The Brinkley argus., 1918-06-21

ne satisfaction of encun5rances nI T
 ch lanas. which. in the Judgment 9t
 boa. Il, were incuir or
 ltI applicant for the alot9 9''ai' ?
 c :. Every a5pic4nt for .a tt o3n shall state clna rly in his ""0 tea~ .ion the purposes for w1ich sts '' , .s d3sir l. and upon is appEptI the board this statement shall pc ace, ad @ part of the note or contract unaer i which the loan is grant 2d But no failure to apply such funds to the 1 purposes stated in such application or enuTnerated herein shall invalilate a ioan whom once made nor shall any tEfng herein contained be deem . 9 prevent any farm owner from s 'i's pr leasing lands subject to sNch i"- sumbrance; but if he shall violate g said contract by applying the none borrowed to purposes other than tho.ie stated in his application or enU.nera yea herein, or if he shall lease such lah or sell them to any person not fun t- ing the conditions and purposes pro- ytded for herein. said board is author ized and directed to require the repay inert of said loan upon six months no- tce and said note or contract shall contain clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan, fuch installments being fixed at such sums as will cover the interest rate md will liquidate the debt in a period 70 be agreed on between said board nd the applicant said period to be not less than five nor more than thirty -iX years; but any debtor may 1iqut- date any part or all of his indebtedness T amounts of S5000 or multipies there of upon any amortization payment date
 Sec. 8. The rate of interest on loans hall be five per cent per annum pro- yfded that no Farm Credit Bonds shall De sold for less than par; and pro- vided further that the board shall re- quire each applicant to pay an initial charge of 1 per cent of the loan grant. ed, the minimum charge to be 31O. - 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 a part of 8 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 ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible, eX- cept that it may be drawn upon 10 ra- jmburse 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 leem advisable for the carryin@ out nd administering of the provisions of his amendment, and shall provide ad- quate safeguards against the use Of ach loans as an aid to the purchas- ug and holding of lands for the pur- }oses of speculation. Such safeguards hall include clear definitions Of the arms "operate" and "occupy" used arein. Tn the absence of such lag's- ltion, and subject to the same after ts enactment, the State Land Board hall proceed 10 administer said sys- .rulations provided by itself but sub
 Sec H. The provisions of the Con- tuition of Arkansas in conflict with sSis amendment are hereby repealed in far only as they conflict herewith. he provisions Of this amcndteent salI be self-executing. and slall take feet and be in operation GO days af- sr their approval and adoption b~ the
 ople of Arkansas.
 tDoroved by tee Governor ord h}"d
 the office of tha Secretary Of State.
 ,5,h Y r9t7
 t,nrh eleetor may vote for or aga'nst
 ,0ve anen''--a ,t
 Witness my official signature thts. Ho 2t"N day of AD"N 1918
 fSeall TOM I. TEERAL.
 Secretary of State.