The Brinkley argus., 1918-08-02

the 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 G. Every applicant for a farm loan shall state clearly in his appiica- ton the purposes for which such loau 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 f5 granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidate 8 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 he shall lease such landS or sell them to any person not fuinil- 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- contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing In annual tn- stailments on the amortization plan. sums as will cover the interest rato and will liquidate the debt in 6 period to bs agreed on between said board and the applicant. said period to be six years: but any debtor may iiQui- date any part or all of his indebte edn 0sa in amounts of 3S0.0o or multiples there- of upon any amortization payment date.
 Sec. g. The rate of interest on ioans shall be dve per cent per annum; pro- vided. that no Farm Credit Bonds shall be sold for less than par: and pro- vided further that ths board shall re- quirs each applicant to pay an initial charge of 1 per cent of the loan grankr ed, the minimum charge to bs s10.sO to cover the cost of appraisal and eH- animation of title.
 Sec. S. All surplus funds accruing from the operation of the system of rural credits herein provided for. after paying interest accrufng on the aforo- said bonds. and all operating and other expenses arising from tho administra- ton of said system of rural credits. shall be placed in the 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 TNcScTNe Y uuu SHdll Dc LTTcuuCipic, oA~ 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. TO- The Legislative Assembly shall provide in such detail 1t shall deem advisable for the carrying out and administering of the provisions of this amendment, and shall provide ad- equate 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 terms operate" and occupy used 1 herein. In the absence of such legis-
 ,ation, and subject to the same after it's enactment the State Land Board shall proceed to administer said sys-
 tem of rural credits under rules and 'egulations provided by itself, but sub oct to the provisions herein contained. Sec. II. The provisions of the Con- 'titution of Arkansas in conflict with his amendment are hereby repealed. in % far only they conflict herewith. The provisions of this amendment hall be self executing. and shall take Feet and be in operation 60 days af er their approval and adoption by the r0Dle of Arkansas.
 Approved by the Governor. and filed the office of the Secretary of State.
 ''rch r. 1917.
 Zach electOr may vote for or against above amendment
 Witness my official signature this, | "a 24th day of April, 1918
 rSeall TOM T. HERBAL, Secretary of State.