The Monticellonian. [volume] (Monticello, Ark.) 1870-1920, 1918-07-19

ss,,afsetion of encumbrances upon
such lands. which, in the judgment OF
said board. were incurred or assumed
oy said applicant for the AFORESAID
purposes. =. 60,
faan shall state clearly in his applica-
ton the purposes for which such loan
IL desired. and upon its approval py
tho board this statement SHAH pc deeih-
ID a part Of the note or CONTRACT uhuei
which the loan is granted Bat no
fefIi:ra to apply such funds to the
purposes stared in such Application or
enumerated herein snail Inv aliu "a te q
loan Whom once madc, nor snail any
thing hcfeln contained ne usci'te si,,' ~
prevent any farm owner from seliHs
or lea ing lands subject to Such IN
cunbr. nee: but if he shall violate ms
said contract BY applying the moneys
borrow 10 purposes other thah thVsS
stated in has application or enumerated
herein ar If he shall lease such lanaS
or sell them to any person not fdihll-
inc the conditions and purposes pro
yided ior herein, said board = authof-
lied and directed to require the repay
ment Of said loan upon SIX months no
tiee and said note or contract Silat
contain Il clause providing therefor.
Sec. :. such loans shall be repaid
with interest acCruing IN annual IN
stallments on the amortlzatioh plan'
such iaStalImerts beinG hNed al such
su,ns as will cover the interest rate
and VIII iquidate the debt in perlod
to be agreed on between sald board
and the applicant said Petlod 70 -, De
not less than five nos more than thirty
six years; but any debtor may liqui-
date any part or all of his Indebtedness
IN amounts of 5000 or multiples there
of upon any amortization payment
date
Sec. &. 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; ana pro-
vfded Farther that the board shall re
quire each applicant to pay an initial
charge of l per cent of the loan grant
ed the minimum charge to be $lo,Oo
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
pa ing interest accruing on the afore-
SAID bonds. and all operating and other
expenses arising from the administra-
tion OF said system of rural credits,
shall hn placed in the State Treasury
and become part OF FUND TO ne
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 &C
cruing from loans made from said Ar.
kansas Rural Credits Reserve Fund
| shall be added To it and become part
| of ii. The said Arkansas Rural credits
! Reserve Fund shall be irredueible. ex-
! cept that it 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
| shall provide in such detail as 1t 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
| ing and holding of lands for the pur-
| poses of speculation. Such safeguards
| shall include clear definitions of the
terms Operate" and occupy" used
| herein. In the absence of such legis-
! lation, 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 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 se1f-exeeuting. and shall take
| effect and be in operation go 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 9th day of April. 1918.
| tSeall TOM J. TERRAL.
| Secretary OF State.