Newport daily independent., 1918-08-31

r1| nc satisfact1on Of encumbra ncss utct5 ,uch lands. which. in the Judgment o< aid board. were incurred or assurnfd y said applicant for the aforesaid purposes. s
 Sec G. Every applicant for farm oan shall state clearly in his applica~ tion the purposes for which such loan IS desired. and upon it's approval by the board this statement shall be deem- ed part of tie note or contract under which the loan is granted But no failure to apply such funds to tho purposes stat ed in such application or enumerated herein shall invaliaate 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 1n- .umbrance; 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 fulhll-s ing the conditions and purposes pros vided for herein, said board is author zed and directed to require the Tepay- uent of said loan upon six months no- tice, and said note or contract shall contain clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual ip- stallmcnts on the amortization plan such installments being fixed at ouch sums as will cover the interest refts md will liquidate the debt in period 10 be agreed on between said board md the applicant said period to % not less than five nor more than thirty six years; but any debtor may iQui- date any part or all of his indebtedneeo in amounts of S50.00 or multiples there- of upon any amortization paymens date.
 Sec. 8. The rate of interest on loans shall be i've per cent per annuns; pro- vided. that no Farm Credit Bonds shal1 be sold for less than par; and pro~ vided further that the board shall re~~ auire each applicant to pay an initial charge of 1 per cent ot the loan xrant< ed the minimum charge to be $10.0o to cover the cost of appraisal and ex~ animation of title. &s
 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 adr1inistra~ tion of said system of rural creditks shall be placed in the State Treasury and become part of fund to b98 Reserve Fund" Said Arkansas Ruyo1 Credits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural cruing from loans made from said Arr kansas Rural Credits Reserve Fund shall be rdded to it and become part of + TA- said Arkansas Rural Credits tleSerVe Fu1Q snail Do lTTGQuC1pl@s G<rss2 cept that it may be drawn upon to re-s the State for loss incurred In the administration of said system ok rural credits.
 Sec. 10 The Legislative Assembly shall provide in such detail as 1t shall deem advisable for the carrying out and administering of the provisions of < this amendment, and shall provide ad- equate safeguards against the use o& such loans as an aid to the purchase ing and holding of lands for the pur~s poses of speculation. Such safeguardS shall include clear definitions of thu terms "operate" and 'occupy used herein. Tn the absence of such 1egis- lation, and subject to the same nfter its enactment the State Land Board shall proceed to administer said eys- tenn of rural credits under rules and regulations provided by itself, but sub-% ject to the provisions herein contained.
 Sec. Il. The provisions of the Com 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 self-executing, and shall take effect and be in operation 80 days af- ter their approval and adoption by tho people of Arkansas.
 Approved by the Governor. and n1ed in the office of the Secretary of State, March 1T, 1917.
 Each elector may vote for or aga1nst the above amendment.
 Witness my official signature th1nI the 24th day of April. 1918. s@
 JSAall TOM J. TERRALs
 Secretary of Stata