The Brinkley argus., 1918-09-27

 ne satisfaction of encumbrances upos
 -h lands, which, in the Judgment ot lid board, were incurred or assumed
 said applicant for the aforesaid Imposes.
 sec G. Every applicant for a farm oan shall state clearly in his applics- ion the purposes for N hich such loan
 desired and upon its approval oy ,he board this statement shall be deem I'd a part of the note or contract under which the loan is granted. But nc cailure 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 be deemed prevent any farm owner from seliin or leasing lands subject to such in ,umbrance; but if he shall violate m said contract by applying the money borrowed to purposes other than thos 'tated in his application or enumerate herein, or fl he shall lease such lands )r sell them to any person not fulhil- ing the conditions and purposeg pro- rided for herein. said board is author ized and directed to require the repay inert of said loan upon six months mo- tice, and said note or contract shall contain a clause providing therefor.
 Sec. 2. Such loans shall be repaid with interest accruing in annual in- stallments 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 the applicant. said period to Dc not less than five nor more than thirty six years; but any debtor may liqui- in amounts of s50.00 or rnultiples there of upon any amortization payment date.
 Sec. 8. 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- vided further that the board shall re- quire each applicant to pay an initial charge of per cent of the loan grant. ed. the minimum charge to be s1o.ee to cover the cost of appraisal and ex- animation of title.
 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 administra- ton of said system of rural credits. shall be placed in the State Treasury and become a part of a fund to bs 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 &C., cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a par of it. The said Arkansas Rural Credit Reserve Fund shall be irreducible. e0 cept that it may be drawn upon to re imburse the State for loss incurred the administration of said system rural credits
 Sec. 10. The Legislative AssembA shall provide in such detail as 1t shal deem advisable for the carrying ou> 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- 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 'egulations provided by itself. but sub
 ect to the provisions herein contained. Sec. Il. The provisions of the Con- stitution of Arkansas in conflict with this amendment are hereby repealed in The provisions of this amendment hall be self executing. and shall take feet and be in operation 60 days af-
 CT their approval and adoption by the
 eople of Arkansas.
 Approved by the Governor, and filed the office of the Secretary of State.
 '"rch IT, 1917.
 Each elector may vote for or against O above amendment
 Witness my official signature thi2 24th day of April. 1913
 | rSeal1 TOM J. TERRAL Secretary of Stata.