The Brinkley argus., 1918-10-04

che satisfaction of encumbrsnces upoi such lands, which. in the Judgment - said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. $. Every applicant for a farm loan shall state clearly in his applica tion the purposes for which such o4a Is desired and upQn its approval by the board this statement shall be deem ed a 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 prevent any farm owner from sellin or leasing lands subject to such IT cumbrance; but If he shall violate hi said contract by applying the monef borrowed to purposes other than thos stated in his application or enumerate herein. or if he shall lease such lands pr sell them to any person not fulhH- 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 nos tice, and said note or contract shall contain clause providing therefor.
 Sec. 2. Such loans shall be repaid with interest accruing In annual in- stallments on the amortization plan uch instellments being fixed at such ums as will cover the interest rate ma VIII llQulOAIe me feDC Tn a pefl''tt ? be agreed on between said boa rf ad the applicant. said period to he tnt less than five nor more than thirtN- iv~ years; but any debtor may li0ui- late any part or all of his indebtedness amounts of $50.00 or multipies there f upon any amortization paymeE; late
 Sec. B. The rate Of interest on ;cans -hall be five per cent per annum: pro iIed. that no Farm Credit Bonds sdali yr- Toe vided further that the board shall re, luire each applicant to pay an initial ;harge of 1 per cent of the loan grant d. the minimum charge to be 510.00 to cover the cost of appraisal and eS animation of title.
 Sec. g. All surplus funds accruing fro.n 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 adnnistra- ton of said system of rural credits 'hall be placed in the State Treasury known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rura Credits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a pa pr IL. Tn Q SdlQ Arkansas Rural fredfu Reserve Fund shall be irreducihle e~ ept that 1t may be drawn upon to r1 mburse the State for loss incurred < he administration of said system ural credits.
 Sec. 10. The Legislative Assembl shall provide In such detail 8 1t shal leem advisable for the carrying olN I'd administering of the provisions of his amendment, and shall provide ad- 'iuate safeguards against tn use of uch loans aid to the purchas- ns and holding of lands for the pur- poses of speculation. 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 Is enactment. the State Land Board nall proceed to administer said sys em of rural credits under rules and asulations provided by itself but sub
 to the provisions herein contained
 Sec. II. The provisions of the Con- tuition of Arkansas in conflict with lis amendment are hereby repealed 9
 far only as they conflict hereWttl he provisions Of this amendment sect and be in operation 60 days af- ar their approval and adoption by the 'Nople of Arkansas
 Approved by the Governor. and filed
 the office of the Secretary of State sch IT. 1917
 Ach elector may vote for or aga Inst \ above amendtaont
 mess my official sienature thf2 n 24th day of April 1918
 tSeall TOM J. TERRAI4,
 Secretary of State