Pine Bluff daily graphic., 1918-07-04

shs satisfaction of encumbrances upo, such lands, which, in the Judgment olN said board, were incurred or assumed by said applicant for the aforesaid
 Sec. 6. Every applicant for farm loan shall state clearly in his applica. tion the purposes for which such loan l. is desired and upon its approval byk the board this statement shall be deem. ed a part of the note or contract unde,E K which the' loan is granted, But noS failufe to apply such funds to th.s purposes stated in such application o,E enumerated herein shall invalidate aa loan when once made, nor shall any. thing herein contained De deemed toS prevent any farm owner from selling or leasing lands subject to such ins cumbrance; but if be 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 land, or sell them to any person not fulfill. vided for herein, said board is author. ized and directed to require the repay. rnent sf said. loan upon six months no. tfce. and said note; or contract shall contain a clause providing. therefor
 Sec. 2. Such Bans shall be repaid with' interest accruing in annual in. stallmAnts on the amortization plan such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in peried; to be agreed. on Between said boad8 and the applicant, said period to be not less than five nor more than thirty. six years: but any debtor may liqui. date any part or all of his indebtednesE in amounts of s50.00 or multiples there. of upon any amortization payment date.
 Sec. 8. The rate of interest on loans shall be five per cent per amman; pro. vidGd, that no Farm Credit Bonds shall be sold for less than par; and pro. vided further that the boaM shall rel quire each applicant to pay an initial ed, the minimum charge to be s10o0E to cover the cost of appraisal and ex.s animation of title.
 Sec. 9. All surplus funds accruing from the operation of the system oiD rural credits herein provided for. afters paying interest accruing on the afore.s said bonds. and all operating and other expenses arising from the administn.S
 tion of said system of rural creditss shall be placed in the State TreasuyE
 known as the Arkansas Rural Credit
 Reserve Fund" Said Arkansas Rursll Credits Reserve Fund shall be foanedI on farm lands in the manner hereinE pDovided 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 nd become g part of 1t. The said Arkansas Rural CredtsI Reserve Fund shall be irreducibe ex.I cept that it may be drawn upon to rel mburse the State for loss incurred inI the administration of said system ol rural credits.
 Sec. 10. The Legislative Assembly !
 shall provide in such detail as it shall deem advisable for the carrying out and administering of the provisions of this amendment, and shall provide adj 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 safeguard shall include clear defiQtions of the terms "oBerate" and 6ccupy" used herein. in the absence of such legs lation. and subject 4o the same after shall proceed to administer said sy4 tenn of rural credits under rules and regulations provided by itself. but sub. 1 feet to the provisions herein contained Sec. il. The provisions of the Con. stitution of Arkansas in conflict with this amendment are hereby repealed in | Jo far only as they conflict herewith | The provisions of this amendment shall be self-executing, and shall taks l ter their approval and adoption by the l people of Arkansas.
 1 Approved by the Governor, and filed in the office of the Secretary of State
 March 17. 1917.
 Each electQe may vote fer or against
 the above amendment.
 l Witness my official signature this he 24th day of April, 1918.
 (Seal1 TOM J. TERRAL. l oR ox>kA