The Dermott news., 1918-05-16

the satisfaction of encumbrances upon such lands. which In the Judgment oi
 said board. were incurred or assumed
 by said applicant for the aforesaio
 purposes.
 Sec. 6. Every applicant for farm loan shall state clearly in his appiica-
 ton the purposns for which such loan
 Is desired, andi upon Its approval ny
 the board this statement shall be deem
 ed part of the note or contract under
 which the loan Is granted But nc
 failure to apply such funds to the purposes stated in such application or enumerated herein shall iHvatidate
 loan when once made. nor shall any thing herein contained be deemed to prevent any farm owner from seiiihs or leasing lands subject to such m cumbrance: but If he shall violate hls said contract by applying the money borrowed to purposes other than thoss stated in his application or enumeralea herein or if he shall lease such lands or sell them to any person not tathH- ing the conditions and purposes pro vided for herein. said board Is author ked and directed to require the repay ment of said loan upon six months nos tice. and said note or contract shali contain clause providing therefor.
 Sec :. Such loans shall be repaid with interest aecruing In annual m stallments on the amortization plfAh, such installments being fixed at such sums as will cover the interest rate and will liQuidate the debt in 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 liqui- date any part or all of his indebtedness in amounts of 5000 or multiples there or upon any amortization payment date
 Sec. s. 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 xt1 1.aI |, h.Nu Ei Nhn n quire each applicant to pay an initial charge Of l per cent of the loan grant ed the minimum charge to be Slo.oo to cover the cost1of appraisal and ex- animation of title.
 Sec 9. All surplus funds accrusng from the operation of the system of rural credits herein provided for. after paying interest accrutng on the afore- said bonds. and all operating and other expenses arising from the admintstra- ton of said system of rural credits. shall be placed in the State Treasury and become part of fund to be known 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 II and become part of it. The said Arkansas Rural Credits Reserve Fund shall be irredueihle. ex- cept that it may be drawn upon to re imburse the State for loss incurred in the administration of said system or rural credits
 Sec 10 The Legislative Assembly
 shall provide in such detail as il shall deem advisable for the carrying out and administering of the provisions or this 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 l shall proceed to administer said sys- 1 tenn of rural credits under rules and regulations provided by itself. but sub l iect to the provisions herein contained. Sec. Il, The provisions of the Con | stitution Of Arkansas in conflict with 1 this amendment are hereby repealed. in so far only they conflict herewith. 1 The provisions of this amendment
 shall be self-eNeeuting. and shall take effect and be in operation 60 days af 1 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 T.. 1917.
 Each elector may vote for or against the above amendment.
 Witness my official signature this.
 the 24th day of April. 1918. (Seall TOM ]. TERRAL. Secretary of State