Newport daily independent., 1918-07-26


 ne satisraction Of encumbrsncss upon ,ach lands. which. in the judgment of aid board. were incurred or assumed v said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm ,oan shall state clearly in his applica- sion the purposes for which such loan desired. and upon its approval py he board this statement shall be deem ed part of tie 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 'oan 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 eumbrance but If he shall violate his said contract by applying the moneys borrowed to purposes other than tnose ;tated in his application or enumerated herein. or If he shall lease such lands pr 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 nent of said loan upon six months mo- tice. and said note or contract snail contain a clause providing therefor. :. Sec. z. Such loans shall be repaid with interest accruing Tn annual in- stallments on the amortization plan such installments being fixed at sucf
  md will liquidate the debt in a perioc to be agreed on between said board and the applicant. said period to bt not less than five nor more than thirty date any part or all of his indebtedness in amounts of $50.00 or multiples there If 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 charge of per cent of the loan grant, ed, the minimum charge to be $1O.Oc to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accruinr from the operation of the system of rural credits herein provided for. aftei paying interest accruing on the afore said bonds, and all operating and othe' expenses arising from the administra. tion of said system of rural credit shall be placed in the State Treasur- known as the Arkansas Rural Credi Reserve Fund" Said Arkansas Rura Credits Reserve Fund shall be loanes on fcvrm lands ln the yraasaner Rerei, provided for the Arkansas kura' cruing from loans made from said Ar kansas Rural Credits Reserve Funt shall be edded to it and become a pal of k Tr- said Arkansas Rural Credit Reserve Fund shall be irreducible, ex eept that it may be drawn upon to re imburse the State for loss incurred i .'he administration of said system ~ural credits
 Sec. 10. The Legislative Assembl. shall provide in such detail as 1t sha' !een advisable for the carrying ou Ind administering of the provisions his amendment. and shall provide ad squate safeguards against the use of :uch loans a s an aid to the purchas- ng and holding of lands for the pur- soses Of speculation. Such safeguard nall include clear definitions of ths erms operate" and occupy" uset aerein. In the absence of such legis- ation. and subject to the same aftel It's enactment the State Land Boare hall proceed to administer said sys em of rural credits under rules am .egulations provided by itself but sub ect to the provisions herein contained
 Sec. II. The provisions of the Con stitution of Arkansas in conflict witt his amendment are hereby repealed, in 90 far only as they conflict herewith The provisions of this amendment ehal be self-executing, and shall take fleet and be in operation 50 days af- -er their approval and adoption by the ,eople Of Arkansas.
 Approved by the Governor and filed n the office of the Secretary of State. Iarch IT. 1917.
 Each elector may vote for or against ne above amendment.
 Witness my official signature this. ne 24th day of April. 1918.
 ySaaTl TOM V. TERRAI,
 Secretary of State.