The Brinkley argus., 1918-08-23

he 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 @ 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 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 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 mo- tice, and said note or contract shall contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual in- stailments on the amortization plan. such fnstallments being fixed at such sums as will cover the interest rate and will liquidate the debt In a period to be agreed on between said board and the applicant, said period to be not loss than i've nor more than thirty six years; but any debtor may liqui- date any part or all of his indebtedness in amounts of 5000 or multiples there- Of upon any amortization payment date.
 Sec. g. The rate of interest on loans yided. that no Farm Credit Bonds shall be sold for less than par; and pro- yided further that tho board shall re- quire each applicant to pay an initial charge of per cent of the loan grant, ed. the minimum charge to be S10.6V to cover the cost of appraisal and er- animation of title.
 Sec. g. All surplus funds accruin1 from the operation of the system of rural credits herein provided for, after paying interest accrutng on the afore- said bonds, and all operating and other expenses arising from the administra- shall be placed In tho State Treasury and become part of fund to bo 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 trreducible, 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- eauate safeguards against the use of such loans as an aid to the purchas-
 
 poses of speculation Such safeguards shall include clear definitions of the terms operate" and occupy" used herein. In the absence of such legis- Iation, 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 ect to the provisions herein contained.
 Sec. H. The provisions of the Con- ititution of Arkansas in conflict with his amendment are hereby repealed in 50 far only they conflict herewith. he provisions of this amendment hall be self and shall take feet and be in operation so days af- ar their approval and adoption by the ,Nopie of Arkansas
 Approved by the Governor, and filed the office of the Secretary of State, 'rch IT. 1917
 Each elector may vote for or against
 above amendment
 Witness my official signature this, 24th day of April. 1918
 CSealI TOM J. TERRAL.
 Secretary of State.