Pine Bluff daily graphic., 1918-06-13

the satisfaction of encumbrances upo\ 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 a farm loan shall state clearly in his applica- tion the purposes for which such loan is desired, and upon it's approval by the board this statement shall be decn- 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 OF 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- 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 shall contain clause providing therefor.
 Sec. z. Such loans shall be repaid with interest accruing In annual in- stallments on the amortization plan, such installments being fixed at such sums will cover the interest rate
 
 to be agreed on between <said board and the applicant, said <f5eriod to be six years; but any 4tebtor may iiaui- date any part or aLyof his indebtedness date.
 yaed ha Da per ram eent c1sa psr nn1s be sol/ for less than par: and pro- vided further that the board shall re- quiI each applicant to pay an initial chGEe of l per cent of the loan grant eG the minimum charge to be 5000 cover the cost of appraisal and ex- "a 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- tion of said system of rural credits shall be placed in the State Treasury known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Ruyal Credits Reserve Fund shall be loaned on farm lands in the manner herein Credit Loan Fund. and the interest ac- cruing from loans made from said Arr kansas Rural Credits Reserve Fund shall be added to it and become a part VI It. Hc SdIu [ATkAnSdS ftuTdI CTeOIl3 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. 1o 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 of speculation. Such safeguards shall include clear definitions of the terms Operate" and occupy" used herein. Tn 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- jcct to the provisions herein contained
 Sec. II. The provisions of the Con- stitution of Arkansas in conflict with .his amendment are hereby repealed. in so far only as they conflict herewith. The provisions of this amendment shall be self-executing, and shall take effect and be in operation GO 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 IT. 1917.
 Each elector may vote for or against the above amendment
 Witness my official signature this the 24th day of April. 1918.
 lSeal1 TOM J. TERRAL.
 Secretary oe State