Newport daily independent., 1918-07-30

me satisfaction of encumprancos upon ,uch lands. which. in the judgment of Hald board, were incurred or assumed by said applicant for the aforesaid purposes.
 Sec 6. Every applicant for a farm loan shall state clearly in his applica- tion the purposes for which~kuch loan IS desired, and upon its approval by the board this statement shall be deem- ed a part of tie 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 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 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 clause providing therefor. :.
 Sec. z. 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 rat and will liauidate 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. 8. The rate of interest on loans shall be five per cent per annuns; 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.O0 to cover the cost of appraisal and ex- animation of title.
 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 administra- ton of said system of rural credit 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-. crning from loans made from said Ar kansas Rural Credits Reserve Fund shall be sided to if and become a part of + Ts- said Arkansas Rural Credits Reserve Fund shal! be irreducible, ex- ~-ept that it may be drawn upon to re- tmburse the State for loss incurred in he administration of said system ot ruraf credits.
 Sec. 10. The Legislative Assembl. hall provide in such detail as 1t shall leem advisable for the carrying ous nd administering of the provisions 0. his amendment, and shall provide ad .auate safeguards 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 nall include clear definitions of tho crins operate" and ssoccupy'' used serein. Tn the absence of such legis- ation, and subject to the same after Is enactment. the State Land Boar6 hall proceed to administer said sys- em of rural credits under rules anc egulations provided by itself, but sub aet to the provisions herein contained
 Sec. il. The provisions of the Con- titution Of Arkansas in conflict with his amendment are hereby repealed, in 9 far only as they conflict herewith. The provisions of this amendment hall be self-executinE, and shall take feet and be in operation 60 days af- CT their approval and adoption by the aeople of Arkansas.
 Approved by the Governor, and filed fn the office of the Secretary of State. Tarch 17 1a17
 Each elector may vote for or against he above amendment.
 Witness my official signature this. ne 24th day Of April. 1918.
 YSaal1 TOM I. TERRATl
 Secretary of State.