Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1916-06-30

encumbrances upon such lands
which, in the judgment of said board,
were incurred or assumed by said
applicant for the aforesaid purposes.
Sec. s. Every applicant for farm
loan shall state clearly in his appli-
cation the purposes for which such
loan is desired, and upon its approval
by the board this statement shall be
deemed a part of the note or con-
tract under which the loan is grant
ed. But no failure to apply such
funds to the purposes stated in such
Application or enumerated herein
shall inyalidate loan when once
made, nor shall anything herein con-
tanned be deemed to prevent any
farm owner from selling or leasing
lands subject to such encumbrance;
but if he shall violate his said con
tract by applying the moneys Dor
rowed TO purposes other than those
stated in his application or enum-
Grated herein, or if he shall lease
such lands or sell them to any per-
son not fulfilling the conditions and
purposes provided for herein, said
board is authorized and directed to
require the repayment of said loan
upon six months notice, and said
note or contract shall contain a
clause providing therefor.
Sec. 7. Such loans shall be re-
annual or annual instruments on the
amortization plan, such instruments
being fixed at such sums as will cover
the interest rate and will liquidate
the debt in period to be agreed on
between said board and the applicant,
such period to be not less than 10 nor
m ore than SO years; but any debtor
may liquidatc any part or all of his
Indebtedness in amounts of $50 or
multiples thereof upon any amortiza-
ton payment date.
Sec s. The rate of interest on
loans shall be five per cent per an
mum, provided that in case any series
of said farm credit bonds is sold at
an average of less than par, the board
may charge upon such farm loans as
are made from the proceeds of the
series 50 sold below par rate OF in
forest in excess of five per cent but
which shall not exceed by more than
one per cent the rate which the state
must pay for the funds actually OBJ
tanned from the disposal of it's said
bonds. The board, however, shall re-
quire each applicant to pay an initial
charge of one per cent of the loan
granted, the minimum charge to be
$40, to cover the cost of appraisal
and examination of title.
Sec. 8. All surplus funds accruing
from the operation of the system of
rural credits herein provided for,
oAtCI pay ms lIJCl eSJ dCCI uluS on the
aforesaid bonds, and all operating
and other expenses arising from the
of said system of rural
credits, shall be placed in the state
treasury and become part of a fund
to be known as the Rural Credits
Reserve Fund" Said rural credits
reserve fund shall be loaned on farm
land in the manner herein provided
for the rural credits loan fund, and
the interest accruing from loans
made from said rural credits reserve
fund shall be added to it and be-
come part of it. The said rural
credits reserve fund shall be ire
ducible except that it may be drawn
upon to reimburs the state for loss
incurred in the administration bf
said system of rural credits.
Sec. 10. The Legislative assembly
shall provide in such detail as it
shall deem advisable for the carry
ing out and administering of the
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