The Brinkley argus., 1918-10-25

.us satisfaction of encumbrances dpo' ,.tch lands, which, in the Judgment oi aid board, were incurred or assull, G said applicant for the aforesalo
 Sec 6. Every applicant for farm loan shall state clearly in his appilca ton the purposes for which such ioa n Is desired and upon it's approVaI oy the board this statement shall be deem ed q part of the note or contract unoel which the loan is granted. But nc failure to apply such funds to the purposes stated in such appncation o' enumerated herein shall lnValiuase loan when once made, nor shaH any thing herein contained be deemed | prevent any farm owner from selllh or leasing lands subject to sucn m cumbrance; but if he shall violate n said contract by applyine the money borrowed to purposes other than thos stated in his application or enumerats herein. or if he shall lease such lan.s or sell them to any person not IuIh'i ing the conditions and purposes pro vided for herein, said board IS author ized and directed to require the repay mert of said loan upon six months no, tice and said note or contract shaD contain clause providing therefor.
 Sec. T. Such loans shall be repalo with interest accruing in annual in~ staIInents on the amortization plan. ,uch instaIlnents being fixed at sucn sums as will cover the interest rats and will lquidate tho debt in per'ot, Q be agreed on between said hoara 7nd the applicant said period to be l5t less than five nor more than thirty
 K years; but any debtor may liqui- date any part or all of his indehtedne%a s amounts of s50.00 or multiples ther"- of upon any amortization paymcL late.
 Sec. B. The rate of interest on loans shall be five per cent per annum; pro. pided, that no Farm Credit Bonds sha Il De sold for less than par; and pro- vided further that the board shall re. quire each applicant to pay an inftinl charge Of l per cent of the loan sran,. :. ed, the minimum charge to be 3l0oe 10 cover the cost of appraisal and ex animation of title.
 Sec. g. All surplus funds accruinE froyn the operation of the system or 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 fund to ne known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rura! Credits Reserve Fund shall be loaned on farm lands fin 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 par >f it. The said Arkansas Rural Credit Reserve Fund shall be irreducibe. ex oept that it may be drawn upon to rti mburse the State for loss incurred Il he administration of said system cral credits.
 Sec. 10. The Legislative Assembl shall provide in such detail as 1t shal leem advisable for the carrying on> nd administering of the provisions o1 his amendment, and shall provide ad, quate safeguards against the use of such loans as an aid to the purchas- ng and holding of lands for the pur- poses Of speculation. Such safeguard. hall include clear definitions of the erms Operate" and Occupy" usec rerein. In the absence of such leeis- ation, and subject to the. same afte, its enactment the State Land Board hall proceed to administer said sys- ern of rural credits under rules ard aEulations provided by itself, but sub
 # to the provisions herein contained
 Sec. II. The provisions of the Con
 tuition of Arkansas in conflict vi D his amendment are hereby repealed, Tn o far only as they conflict herewith
 he provisions of this amendnsnf Hall be self-executing. and shall take
 net and be in operation so days af- their approval and adoption by the
 ole of Arkansas
 he office of the Secretary of State
 fh r. 1917.
 rnch elector ray vote for or aga inst
 above amend~1"nt.
 'Titness my official eirnature this.
 24th day of April 1918
 Seal1 TON T. TERRAL. Secretary of StetG