The Brinkley argus., 1918-07-12

satisfaction of cncum5rances upon h lands. which, in the Judgment ot bO1 q, were incurred or as.(.i,'. 'lt1 applicant for the aforesaid
 .,-o. o. Every applicant for a tarm T shlll state clearly in his ar2'tca- .tOn the purposes for which sucn iO@n
 dssircd and upon it's approval Dy
 ne board this statement shall be deeih-
 ' part of the note or contract under
 which the loan is granted. But no allure to apply such funds to the purposes stated in such application or enumerated herein shall invaldate s1an when once made. nor shall any thing herein contained be deemed Q prevent any farm owner from selling ,r leasing lands subject to such iE- eum5rance; but if he shall violate his said contract by applying the moneys borrowed to purposes other than those itated in his application or enumerat9d herein. or if he shall lease such landS or sell them to any person not fulfill ing the conditions and purposes pro- vided for herein. said board is author zed and directed to require the repay ment of said loan upon six months no- contain clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual in- staiiments on the amortization plan, such installments being fixed at such sums as will cover the interest rate and will lfquidate the debt in a period to be agreed on between said board md the applicant said period to be six years: but any debtor may liaui- date any part or all of his indebtedness in amounts of $50e00 or multiples thore- of upon any amortization payment date.
 Sec. :. The rate of interest on loans shall be nve per cent per annum: pro- yided, that no Farm Credit Bonds shalt be sold for less than par: and pro- vided further that tho board shall rs- aufrc each applicant to pay an initial charge of 1 per cont of the loan grant ed. tho minimum charge to be $10.0 to cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruing from tho 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 part of fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural 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 of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that 1t may be drawn upon to re- mburse the State for loss incurred in the administration of said system of rural credits.
 Sec TO- The Legislative Assembly shall provide in such detail as 1t shall 1eem advisable for tho carrying out md administering of the provisions of this amendment and shall provide ad- ,quate safeguards against the use of iuch loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards ,hali include clear definitions of the erms operate" and occupy" used erein. Tn the absence of such legis- ltion, and subject to the same after it's enactment. the State Land Board shall proceed to administer said sys- .agulations provided by itself but sub
 Sec. H. The provisions of the Con- .itution of Arkansas in conflict with this amendment are hereby repealed in 70 far only as they conflict herewith. The provisions of this amendment hall be seIf-executing, and shall take feet and be in operation 60 days af- Hr their approval and adoption by the
 .opie of Arkansas
 Approved bv thn Governor and fiod , 'ha office of the Secretary Of State. ',"ch IT 'nlTi
 ,"rh aIecl 0, n1ov vote for or against 70 above amendorent.
 'Vifnass my official signature thts. ,n 2ath day of April 1918.
 Seau TOM l. TER1AL.
 Secretary of State.