The Brinkley argus., 1918-05-31

the satisfaction of encumbrances urnn 1 such lands. which. iu the judsnen. o4 { said board, were incurred or as.e .s | oy said applicant for the aforessl.~
 Sec 6. Every applicant for farm loan shall state clearly in his applica- tion the purposes for which suaa .S.l
 is desired, and upon its approvsl oy the board this statement shall be deem- ed a 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 invalidate a 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 in- cumbrance; but if he shall violate his said contract by applying the moneys borrowed to purposes other than those stated in his application or enumerated 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 ized 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 z. 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 and will liquidate the debt in a period 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 liqui- date any part or all of his indebtedness in amounts of s50.00 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 shall be sold for less than par; and pro- yided fnrfhcr a shall quire each applicant to pay an initial charge of per cent of the loan grant ed. the minimum charge to be $1o.0o to cover the cost of appraisal and ex-
 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- tion of said system of rural credits, 1 shall be placed in the State Treasury known as the "Arkansas Rural Credit l Reserve Fund" Said Arkansas Rural | Credits Reserve Fund shall be loaned on farm lands in the manner herein | provided for the Arkansas Rural l Credit Loan Fund. and the interest &C., l cruing from loans made from said Ar | kansas Rural Credits Reserve Fund shall be added to it and become a part l of 1t. The said Arkansas Rural Credits | Reserve Fund shall be irreducibIe, ex- | cept that 1t 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 shall | leem advisable for the carrying out | md administering of the provisions of l his amendment. and shall provide ad aquate safeguards against the use of ! 'uch loans as an aid to the purchas- ng and holding of lands for the pur- poses of speculation. Such safeguards [ shall include clear definitions of the | terms Operate" and occupy" used erein. In the absence of such legis- ation, and subject to the same after ,ts enactment. the State Land Board shall proceed to administer said sys- .em of rural credits under rules and -egulations provided by itself. but sub et 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 seTf-executing. and shall take Feet and be in operation 50 days af- 'er their approval and adoption by the people of Arkansas.
 Approved by the Governor and filed v the office of the Secretary of State. N~rch IT. 1917.
 Zach eTector may vote for or against . ? bove amendment.
 Witness my official signature this. | hn 2ith day of April 1913.
 GSeaIJ TOM ]. TERRAL.
 Secretary of State |