Pine Bluff daily graphic., 1918-09-05

she satisfaction of encumbrances upoA such lands. which, in the judgment o1 said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec 6. Every applicant for a farm loan shall state clearly in his applica- tion the purposes for which such loah is desired, and upon its approval by the board this statement shall be deeln- 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 invaliGate loan when once made, nor shall any thing herein contained be deemed |" 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 enuineratt" herein, or if he shall lease such lands or sell them to any person not fulfill 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 shall contain a clause providing therefor.
 Sec '. Such loans shall be repaid with interest accruing in annual in stallments on the amortization plan. such installments being fixed at such
  and will iiquidate 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 debtor may liqui- date any part or all of his ind"ht ednc:>s in amounts of s5o.Oo or multip.es there of upon any amortization payment date.
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro. N hot Do. T ak, n be sold for less than par; and pro- |lded further that the board shall TO- duire each applicant to pay an initiA' charge of 1 per cent of the loan gram ed. the minimum charge to be s10.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- expenses arising from the administra- ton of said system of rural credits, shall be placed in the State Treasury ana become a part of fund to be known as the "Arkansas Rural Credit keserve Fund" Said Arkansas Ru'sl 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
 
 shall be added to it and become part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that it may be drawn upon to re- lmburse the State for loss incurred in the administration of said system of rlMal credits.
 Sec. 10. The Legislative Assembly snail provide in such detail as 1t shall deem advisable for the carrying out Hnd administering of the provisions of this amendment and shall provide ad- Such loans as an aid to the purchaS- ing and holding of lands for the pur- poses or speculation. Such safeguards shall include clear definitions ot 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 snail proceed to administer said sys- fem of rural credits under rules and populations provided by itself, but sub '"ct to the provisions herein contained.
 sec. H. The provisions of the Con- stltutlon or Arkansas in conflict with his amendment, are hereby repealed, in 70 Tar only as they conflict herewith Ihe provisions ~ of this amendment fhall De self-executing, and shall take rect and be in operation 60 days af- Ter their approval and adoption by the "ople of Arkansas.
 Approved by the Governor. and ,1ed 'n the office of the Secretary of State. 'arch F. 1917.
 Each elector may vote for or against 70 aboVe amendment
 Witness my official signature th,. he 24th day of April. 1918.
 tSeaiI TOM J. TERRAL
 Secretary Of Rte tA