The courier-index., 1918-07-05

the satisfaotion OF enoumprances upon
such lands, which, in the judgment OF
said board, were incurred or assumed
by saic applicant for the Aforesaid
purposes.
Sec G. Every applicant for farm
loan shall state clearly In his appltca-
ton the purposee for which such loan
is desired. and upon ITS approval py
the board this statement shall be deem
cd q part OF the mote or contract under
which the loan js granted But no
failure to apply such funds TO the
purposes stated in such application or
enumerated herein shall invalidate q
loan when once made. nor shall any
ching herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to such in
cumbranee; but IL he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated In his application or enumerated
herein, or IL he shall lease such lands
or sell them to any person not fulfll-
ing the conditions and purposes pro-
vided for herein. said board Is author
lied and directed to require the repay
ment of said 1oaE upon six months no.
tice, and said note or contract shaH
contain q clause providing therefor
Sec. 7. Such loans shall be repaid
with interest aceruinr In annual IN
stallments on the amortization plan.
such instaliments being fixed at such
sums as will cover the interest rate
and will liQuidate the debt In a period
TO be agreed on between said board
and the applicant, said period 70 DC
not less than nve nor more than thirty
six years; but any debtor may liqu-
date any part or all of his indebtedness
in amounts OF $1,000 or multiples there
OF upon any amortization payment
date.
shall be 6ve per cent per annum; pro-
vided. that no Farm Credit Bonds shall
be sold for less than par; and pro-
vided further that the board shall re-
ouire each applicant to pay an initial
charge of / per cent of the loan grant
ed. the minimum charge to be $1,000
to cover the cost OF appraisal and OK
animation OF title.
Sec. .. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for. after
paying interest accruing on the afore-
said eonds, and all operating and other
expenses arising from the adnninistra-
ton OF said system OF rural credits.
shall be placed In the State Treasury
and become 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 ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to 1t and become part
of IL. The said Arkansas Rural Credits
Reserve Fund shall be irreducible ex-
cept that II may be drawn upon to re-
imburse the State for loss incurred In
he administration OF said system OF
ural credits
Sec. 10 The Legislative Assembly
hall provide In such detail az it shall
ieem advisable for the carrying out
I'D administering of the provisions of
this amendment, and shall provide adj
equate safeguards against the use or
such loans as an aid to the purchase
ng and holding of lands for the pur-
loses OF speculation. Such safeg guards
hall include clear definitions of the
erein In the absence OF such leeis-
alton, and subject to the same after
It's enactment, the State Land Board
hall proceed to administer said sys-
en- of rural credits under rules and
EQUATIONS provided by itself. but sub
Get to the provisions herein contained.
Sec IL. The provisions Of che Con-
'titution OF Arkansas in conflict with
this amendment are hereby repealed, in
far only as they conflict herewith.
The provisions OF this amendment
feet and be In operation go days af-
er their approval and adoption by the
people of Arkansas.
Approved by the Governor, and filed
"a the office Of the Secretary OF State
larch II, 1917
Each elector may tote for or against
10 above amendment.
witness my official signature this.
ne Gath day of April 1918.
lSoal1 TOM J. TERRAL,
BecFetary of state.