The Nevada County picayune., 1918-08-22

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 . 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 . loan when once made, nor shall 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 heroin. or if he shall lease such lands IT sell them te any person not fulfill in'" the conditions and purposes pro- 9ided for herein. said board is author ized and directed to require the repay ment of said loan upon six months mo- lice, and said note or contract shall contain claus" providing therefor.
 Sec. ' Such loans shall be repaid with intc"est ac"ruing Tn annual i'm staliments on the amortization plan, such installments being fixed at such sums as will cover tn" interest rate and will louidate tho aobt in period to be agreed on between said board and the applicant said period to be moi less than f"e nor more than thirty six years but any debtor may liqui- date any part or all of his indebtedness in amounts of $50.00 or multiples there of upon any amortization payment date
 Sec. g. 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- videA further that the board shall re- auire each applicant to pay an initial charge of per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost of appraisal and ex-
 Sec. g. All surplus funds accruing from the operation of the system of rural credits herein provided for. after paying interest accruing on the afore- expenses arising from the administra- tion of said system of rural credits. shall be placed in the State Treasury and become a part of a fund to be known as the "Arkansas Rural Credit Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned on farm lands In tho manner herein provided for tn" Arkansas Rural Credit Loan Fund. md the interest ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall bc added to 1t and become a part of It. The said hrkansae Rural Credits Reserve Fund shall be irreductbie, ex- "cpt that if may be drawn upon to re- jmburse the State for loss incurred in he 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 of such loans as an aid to the purchas- ing and holding of lands for the pur- poses or speculation Such safeguards "hai include clear definitions of the terms operate" and occupy" used herein. In the absence of such legis latioh, and subject to the same after it's enactment. the State Land Board tenn of rural credits under rules and regulations provided by itself. but sub ject to the provisions herein contained.
 Sec. H. The provisions of the Con- stitutiOD of Arkansas in conflict with this amendment are hereby repealed, in far only as they conflict herewith. The provisions of this amendment shall be seH-e1 uting. and shan take effect and be Tn operation co days af- ter their approval and adoption by the people of Arkansas.
 in the office of the Secretary of State, h~seh 17, 1917
 EoeA etectOr may vote Tor or aOot0ee tAe seove amendment.
 Witness my official ssRnatuYe N1sfs, the 24th day of ApvN fS1s.
 (Bean TOM J. rERRAL.
 Secretary of State.