The Springdale news., 1918-05-31

 Bonds" in uI amount not to exceed two per cent of the assessed valuation of Ill the property in the State and to place the proceeds in the State Treasury in fund to be known as the Arkansas Rural Credits Loan Fund"
 See 3. Said bonds shall be issued in denominations of s25.00 s100.o0. tbo0.00 and $1.06o.00. and shall be Is sued In series of s10.o00.n0 or multi ples thereof. drawn 10 mature in not more than thirty-six years; nor shalt said bonds be sold until applications from bona hde purchasers of land az gregatiny t1a000 co have been filed with and approved by the State Land Board. Said bonds shall bear interest at the rate of four per cent per an mum. and shall be exempt from tax ation by the State of Arkansas. or any of it's subdivisions,
 Sec { Said State Land Board is an- thorized and directed to loan the mon eys in said Arkansas Rural Credits Loan Fund 10 bona fde purchasers of farm lands in Arkansas, upon notes SC cured by mortgages deeds of trust constituting first liens on such farm lands in amounts which shall not ex- ceed sevent--fve per cent of the ap- praised value of such lands. The cred It Of the State shall not be loaned ie any person to purchase more than 50 acres of land. nor land valued at more than $50 GO per acre Nor shall a loan
 1Y n00 60 be made to any purchaser oe land
 Sec 5 Such loans shall not he ma de except to owners who operate" and Occupy" lands mortgaged and shall be made for the following purposes: ta) The payment for lands purchased: : th) the purchase Of live stock and oth- CT equipment and the making of i'm provements which. in the judgment of said board will increase the produc. af to hstr value as farm home in degree to justify such expenditures; and fc) for the satisfaction Of eneumbranees upon such lands, which, in the Judgment of said board were incurred or assumed by said applicant for the aforesaid purposes.
 See. 6. Every applicant for a farm loan shall state clearly in his applica- ton the purposes for which such loan Is desired. and upon its approval by the board this statement shall be deem cd part of the note or contract under which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate loan when once made, nor shall any thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such in- cumbrance; but if he shall violate his said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerated herein, or if he shall lease such lands or sell them 10 any person not fulfill ing the 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 mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. [ Such loans shall be repaid with interest accruing in annual in stallments on the amortization plan, such installments being fixed at such sums as will cover the interest rate and will iiquidate the debt in a period to be agreed on between said board and the applicant. said period to be not less than five nor 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. g. 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; and pro vided further that the board shall re- quire each applicant to pay an initial charge of per cent of the loan grant ed, the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds aceruing from the operation of the system of
 
 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 and become part of fund to De 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 Ha mt cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to t and become a part Of it. The said Arkansas Rural Credits Reserve Fund shall be frreducibfe. ex- cept that 1t may be drawn upon to re- mburse 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 II shall deem advisable fer the carrying out and adm inistering of the provisions or this amendment. and shall provide ad- eQuate safeguards against the use or such loans as an aid 10 the purchas- 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- 1ation and subject fo the same after its enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by itself. but sub jeet to the provisions herein contained
 See IT. 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 r. 1917.
 Each elector may vote for or against the above amendment.
 Witness my official signature this. the 24th day of April, 1918.
 fSeall TOM !. TERRAI1