The courier-index., 1918-07-26

 tho satisfaction of encumoranoes 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 a farm loan shall state clearly in his applies- ton 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 failure 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 70 prevent any farm owner from selling or leasing lands subject 10 such in cumbrance; but if he shall violate his said contract by applying ths 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 fuihl'- 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- tics and said note or contract shan contain a clause providing therefor
 Sec. I. Such loans shall be repaid with interest accruinx In annual fh- stallments on the amortization plan. such fnstaIlments being fixed at such sums as will cover the interest rate and will fiqudate the debt in period to be agreed on between said board and tho applicant, said period to os not less than i've nor more than thirty six years: but any debtor may hqui- date any part or all of his indeb tedness in amounts of ts0.00 or muitiples there of upon any amortization payment date.
 shall be five per cent per snnum; pro. vided, that no Farm Credit Bonds shall De sold for less than par; and pro vided further that the board shall re- qufre each applicant to pay an initiai charge of per cent of the loan grant ed, the minimum charge to bs 5000 to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accrning from the operation of the system of rural credits herein provided for. after paying interest accruing on the sfore- said bonds. and all operating and other expenses arising from the sdministrs- ton of said system of rural credits, shall be placed in the State Treasury and become a part of fund to bs known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural Credits Reserve Fund shah be loaned on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and tho interest sc- crning from loans made from said Ar kansas Rural Credits Reserve Fund snail De aQ0ed 10 lt ana become a part of it. Thessaid Arkansas Rural Credits Reserve Fund shall be irreducible, ex- cept that it may be drawn upon to re- imburse the State for loss incurred In he administration of said system or euraf credits.
 Sec. f0 Ths Legislative Assembly shall provide in such detail as it shall deem advisable for the carrying out and administering of the provisions or this amendment. and shall provide ad- equate safeguards against the use or such loans as an aid tO the purchas- ing and holding of lands for the pur- ,oses of specuia ton. such safeguards ds hall include clear definitions of the lerein. Tn the absence of such legis- .tion. and subject to the same after x enactment, the Stata Land Board hall proceed to administer said sys- em Of rural credits lfnder rules and 'egulations provided by itself. but sub .ect 10 the provisions herein contained.
 Sec. IL Ths provisions of the Con- ttitution of Arkansas in conflict with this amendment are hereby repealed. in so far only as they conflict herewith. Tho provisions Of this amendment hall be seif-execus ing. and shall take
 fleet and be in operation 5o days ar sr sh sir approval and adoption by the ,eople of Arkansas
 ApprowAd by the Governor and ried ths office of the Secretary of State, 'terch IT 1917
 Each elcctor may -ots for or against le, above amendment
 Witness nay offielai sigRsturs thts, he 2tth day of April 1918.
 rSeail TOM '. rEI:RAi..
 Secretary of State.