The Brinkley argus., 1918-09-06

che satisfaction of encumbrxnoes upoa 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 appiica- tion the purposes for which such loan is desired, and upon it's approval by the board this statement shall be dssm- ed a part of the note or contract under which the loan Is granted. But nc failure to apply such funds to the purposes stated in such application or enumerated herein shall inyalidate 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 mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual fn- stallments on the amortization plan. such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in period to be agreed on between said board and the applicant said period to bo not less than i've nor more than. thirty six years; but any debtor may liqui- date any part or all of his fndebtedn ess 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- hoard e. quire each applicant to pay an initial charge of l per cent of the loan grantr ed, the minimum charge to be St0eo 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 paying interest accruing 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 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 &C., cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- 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 advisable for the carrying out and administering of the provisions of this amendment. and shall provide ad- equate safeguards against the use of such loans an 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 legts- 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 'egulation provided by itself. but sub iect to the provisions herein contained.
 Sec. Il. The provisions of the Con 'titutton of Arkansas in conflict with his amendment are hereby repealed. in 90 far only as they conflict herewith. The provisions of this amendment
 hall be self-executing. and shall take
 Feet and be in operation 50 days af-
 ar their approval and adoption by tho
 Nople of Arkansas.
 Approved by the Governor. and filed
 | the office of the Secretary of State.
 'rrch IT. 1917
 Zach elector may vote for or against
 above amendment
 Witness my official signature thiaI
 24th day of April. 1913
 CSeall TOM I. TERRAL. Secretary of Stay