 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