The Nevada County picayune., 1918-09-12

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 its approval by 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 inyaiidate 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 fulhll- tn~ the conditions and purposes pro- vided foI herein, snid board Is author iz'd and directed to require the repay meDt of said loan upon six months mo- ttCe. and said note or contract shall contain clause providing therefor.
 Sec 7. Sueh loans shall be repaid with intc"est n""runs In annual in- stallments on ths amortization plan, such installments being f1ed at such sums as will cover ttc interest rate and will liquidnte tho deht 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 DQui- date any part or all of bis indebtedness In amounts of 3t0.00 or multiples there date
 Sec. !. The rate of interest on loans shall be hve per cent per annum; pro- vided. that no Farm Credit Bonds shall Do 1 Cor vided further that the board shall re- Quire each applicant to pay an initial charge of per cent of the loan grant ed, the minimum charge to be a10.00 to cover the cost of appraisal and ex- animation of title.
 Sec. 3. 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 fund to be known az 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 ResNrve Fund shall b" added to 1t and become part of It. The said hrkansae Rural Credits Reserve Fund shall be irreducible, ex "ept that it may he 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 it shall deem advisable for the carrying out and administering of the provisions of this anne ndment. and shall provide ad eduate safeguards against the use of such loans an aid to the purchas ing and holding of lands for the pur- poses of speculation Such safeguards sin'f inc 't,!. ,=l,aI dtfnitons of the form. "opstate' 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 jeet to the provisions herein contained.
 Sec. II. The provisions of the Con stitution of Arkansas in conflict with this amendment are hereby repealed. in The provisions of this amendment effect and be In operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and hled In the office of the Secretary of State, March F. 1917.
 Each eiectOr may vote for or asAinst the above amendment.
 Witness my official sisnatuye this. the 2@th day of April. 1918.
 IseaIl TOM J. TERRAL.
 Secretary of State.