The Brinkley argus., 1918-07-26

ne satisfaction of encumbrances upon such lands, which, in the judgment Of said board, were incurred or assumed oy 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 its approval by The board this statement shall be deem ed 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 fulnll- 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 mo- tice, and said note or contract shall contain a clause providing tn erefor.
 Sec. I. Such loans shall be repaid with interest accruing in annual fn- such installments being fixed at such sums as will cover the interest rate and will liquidate the debt fn a period to be agreed on between said board and tho applicant. said period to be not loss than i've nor moro than thirty six years: but any debtor may liaui- date any part or all of his indebtedn ess in amounts of 3500o or multiples there- or upon any amortization payment date
 Sec. 8. The rate of interest on loans shall be nvs per cent per annum: pro- vided. that no Farm Credit Bonds shall be sold for less than par; and pro- vfded furthsr that the board shall re. auire each applicant to pay an initial charge of 1 per cent of the loan grantl ed. the minimum charge to be $10.So to cover the cost of appraisal and sx- animation of title.
 Sec. 8. All surplus funds accruing from the operation of the system of paying interest accruing on the afoYe- said bonds, and all operating and othe CT expenses arising from the administra- ton of said system of rural credits. and become part of a 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 1t and become a part of 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible, ex- cept that it may be drawn upon to re- imburse the State for loss incurred n the administration of said system of rural credits.
 Sec. 10. The Legislative Assembly shall provide in such detail as 1t shall 1eem advisable for the carrying out md administering of the provisions of his 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- 'oses of speculation. Such safeguards shall include clear definitions of the erms Operate" and occupy" used herein. In the absence of such legis- 'ation, and subject to the same after it's enactment, the State Land Board em of rural credits under rules and 'egulations provided by itself. but sub '"@t to the provisions herein contained.
 Sec. Il. The provisions of the Con- titution of Arkansas in conflict with his amendment are hereby repealed, in 70 far only as they conflict herewith. The provisions of this amendment hall be self-executing. and shall take
 Feet and be in operation 50 days af-
 IF their approval and adoption by the
 'ople of Arkansas.
 Approved by the Governor, and filed
 the office of the Secretary of State,
 ,rch IT. 1917.
 Zach elector may vote for or against
 above amendment
 Witness my official signature this
 24th day of April, 1918.
 fSeal1 TOM J. TERRAL.
 Secretary of State