Pine Bluff daily graphic., 1918-06-06

the satisfaction of encumbrances upo> such lands. which, in the Judgment ol 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 loan
 is desired, and upon it's approval by
 the board this statement shall be deem-
 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 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 his
 said contract by applying the moneys
 borrowed to purposes other than those
 stated in bis 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 f6r herein. said board is author
 ized aYd directed to require the repay
 ment Sf said loan upon six months mo- tice, And said note or contract shall
 eont9in clause providing therefor. . Sef. '. Such loans shall be repaid
 witH interest accruing in annual in staFments on the amotization plan. su9h installments being fixed at such suhs as will cover the interest rat"' anh will liquidate the debt in g period toy be agreed on between said board Nfd the applicant. said period to be SPt less than five nor more than thirty stx years: but any debtor may iqui- date any part or all of his Indebtedness in amounts of $50.O0 or multiples there- of upon any amortization payment date.
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro- sided. that no Farm Credit Bonds shall he sold for less than par; and pro- Tidcd 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 s10.00 to cover the cost of appraisal and ex- animation 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
 tlon of said system of rural credits. | shall be placed in the State Treasury and become a part of a fund to be
 known as the Arkansas Rural Credit
 Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned 1 on farm lands in the manner herein l provided for the Arkansas Rural Credit Loan Fund. and the interest ac-
 eruing from loans made from said Ar kansas Rural Credits Reserve Fund
 
 I of 1t. The said Arkansas Rural Credits 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 it shall deem advisable for the carrying out and administering of the provisions of l this 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-
 shall include clear definitions of the
 terms Operate" and occupy" used herein. In the absence of such leris- lation. and subject to the same after US enactment the State Land Board snail proceed to administer said sys- l tenn Of rural credits under rules and regulations provided by itself, but sub | lect to the provisions herein contained Sec. II. The provisions of the Con- Stltutlon Of Arkansas in conflict with
 thls amendment are hereby repealed. in ] so Tar only as they conflict herewith The provisions of this amendment ] snail be self-executing. and shall take 'fect and be in operation 60 days af. ter their approval and adoption bv the | people of Arkansas Approved by the Governor. and filed Tn the office of the Secretary of State 1 March, IT, 1917.
 Each elector may vote for or against l the above amendment
 Witness my official signature this The 24th day of April. 1918 lSeall TOM J. TERRAL. l Secretary oc State