The Brinkley argus., 1918-06-28

ne satisfaction of encumbrances upol
 h lands. which, in the judgment of . boaId. were incurred or a.a-.--, l
 aaid applicant for the aforesa.G t., poses.
 asc G. Every applicant for d farlt 'su shall state clearly in his aT2ito-- iou the purposes for which such loNn s desired and upon it's approval 1r ne board this statement shall be deet"- | 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 invalidate a 'oan when once made, nor shall any hing herein contained be deemed 70 prevent any farm owner from selling )r leasing lands subject to such iu- :umbrance; but if he shall violate his said contract by applying the mone"s borrowed to purposes other than those stated in his application or enumera tod herein. or If he shall lease such lar '' pr sell them to any person not fulhll- ing the conditions and purposes pro- vided for herein. said board Is author zed and directed to require the repay mept of said loan upon six months mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. I. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan such instalments being fixed at such sums as will cover the interest rate
  to be agreed on between said board md 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- Yided. 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 ed. the minimum charge to be s10W to cover the cost of appraisal and ex- animation of title.
 Sec. 9. 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 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 It. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- rept that it may be drawn upon to re- irnburse 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 deem advisable for the carrying out md administering of the provisions of his amendment, and shall provide ad- ,quate safeguards against the use of :uch loans as an aid to the purchas- 'ng and holding of lands for the pur- poses of specula ton. Such safeguards shall include clear definitions of the erms Operate" and occupy used 1erein. In the absence of such legis- lation, and subject to the same after its enactment the State Land Board shall proceed to administer said sys- em of rural credits under rules ard 'egulations provided by itself. but sub- ,rt to the provisions herein contained.
 Sec. H. The provisions of the Con- his amendment are hereby repealed. in Q far only as they conflict herewith. he provisions Of this amendment hall be self-executing, and shall take fleet and be in operation SO days af- nr their approval and adoption by the 0ople of Arkansas.
 Approved by the Governor. and fled tha goC'irc of the Secretary of State.
 -ch IT t917
 ';ach elector may vote for or aEaiust
 ai1ove amer|'."ent
 Witness my official signature this. ?ath day Of Apt 1918
 fSeaIl TOM ]. TERRAL,
 Secretary of State.