The Nevada County picayune., 1918-07-25

the satisfaction of encumbranccs upon such lands, which, in the judgment or said board, were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. G. Every applicant for 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 De deem ed q part of the note or contract unaeT which the loan Is granted. But n" failure to apply such funds to the purposes stated in such application or enumerated herein shall invalldate loan when once made. nor shall any thing herein contained be deemed 'o prevent any farm owner from Sellh6 or leasing lands subject to such in- unr 1rau,ce; but 1T he ~hall violate ms 'atd contract h" onnly i8-r the moneys 1Vrr"W "d 70 purp rses other than those stat, I ln his appliCatiO or enumerated herein. or if he shall lease such lands IT sell them to any person not fulhli- 1g tho rpn1it ions Hnd pufDo&et pro- it'd fbr hrrei1. -ai1 borrd iE Ipthor- 'r ! and directed to require the r"pay- neHt of sad loan upon six months no- tice. and said note or contract snail 'ontain a clause providing therefor
 Sec. '. Such loans shall be repaid with interest accruing In annua! in- atallments on the amortization plan such inStallnlpntS being fixed at such sums as will cover the interest rate and will l#quidate the debt in period to be agreed on between said board tn! the applicant. said period 10 be not less than f"e nor more tEan thirty six years but any debtor may liQui- late any part or ali Of his indebtedness in amounts of $50.00 or multiples there ef upon any amortization payment llte.
 Sec. 8 The rate of interest on loans hal! be five per cent per annum; pro .t1ed. that no Farm Credit Bonds shall
 s.,tH H..T nd x,isd further that the board shall re- iTire encn applleant to pay aa initial large ot 1 Der eeHs of the loan grant t3 The roinmum charge 10 be st000 n sover the cost Of appraisal and eS- .HanattOn of title
 ,1ee Q All surplus funds acerung from the operation of the system Of =.Eal CT dits herein provided for. after , .#ing interest aec=ttiag on the afore- d bonds. and all operating and other oenses arising from fhe administrl- i1R of arid system of rur0t credits shaa be placed in Che State Treasury M become part Of a fund to be tnawn as the "Ark.nsas Rural Credit Reserve sund." Said Arkansas Rural 'redits Reser2c Fund shall be loaned 2r farm lands In the manner herein araNded for the Arkansas Rural 'redit Loan Fund. and the interest ac- Hruing from loans made from said Ar 1nsas Rural Credits Res s'rve Fund zhall De added to it and become part q |. The said Arkansas Iturdi Credits Reserve Fund shall be irreducible. cX- opt that it may be drawn upon to re- lmburse 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 administerin of the provisions of thia amendment, and shall provide ad eauate 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 feet to the provisions herein contained.
 Sec. II. The provisions of the Con 1titution of Arkansas in conflict with thls amendment are hereby repealed. in SO far only as they conflict herewith. The provisions of this amendment hall be self-exeCuting. and shall take effect and be in operation GO days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed n the office of the Secretary of State. March IT 1917
 Each elector may vote for against he above amendment.
 Witness my official signature this. the 9th day of April. 1918.
 Seal TOM !. TERRAI.
 Secretary of State