The Brinkley argus., 1918-08-30

satisfaction Of encumbrsnces upon -.h lanis. which. in tne Judgment ot
 5 5o3ld. Were incurred or assumed
 said applicant for the aforesaid purposes.
 SC. t.. Every applicant for a farm loan shall state clearly in his appllca- ton the purposes for which such loan s desired and upon it's approval by the board this statement shall be de eln- ed a part of the 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 invalldate loan when once made, nor shall any thing herein contained be deemed 10 prevent any farm owner from selling or leasing lands subject to such ln- sumbrance; but if he shall violate ms 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 pr sell them to any person not fulhA- ing the conditions and purposes pro- yided for herein. said board is author ized and directed to require the repay- meut of said loan upon six months no- tice, and said note or contract shall contain a clause providing therefor.
 Sec. T. 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 be not lass 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 a n initial charge of per cent of the loan grank ed. the minimum charge to be S1O.Oe to cover the cost of appraisal and ex- i animation of title.
 Sec. g. All surplus funds accruing from the operation of the system of rural credits herein provided for, after paying interest accrutng on the afofe- said bonds. and all operating and other expenses arising from the adnintstra- ton of said system of rural credits. shall be placed in the State Treasury and become part Of @ fund 10 pc ! Reserve Fund" Said Arkansas Rural l Credits Reserve Fund shall be loaned i on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund, and the interest &C., cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a part of #. The said Arkansas Rural Credits ' reserve 4 una small be lFLetl lA.ltltt tsA- -ept that it may be drawn upon to re- l im5urse the State for loss incurred in The administration of said system of rural credits.
 Sec 10. The Legislative Assembly shall provide in such detail as 1t shall deem advisable for the carrying out nd administering of the provisions ot his amendment and shall provide ad- eouate safeguards against the use of such loans as an aid to the purchase ing and holding of lands for the pur- poses of speculate Such safeguards shall include clear definitions of the i terms Operate" and Occupy" used herein. In the absence of such legis- ation, and subject tc the same after lrs enactment, the State Land Board hall proceed to administer said sys- i tem of rural credits under rules and ~eaula5i0ns provided by itself. but sub .ea6 to the provisions herein contained.
 See. If. The provisions of the Con- s}itHton of Arkansas in conflict with his amendment are hereby repealed. in 70 far only as they conflict herewith. l 7he provisions of this amendment toO be self-eZecutinr, and shall take
 Feet and he in o~a"0tion 60 days af-
 tarir- approve r7 adoption by the
 ..'. of X Ila-4-.s4s.
 #ur0ved by the Governor and filed
 .'e office Of the Secretary of State,
 leeh IT, 1917.
 ~reh elcctor may vote for or against
 above amendment.
 .soes my official ei~uarure this.
 24th day Of April 1918.
 r@aa'l TONI J. TFRRAL.
 Secret etary of State