The Nevada County picayune., 1918-10-03

the satisfaction of encumbrances upon such lands which, in the judgment of sald board, were incurred or assumed oy sald applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm ioan shall state clearly in his applica- tlon the purposes for which such loan is desired, and upon it's approval by the board this statement shall be deem- eu part of the note or contract under when the loan is granted. But no lalIure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate 8 iodu when once made, nor shall any thlhg herein contained be deemed to prevent any farm owner from selling or leasing lands subject to sGch in- cumbrance but If he shall violate his Sald 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 fulfill ing the conditions and purposes pro- Vlded for herein, said board is author iZed and directed to require the repay inent of said loan upon six months mo- tlce, and said note or contract shall contain a clause providing therefor
 Sec. '. Such loans shall be repaid With interest aeeruing In annual in- staiIments on the amortization p1an such lnStallments being fixed at such sums as will cover the interest rate and will iiquidate the debt in a period TO De agreed on between said board ana 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 indebtedness m amounts of 5000 or multiples there- date
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro- Nided. that no Farm Credit Bonds shall De sold for less than par; and pro- Vlded 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 s10.o0 10 cover the cost of appraisal and ex animation of title
 Sec. 9. 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 administra- ton of said system of rural credits. shall be placed in the State Treasury ana become part of a fund to be known as the Arkansas Rural Credit 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- erung from loans made from said Ar kansas Rural Credits Res rye Fund shall be added to It and become a part of it. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- aept that it may he 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- 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 safeguards shall include clear definitions of the terms Operate" and occupy" used herein. In the absence of such legis- It's 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 70 the provisions herein contained.
 Sec. II. The provisions of the Con stitution of Arkansas in conflict With this amendment are hereby repealed in far only as they conflict herewith. The provisions of this amendment shall be self-eXecuting. and shall take offect and be in operation so days af- Ter their approval and adoption by the people of Arkansas.
 n 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. the 24th day of April. 1918.
 [Seail TOM J. TERRAL.
 Secretary of State.