Pine Bluff daily graphic., 1918-10-10

me satisfaction o. encumbrancss uroA such lands, which, m the Judgment of said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec 6. Every applicant for Q farm loan shall state clearly in his appllca- tion the purposes for which such loai. is desired, and upon iss approval by the board this statement shall he deem ed a part of the note or contract undei which the loan is granted. But no failure to apply such funds 10 the purposes stated in su.h aPpii' ai ion or enumerated herein shall inNi.'iuate loan when once made. nor sl all any thing herein contained De deemed '" prevent any farm owner from sel',as or leasing lands subject to such in cumbrance: but if he shall violate his said contract by applying the money stated in his application or enumerat.d herein. or if he shall lease Such lan'' or sell them to any person not fu'1ll- ing the conditions and purposes pro- vided for herein. said board Is author- ized and directed to require the rcp"v- mont of said loan upon six months no. tice. and said note or contract shall contain a clause providing therefor
 Sec. 2. Such loans shall be rer'id with interest accruing In annual T. stallments on the amortization plrn. such installments being fixed at st ,h sums as will cover the interest rate and will! lauidate the debt in peri 'd to be agreed on between said hs" :d and the applicant said period to he not less than five nor more than thirty six years: but any debtor may lioui- date any part or all of his indebtedness in amounts of s5NsO0 or multiples there of upon any amortization payment date.
 Sec. 8. The rate of Interest on loa ms shall be five per cent per annum; pro. vided. that no Farm Credit Bonds shall vided further that the board shall re- quire each applicant to pay an tnitiA charge of 1 per cent of the loan grant ed. the minimum charge to be s1o.oo to cover the cost of appraisal and ex- animation of title.
 Sec, g. All surplus funds accruing from the operation of the system of rural credits herein provided for. after paying interest accruing on the afore- said bonds. and all operating and other tion of said system of rural credits. shall be placed in the State Treasury and become a part Of fund 10 pc known as the "Arkansas Rural Credit 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- kansas Rural Credits Reserve Fund shall be added to it and become . part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that 1t may be drawn upon to ro- inlburse the State for loss incurred in the administration of said system Of rural credits. f>-f 4 ' .'v f
 Sec: TO- 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 ad- eduate 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 its enactment. the State Land Board shall proceed to administer said sys- tenn of rural credits under, rules and regulations provided by itself. but sub ject to the provisions herein contained.
 Sec. II. The provisions of the Con- stitution of Arkansas in conflict with .his amendment are hereby repealed. in 20 far only as they conflict herewith. The provisions of this amendment effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor, and filed In the office of the Secretary of State. March IT, 1917.
 Zach elector may vote for or against he above amendment.
 Witness my official signature this, he 24th day of April. 1918.
 rSeall TOM J. TERRAL.
 Secretary e State