Newport daily independent., 1918-07-31


 4s satisfaction or encumpra nces upol ouch lands, which. in the Judgment of aid board. were incurred or assumed y said applicant for the aforesaid purposes.
 Sec. 6N Every applicant for farm oan shall state clearly in his applica- ton the purposes for which such loan IS desired and upon it's approval by he board this statement shall be deem ed a 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 invalidate a 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- eumbrance: 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 fulf1i- ing the conditions and purposes pro- xided for herein. said board is author ized and directed to require the repay :nent of said loan upon six months no- rice. and said note or contract shall contain clause providing therefor. . Sec. [. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan uch installments being fixed at suci sums as will cover the interest rat md will liquidate the debt in a perioo 70 be agreed on between said board md the applicant. said period to be not less than five nor more than thirty six years; but any debtor may 1iQui- late any part or all of his indebtedness n amounts of $50.00 or multiples there f upon any amortization payment late.
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro gided. that no Farm Credit Bonds shall ,e sold for less than par; and pro- yided further that the board shalle re- Iuire each applicant to pay an initial :harge of per cent ot the loan grant Nd the minimum charge to be $10.00 10 cover the cost Of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruins from the operation of the system of rural credits herein provided for. after paying interest accruing on the afore- aid 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 a fund to he known as the Arkansas Rural Credi redits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural sredit Loan Fund and the interest ac- sruing from loans made from said Ar SanSas Rural Credits Reserve Fund 1al1 bA sdded to it and become a part ,f |. Ts~ said Arkansas Rural Credits deserve Fund shall be irreducible. ex- ;apt that it may be drawn upon to re aburse the State for loss incurred ir ne administration of said system of uraY credits.
 See TO- The Legislative Assembl. hall provide in such detail as 1t shal eefn advisable for the carrying ou nd administering of the provisions c his amendment. and shall provide ad- lnate safeguards against the use of ach loans as aid to the purchas- ig and holding Of lands for the pur- oses of speculation. Such safeguards aali include clear definitions of tn, rms operate" and occupy" useo erefn. In the absence of such legisf ation, and subject to the same nfteA $ enactment. the State Land Boals hall proceed to administer said sys- em of rural credits under rules ant sgulations provided by itself, but sub et to the provisions herein contained Sec. H. The provisions of the Con titution Of Arkansas in conflict wit, his amendment are hereby repealed, ir far only as they conflict herewith he provisions of this amendmeni hall be self-executing, and shall take feet and be in operation so days aft or their approval and adoption by the enple of Arkansas.
 Approved by the Governor, and filed the office of the Secretary of State Farch IF. 1917.
 Each elector may vote for or against ahove amendnent.
 Witness my official signature this ae 24th day of April. 191S
 vsAall TOM T. TTRRAL..
 Secretary of State.
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