The courier-index., 1918-11-01

the satisfaction OF encumnrances upon
such lands, which, in the judgment or
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
Is desired, and upon its approval by
the board this statement shall be DEEM
&C 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 invalidate
loan when once made. nor shall any
ching herein contained be deemed TO
prevent any farm owner from selling
or leasing lands subject to such In
cumbrance; but IN he shall violate his
said contract by applying the moneys
borrowed TO purposes other than those
stated In his application or enumerated
herein. or III he shall lease such lands
or sell them to any person not fulril-
ing the conditions and purposes pro-
vided for herein, said board is author
lied and directed to require the repay
ment of said loaL upon six months mo-
tice and said note or contract shall
contain a clause providing therefor.
Sec. 7. Such loans shall be repaid
with interest accruing in annual in
stallments on the amortization plan.
such installments being fixed at such
sums as will cover the interest rate
to be agreed on between said board
and the applicant, said period to be
not less than f1ve nor more than thirty
six years; but any debtor may liqui~
date any part or all OF his Indebtedness
in amounts of $50 90 or multiples there
OF upon any amortization payment
date.
Sec. 8. The rate OF interest on loans
shall be five per cent per annum: pro-
vided. that no Farm Credit Bonds shall
lass ha
vided further that the board shat. re-
duire each applicant to pay an initial
charge OF per cent OF the loan grant
ed. the minimum charge to be $4,000
10 cover the cost OF appraisal and ex-
animation of title.
Sec. 8. All surplus funds accruing
from the operation OF the system OF
rural credits herein provided for. after
paying interest accruing on the afore-
aid sonds. and all operating and other
expenses arising from the administra-
ton 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 a part
or II. The said Arkansas Rural Credits
Reserve Fund shall be irreducible. ex-
rept that IL may be drawn upon to re-
mburse the State for loss incurred in
he administration of said system Of
ural credits. =
Sec 10. The Legislative Assembly
shall provide in such detail as 1t shall
leem advisable for the carrying ont
md administering of the provisions OF
his amendment and shall provide adj
tquate safeguards against the use OF
UGH loans aid to the pdrchas-
ag and holding OF lands for the pur-
oses of speculation. Such safeguards
rall include clear definitions OF the
rms Operate" and occupy" used
erein. In the absence OF such legis-
ton, and subject to the same after
enactment, the State Land Board
ball proceed to administer said sys-
EN- OF rural credits under rules and
equations provided by itself but sub
oct to the provisions herein contained
Sec. IL. The provisions OF the Con-
titution OF Arkansas in conflict with
his amendment are hereby repealed. in
% far only as they conflict herewith.
The provisions OF this amendment
feet and be in operation 60 days af-
or their approval and adoption by The
aople of Arkansas.
Approved by the Governor. and fled
1.-The office OF the Secretary OF State.
arch II. 1917.
Each elector may -ote for or against
SO above amendment.
Witness my official signature this
We Path day OF April 1918
ISeal1 TOM 7. TERRAI..
Secretary OF Stat.