The Brinkley argus., 1918-07-05

| ne satisfaction of encumbrances upon | eh lands which, in the Judgment ot
 -.d board. were incurred or assttn q said applicant for the aforesaid i opposes.
 sec. $. Every applicant for a farni pan shall state clearly in his applica-
 the purposes for which sucn loaa
 desired. and upon it's approval by
 he board this statement shall be deem
 Il part of the note or contract under which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invaIidate a loan when once made. nor shall any
 hing herein contained be deemed to prevent any farm owner from selling Dr leasing lands subject to such in- ,umbrance: but if he shall violate his said contract by applying the moneys borrowed to purposes other than those 'tated in his application or enumerated herein. or if he shall lease such Ian < or sell them to any person not fulfill ing the conditions and purposes pro- fided for herein, said board Is author zed and directed to require the repay ment of said loan upon six months mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing In annual in stallments on the amortization plan. 'uch instalments being fixed at such sums as will cover the interest rate and will iquidate the debt in a period to be agreed on between said board 'ad 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 in amounts of 5000 or multiples there- of upon any amortization payment date.
 Sec B. The rate of interest on loans shall be five per cent per annum: pro- yided. that no Farm Credit Bonds shall De sold for less than par; and pro- yided further that the board shall re- Iuire each applicant to pay an initial ed. the minimum charge to be s1O6 to cover the cost of appraisal and ex- animation of title.
 Sec g. All surplus funds accruing' rural credits herein provided for. after paying interest accruing on the afore- said bonds. and all operating and other expenses arising from the adminfstra- shall be placed in the State Treasury and become a part of 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- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible ex- cept that it may be drawn upon to re- imburse the State for loss incurred In the inistration of said system of rural credits.
 Sec. 10 The Legislative Assembly shall provide in such detail as 1t shall leem advisable for the carrying out md administering of the provisions of this amendment and shall provide ad- ,quate safeguards against the use of .nch loans as an aid to the purchas- ng and holding of lands for the pur- ,oses of speculation. Such safeguards hall include clear definitions of the erms Operate" and occupy used nerein In the absence of such legis- ation, and subject to the same after it's enactment. the State Land Board shall proceed to administer said sys- 'em of rural credits under rules and eguIations provided by itself, but sub
 Sec. II. The provisions of the Con- 3itution Of Arkansas in conflict with +his amendment are hereby repealed, in 90 far only as they conflict herewith. The provisions of this amendment ii,alt be self-executing. and shall take feet and be in operation 60 days af- their approval and adoption by the ,cople of Arkansas.
 Annrovod hv tho Governor. and alad z, the office Of the Secretary of state. f.',''h IT. tatT,
 '.ch elector may vote for against
 above amendment
 witness my orrici~i signature this. hn 24th day of April. fsfS
 lSeall TOM J. TERRAL.
 Secretary of State.