Pine Bluff daily graphic., 1918-09-12

shs satisfaction of encumhrances upoh such lands, which, in the JudSmen, o' said board, were incurred or assume. by said applicant for the aforesa'e purposes.
 Sec G. Every applicant for iar'i loan shall state clearly in his apPl,ici tion the purposes for which such 'oa. is desired and upon its approNal ns the board this statement shall De dec,'' ed a part of the note or contract uhocI which the loan is granted. But no failure to apply such funds 10 tnH purposes stated in such application or enumerated herein shall inval1date loan when once made. nor sEall a"t . thing herein contained oe oeeHitu 'u prevent any farm owner from seli'"s or leasing lands subject to such , ,h- cumbrance: but if he shall violate ms said contract by applying the mone: borrowed to purposes other tran th"s stated in his application or enumera'f" herein. or if he shall lease such iaunS or sell them to any person not fulf'l- ing the conditions and purposes pro vided for herein, said board Is author- ized and directed to require the repay ment of said loan upon six months no tice, and said note or contract snail contain a clause providing therefor.
 Sec. z. Such loans shall be repaid with interest accruing in annual 1h- stallments on the amortization plan such installments being fixed at su"h sums as will cover the interest ra1s , and will liquidate the debt in perloa 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 liaui- date any part or all of his indebtechoSs in amounts of s50.00 or multiples there of upon any amortization payment date
 Sec. S. The rate of interes. 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 initiA : charge of 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. 9. All surplus funds accruing from the operation of the system Of rural credits herein provided for. after paying interest accruing on the afore- said bonds. and all operating ;.nd other expenses arising from the administra- shall be placed ih the State Treasury and become a part of fund to he known as the Arkansas Rural Credit Reserve Fund" Said Arkansas RuyAl Credits Reserve Fund shall be 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 shall be added to it and become a part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that it may be drawn upon to re- imburse 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 as 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 shall proceed to administer said sys- tenn of rural credits under rules and ject to the provisions herein contained.
 Sec. Ii. The provisions of the Con- stitution of Arkansas in conflict with 1his amendment are hereby repealed, in NO far only as they conflict herewith. The provisions of this amendment shall be se1f-executing. and shall take effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 in the office of the Secretary of State, March IT, 1917.
 Each e1ectOr may vote fer or against he above amendment
 Witness my official signature thiA be 24th day of April. 1918.
 sSeall TOM J. TERRAL.
 Secretary of StAta