The Brinkley argus., 1918-06-14

! ,he satisfaction of encumbrances upon | such lands, which, in the judgment of : said board were incurred or assumed 1 by said applicant for the aforesaid I purposes.
 Sec 6. Every applicant for a fam. loan shall state clearly in his applic3- l tion 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 10 prevent any farm owner from sellir'; or leasing lands subject to such ia- cumbrance; but if he shall violate his said contract by applying the none @ borrowed to purposes other than tho 2 stated in his application or enumerated herein, or If he shall lease such lap" or sell them to any person not fuif..- ing the conditions and purposes pro- vided for herein. said board is author ized and directed to require the repav- ment of said loan upon six months po- tice, and said note or contract shall contain a clause providing therefor.
 Sec. 2. Such loans shall be repaid with interest accruing in annual in stallments on the amortization plan such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in a period 10 be agreed on between said board md the applicant, said period to be not less than five nor more than thirty six years; but any debtor may liQu date any part or all of his indebtedness in amounts of $50.00 or multiples there of upon any amortization payment date.
 Sec. B. 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- vided further that the board shall re- quire each applicant to pay an initial charge of per cent of the loan granr ed, the minimum charge to be $10.I 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- shall be placed in the State Treasury and become a part of fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural 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 it. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that it may be drawn upon to re- i'm mburse 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 it 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 as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards hall include clear definitions of the terms Operate" and occupy" used 3erein In the absence of such legis- ation, and subject to the same after it's enactment, the State Land Board shall proceed to administer said sys- sem of rural credits under rules and egula tions provided by itself, but sub "ct to the provisions herein contained.
 Sec. H. The provisions of the Con- fitution of Arkansas in conflict with his amendment are hereby repealed, in Q far only as they conflict herewith. he provisions of this amendment
 ''act and be in operation 60 days af- "r their approval and adoption by the
 ple of Arkansas.
 Approved by the Governor. and filed
 he office of the Secretary of State,
 "rch IT 1917.
 Bach elector may vote for or against
 above amcndr7ent.
 witness my Gfrie'o1 ri@nature this,
 24th day ofAAp"'. 1918.
 'Seall TON J. TERRAL,
 Secretary of State.