The Nevada County picayune., 1918-09-05

the satisfaction of encumbrances upon such lands, 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 Applica- ton the purposes for which such loan is desired, and upon its 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 the purposes stated in such application or enumerated herein shall invalidate a loan when once made, nor shall any thing herein contained be deemed 10 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 his application or enumerated herein or if he shall lease such lands or sell them to any person not fulnli- m" the cnnd itions and purposes pro- Vided for herein. said board Is author ized and directed to require the repay neDt Of said loan upon six months' mo- tice, and said note or contract shall contain n cfause providing therefor.
 Sec. :. Such loans shall be repaid with interest n""ruing in annual fn- fta allments th. amortization plan, such insta1lments being f1ed at snch sums will cover the interest rate and will Iiduidate the dcht in a period to be agreed on between said board and the applicant. said period to be not less than five nor more than thirty six years, but any debtor may liGui- date any part or all of his indebtedness in amounts of 36000 or multiples there- of upon any amortization payment date.
 Sec. .. The rate of interest on loans shall be five 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- charge of per cent of the loan grant ed. the minimum chavge to be s10.0o to cover the cost of appraisal and ex- animation of title.
 Sec g. All surplus funds accruins 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 expenses arising from the administra- tion of said system of rural credits, shall be placed in the State Treasury and become part or fuhd to De 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 tho Arkansas Rural Credit Loan Fund. and the interest ac- cruing from loans made from said Ar kansas Rural Credits Res rye Fund shall h" added to 1t and become part of 1t. The said Arkansae Rural Credits Reserve Fund shall be irreducihle. eI- cept that 1t may be drawn upon to re- inburse ihe State for loss incurred in the administration of said system of rural credits.
 Sec. 10 The Legislative Assembly shall provide in such detail as fl shall deem advisable for the carrying out and administering of the provisions of this amendment. and shall provide ad- equate safeguards against the use of ing and holding of lands for the pur- poses Of speculation Such safeguards hall tnclrf' ,i.af definitions of the trrns sr"iat. and occupy" used herein. In the absence of such legis- lation, and subject to the same after its enactment the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by Itself. but sub ject to the provisions herein contained
 Sec. II. The provisions of the Con stitution of Arkansas in conflict with this amendment are hereby repealed, in 90 far only as they conflict herewith The provisions of this amendment effect and be In operation 60 days af ter their approval and adoption by the people of Arkansas.
 Approved by the Governor, and filed Tn the office Of the Secretary of State, March IT. 1917.
 Each elect0r may vote for or against the above amendment
 witness my official signature this, the 2+th day sf April. 1s1s
 ISeall TOM J. TERRAL
 Secretary of State.