Pine Bluff daily graphic., 1918-07-18
THREE

fhs satisfaction of eacumnrances upcA 1 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 i loan shall state clearly in his applica- tion the purposes for which such loan Is desired, and upon its approval oJ the board this statement shall be deen- cd a part of the note or contract under which the loan is granted. But no failure 10 apply such funds to the purposes stated in such application OF enumerated herein shall invalidate Q loan when once made, nor shall any thing herein contained pe deemed to prevent any farm owner from selling or leasing lands subject to such in i cumorance; but if he shall violate his said contract by applying the moneys borrowed to purposes other than those stated In his appliCation or enumerated herein, or if he shall lease such lands or sell them 60 any person not fulfill ing the conditions and purposes pro- vfded for herein. said board Is author- i2ed and directed to require the repay nent of said loan upon six months no- tice, and said note or contract shall contain clause, providing therefor.
 See. '. Sucb loans shall be repaid with interest acrruing In annual in- stallments on the amortization plan. such installments being fixed ut such sums as will cover the interest rate and will liquidete the debt in period lb De agreed on between SAlO DOaTO and the applicant. said period to be not less than five nor more than thirty six years; but any debtor may liQut- date any part or all of his indebt edness in amounts of 5000 or multiples there of upon any amortization payment date.
 Sec. S. The rate of interest on loans shall be five per cent per annum; pro- vided. that no Farm Credit Bonds shalt be sold for less than par; and pro- tided further that the board shall re- aulre 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 cx ainination of title.
 Sec. 9 All surplus funds accruing from the operation of the system of rural credits herein provided for, after paving interest accruing on the afore- said bonds. and all operating and other expenses arising from the administra- tion of snid system of rural credits. and become part of fund to no known as the "Arkansas Rural Credit Reserve Fund" Said Arkansas RuyAl Credits Reserve Fund shall be loaned provided for the Arkansas Rural Credit Loan Fund. and the interest ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund Hha II be added to 1t and become part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- rept that it may be drawn upon to imbursc the State for loss incurred in tn" administration of said system of rural credits
 Sec. 10. The Legislative Assembly shall provide in such detail as 1t shall leem advisable for5 the carrying out md administering of the provisiou0npf this amendment. and shall provide nd- "uuate safeguards ngninst the use of such loans as an aid to the purchase ing and holding of lands for the pur- poses of speculation. Such safeguards ihaN include clear definitions of the terms Operate" and occupy" used herein. In the absence of such legis- 'ation, 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 populations provided by itself. but sub. 'c"t to the provisions herein contained.
 Sec. II. The provisions of the Con- 'titution of Arkan ansas in conflict with :his amendment afc hereby repealed. in 70 far only as tftey conflict herewith. The provisions or this amendment shall be self-execliting. and shall take fleet and be in Operation GO days af- ter their approval and adoption by the people of ArkanJhs.
 Approved by tlIe Governor. and filed n the office of the Secretary of State. NInrch IT. 1917. 5
 Each eIector may vote for or against it" above amendment
 Witness my official signature thiA he 24th day of April 1918.
 lSealI TOM J. TERRAL.
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