Newport daily independent., 1918-07-03

che satisfaction or encumprances 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 farm loan shall state clearly in his applica- ton the purposes for which such loan IS desired, and upon it's approval by the board this statement shall be deeIn- ed a 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 invalldate 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 m cun1brance; 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 fulfiil- ing the conditions and purposes pro vided for herein. said board is author ized and directed to require the repay 'nent of said loan upon six months no- ice, and said note or contract snail contain a clause providing therefor.
 Sec 2. Such loans shall be repaid with interest accruing In annual iD- stallments on the amortization plan such installments being fixed at such sums as will cover the interest rat and will liquidate the debt in periodn 10 be agreed on between said board md the applicant. said period to be lot less than five nor more than thirty six years: but any debtor may liqui-l late any part or all of his indebtedness m amounts of s50-00 or multiples there If upon any amortization payment la te.
 Sec. 8. The rate of interest on 1oans hall be five per cent per annum; pro- gided. that no Farm Credit Bonds shall oe sold for less than par; and pro- Yided further that the board shall re- Nuire each applicant to pay an initial charge of per cent of the loan grant d, the minimum charge to be 5000 to cover the cost of appraisal and eN- animation of title.
 Sec. 9. All surplus funds accruing 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 adminstra- ton of said system of rural credits, %hall be placed in the State Treasury and become part of fund to ne '.nowa as the "A rIsansas Rural Credit Reserve Fund" Said Arkansas Rural Tredits Reserve Fund shall be loaned on farm lands in the manner herell crowded for the Arkansas Rural Tredit Loan Fund and the interest ac- sFlfne from loans made from said Ar 1ansas Rural Credits Reserve Fund hall he lded to it and become a part af |, Ts~- said Arkansas Rural Credits Reserve Fuad shall be irreducible, eM- .ept that it may be drawn upon to rar nburse the State for loss incurred in he administration of said system Of uraf credits.
 Sec 10. The Legislative Assembly hall provide in such detail as it shall leem advisable for the carving ort nd administering of the provisions o1 his amendment, and shall provide ad uuate safeguards against the use Of uch loans as an aid to the purchas- ng and holding of lands for the pur- ,oses of speculation. Such safeguards nall include clear definitions of the ern1s "operste" and occupy" used erein. In the absence of such lcgs- ation, and subject to the same after Is enactment, the State Land Board hall proceed to administer said sys- ern of rural credits under rules and agulations provided by itself. but sub rat to the provisions herein contained
 Sec IL 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 shall be self-executing. and shall take fleet and be in operation so days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor. and filed n the office of the Secretary of State. Farch IT. 1917.
 Each elector may vote for or against he above amendment.
 Witness my official signature this. he 24th day of April. 1918.
 (SAaIl TOM J. TERRAL.
 Secretary of State.