Section 6. Application for Loans
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Application for Loans
Every applicant for a farm loan shall state clearly in his application the purposes for which such loan is desired, and upon its approval by the board this statement shall be deemed 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 a loan when once made, nor shall anything herein contained be deemed to prevent any farm owner from selling or leasing lands subject to such encumbrance; 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 fulfilling the conditions and purposes provided for herein, said board is authorized and directed to require the repayment of said loan upon six months’ notice, and said note or contract shall contain a clause providing therefor.