Newport daily independent., 1918-10-01

ens. satisraction Of encumprancos upoh such lands, which, in the judgment oi Eaid board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for . farm loan shall state clearly in his app!ica-
 tion the purposes for which such loan is desired. and upon it's approval by the board this statement shall be deem- ed a part of tLe note or contract under which the loan is granted. But no
 failure to apply such funds to tne purposes stated in such application or enumerated herein shall invalidate
 loan when once made. nor shall any
 thing herein contained be deemeG to
 prevent any farm owner from sehlns
 or leasing lands subject to such ln- cumbrance; but if he shall violate hls
 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 lends
 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-
 tce. and said note or contract snail
 contain a clause providing therefor.
 Sec. '. Such loans shall be repalo
 with interest accruing in annual in-
 stallments on the amortization plan
 such installments being fixed at such
 sums as will cover the interest rat
 and will liquidate the debt in perioo
 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 $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 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 $lOoV to cover the cost of appraisal and ex- animation of title Sec. g. All surplus funds accruins from the operation of the system of rural credits herein provided for, aftel paying interest accruing on the afore- said bonds. and all operating and other expenses arising from the administra- ton of said system of rural credit shall be placed in the State Treasury and become a part of a fund to ne known as the "ArlSansas Rural Credit Reserve Fund" Said Arkansas RuSai 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- rruing from loans made from said Ar, eansas Rural Credits Reserve Fund ,hall bA rdded to it and become part ,f 1. T.- said Arkansas Rural Credits | Reserve Fund shall be irreducibe ex- ept that it may be drawn upon to rer | rnburse the State for loss incurred in | he administration of said system of ural credits.
 | Sec. 10. The Legislative Assembly | shaIl provide in such detail as 1t shall | ieem advisable for the carrying out | nd administering of the provisions or 1 his amendment, and shall provide ad- l .quate safeguards against the use or | .uch loans as an aid to the purchas- | ng and holding of lands for the pur- | ,oses of speculation. Such safeguards l hall include clear definitions of the 1 erms Operate" and occupy used l ation, and subject to the same after 1 ts enactment the State Land Board hall proceed to administer said sys- ;em of rural credits under rules and regulations provided by itself, but sub 1 ect to the provisions herein contained. Sec. II. The provisions of the Con- l stitution of Arkansas in conflict with | this amendment are hereby repealed, in 70 far only as they conflict herewith I The provisions of this amendment | shall be self-cxecutng, and shall take | fleet and be in operation 50 days af- I ter their approval and adoption by the people of Arkansas.
 Approved by the Governor and filed "a 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 me 24th day of April. 1913.
 TSAall TOM J. TERRAL. Secretary of State