Cleveland County herald., 1918-05-16

he satisfaction of encumbrances upon
,uch lands, which, In the judgment o.
aid board, were incurred or assulheId
~ said applicant for the atoresaiu
purposes.
Sec. g. Every applicant for farm
Dan shall state clearly in his appilca,
ION the purposes for which such io%
desired, and upon it's approval ny
ne board this statement shall pc uee ,
d part of the note or contract uhuea
Nnlch the loan is granted. buI ~. ~
allure to apply such funds 70 'ilr r
purposes stated in such application VI
Enumerated herein shall inyali1ats
oan when once made, nor shaI any
-hlng herein contained be deemeu ~
prevent any farm owner from seliina
Or leasing lands subject to such ~ ~
;umbrance; but if he shall violate ms
sald contract by applying the money
borrowed to purposes other than thoss
lated in his application or enumerat.u
Iereln, or II he shall lease such lanu'
nr sell them to any person not fulnll-
lli5 the conditions and purposes pro-
Vlded for herein. said board is author
lzed and directed to require the repay
tieht or said loan upon six months no,
zee, and said note or contract shali
contain clause providing therefor.
Sec. I. Such loans shall be repafd
WIN interest accruing in annual in
5tailments on the amortization plan,
s ,,rals lnstallments being fixed at sucn
sums as will cover the interest rate
ana VIII liquidate the debt in period
to be agreed on between said board
and the applicant, said period to be
not siy less less than five nor more than thirty
tx years; but any debtor may liqui-
Iate any part or all of his Indebtedness
IN amounts of $4,000 or multiples there
date
Sec. 8. The rate of interest on loans
Snail be five per cent per annum; pro-
vlded, that no Farm Credit Bonds shall
De sold Tor less than par; and pro-
V1ded further that the board shall re-
qulfe each applicant to pay an initial
charge of per cent of the loan grant
ed the minimum charge to be $1,000
to cover the cost of appraisal and eX-
animation OF title.
Sec 3. MI 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 administra-
ton of said system of rural credits,
shall be placed in the State Treasury
ana become 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
cfuing from loans made from said. Ar
kansas Rural Credits Reserve Fund
snail be added to it and become n part
OF 1t. The said Arkansas Rural Credits
IteSerNe FUND shall be irrcduciblc, eX-
cept that it may be drawn upon to re-
lmburse the State for loss incurred in
the administration of said system of
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
equatc 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 thu
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-
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 se1f-executins, and shall take
effect and be in operation SO 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 oath day of April, 1918
[Seall TOM J. TERRAL,
~ Secretary of State