The Nevada County picayune., 1918-09-26

he satisfaction of encumbrances upon sJeh lands, which. in the Judgment of 7atd board. were incurred or assumed said applicant for the aforesaid purposes.
 See. c. Every applicant for a farm | loan shall state clearly Tn his appliea- ton the purposes for which such loan $ desired. and upon it's approval by l the board this statement shall be deen- ed a part of the note or contract under 1 which the loan is granted But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate 1 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 lands or sell them to any person not fulfill 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 snail contain clause providing therefor
 Sec. '. Such loans shall be repaid with interest accruing In annual in- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in period to be agreed on between said board and the applicant said period to be not less than 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 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 h.a EENI1 nd vided further that the board shall re- qutre each applicant to pay an initial charge of l per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost of appraisal 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 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 &C., cruing from loans made from said Ar kansas Rural Credits Res rye Fund shall be added to 1t and become part of 1t. The said Arkansas 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 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 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 1egfs- iation. 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 ject 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 T the office of the Secretary of State. March r. 1917.
 Each elector may vote for or against he above amendment
 Witness my official signature this. he 24th day of April. 1913.
 TSeall TONf T. TERRAL,
 Secretary of State,