The Dermott news. (Dermott, Ark.) 1910-1977, 1918-06-20

the satisfaction of encumbrances upon
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 a 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 statement shall be deem
ed a part of the note or contract under
which the loan is granted. But nc
FAILURE to apply such funds to the
purposes stated in such application OF
enumerated herein shall invalidate
loan when once made, nor shall any
thing herein contained be deemed te
prevent any farm owner from selhhS
or leasing lands subject to such IN
cumbrance; but if he shall violate MS
SAID 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 fuinil-
ing the conditions and purposes pro-
Vided for herein, said board is author
lied and directed to require the repay
ment of said loan upon six months no
tee. and said note or contract shall
contain clause providing therefor
Sec. 7. Such loans shall be repaid
with interest accruinc in annual In
stallments on the amortization plan
such installments being fixed at such
sums as viii cover the interest rate
and viii liGuidate the debt in period
to be agreed on between said board
and the applicant. said period to be
not less than I'VE nor more than thirty
six years; but any debtor may liQui-
date any part or all Of his Indebtedness
in amounts of $50 90 or multiples there
or upon any amortization payment
date.
Sec. s. The rate of interest on loans
shall be five per cent per annum; pro-
vided. that ne Farm Credit Bonds shall
hn GElh F.R~ L
vided further that the board shall -.
quire each applicant to pay an initial
charge of ! per cent Of The lean grant
ed. the minimum charge to be $1,000
TO cover the cost of appraisal and eN-
animation OF title.
Sec. Q. All surplus funds aceraine
from the operation Of The system ~
rural credits herein prov ided for after
paying interest aeerUinE on the atore-
said bonds. and all operating and other
ton of said system Of rural credits.
sha1 be placed in the state Treasury
and become part of a fund 10 he
known as the ARKANSAS E4Hal credit
Reserve Fund" SAID Nix 7usas Rural
Credits Reserve Fund shall b. loaned
on farm lands in the manner herein
provided fer 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 70 4 and become ralt
OF IT The sand Arkansas Rural Credits
Reserve Fund shall be irreGuclb!c. vN-
cCpt that il may be drawn upon e re-
imhurse the State for less incurred in
the administration Of said system Of
rural credits.
Sec. 0. The Legislative Assembly
shall provide in such detail as ii shall
deem advisable fer the CARRYING out
and administering of the provisions Of
this amendment and shall prov de adj
equate 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 leris-
latlun, and subject to the same after
its enactment. the State Land Board
shall proceed to administer said sys
TEN of rural credits under rules and
regulations provided by Itself, but sub
ject TO the provisions herein contained.
Sec. Il. The provisions @; the Con
stitution Of Arkansas IN conflict with
this amendmen are hereby repealed in
SO far only as they conflict herewith.
The provisions q this amendment
shall he self-eNeCuting. and shall take
eject and be in operation co DAYS af-
ter their approval and adoption ~ the
people OF Arkansas
Approved hY thu Governor and fled
in the office e the Secretary q State,
March i. 1911.
Each elector may ynte fnr or against
the above amendment
Witness my official SIGNATURE this.
the Path day Of Ap-.l la1S.
fSeall TONI ]. TERRAL.
Secretary - State.