Newport daily independent., 1918-07-09

fne abstraction Of encumprances upoh ,dch lands. which. in the judgment of aid board. were incurred or assume | by said applicant for the aforesaid
 Sec. G. Every applicant for farm loan shall state clearly in his applica- ton the purposes for which such loan IS desired, and upon it's approval by the board this statement shall be deem- ed part of tl.e 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 nvalidate 8 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 fu'hll- 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- tice, and said note or contract shall contain clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accrung in annual in- stallments on the amortization plan such installments being fixed at such sums as win cover the interest rat. and will iquidate the debt in a 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 liqui- date any part or all of his indebtedness in amounts of $50.00 or multiples there- of upon any amortization payment date.
 Sec. B. The rate of interest on loans shall be five per cent per annum; pro- vided, that no Farm Credit Bonds shall Ne xs01J f<~x 1<r- %1rx< v1r~n vided further that the board shall re- nuire each applicant to pay an initial charge of 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 paving interest accTuing 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 apart 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- kansas Rural Credits Reserve Fund shall be y5ded to it and become a part ,f i. T~- said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- sept that it may be drawn upon to re- nburse the State for loss incurred in he administration of said system of urai credits.
 Sec. To- The Legislative Assembly hall provide in such detail as it shall deern advisable for the carrying out md administers of the provisions of his amendment, and shalt provide ad- quate safeguards against the use of such loans as an aid to the purchas- lg and holding of lands for the pur- noses of speculation. Such safeguards nall include clear definitions of the serms operate and occupy" used .erein. In the absence of such legis- ation. and subject to the salTc rfter it's enactment, the State Land Eoagd shall proceed to administer said sys- 'em 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- itution of A. i.anGns ii conflict Mi-n this amendment are hereby repealed, in The provisions of this amendment hall be self executing, and shall talk fleet and be in operation 60 days af- ter their approval and adoption by the ,eople of Arkansas.
 Approved by the Governor, and filed in the office of the Secretary of State, March IT. 1917
 Each elector may vote for or against he above amendment.
 Witness my official signature this. ne 24th day of April 1918.
 TSAall TOM J. TERRAL.
 Secretary of State.