Newport daily independent., 1918-07-29

me satisfaction of encp nprances upou ouch lands. which. in the judgment of aid board were incurred or assumed y said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm ioan 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 deeni- ed part Of tl.e note or contract under which tho loan Is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate a 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 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 he4 shall lease sucb 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 mo- tice, and said note or contract shall contain clause providing therefor.
 Sec. T. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan such installments being fixed at sucf sums as will cover the interest rat
 
 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 $50-00 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- 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 ed. the minimum charge to be $10.0c to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accfuina 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 fund to bf known as the Arkansas Rural Credi Reserve Fund" Said Arkansas Rura on farm lands in the manner hereir provided for the Arkansas Rura Credit Loan Fund, and the interest ac. cruing from loans made from said Ar. kansas Rural Credits Reserve Fun6 shall ba edded to it and become par If |. Tr- said Arkansas Rural Credit. Reserve Fuad shall be irreducible, ex sept that it may be drawn upon to re mburse the State for loss incurred II he administration of said system O urai credits.
 Sec. 10. The Legislative Assembl, hall provide in such detail as 1t sha' leen advisable for the carrying or nd administering of the provisions . his amendment, and shall provide ad quate safeguards against the use o! uch loans as an aid to the purchas- ng and holding of lands for the 'purs soses of speculation. Such safeguard nall include clear definitions of tn erms operate" and Occupy usec lerein. Tn the absence of such leEis- ation, and subject to the same afte, ts enactment. the State Land Boart hall proceed to administer said sys em of rural credits under rules an regulations provided by itself, but sub
 Sec. Il. The provisions of the Con his amendment are hereby repealed, ir 70 far only as they conflict herewith The provisions of this amendment shall be self executing, and shall take fleet and be in operation 60 days af- ter their approval and adoption by the neople of Arkansas.
 Approved by the Governor. and filed n the office of the Secretary of State fTarch 17. 1917.
 Each elector may vote for or against he above amendment.
 Witness my official signature this ne 24th day of April. 1918.
 ISAall TONI J. TERRAL,
 Secretary of State.