The Brinkley argus., 1918-09-13

 he satisfaction Of ercumbrances upon eh lands, whi1h. in the Judgment oe li board. We're incGrred or assumed
 said applicant for the aforesaid lUf poses
 Sec 6. Every applicant for a farm ocn shall state clearly in his applica- tfou the purposes for which such loan desired and upon it's approval by the board this statement shall be deem el 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 to prevent any farm owner from selling or leasing lands subject to such fn- cumbranre; but if he shall violate his saii contract by applying th moneys borrowed to purposes other than those stated in his application or enumerated herein. or ir he shall lease such lands pr sell them to any person not fulfill ing the conditions and purposes pro- vtded for herein. said board Is author ized and directed 70 require the repay ment of said loan upon six months mo- tice and said note or contract shall contain a clause providing therefor. Sec. '. Such loans shall be repaid with interest accruing Tn annual in- stallments on the amortization plan, such instaIlments being fixed at such sums as will cover the interest rate and will liquidate the debt in 8 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 multiples there- or upon any amortization payment date
 Sec. B. The rate of interest on ioans 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- duire each applicant to pay an initial charge of 1 per cent of the loan grant ed, the minimum charge to be s10.go to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accrutng from the operation of the system of rural credits herein provided for. after paying interest accruing the afors- 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 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 fin the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest &C., cruing from loans made from said Arr kansas Rural Credits Reserve Fund shall be added to 1t and become a part of it. The said Arkansas Rural Credits
 
 cept that it may be drawn upon to re- imburse the State for loss incurred in the administration Of said system of rural credits.
 Sec. 10 The Legislative Assembly shall provide in such detail 1t shall leem adyisa ble for the carrying out md administering of the provisions of his amendment, and shall provide ad- 'quate safeguards against the use of 'uch loans an aid to the purchas- nS and holding of lands for the pur- 'oses of specula ton. Such safeguards hall include clear definitions of the elms operate" and occupy" used '"rein. In the absence of such legis- iton. and subject tG the same after B enactment the State Land Board ha'l proceed to administer said sys- ".n of rural credits under rules and -f}Rfions provided by itself. but sub-
 Q the provisions herein contained. Soc. 1 1. The provisions of the Con- 1fjon of Arkansas in conflict with
 amendment are hereby repealed, in
 far nily as they conflict herewith.
 oroFiaionS Nf this amendment 1 Do self-ex xerrting, and shall take
 Nul be ir operation so days af- 'hei" apprOVal and adoption by the
 If Arkansas.
 'N"o""9 bv the Governor and filed
 office Of the Secretary of State.
 1ot7
 h AfectOr nav vote for or against
 ~hNNo amNnd'-pent
 '~nss my official signature thtA
 '''h day Of April 1918
 *aall TOM !. TERRAL.
 Secretary of State