The Brinkley argus., 1918-07-19


 ne satisfaction of encumprances upon
 .ch lands which, in the judgment ot
 id board. were incurred or assumea D said applicant for the aforesaid imposes.
 sec o. Every applicant for farm ,an shall state clearly in his aPplica- ion the purposes for which such loan < desired and upon its approval by he board this statement shall De deeh- ,d 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 )r leasing lands subject to such in- ,umbrance; but if he shall violate hls said contract by applying the moneys borrowed to purposes other than thoss stated in his application or enumerated herein, or If he shall lease such lands Dr sell them to any person not fulhll- ing the conditions and purposes pro- yided 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 snail contain a clause providing therefor.\
 Sec T. Such loans shall be repaid with interest accruing In annual fn- stallments on the amortization plan. such installments being fixed at such
  and will liqudate the debt in period to be agreed on between said board and the applicant. said period to be not lass 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 multiples there of upon any amortization payment date.
 Sec. 8. The rate of interest on loans shall be five per cent per annum; pro yided, that no Farm Credit Bonds shall be sold for less than par; and pro- vded further that tho board shall re. auire each applicant to pay an initial charge of per cent of the loan grantE ed, the minimum charge to be Sl0.O to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accrufng 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 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 a 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 the administration of said system of rural credits. ,,s.
 Sec. 10. The Legislative Assembly shall provide in such detail as 1t shall 1eem advisable for the carrying out md administering G1 the provisions of this amendment, and shall provide ad- aquate safeguards against the use of such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of the erms Operate and occupy" used herein In the absence of such legis it's enactment. the State Land Board shall proceed to administer said sys- lem of rural credits under rules and sgulations provided by itself. but sub- at to the provisions herein contained.
 Sec. II. The provisions of the Con titution of Arkansas in conflict with this amendment are hereby repealed. in 30 far only as they conflict herewith. The provisions of this amendment hall be self-executing. and shall take feet and be in operation 60 days af- "r their approval and adoption by the eople of Arkansas
 Approved bv t',o Governor. and eled the office or the Secretary of State. '."ch IT. 19tT
 -.ach elector may vote for or against rc above amend "'"nt.
 Witness my official signature this. 10 2ith day Of Ap"il 1918.
 (SeaIJ TOM ]. TERRAL.
 Secretary of State.