The Brinkley argus., 1918-06-07

| he satisfaction of encumbrances upon such lands, which, in the judgment of | said board, were incurred or assumed by said applicant for the aforesaid | purposes.
 Sec. 6. Every applicant for farm | loan shall state clearly in his applica- tion the purposes for which such loan | is desired, and upon its approval by | 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 1 loan when once made, nor shall any l 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 fulfill 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 or contract shall contain a clause providing therefor.
 Sec. '. 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 period to be agreed on between said board and the applicant said period to be not less than five nor more than thirty six years; but any debtor may liqui- date any part or all of his indebtedness in amounts of s50.00 or multipies there of upon any amortization payment date.
 Sec S. 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 1 per cent of the loan grant ed, the minimum charge to be 5000 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 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 &C., cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become 9 part of it. 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 in he administration of said system of ural credits.
 Sec. 10. The Legislative Assembly shall provide in such detail as it shall leem advisable for the carrying out nd administering of the provisions of his amendment and shall provide ad- ,quate safeguards against the use of ;uch loans as an aid to the purchas- ng and holding of lands for the pur- eoses of specula ton. Such safeguards hall include clear definitions of the erms operate" and Occupy" used lerein. In the absence of such legis- ation, and subject to the same after it's enactment, the State Land Board hall proceed to administer said sys- tenn of rural credits under rules and 'eeulations provided by itself but sub
 t to the provisions herein contained.
 Sec. II. The provisions of the Con- titution of Arkansas in conflict with his amendment are hereby repealed in 0 far only as they conflict herewith. The provisions of this amendment rect and be in operation 60 days af- TT their approval and adoption by the
 aDle of Arkansas
 Approved by the Governor ard filed
 the office of the Secretary of State.
 arch IT. 1917
 ,ach elector may vote for or against above amendment
 Witness my official signature this. 24th day of April 1918.
 [SealJ TOM J. TERRAL,
 Secretary of State.