Pine Bluff daily graphic., 1918-08-22

xn. satisfaction of enoumbrances upo.

the satisfaction of encumbrances upoA such lands, which, in the Judgment oi I said board, were incurred or assume c by said applicant for the aforesah purposes.
 Sec. 6. Every applicant for farl' l loan shall state clearly in his applica- l tion the purposes for which such loan is desired and upon it's approval py | ed part of the note or contract under which the loan is granted. But no failure to apply such funds to thH 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 ms 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 fulnii- ing the conditions and purposes pro- vided for herein. said board Is author ized and directed to require the repay
 mont of said loan upon six months no.
 tice. and said note or contract shall
 contain a clause providing therefor. ;.
 with interest accruing In annual in-
 stalments on the amortization plan.
 such installments being fixed at such
 sums as will cover the interest rate
 ana Will IlQulOaLc the UeDI III II HcIIJ''
 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 s5O00 or multiples there
 date.
 Sec. S. The rate of interest on Ioans
 shall be five per cent per annuln: pro
 vided. that no Farm Credit Bonds shall
 hn fnr 1nuc ho mi nd
 yided further that the board shall re-
 quire each applicant to pay an initiA'
 charge of 1 per cent of the loan grant.
 ed. the minimum charge to be $l0.oo
 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 and oth CT
 expenses arising from the administra-
 tion of said system of rural credits.
 shall be placed in the State Treasury
 and become a part of fund to be 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-
 kansas Rural Credits Reserve Fund
 shall be added to it and become part
 of it. The said Arkansas Rural Credits
 Reserve Fund shall be irreducible. ex- ccpt that it may be drawn upon to re- mburse the State for loss incurred in tho administration of said system o1 rural credits.
 Sec 10. The Legislative Assembly shall provide in such detail as 1t shat deem advisable for the carrying out and administering of the provisions of this amendment and shall provide ad. equate safeguards against the use of ing and holding of lands for the pur. poses of speculation. Such safeguard. 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 its enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by itself but sub- feet to the provisions herein contained Sec. II. The provisions of the Con. stitution of Arkansas in conflict with .his amendment are hereby repealed. in 70 far only as they conflict herewith The provisions of this amendment shall be self-executing. and shall take l effect and be in operation 60 days af. ter their approval and adoption by thu | 1eople of Arkansas.
 Approved by the Governor. and filed In the office of the Secretary of State 1 March IT, 1917
 Each elector may vote fer or against 1 tho above amendment.
 Witness my official signature this he 24th day of April. 1918.
 tSeall TOM J. TERRAL, Secretary oE State