Pine Bluff daily graphic., 1918-08-30

shs 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 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 deein- cd 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 loan when once made, nor snail any thing herein contained be deemed to 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 fulnll- ing the conditions and purposes pro- vided for herein, said board Is author ized and directed to require the repay tice. and said note or contract shall contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruinE in annual in- such installments being nxed at sueh sums as will cover the interest rate and will liquidate the debt in a perio1 ! to be agreed on between said boa rd and the applicant said period to h' not less than i've nor more than thirty six years; but any debtor may liaui- date any part or all of his indebtedness in amounts of $e0.00 or multiples there- of upon any amortization payment date.
 Sec. 8. 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 1 per cent of the loan grant ed. the minimum charge to be $10.00 to cover the cost of appraisal and ex- animation of title.
 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- shall be placed in the State Treasury and become . part of fund to he known as the "Arkansas Rural Credit Reserve Fund" Said Arkansas Ruyal on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest ac- crutng from loans made from said Ar kansas Rural Credits Rsserve Fund
 
 of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that 1t may be drawn upon to re- imburse the State for loss incurred in tho 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 md administering of the provisions of this amendment and shall provide ad- equate 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 dennitions of the terms operate" and occupy" used herein. Tn the absence of such legis- 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 feet to the provisions herein contained. Sec. Il. The provisions of the Con- stitution of Arkansas in conflict with .hts amendment arc hereby repealed. in 70 far only as they conflict herewith. rhe provisions of this amendment shall be self-executing. and shall take "ffect and be in operation 60 days af- ter their approval and adoption by tho people of Arkansas.
 Approved by the Governor. and filed Tn the office of the Secretary of StatA .fArch IT, 1917.
 Each elector may vote for or against he above amendment.
 Witness my official signature this. he 24th day of April. 1s10.
 l0eall TOM J. TERRAL, 1oGfAtArY o< 0tatA