Newport daily independent., 1918-07-15

ne satisfaction of encumorances upoh ,uch lands. which. in the judgment. of aid board, were incurred or assumed " said applicant for the aforesaid purposes.
 Sec G. Every applicant for a farm oan shall state clearly in his applica- ion the purposes for which such loan desired, and upon its approval by he board this statement shall be deein- d 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 invalidate loan when once made, nor shall any thing herein contained be deemed to prevent any farm owner from selling pr leasing lands subject to such 1n- sumbrance; but if he shall violate hls said contract by applying the moneys borrowed to purposes other than those 'tated in his applica ton or enumerated herein. or if he shall lease such lands sr sell them to any person not fulnI- ing the conditions and purposes pro- vided for herein. said board is author ized and directed to require the repay ment of said loan upon six months no- tice, and said note GOT contract shall contain a clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing In annual in- stallments on the amortization plan 'uch installments being fixed at such sums as will cover the interest rate lnd will liduidate the debt in 8 period to be agreed on between said board md the applicant. said period to De not less than five nor more than thirty six years: but any debtor may lfquf- late any part or all of his indebtedness n amounts of $5000 or multiples there If upon any amortization payment late.
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro- vided. that no Farm Credit Bonds shall Je sold for less than par; and pro- yided further that the board shall re- 1uire each applicant to pay an initial charge of 1 per cent of the loan grant d, the minimum charge to be $10.00 10 cover the cost of appraisal and ex- 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- said bonds, and all operating and other ton of said system of rural credits, shall be placed in the State Treasury and become a part of fund to De 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 edded to it and become part # i. T~- said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- 'ept that ir may be drawn upon to re- rlburse 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 1t shall 'eern advisable for the carrying out nd administer ing of the provisions of hs amendment. and shall provide ad- auate safeguards against the use of ng and holding of lands for the pur- ,oses of speculation. Such safeguards nall include clear definitions of the erms operate" and 'occupy" used erein. In the absence of such legis- ation. and subject to the same nfter ts enactment, the State Land Board hall proceed to administer said sys- em of rural credits under rules and eguIations provided by itself, but sub ect to the provisions herein contained. { Sec. II. The provisions of the Con- stitution of Al kansas in conflict With his amendment are hereby repealed, in 90 far only as they conflict herewith. The provisions of this amendment feet and be in operation 60 days af- eer their approval and adoption by the people of Arkansas.
 Approved by the Governor, and filed in the office of the Secretary of State. Tarch IT. 1917
 Each elector may vote for or against he above amend,nent
 Witness my official signature this, ne 24th day of April 1918.
 ySaall TOM J. TERRAL,
 Secretary of State.