Cleveland County herald., 1918-10-24
nittee.

tho satisfaction Of encumbrances upon 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 toan snail state clearly in his appllca- ton the purposes for which such loan IS desired, and upon its approval py the board this statement shall be deem- ca part of the note O.. contract under which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate ioan when once made. nor shall any thing herein contained be deemed to prevent any farm owner from selllns or leasing lands subject to such in- cumbrance. but if he shall violate his saio contract by applying the moneys borrowed to purposes other than those stated In his application or enumerated herein, or If he shall lease such lanas or sell them to any person not fulfill ing the conditions and purposes pro- vioeo Tor herein. said board Is author ized and directed to require the repay ment of said loan upon six months no- tlce, and said note or contract shall contain clause providing therefor.
 Sec. 2. Such loans shall be repaid wlth interest accruing in annual in- stai iiments on the amortization plan. such fnstallments being fixed at such sums az will cover the interest rate and will liquidate the debt in a period 10 De agreed on between said board ana the applicant, said period to he not less than five nor more than thirty SIX years; but any debtor may liGui- date any part or all of his Indebtedness m amounts of S50.00 or multiplcs there date.
 .,s Sec. g. The rate of interest on loans snaH De five per cent per annum; pro- Vlded, that no Farm Credit Bonds shall De sold for less than par; and pro- Vlaed further that the board shall re- qulre each applicant to pay an initial cnarge of l per cent of the loan grant ed, the minimum charge to be $t0.o0 to 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 paving interest accruing on the afore- said bonds, and all operating and other expehses arising from the administra- tion or said system of rural credits, shall be placed in the State Treasury ana become part of @ fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural credits Reserve Fund shall be loaned on 1arm 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 snail De added to 1t and become part oi IL. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- cept that 1t may be drawn upon to re- imourse the State for loss incurred in the administration of said system of rural credits
 Sec. 10. The Legislative Assembly snail provide in such detail as 1t shall deem advisable for the carrying oui and administering of the provisions Of this amendment, and shall provide ad- equate safeguards against the use Of such loans as an aid to tho purchas- Ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of the herein. In the absence of such 1egis- latton. and subject to the same after its enactment, the State Land Board shall proceed to administer said sys- tenn of rural credits under rules ard regulations provided by itself. but sub feet to the provisions herein contained
 Sec. Il. The provisions of the Con stitution of Arkansas in conflict With this amendment are hereby repealed Tn so far only as they conflict herewith. The provisions of this amendment effect and be In operation SO days af- ter their approval and adoption by the people of Arkansas.
 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 this, the 24th day of April. 1918.
 IHeall TOM J. TERRAL
 Secretary of 6tAts.