Cleveland County herald. (Rison, Ark.) 1888-current, 1918-09-26
CLEVELAND COUNTY HERALD, RIsoN ARK.

the Satisfaction of encumbrances upon
such lands, which, in the judgment OF
said board, were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec. g. Every applicant for a farm
toan shall state clearly In his applica-
ton the purposes for which SUCH ioan
rs desired, and upon Its approval py
the board this statement shall be deem
ca part OF the note or CONTRACT uhucl
which the loan is granted. But no
failure to apply such funds TO 'ne
purposes stated in such apphcation VI
enumerated herein shall invaldate a
loan when once made. nor shaH any
thing herein contained be deemed 10
prevent any farm owner from seHihs
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 tho"e
stated in his application or enurnerateo
herein. or II he shall lease such ienos
or sell them to any person not 1ulnll-
ing the conditions and purposes pro-
vided for herein said board is autnor'
lied and directed to require the repay
ment of said loan upon six months no
t1ce, and said note or contract snaH
contain a clause providing therefor.
Sec. Z. Such loans shall be repair
with interest accruing in annual IN
stallments on the amortization plan.
such tnstallments being fixed at sucn
sums as will cover the interest rate
and will 1iquidate the debt in a period
10 De agreed on between said board
and the applicant, said period to De
not less than f1ve nor moro than thirty
SIX years; but any debtor may liqui-
GATE any part or all of his indebtedness
IN amounts of $4,000 or multiples there
date.
Sec. 8. The rate of interest on loans
shall be five per cent per annum: pro-
v1oed, that no Farm Credit Bonds shall
pc SOLD for less than par; and pro-
v1ded further that the board shall re-
charge of l per cent of the loan grant
co. the minimum charge to ba $1,000
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 accrutng 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 rarm 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
W ouueu " IL 6HO become q part
Of 1t. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that 1t may be drawn upon to re-
1mburse 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
ana administering of the provisions OF
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-
shall include clear definitions of the
terms operate" and occupy" used
herein. In the absence of such legis-
latfon, and subject to tho 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
Jet to the provisions herein contained.
Sec. II. The provisions of the Con-
stftutfon Of Arkansas in conflict with
this amendment are hereby repealed in
The provisions Of this amendment
shall be self-executing, 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 IT, 1917.
Each elector may vote for or against
the above amendment.
Witness my official signature this,
the oath day OF April. 1918.
lSeal1 TOM J. TERRAL,
Secretary of State.