The Dermott news., 1918-05-09

the satisfaction of encumbrancss upon such lands. which. in the judgment of said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec G. Every applicant for a farm loan shall state clearly in his appltca- ton the purposes for which such loan IS desired and upon its approval by the board this statement shall be desm- 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 invaHdate 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 tn- 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 iands or sell them to any person not fuihii- 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 mo- tice, and said note or contract shall contain clause providing therefor
 Sec, '. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan, such instaliments being fixed at such sums as will cover the interest rate ahu " LII llQuluatt tne uGDt ln A pCitoa to be agreed on between said board and the applicant. said period to be not less thnn 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 cate.
 Sec. x The rate of interest on loans shall be five per cent Der annum: pro- vided. that no Farm Credit Bonds shall be sold for less than par: and pro Vtdcd further that the board shall re- qulre each applicant to pay an initial ed, the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title.
 Sec 9. Al- surplus funds accruing from the operation of the system Of rural credits herein provided for. after paving interest accruing on the afore- said bonds. and all operating and other expenses arising from the administra- ton 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 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 a part of it The said Arkansas Rural Credits Reserve Fund shall be irreducibie. ex- eept that II may be drawn upon to re- imhurSe the State for loss incurred in tin. 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- eduate safeguards against the use of such loans aid to the purchas- Ing and holding of lands for the pur- poses of speculation. Such safeS ua rdS shall include clear definitions of the te1ms Operate" and occupy used herein. In the absence of such Isgis- iattou. and subject to the same after tts enactment, the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and resulatto provided by itself, but sub
 See. IL The provisions of the Cop stitutton of Arkansas in conflict with this amenduo are hereby repealed, In SD far only as they conflict herewith. The provisions of this amendment shall be self-exeCuting, and shall take effect and he in operation 50 days af- 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.. l9l1..
 Each cteCtor may vote for against the above amendment.
 Witness my official signature this the 2Ith day of Alp it, 1918.
 (Seau TOM j. TERRAL.
 Secretary of State.