The courier-index. (Marianna, Ark.) 1917-current, 1918-06-28

tho satisfaction OF encumbrances upon
ouch lands, which, In the Judgment OF
said board, were incurred or assumed
by said applicant for The aforesaid
purposes.
Sec s. Every applicant for = farm
loan shall state clearly In his appiica-
ton the purposes for which such loan
Is desired, and upon It's approval by
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 OF
enumerated herein shall invaIidate
loan when once made, nor shall any
thing herein contained be deemed to
prevent amy farm owner from geHinB
or leasing lands subject TO such IN
cumbrance; but IL he shall violate his
said contract by applying tho 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 Iuihi-
ing the conditions and purposes pro-
vided for herein, said board IS ausnor-
ICED and directed to require the repay
ment of said loaE upon six months no.
tice, and said note or contract shall
contain a clause providing therefor. j.
Sec. 7. Such loans shall DO repaid
with interest accruing In annual IN
stallments on the amortization plan.
such installments being hxed at such
sums will cover the interest rate
and will liquidate the debt In period
to be agreed on between said board
and the applicant said period to De
not less than Ave nor moro than thirty
six years; but any debtor may tqui-
date any part or all OF his indebtedness
in amounts of $1,000 or multiples there
OF upon any amortization payment
date.
Sec. 8. The rate OF interest on loans
shall be Ave 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 1 per cent OF the loan grant :
ed, the minimum charge to be $l0.oo
to cover the cost OF appraisal and ex-
animation of title.
Sec. 0. All surplus funds accruing
from the operation Of the system OF
rural credits herein provided for, after
paying interest accruins on the afore-
said bonds and all operating and other
expenses arising from the adlninistra-
ton OF said syston of rural credits.
shall be placed In the State Treasury
and become a part OF fund to DC
known as the Arkansas Rural Credit
Reserve Fund" Said Arkansas RuraI
Credits Reserve Fund shall BIO 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
OF it, The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
cept that IL may be drawn upon to re-
imburse 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 1t shall
leem advisable for the carrying out
and administering OF the provisions OF
this amendment. and shall provide ad-
equaGe safeguards against the use OF
UGH loans as an aid to the purchas-
ing and holding OF lands for the pur-
,oses of speculation. Such safeguards
hall include clear definitions of the
erms Operate" and occupy" used
erein. In the absence of such legis-
ttion and subject to the same after
IS. enactment, the State Land Board
hall proceed to administer said sys-
EN- OF rural credits under rules and
equations provided by itself. but sub
ect to the provisions herein contained.
Sec. IL. The provisions OF the Con-
titution OF Arkansas in conflict win
this amendment are hereby repealed. IN
so far only as they conflict herewith.
The provisions OF this amendment
hall be self-executing. and shall take
feet and be In operation so days AZ
rer their approval and adoption by the
,eople OF Arkansas.
Approved by the Governor, and Ms q
the office OF the Secretary OF State,
larch H. 1A7.
Each elector may s-ote for or against
ne above amendment.
witness my official signature this'
hes oath day OF Apsil -ASis.
fseal1 TOM J. TERRAL.
Secretary Of State.