The Nevada County picayune., 1918-08-01

the satisfaction of cncumbran0es 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 q farm
 loan shall state clearly In his appltca-
 tion the purposes for which such loan
 is desired and upon It's approval by
 the board this statement shall be deem
 cd 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 invaiidate 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 no- tice, and said note or contract shall contain a 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 as will cover the interest rate
 
 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 $50. co or mtltiples 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 be sold for less than par; and pro vided further that the board shall re- Guire each applicant to pay an initia, charge of l per cent of the loan grant . ed. the minimum charge to be $10.00 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- tion of said system of rural credits, shall be placed in the State Treasury and become part of a 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-
 cruing from loans made from said Ar
 kansas Rural Credits Reserve Fund shall be added to 1t and become part OI IL. I ne haiu AFf6nSdS Reserve Fund shall be irredueibte 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. 10. The Legislative Assembly
 shall provide in such detail as 1t shall
 deem advisable for the carrying out and administering of the provisions of
 this anne endment 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 legts-
 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 ject to the provisions herein contained. Sec. IL The provisions of the Con stitution of Arkansas in conflict with
 this amendment are hereby repealed in The provisions of this amendment
 shall be sclf-executing. and shall take effect and be in operation SO days af
 ter their approval and adoption by the people Of Arkansas.
 Approved by the Governor, and fied in the office of the Secretary of State, March 17, 1917.
 Each elector may vote fOy or against the above amendment.
 Witness my official signature this,
 the 24th day of April, 1918.
 tseaI] TOM J. TBRRAL. Secretary of State.