The Brinkley argus., 1918-08-16

lhe satisfaction of encumbrances upon such lands, which. in the judgment of said 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 applics- ton the purposes for which such loan Is desired, and upon its approval by the board this statement shall be deem 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 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- cumbrance; 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 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 a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan. such installments being fixed at such sums will cover the interest rato and will liquidate the debt in 6 period to b.. agreed on between said board and the applicant. said period to be not less than i've nor more than thirty six years; but any debtor may Iqui- 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 ioans 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 ths board shall re- qufre each applicant to pay an initial charge of l per cent of the loan granE ed. the minimum charge to be s10.gv to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accrufng from the operation of the system of rural credits herein provided for, after paying interest accrufng on the afore- said bonds. and all operating and other expenses arising from the administra- ton of said system of rural credits. shall be placed in the State Treasury and become a part of fund to De Reserve Fund" Said Arkansas Rural Credits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to 1t and become part of it. The said Arkansas Rural Credits heSerVS funQ SnalI De 1rr0ouCIDIo, 0A- cept that 1t may be drawn upon to re- imburse 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 advisableffor the carrying out and administering of the provisions of this amendment and shall provide ad- equate safeguards against the use of such loans as aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of the terms operate" and occupy" used herein. In the absence of such legis- 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 'egulations provided by itself. but sub Nct to the provisions herein contained Sec. II. The provisions of the Con- titution of Arkansas in conflict with his amendment are hereby repealed. in 70 far only as they conflict herewith. The provisions of this amendment
 hall be self executing, and shall take
 Feet and be in operation so days af r their approval and adoption by the i 'ople of Arkansas.
 Approved by the Governor, and filed
 the office of the Secretary of State.
 -rch r. 1917.
 Zach elector may vote for or against
 above amendment.
 Witness my official signature this,
 24th day of April, 1918
 rSeall TOM T. TERRAL
 Secretary of State.