The Brinkley argus., 1918-05-10

the satisfaction of encumbrances upon such lands, which, in the Judgment of said board, were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm loan shall state clearly in his applica- tion the purposes for which such loan is desired, and upon its approval by the board this statement shall be deem ed a partfof 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 nfr tice, and said note or contract shall contain clause providing therefor. :.
 Sec. T. Such loans shall be repaid with interest accrring in annual in stallments or Che amortization plan such insto' ments being fixed at such sums Gs will cover the interest rate e.id will liquidate the debt in 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 l1qu1- date any part or all of his indebtedness in amounts of 5000 or smultiples there of upon any amortization payment date
 Sec. 8. The rate offinterest on loans shall be five per cent per annum; pro- vided. that no FarmYCredit Bonds shall be sold for less than par; and pro- vided further that the board shall re- charge of 1 per cent of the loan grant ed the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title. s~.s
 Sec. g. All surplus -fiinds accruing from Incorporation of the system of .raraf credits therein provided for. after paying interest accruing on the afore- said bonds. and all operating and other tion of said system of rural credits. shall be placed in the State Treasury and become part of a 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 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 deem advisable for the carrying out md administering of the provisions Of this amendment. and shall provide ad- equate safeguards against the use of such loans an aid to the purchas- ing and holding of lands for the pur- 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 "egulations provided by itself. but sub ect to the provisions herein contained.
 Sec. II. The provisions of the Con- stitution of Arkansas In conflict with this amendment are hereby repealed, in 70 far only as they conflict herewith. The provisions of this amendment shall be self-executng and shall take fleet and be in operation SO days af- CT their approval and adoption by the 'eople of Arkansas
 the office of the Secretary of State. Iarch IT. 1917.
 Each elector may vote for or against he above amendment.
 Witness my official signature this. he 24th day of April 1913.
 rSeall TOM J. TERRAL,
 Secretary of State.