The Nevada County picayune., 1918-08-15

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 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 invalidate a 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- cumbraDce; 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 'r sell them 10 any person not fulfill inC the conditions and purposes pro- "tded fof herein. said board is author tzcd and directed to require the repay ment of said loan upon six months nO- tce, and said note or contract shall contain a clause providing therefor.
 Sec. '. Such loans shall be repaid "th interest aceruing In annual in- stallnents the amortization plan, such installments beinc fixed at such sums as will cover tho interest rate and will lduidate the debt in q 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 liqui- date any part or all of his indeb btedness in amounts of $b0.00 or multiples there of upon any amortization payment date
 Sec. s. The rate of interest on loans shall be i've 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 per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost Of appFaisal and ex- animation of title.
 Sec. 9. All surplus funds accruing 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- ton of said system of rural credits, shall be placed in the State Treasury and become a part of 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 ahal1 b" added to it and become a part 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 the administration of said system of ru ural 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- equatc 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 sSail 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 provided by itself, but sub iect to the provisions herein contained.
 Sec. II. The provisions of the Con- stitutiOn of Arkansas in conflict with this amendment are hereby repealed, in so far only as they conflict herewith. The provisions of this amendment effect and be In operation 60 days af- ter their approval and adoption by the people Of Arkansas.
 Approved by the Governor, and filed tn the office Of the Secretary of State, March IT. 1917.
 Each elector may vote for or aGatWst Inc above anne Hdment
 Witness my official signature thks. the 24th day of April 1918.
 JSeal1 TOM J. TERRAL,
 Secretary of State.