Pine Bluff daily graphic., 1918-06-27

sne satisfaction of encumbrances upoa, 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 9, farm loan shall state clearly in his appllca- tiOn the purposes for which Such loan is desired. and upon it's approval by the board this statement shall be deen- ed a part of the note or contract uhocT which the loan is granted. But no failure to apply such funds 10 'ne purposes stated in such application or enumerated herein shall invalldate loan when once made, nor shall any! thing herein contained De deemed to prevent any farm owner from selilhs or leasing lands subject to such m cumbrance; but if he shall violate ms said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerateo herein. or if he shall lease such lanus or sell them to any person not fulhli- ing the conditions and purposes pro vided for herein. said board is author ized and directed to require the repay ment of said loan upon six months no, tice, and said note or contract small contain a clause providing therefor
 Sec. '. Such loans shall be repaid with interest accruinG in annual ln- stallments on the amortization plan such installments being fixed at such sums as will cover the interest rate
 
 to be agreed on between said board and the applicant said period to De not less than five nor more than thlrtH = six years: but any debtor may liqui- date any part or all of his indebtedness in amounts Of S50.00 or multiples there of 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- yided further that the board shall re. auire each applicant to pay an initial charge of 1 per cent of the loan grant ed. the minimum charge to be $lO.Oo animation of title.
 Sec. g. All surplus funds accruing from the operation of the system or 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 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 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 it and become part of 1t. The said Arllansas Rural Credits Reserve Fund shall be irreducible. ex- cept that it may be drawn upon to re- imburse the State for loss incurred in the administration of said system Of rural credits.
 Sec. To- The Legislative Assembly shall provide in such detail as it shall deem advisable for the carrying out and administering of the provisions of 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 shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by itself. but sub- Sec H. The provisions of the Con- stitution of Arkansas in conflict with this amendment are hereby repealed, in 80 far only as they conflict herewith. The provisions of this amendment shall be self-executing, and shall take fleet and be in operation 60 days af ter their approval and adoption by tn 6 people of Arkansas.
 Approved by the Governor. and filed in the office of the Secretary of State March IT, 1917.
 Each elector may vote fer or against she above amendment
 Witness my official signature thi1 he 24th day of April. SIS.
 ISeall TOM J. TERRAI..
 Secretary oe Stata