Pine Bluff daily graphic., 1918-07-11

sne satisfaction of encumbrances upo, 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 farm loan shall state clearly in his applica- ton the purposes for which such loan Is desired, and upon its approval by the board this tatement shall be deen- cd a part of the note or contract under which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate loan when once made. nor shall any thing herein contained oe deemed to prevent any farm owner from selling or leasing lands subject 10 such in- eHmbranre; but if he shall violate his said contract by applying the moneys borrowed to purposes other tran those stated in his application or enumerated herein. or if he shall lease such lands or sell them to any person not fulfllI- ing the conditions and purposes pro- ridcd for herein. said board ia author ized and directed to require the repa%- m"nt of said loan upon six months no- tice. and said note or contract shall contain T clause providing therefor.
 Sec. 7. Sucb loans shall be repaid with interest arcruinE in annual in 7tallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate
 
 to be agreed on between said board and tn" applicant. said period to he not less than five nor more than thirty six years; but any debtor may liqut- date any part or all of his indebtedness in amounts of s50.00 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 shall be sold for less than par; and pro- %idcd further that the board shall re- quire each applicant to pay an initial charge of 1 per cent of the loan grant, ed the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title.
 Sec 9. An 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 administra- tion of said system of rural credits. shall be placed in the State Treasury ana become 2 part Of a fund fund to be be Reserve Fund" Said Arkansas Rural 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 or It. The said Arkansas Rural Credits
  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 1eem advisable for the carrying out and administering of the provisions of this amendment and shall provide ad eduate safeguards against the use of such loans aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards fhail include clear definitions of the terms Operate" and occupy" used herein. In the absence of such legis- lation, 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- feet to the provisions herein contained.
 Sec. II. Tine provisions of the Con- ,titution of Arkansas in conflict with this amendment are hereby repealed, in 70 far only as they conflict herewith. The provisions of this amendment shall be self-executng. and shall take 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.
 Each elector may vote for or against he above amendment.
 Witness my official signature this, he 24th day of April 1918.
 ESeall TOM J. TERRAL,
 Secretary oe State