Pine Bluff daily graphic., 1918-05-30

the satisfaction of enaumbrances upo\ 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 farm loan shall state clearly in his appllca- ton the purposes for which such loan is desired, and upon it's approval by the board this statement shall be deeln- ed 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 to prevent any farm owner from selling or leasing lands subject to such in cumbrance: but if lie 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 landi or sell them to any person not fu!tili- 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 no- tice. and said note or contract shall contain a clause providing therefor.
 Sec. 7. 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 liqudatc 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 thrty six years; but any debtor may liqui- date any part or all of his indebtedness in amounts Of $50.00 Or multiples there of upon any amortization payment dat tc.
 Sec S. The rate of interest on loans Shall be five vided, that no Farm Credit Bonds shall be sold for less than par; and pro- Eided further that the board shall re- qulre each applicant to pay an initial ed the minimum chars;e to be $1000 to cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruing rom the operation of the system of rural credits herein provided for. after paying interest accrunG 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 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-
 
 kansas Rural Credits Reserve Fund shall be added to it and become a part Of 1t. The said Arkansas Rural Credits Reserve Fund shall be irr,ducible, eN- cept that 1t may be drawn upon to re. imbufse the State for loss incurred in the administration of said system of rural credits.
 Sec. 10. The Legislative Assembly shall provide in such detail as it shall deem advisable for tine carving ont and administering of the provisions of thls amendment. and shall prov idle ad- eduate safeguards against the use of such loans as an aid to the purchas- ing and holding of lands for the pur- poses or speculation, such s1afegl.ards shall include clear definitions of the terms operate" and "occupy" used herein In the absence of such leois- latlon and subject to the same after it's enactment. the State Land Board shall proceed to administer said sys- tom of rural credits under rules and feet to the provisions herein contained
 Sec II. The provisions of the Con stltutlon Of Arkansas in conflict with 'Ais amendment are hereby repealed in so Tar only as they conflict herewith The provisions of this amendnent S1ail De Seif-executins, and shall take "Hect and be in opera ton 60 days or- ter their approval and adoption by the people of Arkansas. N"e
 Approved by the Governor. and filed in the office of the Secretary of St.ta March 17, 1917. "'e'
 Each elector may vote fer or against tho above amendment
 Witness my official sicnature tb;s the 24th day of April. 19IS. N'''''
 lSealI TOM J. TERRAI..
 Secretary ct State ~ o S- U;---,---------