The Nevada County picayune., 1918-10-17

the satisfaction of encumbrances upon Such lands. which, in the Judgment Of said board. were incurred or assumed Dy said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm loan shall state clearly in his appliea- LIoh the purposes for which such loan !s desired. and upon it's approval by i the board this statement shall be deem aI part of the note or contract under winch the loan Is granted. But no Iditure tO apply such funds to the purposes stated in such application or enumerated herein shall invalidate loan when once made, nor shall any lhthS 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 to any person not fulnll- ing the conditions and purposes pro- Vided for herein, said board is author ized and directed to require the repay Fnent of said loan upon six months no- tIee and said note or contract shall contain clause providing therefor.
 Sec. ' Such loans shall be repaid with interest aecruing in annual tn- stallments on the amortization plan, such tnstallments being fixed at such sums as will cover the interest rate and will liquidate 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 dehtar may liaui- date any part or all of his indebtedness III amounts of 5000 or multipies there date
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro- vlded. that no Farm Credit Bonds shall a Gn laa- 9ided further that the board shall re- qutre each applicant to pay an initial charge of 1 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. . All surplus funds accruing rom the operation of the system of rural credits herein provided for. after paying interest accruing on the afore- said bonds. and all operating and other expenses arising from the adminstra- ton of said system of rural credits. shall 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- cruing from loans made from said Ar kansas Rural Credits Res rye Fund shall be added to it and become part nf It. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex rept that it may he drawn upon Go re- inburse the State fer loss incurred in the administration of said system of rural credits.
 Sec. Q. 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 as aid to the purchas- ing and holding of lanas 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 shall proceed to administer said sys tenn of rural credits under rules and regulat tfons provided by itself. but sub te0t to the provisions herein contained.
 See. Il. The provisions of the Con ;tttation of Arkansas in conflict with this amendment are hereby repealed in The provisions of this amendment shall be self-axeeHtinG. and shall take H"ect and be in operation so days af ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed n the office of the Secretary of State, Iarch IT, 1917.
 Each eleetor may vote for against she above amendment.
 Witness my official signature this the 24th day of April. 1918.
 TSeaU TOM I TERRAL.
 Secretary of State.