The Nevada County picayune., 1918-10-10

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 a farm loan shall state clearly in his applica- ton the purposes for which such loan k desired and upon it's approval by the board this statement shall be deem- ed q 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 inyalidate 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 or sell them to any person not fulf1ll- 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- ttre. and said note or contract shall contain q clause providing therefor
 Sec, T. Such loans shall be repaid with interest accruing in annual 1n- stallments on the amortization plan, such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in a period 10 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 1iqui- date any part or all Of his indebtedness In amounts of 5000 or multtpies there of upon any amortization payment date.
 Sec. 8. The rate of interest on loans shall be five per cent per annumi pro- vided, that no Farm Credit Bonds shall be sold for less than par; and pro- vided further that the board shall re- luire each applicant to pay an initial charge of l per cent of the loan grant ed. the minimum charge to be 5000 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 accTuing on the afore- said bonds, and all operating and othel 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 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 &C., cruing from loans made from said Ar kansas Rural Credits Res rye Fund shall be added to it and become a part of it. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- eept that it may he drawn upon to re- imburse the State for loss incurred in .ha administration o' 1aid system of rural credits.
 Sec 10. The Legislative Assembly shall provide in such detail as ft shall deem advisable for the carrying out and admin IS tering of the provisions of this amendment, and shall provide ad- equate safeguards against the use Of 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 legis- 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 iect 10 the provisions herein contained
 See. II. The provisions of the Cen stttutton of Arkanaas in conflict with this amendment are hereby repealed, in 50 far only as they conflict herewith The provisions of this amendment shall be se'f-eNeautinE. and shall take
 fleet and be in operation so days af ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed the office of the Secretary of State March r, 1917.
 Each electOr may vote for or against the above amendment
 Witness my official signature this
 hn 9Ata day of April 1918.
 fSealI TON [ TERRAL.
 Secretary of State