The Nevada County picayune., 1918-05-09

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- tion the purposes for which such loan IS desired, and upon it's approval by the board this statement shall be deem- ed part of the note or contract under which the loan is granted. But no lallufe 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- 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- t1ce. 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 installments being fixed at such sums as will cover the interest rate and will liquidate the debt in a 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 lqui- date any part or all of his indebtedness in amounts of $50.00 or multiples there- Of upon any amortization payment date.
 Sec. s. The rate Of interest on loans shall be five per cent per annum: pro Vided. that no Farm Credit Bonds shall Ia fnE Toe 1fded further that the board shall re- auire each applicant to pay an initial charge of per cent of the loan grant ed. the minimum charge to be $1000 to cover the cost of appraisal and ex- animation of title.
 See. 2. All surplus funds accruing from the operation of the system of rural credits herein provided for, after paving interest aecruing 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 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 ac- eruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to 1t and become a part of it. The said Arkansas Rural Credits Reserve Fund shall be irreducble. ex- eept that it may be drawn upon to re- imburse the State for loss incurred in th" namf~ ist"ati ion ef Feia e.'cter1 of rHra1 credits.
 Sec. 10. The Legislative Assembly shall provide in such detail as it 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. In the absence of such legis lation, and subject to the same after its 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 tf provisions herein contained
 Sec. r. The provisions of the Con stitutioH of Arkansas in conflict with this amendment are hereby repealed, in The pro.isions of this amendment shall be self-executing. and shall take effect and be in operation 50 days af- ter their approval and adoption by the people O. Arkansas.
 Appro d by the Governor. and filed in the oc:ice of the Secretary of State March IT. 1917.
 Each elector may vote for or against he above amendment
 Witness my official signature this the 2Ith day of April. 1918.
 tSeall TOM ]. TERRAI.
 Secretary of State