The courier-index., 1918-05-24

the satisfaction of enoumbrances 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 appiica- ton the purposes for which such loan is desired, and upon it's approval by the board this statement shall be dsem- ed part of the note or contract under which the loan is granted. But no failure to apply such funds to tho purposes stated in such application or enumerated herein shall fnvalidate 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 to any person not fulnli- 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 nonths' mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate and will fiuuidate the debt in 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 indebtedness in amounts of ts0.00 or multiples there of upon any amortization payment date.
 See. :. The rate of interest on loans shall be nve per cent per annun; 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 Initial charge of 1 per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost of appraisal and sx- amina tion of title.
 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 other expenses arising from the adninistra- ton of said system of rural credits. shall be placed in the State Treasury and become 6 part of fund to be 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 Reserve Fund
  of it. The said Arkansas Rural Credits Reserve Fund shall be irreducibls, 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 md administering of the provisions of this amendment. and shall provide ad- eauate safeguards against tho 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 tho terms operate" and occupy" used herein. Tn the absence of such legis- lation. and subject to the sams after Is enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by itself. but sub ject to the provisions herein contained.
 Sec. II. The provisions of tho Con stitutlon of Arkansas in conflict with this amendment are hereby repealed. in so far only as they conflict herewith. The provisions of thts amendment shall be seif-executing, and shall take effect and be in operation so days af- ter their approval and adoption by the
 Approved by the Governor. and hIed in the office of the Secretary of State. March IT. 1917.
 Each eIector may vote for or against the above amendment
 Witness my official signature this. she 34th day of April. 1913
 fSaaII TOM J. TERRAL.
 Secretary of State