The Monticellonian. [volume] (Monticello, Ark.) 1870-1920, 1918-05-10

f,a satisfaction OF enenmbranees upon
such lands. which in tire Judgment OF
said board, were incurred or assumed
by said applicant for the AFORESAID
purposes. ~. - f.,,
loan shall state clearly in his appllca-
ZION the purposes for when such ioah
is desired, and upon its approve by
the board this statement snail De ueeih-
cd a part of the note or contract under
which the loan is granted. But no
failure to apply such funds 70 the
purposes stated in such application or
enumerated herein shall lnVaIldate
loan when once made, nor shaII an?
thing herein contained be deemed TO
prevent any farm owner from selllnS
or leasing lands subject to such III
cumbrance; but If he shau Nlolate ms
said contract by applying the moneys
borrowed to purposes other man n,1s
stated in his application or enumerated
herein. or if he shall lease sueh lanas
or sell them to any person not lulllii-
ing the conditions and purposes pro
vided for herein, said board IS authoI
lied and directed to require the repay
ment of said loan upon six months no,
tice. and said note or contract snail
contain a clause providing thefelor.
Sec 7. Such loans shall be repaid
with interest aecraing in annual IN
sediments on the amortization plan,
such installments being fixed at such
sums as will cover the interest rate
and will iiQuidate the debt IN peflo9
to be agreed on between salo poala
not less than five nor more than thirty
six wears; but any debtor may l1qui-
date any part or all of his Indebtedness
in amounts of $4,000 or multiples there-
of upon any amortization payment
See. 8. The rate Of interest on loans
shall be five per cent per annum; pro-
vided, that no Farm Credit Bonds shan
be sold for less than par; ana pro
vided further that the board shall re-
azure each applicant to pay an lnitiai
charge of per cent Of the loan grant
ed the minimum charge to be Slo'oo
to cover the cost of appraisal ana eX-
animation of title.
Sec, Q. All surplus funds accruing
from the operation of the system OF
rural credits herein provided for, AFTER
paving interest aCcrutng on the aIofe-
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
and become a part of fund 10 pc
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 Rurai
Credit Loan Fund, and the interest &C
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall he added to II and become a part
of it The said Arkansas Rural Credits
Reserve Fund shall be irreducibie, eX-
cept that 1t 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 snail
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 to the pufchas-
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
its enactment the State Land Board
shall proceed to administer said sys-
TEN OF rural credits under rules and
regulations provided by itself. but sub
jet 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 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 Il, 1917.
Each elector may vote for or against
the above amendment.
Witness my official signature this,
the Gath day of April 1918.
ISeal1 TOM J. TERRAL.
Secretary OF State.