The Springdale news., 1918-07-12
If it happened it's in The News.

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If it happened it's in The News.
.sonds." In al amount not to exceed
two per cent of the assessed valuation
OF all the property in the State. and
Treasury in fund to be known as the
Arkansas Rural Credits Loan Fund"
Sec 3 Said bonds shall be issued
IN denominations OF $4,000, $4,000.
$500 90 and 100000 and shall be Ia
sued in series of 100000 or multi
Piles thereof. drawn to mature In not
more than thirty-si1 years. nor shall
said bonds be sold until applications
from bona hde purchasers OF land ag-
gregating SIC oooo have been filed
with and approved by the State Land
Board. Said bonds shall bear interest
at the rate of four per cent per
mum. and shall be exempt from tax
alton by the State of Arkansas or any
OF its subdivisions
Sec. l. Said State Land BOARD IL au-
thorized and directed to loan the mon
eys in said. Arkansas Rural Credits
Loan Fund 70 bona nde purchasers of
farm lands in Arkansas upon notes Sc
cured by mortgages or deeds OF trust
constituting first liens on such farm
lands in amounts which shall not cx-
coed seHentH-five per cent OF the ap-
praised value of such lands. The cred
Il Of the State shall not he loaned 10
a0v person to purchase more than 50
acres Of land. nor land valued al more
than $50 90 per acre. Nor shall a loan
Of less than s2oo.o0 nor more than 81
ooe 90 be made to any purchaser Of
land.
Sec g. Such loans shall not be made
except 10 owners who Operate" and
"oceurv" lands morteaeed and shall
be made for the following purposes:
Ia The payment for lands purcha sed:
(bl tho purchase OF live stock and 9TH
81 edatpme nj. and the Hea'tinE Of I'm
nrrvef1@nte Which - - Judgment Of
sold hnnrS "fi increasA Tho produce
tivity Of such lands or add TO their
value az n farm home I'm a degree to
Justify such expenditure; and tc) for
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 6. Every applicant for a farm
loan shall state clearly in his applica-
tion the purposes for which such loan
is desired, and upon its approval by
the board this statement shall be deem
ed a 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 10
prevent any farm owner from selling
or leasing lands subject to such In
cumbrance: but II he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumerated
herein. or II he shall lease such lands
or sell them to any person not fuinii-
ing the conditions and purposes pro-
vided for herein, said board Is author
ICED and directed to require the repay
ment of said loan upon six months no.
tice and said note or contract shall
contain a clause providing therefor.
Co. - 1a
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 liauidate 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
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. 8. 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 s10.0o
to cover the cost of appraisal and ex-
animation of title.
Sec. g. All surplus funds accruing
from the operation of the system or
rural credits herein provided for. after
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 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-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to il and become part
OF IL. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
cept that il may be drawn upon to re-
imbursS the State for loss incurred in
the administration OF said system or
rural credits.
Sec 10 The Legislative Assembly
shall provide in such detail as Il shall
deem advisable for the carrying out
and administering OF the provisions OF
this amendment. and shall provide ad-
equate safeguards against the use or
such loans as an aid to the purchas-
ing and holding of lands for the pur-
poses OF speculation. Such safeguards
shall includes clear definitions OF the
terms operate" and occupy USED
herein. In the absence of such legis-
iation. and subject TO 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 SUD-
tect 70 the provisions herein contained.
Sec. II. The provisions OF the Con-
stitntion of Arkansas in conflict with
this amendment are hereby repealed. "a
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 at
ter their approval and adoption by the
people OF Arkansas.
Approved by the Governor and fled
in tire office OF the Secretary OF State.
March IT. 1917.
Each elector may vote fer or against
the above amendment.
witness my official signature TINS.
the Gath day of April. 1918.
Tseail TOM J. TERRAL.
Secretary Of State.