The courier-index., 1918-10-18

the satisfaction of encumbrances upoa 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 . farm loan shall state clearly In hls applica- tfon the purposes for which such loan is desired. and upon it's approval by the board this statement shall be deem- ed a 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 tnvalidate 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 ms 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 futnil- ing the conditions and purposes pro- vided for herein. said board Is author iz-d and directed to require the repay ment of said loaE upon six months no. tice. and said note or contract shall contain a clause providing therefor.
 Sec. :. Such loans shall be repaid with interest accruing in annual in stallments on the amortization plan. such installments being fixed at such sums will cover the interest rate and will liauidate the debt In A period to be agreed on between said board and the applicant said period to be not less than Ave nor more than thirty six years: but any debtor may liaui- date any part or all of his indebtedness in amounts of S50.00 or multiples there of upsa any amortization payment date.
 See [. The rate of interest on loans shall be i've per cent per annum: pro. vided. that no Farm Credit Bonds shall "a SOfd for less than and pro- vided further that the board sha.. re- quire each applicant to pay an initial charge of 1 per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title.
 Sec. S. All surplus funds accruing from the operation of the system of rural credits herein provided for. after paying interest accruing on the afor>- said sonds. and all operating and other expenses arising from the administra- ton of said system of rural credits, shall be placed fin 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 Credit Loan Fund. and the interest ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become q part
 
 Reserve Fund shall be irreducfble. ex- cept that it may be drawn upon to re-
 mburse 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 1t shall deem advisable for the carrying out and administering of the provisions of this amendment. and shall provide ad- equate safeguards against the use or such loans as an aid to the pIrchas- ing and holding of lands for the pur- ,oses of speculation Such safeguards shall include clear definitions of the erms operate" and occupy used erein. In the absence of such 1egis- ation, and subject to the same after ts enactment. the State Land Board hall proceed to administer said sys- em 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- stitution of Arkansas in conflict with | this amendment are hereby repealed. In | 30 far only as they conflict herewith. | The provisions of this amendment | shall be self-executing. and shall take | effect and be in operation SO days af- l ter their approval and adoption by the | people of Arkansas.
 Approved by the Governor. and nied ! in the office of the Secretary of State. | March IT. 1917, 1 Each elector may vote for or against he above amendment. la witness my official signature this. | he 24th day of April. 1918.
 | rssail TOM ]. TERRAL. ! Garretary of StRta