The Brinkley argus., 1918-05-17

che 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- 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 tho purposes stated in such application or enumerated herein shah 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 i'm cumbrance: but If he shall violate his Said contract by applying the moneys stated in his application or enumerated herein. or If he shall lease such lands or sell them to any person not fulhll- 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 therefor.
 Sec. I. Such loans shall be repaid with interest accruing in annual in- stAliments on the amortization plan. such installments being fixed at such sums as will cover the fntersst rate and will Huuidate the debt in T period to be agreed on between said board and the applicant, said period to bs not less than flve nor more than thirty six years: but any debtor may fliQui- date any part or all of his Indebtedness in amounts of Ss0.oe or npltiples there of upon any~~amortizstion payment
 Sec. 8. The rate of interest on loans shall be hve per centfper annum; pro- yded. that Fsrm crsdit Bonds shall 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- ton of said system of rural credits. shall be placed in tho State Treasury and become part of fund to De 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 it and become a part of It. The said Arkansas Rural Credits Reserve Fund shall be irreducible. ex- cept that 1t 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 as 1t shall deem advisable for the carrying out md administering of the provisions of this amendment, and shall provide ad- eauate 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 1egis- iation, and subject to the same after it's enactment, the State Land Board shall proceed to administer said sys- tenn of rural credits under rules and regulations provided by Itself. but sub ect to the provisions herein contained.
 Sec. Ii. The provisions of the Con- stitution of Arkansas in conflict with this 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 60 days af people. of Arkansas.
 Approved by the Governor. and nied T the office of the Secretary of State. rarch IT. 1s17.
 Each slector may vote for or agatnst ha above amendment.
 witness my official signature this. he 3lth day of April. 1918.
 faeaIl TOM ]. HERBAL.
 Secretary of 9tAts.