The courier-index., 1918-09-20

the satisfaction of encumDrances upon such lands. which. in the judgment or 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- ton the purposes for which such loan Is desired, and upon its approval py 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 loan when once made. nor shall any thing herein contained be deemed 10 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 rulnit- ing the conditions and purposes pro- yided for herein. said board Is author ized and directed to require the repay ment of said loaE upon six months no- tice and said note or contract shall contain clause ptoviding 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 8 period 70 be agreed on between said board md the applicant, said period to De 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 s5000 or multiples there of upon any amortization payment date.
 Sec. g. The rate of interest on loans shall be i've per cent per annum; pro yided. that no Farm Credit Bonds shall be sold for less than par; and pro- yided further that the board sha.. re- guire each applicant to pay an initial charge of 1 per cent of the loan grant ed. the minimum charge to be $lO.Oo to cover the cost of appraisal and ex- animation of title.
 Sec s. All surplus funds accruing from the operation of the system of rural credits herein provided for, after paying interest accrufng on the afore- said sonds. and all operating and other expenses arising from the a6ministra- 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., kansas Rural Credits Reserve Fund shall be added to it and become part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- rept that 1t may be drawn upon to re- mburse the State for loss incurred in he administration of said system of ural credits.
 Sec. 10. The Legislative Assembly hall provide in such detail as it shall ieem advisable for the carrying out md administering Of the provisions of his amendment. and shall provide ad- auate safeguards against the use of uch loans as an aid to the purchas- ng and holding of lands for the pur- oses of speculs ton Such safeguards hall include clear definitions of tho arms operate" and occupy" used erein. Tn the absence of such legis- ,tion, and subject to the same after "a enactment. the State Land Board hall proceed to administer said sys- em of rural credits under rules and sgulations provided by itself. but sub ect to the provisions herein contained.
 Sec. II. The provisions of the Con ;tution Of Arkansas in conflict with his amendment are hereby repealed. in The provisions of this amendment hall be self-executing. and shall tak" feet and be in operation 60 days af ter their approval and adoption by the eeople Of Arkansas.
 Approved by the Governor. and filed a- the office of the Secretary of State. farch IT. 1a1T
 Each elector may -ote for or against he above amendment.
 Witness my official signature this he 2tfh day of April. 1913
 tSsAl1 TOM l. HERBAL.
 Secretary of State