The courier-index., 1918-08-02

the sattsfaetion of encumbrances upon such lands. which. in the judgment of said board. were incurred or assumed by said applicant for the aforesaid Durposcs 5
 Sec. 6 Every applicant for farm loan shall state clearly in his appltca- ton the purposes for which such loan is desired. and upon it's approval by the board this statement shall be deem ed a part of tho note or contract under which the loan is granted, But no fa fiure to apply such funds to the purposes stated in such application or enumerated herein shall inyalidate loan whes once made. nor shall any thins herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such tn- cumbraDce: but if he shall violatc his satd 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 to any person not fulhli- ing the conditions and purposes pro- vided for. herein. said, board is author ized and directed to require tho repay ment of said foaE upon six months' no- tice. and said, note or contract shall contain clause providing therefor.
 Sec. y Such loans shall he repaid with tnterests accruinE in annual in stailments on the amortization plan. such instailments being fixed at such
 
 and will iauidate the. debt in period to be agreed on between said board. and the applicant. said period to be not less than i've nor mora than thirty six years; but any debtor may iiaui- dats any part or all of his indebtedness in amoupts of sso 90 CT multiples there of upsa any amortization payment date
 Sec. E. Tho rate of interest on loans shall be i've per cent per annum. pro cd hnf n Tu Au oI,s 1 be sold for lesss than par, and pre- vided further that the board shall re- qutre each applicant to pay an initial charge of I per cent of the loan grant ed. the minimum charge to be sI00 to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds sccruing from the operation of the system of rural credits herein provided Cor, after paying interest lccruing on the afOre- said honds. and all operating and other expenses arising from the administrs- ton of said system of rural credits. shall be placed in the State Treasury and become a part of $ fund to he known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned on farm lands in the TnanRer 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 1t and become \ part of It. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that 1t 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 it shall deem advisable for the carrying out and administering of the provisions of his amendment. and shall provide ad- eauate safeguards against the use of 'uch loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards hall include clear definitions of the erms operate" and occupy used lsrein. In the absence Of such legis- ts enactment, the State Land Board shall proceed to administer said sys- em of rural credits under rules and egulations provided by itself but sub 'ect to the provisions herein contained.
 Sec. II. The provisions of the Con- ititution of Arkansas in conflict with his amendment are hereby repealed, in so far only as they conflict herewith. The provisions of this amendment hall be ssFf-executing. and shall take Meet and be in operation so days af- er their approval and adoption by the ieopie of Arkansas.s
 Approved by the Governor. and hled .. the office of the Secretary of State. Tarch IT. 1917.
 Each eiertor may -ote for or against he above amendment.
 Witness aMy officiHt signature this. he stth day of AOrii. 1918.
 Ies&Al TOM ! TERRAL.
 Secretary of State.