Newport daily independent., 1918-07-27

nc satisfaction Of encumpra nces upou ouch lands, which, in the Judgment of laid board. were incurred or assumed " said applicant for the aforesaid purposes.
 Sec. <. Every applicant for farm ioan shall state clearly In his applica- ton the purposes for which such loan IS desired, and upon it's approval by the board this statement shall be deem- ed part Of tl.e 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 invalldate loan when once made, nor shall any thing herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such ln- cumbrance: but if he shall violate nls said contract by applying the moneys borrowed to purposes other than tnose stated in his application or enumerated herein or if he shall lease such ianus or sell them to any person not fuinlt- ing the conditions and purposes pro vided for herein said board Is author ized and directed to require the repay ment of said loan upon six months no tice. and said note or contract shall contain a clause providing therefor,
 Sec. z. Such loans shall be repaid with interest accruing in annual fn- staIlments on the amortization plan such installments being fixed at such sums as will cover the interest rat and will liquidate the debt in periooo to be agreed on between said board and the applicant. said period to be not less than five nor more than thirty six years but any debtor may lfQui- date any part or all of his indebtedness in amounts of $50.00 or multiples 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 shal be sold for less than par; and pro- vided further that the board shall re- Quire each applicant to pay an initial charge of 1 per cent ot the loan grant, ed. the minimum charge to be $l00O 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 admfnistra- 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 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 rdded to it and become a part of i. TS- 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 administration of said system of rural credits.
 Sec. 10. The Legislative Assembly shall provide in such detail as 1t shaF 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 regulations provided by itself, but sub ject to the provisions herein contained
 Sec. II. The provisions of the Con stitution of Arkansas in conflict with this amendment are hereby repealed, in so far only as they conflict herewith. The provisions of this amendment shall be self executing, and shall take effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor, and filed in the office of the Secretary of State. March IT, 1917.
 Each elector may vote for or against the above amendment
 Witness my official signature this, the 24th day of April. 1918.
 JGAall TOM J. TERRAL.
 Secretary of State.