Pine Bluff daily graphic., 1918-09-20

..%,.r.ct,on ot encumbrances upoA such lands. which, in the Judgment ol said board were incurred or assuaa;d una by said applicant for the alores'N purposes r.rr
 Sec 6. Every applicant for a 1arm loan shall state clearly in ms appiie tion the purposes for Whlcn such iot is desired, and upon It's aPpLosaa s,J' the board this statement shall oe ed part of the note or contract uiu ,c which the loan is granted b.' .h. . failure to apply such funds to LII. purposes stated in such apphcatioIi V. enumerated herein shall lnVaiiuaIe loan when once made, nor shaii o thing herein contained De deeIneu M prevent, any, farm owner rom IT such inc cumbrance; but if he shall violate n,s said contract by applying the moneSs borrowed to purposes other than lho' stated in his application or enume \. herein, or if he shall lease such lanuS at, or sell them to any person not rulllll' ing the conditions and, purposes pre- vided for herein. said board IS autho.- fzed and directed to require the repay ment of said loan upon six months nu ,, tice, and said note or contract sn"" contain a clause providing thereiol.,
 Sec. 2. Such loans shall be repaho with interest accruing in annual 1n- stallments on the amortization, plan. such ;lnstallments being fixed at sucn sums as will cover the interest Ga.s and will liquidate the debt in perloa and the applicant, said period 10 pc not less than five nor more than tn!rt!- six years; but any debtor may tiqul- date any part or all of his indebtedness in amounts of $50.00 or multiples there. of upon. any amortization payment date.
 Sec 8. The rate of interest on loans shall be live per cent per annum; pro. vided. that no Farm Credit Bonds shaH be sold for less than par: and pro- vided further that the board shall re, quire each applicant to pay an initlA charge of per cent of the loan grant ed. the minimum charge to be $lO.oo to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accruing rural credits herein provided for, after paying interest accruing on the afore- said bonds. and all operating and other expenses arising from the admtnistra- 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- cruing from loans made from said Ar. kansas Rural Credits Reserve Fund shall be added to it and become g part of 1t. The said 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 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 amendment and shall provide ad- equate safeguards against the use of such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards terms Operate" 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 ject to the provisions herein contained
 Sec. H. The provisions of the Con- stitution of Arkansas in conflict with so far only as they conflict herewith The provisions of this amendment shall be self-executing. and shall take effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed in the office of the Secretary of State March IF, 1917. =.
 Each elector may vote for or against .he above amendment
 Witness my official Signature this he 24th day of April. 1918.
 tSeall TOM J. TERRAL,
 Secretary ok State