The courier-index., 1918-05-31

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- ton the purposes for which such loan is desired. and upon its approval spy the board this statement shall be deen- 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 thfng herein contained be deemeo 10 prevent any farm owner from selling or leasing lands subject to such in- cumbrance but if he shall violate ms said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerated q herein. or if he shall lease such lands or sell them to any person not fulnll- ing the conditions and purposes pro- vided for herein, said board Is author ized and directed to require the repay- ment of said loaL upon six months no. tice, and said note or contract shall contain a clause providing therefor.
 Sec. q Such loans shall be repai with interest accruinE Tn annual ln- stallments on the amortization plan. such installments being fixed at such
  and will liquidate the debt in a period to be agreed on between said board and the applicant. said period to pc not less than i've nor more than thirty . six years: but any debtor may liqui- date any part or all of his indebtedness in amounts of s50.e0 or multiples there of upon any amortization payment date.
 Sec g. The rate of interest on loans shall be five per cent per annum; pro, aFfd dAA hot I.t- Bonds be sold for less than par: and pro- vided further that the board shall re- quire each applicant to pay an inidal charge of l per cent of the loan grant : ed. the minimum charge to be slo,oV to cover the cost of appraisal and ex- animation of title.
 Sec g. All surplus funds accruins from the operation of the system or rural credits herein provided for. after paying interest accruing on the afore- aid tonds. and all operating and other expenses arising from the administra- ion of said system of rural credits, shall be placed in the State Treasury and become part of a fund to ne 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- crujng from loans made from. said Ar kansas Rural Credits Reserve Fund ! shall be added to it and become par of it, The said Arkansas Rural Credits Reserve Fund shall be irreduclble, ex- cept that it may be drawn upon to re- imburse the State for loss incurred n he administration of said system oi rural credits.
 Sec. 10. The Legislative Assembly shall provide In such detail as 1t shal leem advisable for the carrying out nd administering of the provisions oi fhis amendment. and shall provide ad- equate safeguards against the use oi
 uch loans as an aid to the purehaA- ng and holding of lands for the pur-
 oses of speculation. Such safeguard: hall include clear definitions of the rms operate" and occupy" uset
 erein In the absence of such legis-
 ttion, and subject to the same aftel Is enactment the State Land Boarc
 hall proceed to administer said sys. em of rural credits under rules anc act to the provisions herein contained
 Sec. IT. The provisions of the Con titution of Arkansas in conflict witf his amendment are hereby repealed n 70 far only as they conflict herewith The provisions of this amendment hall be self executing, and shall take
 feet and be in operation 60 days af'
 CT their approval and adoption by th'
 cople of Arkansas
 Approved by the Governor and filet the office of the Secretary of State
 arch l7. 1917.
 Each elector may vote for or Agains ne above amendment.
 Witness my official signature this se 24th day Of April 1918.
 | rseail TOM J. TERRAL.
 Secretary of State