Pine Bluff daily graphic., 1918-07-25
inc satisfaction of encumbrances upo,

 such lands. which. in the Judgment oi 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 appilca- ton the purposes for which such loan is desired. and upon it's approval py the board this statement shall be deem ed a part of the note or contract uhoer which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate a loan when once made, nor snail any thing herein contained be deemed to 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 thoss stated in his application or enumerated 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 shaH contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual ln- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in period to be agreed on between said hoard and the applicant. said period 10 De not less than i've nor more than thirty six years: but any debtor may liqui- date any part or all of his indebtedness in amounts of $50.00 or multiples there of upon any amortization payment date.
 Sec. 8. The rate of interest on. loans shall be five per cent per nnnum: 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 initt>' cd. the minimum charge to be $lo.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 and other expenses arising from the administra- shall be placed in the State Treasury and become part of fund to ne 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 VAT, kansas Rural Credits Reserve; Fund shall be added to it and become part of It. The said Arkansas Rural Credits 8 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 ;his 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 regulations provided by itself. but sub Sec. II. The provisions of the Con- stitutipn of Arkansas in conflict with .his amendment are hereby repealed. in 90 far only as they conflict herewith The provisions of this amendment shall be self-executing. and shall take "ffect and be in operation 60 days af- | ter their approval and adoption by the people of Arkansas. z Approved by the Governor. and filed | in the office of the Secretary of State March IT. 1917.
 Each elector may vote for or against | the above amendment.
 Witness my official signature thla l he 24th day of April. 1918.
 ] fSeall TOM J. TERRAL. Secretary e State