Cleveland County herald., 1918-06-13

ths satisfaction Of eneumbrences upon
such lands, which, in the judgment of
sntd board, were Incurred or assumed
oy 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 it's approval by
the board this statement shall be deem
ed 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 IL he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated In his applica tion or enumerated
herein, or II he shall lease such lands
or sell them to any person not fulnl-
Ing the conditions and purposes pro-
vfded for herein, said board Is author
'zed 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. Z. Such loans shall be repaid
with interest accruing in annual In
sta!lments on the amortization plan,
fuch installments being fixed at such
sums az will cover the interest rate
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. S. The rate of interest on loans
snail be five per cent per annum; pro-
v1ded, that no Farm Credit Bonds shall
be sold for less than par; and pro-
v1ded further that the board shall re-
qulre each applicant to pay an initial
charge of l per cent of the loan grant
ed, the minimum charge to be $1,000
TO cover the cost of appraisal and cx-
animation OF title
Sec. 9. All surplus funds accruing
from the operation of the system of
rura credits herein provided for. after
paving interest accruing on the aforc-
said bonds. and all operating and other
expenses arising from the administra
tlon OF said system of rural credits,
snail be placed in the State Treasury
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-
crulnE from loans made from snid Ar
Kansas Rural Credits Reserve Fund
shall be added to It and become a part
" II. Inc SAID ArkanSRs Rural Credits
Reserve Fund shall be irreducible, ex-
cept that 1t may be drawn upon to re-
lmburse 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 1t shall |
deem advisable for the carrying out
and administering of the provisions OF
this amendment, and shall provide ad- |
equate safeguards against the use of
such loans az an aid to 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- |
lation, and subject to the same after |
it's enactment, the State Land Board f!
shall proceed to administer said sys-
regulations provided by itself. but sub |
ject to the provisions herein eantained.
Sec. II. Fha provisions of the Con-
Of Arkansas in conflict with
this amendment are hereby repealed, in
go far only as they conflict herewith.
The provisions of this amendment
shall be self executing, and shall take |
effect and be In operation so days af-
ter their approval and adoption by the
people OF Arkansas.
Approved by the Governor, and nied
In the office Of the Gessetary OF State. 1,
Marsh II. idit,
Each eieet6P may vote for or against
the above amendment.
Witness my official signature this,
the oath day of April, 1913.
(Seal] TOM J. TERRAL.
Secretary OF State.