Newport daily independent., 1918-07-24

enc satisfaction of encumDrances upon ouch lands. which. in the Judgment of raid 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- ton the purposes for which such loan IS desired, and upon it's approval by he board this statement shall be deem- ed 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 invalidatc Q 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- yided 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. '. Such loans shall be repaid with interest accruing in annual inc 'tallments on the amortization plan 'uch installments being fixed at such sums as will cover the interest rats md will iiquidate the debt In a period Q be agreed on between said board ind the applicant. said period to be ,ot less than five nor more than thirty- K years; but any debtor may liQui- late any part or all of his indebtedness n amounts of $50.00 or multiples there late.
 Sec. 8. The rate of interest on loans hall be five per cent per annum; pro- ided. that no Farm Credit Bonds shall e sold for less than par; and pro ided further that the board shall re- !uire each applicant to pay an initial harge of 1 per cent ot the loan grant d, the minimum charge to be 5000 70 cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruins rom the operation of the system of .ural credits herein provided for. after paving interest accruing on the nfore- aid bonds, and all operating and other ,xpenses arising from the administra- lion of said system of rural credit, 'hall be placed in the State Treasur, md become part of a fund to h. .nown as the "Arkansas Rural Credi Reserve Fund" Said Arkansas Rura sredits Reserve Fund shall be loaned m farm lands in the manner herei' provided for the Arkansas Rural 'redit Loan Fund. and the interest ac- .ruing from loans made from said A- Sansas Rural Credits Reserve Funt 'hall bA ss7ded to it and become a pa' >f i, TS- said Arkansas Rural Credit Reserve Fund shall be irreducible. exs. 'ept that 1t may he drawn upon to re ,nburse the State for loss incurred i, he administration of said system Q urai credits.
 Sec 10. The Legislative Assemble hall provide in such detail as it sha' ieem advisable for the carrying OIL nd administering of the provisions his amendment. and shall provide ad ,quate safeguards against the use O. ng and holding of lands for the pur ,oses of speculation. Such safeguard shall include clear definitions of th erms operate" and occupy use ,erein. Tn the absence of such legis ation, and subject to the same afte. it's enactment, the State Land Board shall proceed to administer said sys- tenn of rural credits under rules ane regulations provided by itself. but sub feet to the provisions herein contained
 Sec. Il. The provisions of the Con stitution of Arkansas in conflict with this amendment are hereby repealed. in so far only as they conflict herewith The provisions of this amendment effect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed in the office of the Secretary of State. March IT. 1917.
 Each elector may vote for or against the above amendment.
 Witness my official signature this. the 24th day of April. 1913.
 yaAall TOM J. HERBAL.
 Secretary of State.