The Brinkley argus., 1918-09-20

ne satisfaction of enculnprances upos 'ich lands. which, in tI4e judgm ent of aid board were incurred or assumed U said applicant for the aforesaid purposes
 Sec G. Every applicant for fnrna oan shall state clearly in his app5sca- ion tie purposes for which such iVsn desired. and upon it's approval ny the board this statement shall be deesn- q a part of the note or contract under which the loan is granted. But ns failure to apply such funds 10 tse purposes stated In such application ss enumerated herein shall invaiidate loan when once made. nor shall an3 thing herein contained be deemed prevent any farm owner from sellin or leasing lands subject to such ir .umbranCe; but if he shall violate hi said contract by applying the money borrowed to purposes other than thos stated in his application or enumerate herein. or if he shall lease such lands pr sell them to any person not fulnii- ing the conditions and purposes pro- vided for herein said board is aHthor- ized and directed to require the repay inert of said loan upon six months no- tice, and said note or contract shah contain clause providing therefor.
 Sec. 7 Such loans shall be repaid with interest accruing In annual in- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate
 
 to be agreed on between said board and the applicant, said period to bs 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- 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 charge of 1 per cent of the loan grant, ed, the minimum charge to be $10.0e to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds actruing 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- shall be placed in the State Treasury and become a part of a fund to bs known as the "Arkansas Rural Credit Reserve Fund" Said Arkansas Rural on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest Ae- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become 6 par of it. The said Arkansas Rural Credit Reserve Fund shall be irreducible. en cept that it may be drawn upon to ro imburse the State for loss incurred Il the administration of said system q rural credits.
 Sec. TO- The Legislative Assembn shall provide in such detail as 1t shal deem advisable for the carrying oue and administering of the provisions of this amendment, and shall provide od. equate safeguards against the use of such loans as an aid to the purchase ing and holding of lands for the pur- poses of speculation. Such safsguards shall include clear definitions of tho terms operate" and occupy" used herein. In the absence of such legfs- 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 regulations provided by itself. but sub- iect to the provisions herein contained.
 Sec. II. The provisions of the Con- ltitution of Arkansas in conflict with this amendment are hereby repealed, in The provisions of this amendment Feet and be in operation so days af- or their approval and adoption by the "0ple of Arkansas.
 Approved by the Governor, and filed
 the office of the Secretary of State.
 'Hrch F, 1917.
 Zach elector may vote for against
 above amendment
 Witness my official signature thia,
 24th day of April, 1918.
 rSeal] TOM J. TERRAL. Secretary of St3tD