Pine Bluff daily graphic., 1918-10-17

She satisfaction ot encumbrances upoA such lands. which, Tn the Judgment of said board, were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farn. loan shall state clearly in his applica. ton the purposes for which such loan IS desired, and upon it's approval by tne board this statement shall be deero- ed a part of the note or contract under which the loan is granted But no failure to apply such funds to thA purposes stated in such application or enumerated herein shall invalidate loan when once made, nor skall any, thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such in- cumbrance; but If he shall violate his said contract by applying the moneys porrcwed 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 fulfill ing the conditions and purposes pro- vided for herein. said board Is author tzed and directed to require the repay rnent of said loan upon six months mo- tice. and said note or contract shall Contain a clause providing therefor
 Sec. T. Such loans shall be repaid with Interest accruing in annual i,- stallments on the amortization plan, such installments being fixed at suci, SuHiS AS Wlu cover the interest T6Ie and will liquidate tho debt in a period to be agreed on between said board and the applicant said period to be not less than five nor more than thirty six years: but any debtor may llaui- date any part or all of his indebtedness Of upon any amortization payment date
 Sec. 8. The rate of interest on loan. shall be five per cent per annum: pro: vided. that no Farm Credit Bonds sha T be sold for less than par: and pro- "idec further that the board shall re- quire each applicant to pay an initiA' charge of per cent of the loan grant ed. the minimum charge to be 5000 to cover the cost of appraisal and e1-
 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 expenses arising from the admtnistra- tion of said system of rural credits. shall be placed in the State Treasury and become part of fund to be known as the "Arkansas Rural Credit Reserve Fund" Said Arknnsas Ru-al 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 of it. The said Arkansas Rural Credits Reserve Fund shall be irreducible. e1- cept that it 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 1t shall deem advisable for the carrying out and administering of the provisions of this amendment and shall provide ad-. such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of tho terms Operate" and occupy" used herein. In the absence of such leEis- 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 feet to the provisions herein contained.
 Sec. Il. The provisions of the Con- stitution of Arkansas in conflict with his amendment are hereby repealed. in 70 far only as they conflict herewith. Tho provisions of this amendment shall be self-executing, and shall take effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas @t
 Approved by the Governor. and hled in the office of the Secretary of State. March 17. 1917 / Each elector may vote for or against he above amendment.
 Witness my official signature thiA he c4th day of April 1918.
 IsealI TOM J. TERRAI4
 Secretary ee State