The Nevada County picayune., 1918-08-29

the satisfaction of encumbrances upon such lands, which, in the Judgment of said board, were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for . 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 iaiiure 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 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 10 any person not fulhl- in" the conditions and purposes pro- "ided for herein. said board Is author ized and directed to require the repay ment Of said han upon six months mo- ttce. and said note or contract shan contain c'apse providing therefor.
 Sec. ' Such loans shall be repaid with interest aocruing in annual in- ailments on the amortization plan. such installnentr being fixed at such sums as will cover tho interest rate and will HGuioate tn" debt in a period to De agreed on between said board and the applicant, said period to be not less tban a"e nor more than thirty six years but any debtor may liqui- date any part or all of his ind ndebtedness Tn amounts of 350.00 or multiples there- Of upon any amortization payment date.
 Sec. [. The rate of interest on loans snail De hve 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- Qutre each applicant to pay an initial charge of 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. g. All surplus funds accruing from the operation of the system of rural credits herein provided for, after paving interest accruing on the afore- said bonds. and all operating and other expenses arising from the administra- tion of said system of rural credits, shall be placed in the State Treasury and become part of fund to be 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 loa"s made from said Ar kansas Rural Credits Reserve Fund shall bo added to It and become a part or tt. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- cept that 1t may be drawn upon to re- imburse the State for loss incurred in tho 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 aid to the purchas- ing and holding of lands for the pur- poses Of speculation Such safeguards shnh in"' 'Hde clear definitions of the frrma operate" and Occupy" used herein. In the absence of such legis- lation. and subject to the same after its 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 this amendment are hereby repealed. in so far only as they conflict herewith. The provisions of this amendment shall be self-e1ecutng and shall take effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas
 Approved by the Governor and nled in the office of the Secretary of State. March IT, 1917.
 Each electOr may vote for or aeatnst the obove amendment.
 Witness my official signature this, the 2%th day of April, 1918.
 l6eall TOM J. TERRAL.
 Secretary of State