The Brinkley argus., 1918-05-24

the satisfaction of encumbrances upon such lands. which, in the Judgment of said board, were incurred or assumed py said applicant for the aforesaid purposes
 Sec. 6. Every applicant for farm loan shall state clearly in his applica- ton the purposes for which such loan Is desired, and upon its approval by the board this sta Lenlent shall be deern- cd 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 loan when once made, nor shall any thing herein contained be deemed Q 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 no- tice, and said note or contract shall contain a clause providing therefor
 Sec. '. Such loans shall be repaid with interest accruing in annual in 7tallments on the amortization plan, 'uch installments being fixed at such sums as will cover the interest rate 'nd, will liquidate the debt in period to be agreed on between said board nd the applicant said period to be 7ot less than five nor more than thirty K years; but any debtor may liqui- late any part or al1of his indebtedness n amounts of $50.00 or multiples there of upon any amortization payment date.
 Sec. 8. The rate of interest on loans -hall be five per cent per annum; pro- v!ded, that no Farm Credit Bonds shall 2e sold for less than par; and pro- v1ded further that the board shall re- charge of 1 per cent of the loan grant. ed, the minimum charge to be $10.00 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 administra- tion 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 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 9lidii pe duueu lo IL anu pecoHlo 1 Pai of it. The said Arkansas Rural Credits Reserve Fund shallfbe irreducible ex- ept that it may be drawn upon to re- .1burse the State for loss incurred in he administration of said system of
 Sec. 10, The Legislative Assembly >hall provide inSsuch detail as 1t shall 'aem adyisa,bfe for the carrying out nd admipist ering Of the provisions of his amen hdment, and shall provide ad- 'luate safeguerds against the use of uch loans as an aid to the purchas- ng and holding of lands for the pur- 'oses of .speculation Such safeguards aall iptlqde elear definitions of the { erein n the absence of such legis- s enactraent the State Land Board hall proceed to administer said sys- am of rural credits under rules and
 gulations provided by itself. but sub-
 It to the provisions herein contained.
 Sec. IL The provisions of the Con-
 tuition of Arkansas in conflict with 1is amendment are hereby repealed. in far only as thNv ccTfict herewith. 10 provisions Nf this amendment all be self-execrting, and sh all take
 eect and be ir Noeration SO days as r their approval nd adoption by the
 Nple Of Ark"
 the office of the Secretary of State. ',r~N V 1917.
 ~nch electOr may vote for or against
 eNove amendrpent
 -'-i.ness my official si~nature this.
 oA+h day of April, 1918
 SealJ TOM J. TERRAL,
 Secretary of State.