The Dermott news. (Dermott, Ark.) 1910-1977, 1918-08-08

tbs satisfaction Of encumbrances upon
such lands. which. I'm 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-
ton the purposes for which such loan
! IS desired, and upon its approval ps
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 70 lhe
purposes stated in such Application OF
enumerated herein shall invalldate a
loan when once made. nor shat an!
thing herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject 10 Such N
cumbrance; but II he shall violate MS
said contract by applying the moneys
borrowed TO purposes other than those
stated III his appli Cation or enumerated
herein. or il he shall lease such lands
or sell them to any person not tuiaii'
ing the conditions and purposes pro-
vided for herein. said board rs author
lied and directed 10 require the repay
ment OF said loan upon six months no
tice. and said note or contract shaH
contain a clause providing therefor.
Sec. Z Such loans shall be repaid
with interest accrufuE in annual III
stallmeutS on the amortization plan
such installtnents beiu& dSsi at such
sums as viii cover the interest rate
and Will liquidatc the debt in period
To be agreed on between said board
and the applicant. sad period 10 be
not less than five nor fp9EA than thirty
six years. but any debtor may itlU-
date any part or all of his iudebt "dnesS
in amounts OF $1,000 Or multiplrs there
Of upon any amortization payment
date.
Sec. 8 The rate of interest on loans
shall be five per cent per aunum. pro-
vded. that no Farm Credit Bonds shall
be sold for less than par; and pro-
vided further that the board shall Re
4uire each applicant tn pay an initial
charge or / per cent Of ths loan Grant
ed. the minimum charge to he $40 oe
to cover the cost OF appraisal and eS-
animation OF title.
See. 9. All surplus funds sccrutag
from the operation OF the system or
rural credits herein provided Tor. after
paving interest accriiinG on the nfofe-
said bonds and all operating and Other
expenses arising from the adniintStra
ton of said system or rural credits.
shall be placed in the State Treasury
and become a part Of fund 10 he
known as the arkansas Rural Crcdli
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 ae-
cruinE from loans made from sud Ar
kansas Rural Credits ReEctN" Fund
StdIl Dc dllfu 70 II anu bfthil'' I IN
Of it The said Arkansas Rural Credit
Reserve Fund shalt be irreducthlC. cN-
cept that Il may BE drawn upon 10 e
imburse the State for loss incurred n
the administra OF said system Of
rural credits
Sec. 10. The Legislative Assembly
shall provide In such detail as It shall
deem adVtsable for the carrytu. out
and administering or the provisions Of
this amendment. and shalt provide al
equate safeguards against the use OF
such loans as an aid 10 the purchas-
ing and holding Of lands for the put-
poses of speculation Such safecuardS
shall include clear dennitiOns o. the
terms Operate" and occupy used
herein. In the absence of such leEts
its enactment. the State Land Board
shall proceed to administer said sy.-
tenn OF rural credits under rules and
regulations provided b. ITSELF bur sub
Jet to the provisions herein contained.
Sec. IL. The provisions o: the Con-
stitution OF Arkansas in conflict with
this amendment are hereby repealed. in
far only as they conflict herewith.
The provisions Of this amendment
shall be seif-eNecuting. and shalt take
effect and be in operation 90 days ar
ter their approval and adoption BY the
people OF Arkansas
Approved by the Governor and Glrd
In the office OF the Secretary OF State.
March l.. 1917.
Each elcctor may vote for or against
the above amendment
witness my official signature this
the 2tth day of Ap~il, 1915.
Seal TOM J. TERRAL,
Secretary OF State.