Sharp County record., 1918-07-05

- aslsfaetion Of ensombrances upo,
sseA lands, which, in the Judgment o,
seso Board, were incurred OF assumed
oy aAid applicant for the aforesaid
10. q. Every applicant for a farm
loae shall state clearly in his appliea-
tteo us purposes for which such loan
s cesired, and upon its approval by
ne ooard this statement shall be deem
ec Fart OF the note or contract under
Meeo the loan Is granted. But no
IsiIars to apply such funds to the
purposes stated in such application or
enUnerated herein shall invaiidate
% when once made, nor shall any
thsn1 herein contained be deemed to
prevent any farm owner from selling
or leasing lands subject to such in
cumbrance; but II he shall violate his
sate contract by applying the money
borrowed to purposes other than those
stated In his application or enumerated
hersfn Or II he shall lease such lands
or sell them to any person not fulfill
Ing ne conditions and purposes pro-
vided for herein, said board Is author
ized and directed to require the repay
ment OF said loan upon six months no,
tice and said note or contract shall
contain clause providing therefor.
sec. T. Such loans shall be repaid
with interest accruing in annual In
sta!lments on the amortization plan,
such tnstallments being hxed at such
sums as will cover the interest rate
and VIII liquidate the debt in period
to be agreed on between said board
and the applicant, said period to be
not less than five nor more than thirty
sax years; but any debtor may liqui-
dats any part or all Of his indebtedness
IN amounts Of $4,000 or multiples there
OF upon any amortization payment
Sec. 3. The rate Of Interest on loans
shall be fve per cent per annum; pro-
vided. that no Farm Credit Bonds shall
% sold for less than par; and pro
Vlded further that the board shall re-
luire each applicant to pay an initial
charge Of per cent OF the loan grant
ID, the minimum charge to be $1,000
% cover the cost Of appraisal and ex-
animation Of title
Bee. g. All 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-
uon Of said system OF rural credits.
shall be placed in the State Treasury
ana become q part of 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 ac-
crutng 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 irreducible, ex-
sept that It may be drawn upon to re-
lmburse the State for loss incurred in
N G tra ~
rural credits.
Sec. 10. The Legislative Assembly
shall provide In such detail as II shall
ieem advisable for the carrying out
md administering Of the provisions Of
this amendment and shall provide ad-
squate safeguards against the use OF
such loans as an aid to the purchas-
ng and holding of lands for the pur-
ooses Of speculation. Such safeguards
shall include clear definitions of the
terms Operate" and occupy" used
herein. In the absence OF such legis,
alton, and subject to the same after
is enactment, the State Land Board
'hall proceed to administer said sys.
.em of rural credits under rules and
"egulations provided by itself, but sub
ect to the provisions herein contained.
Sec. II. The provisions OF the Con-
'titution OF Arkansas In conflict with
his amendment are hereby repealed, In
10 far only as they conflict herewith.
rhe provisions. of this amendment
shall be self-executng, and shall take
Affect and be In operation 80 days af-
:er 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
.he above amendment.
witness my official signature this.
The cath day Of April 1918.
rScal1 TOM ]. TERRAL,
Secretary OF StstA.