The courier-index., 1918-05-10

the satisfaction of membranes upcn
such laHds, which. In the Judgment of
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 spplica-
ton the purposes for which such loan
is desired. and upon it's approval by
the board this statement shall be deem
ed q part OF The note or contract under
which the loan Is granted. But no
failure to apply such funds to the
stated In such application or
enumerated herein shall invalidate .
loan when once made. nor shaIl any
hing herein contained be deemed to
prevent any farm owner from sentnE
Or leasing lands subject to such IN
eumbrance; bat IL he shall violate his
said contract by applying the moneys
borrowed TO purposes other than those
sisted in his application or enumerated
herein. or If he shall lease such lands
or sell them to any person not fulhli-
ing the conditions and purposes pro-
vfded for herein. said board is author
ized and directed to require the repay
ment OF said LOAF upon six months' no
lice. and said note or contract shall
'ontain a clause providing therefor.
Sec. q. Such loans shan be repaid
With interest sccruinK In annual in
tallments on the amortization plan.
uch ipstallmentr being MED at such
ums as will cover the interest rate
nd will liQuidate the debt in a period
o be agreed on between said board
nd the applicant, said period TO be
OF less than hve nor more than thirty
tx years: but any debtor may iiQui-
late any part or all OF his indebtedness
II mounts OF $1,000 or multiples there
Il upon any amortization payment
late.
Sec. s. The rate OF interest on loans
hail be five per cent per annum; pro-
tided, that no Farm Credit Bonds shall
e sold for less than par; and pro-
lded further that the board shall re-
HIire each applicant to pay an initial
barge OF l per cent OF the loan grant
d, the minimum charge to be $1,000
O cover the cost of appraisal and ex-
animation of title.
Sec. 9. All surplus funds accruing
rom the operation of the system of
rural credits herein provided for. after
aging interVt sccruing on the afore-
lid ;.onds, and all operating and other
xpenses arising from the administra-
ion OF said system of rural credits.
hall be placed in the State Treasury
nd becone a part of a 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 sc-
kansas Rural Credits Reserve Fund
shall be added to IL and become q part
OF it. The said Arkansas Rural Credits
Reserve Fund shall be irreducibIe, ex-
'ept that IL may be drawn upon to re-
nburse the State for loss incurred in
re administration OF said system OF
ural credits.
Sec. 10. The Legislative Assembly
hall provide in such detail as Ii shall
Gem advisable for the carrying out
nd administering OF the provisions OF
his amendment. and shall provide ad-
'quate safeguards against the use of
uch loans as an aid to the purehas-
ing and holding OF lands for The pur-
'oses OF speculation. Such ~ safeguards
hall include clear definitions OF the
rms operate" and occupy" used
rein. In the absence OF such legis-
ton. and subject 10 the same after
: enactment, the State Land Board
hall proceed to administer said sys-
I'm OF rural credits under rules and
EQUATIONS provided by itself. but sub
'oct to the provisions herein contained.
Sec. IL. The provisions OF the Con-
litution- OF Arkansas in conflict with
his amendment are hereby repealed. in
rhe provisions OF this amendment
hall be self-executing. and shall AXE
Tect and he in operation so days af-
Ter their approval and adoption by the
eeople of Arkansas.
Approved by the Governor, and filed
"A the office OF the Secretary OF State.
farch II. 1917.
Each elector may vote for or against
re above amendment.
Witness my official signature this.
he gath day of April, 1918.
lSealJ TON J. TERRAL.
Secretary OF State.