The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1918-06-12

the satisfaction of encumprances upon
such lands, Which, in the judgment OF
said board, were incurred or assume d
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
eel 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 any
thing herein contained be deemed to
prevent any farm owner from se1liEE
or leasing lands subject to such H.
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 lanf e
or sell them to any person not fulfill
ing the conditions and purposes pro-
vided for herein, said board is author
lied and directed to require the repay
ment of said loan upon six months no
tice and said note or contract shall
contain clause providing therefor.
Sec. Z. Such loans shall be repa d
with interest accruing in annual in
stallnlents on the amortization plan.
ruch Instruments being fixed at suc'
sums as will cover the interest rate
and will lauidate the debt in Il periof'
to be agreed on between said boa I'd
nd 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 $4,000 or multiples there
If upon any amortization payment
date.
Sec. s. The rate OF interest on loans
shall be five per cent per annum pro-
Eided. that no Farm Credit Bonds shall
'e sold for less than par; and pro-
fided further that the board shall re-
lulre each applicant to pay an initial
charge of 1 per cent of the loan grant
ed, the minimum charge to be $1,000
to cover the cost of appraisal and eX-
animation of title.
Sec. Q. All surplus funds accruing
rom the operation of the system OF
rural credits herein provided for, after
paving interest accruing on the afore-
aid bonds. and all operating and 9th er
expenses arising from the administra-
ton of said system of rural credits.
shall be placed in the State Treasury
ana become part of fund to be
snown as the Arkansas Rural Credit
credits Reserve Fund shall be loaned
OH farm lands in the manner herein
provided for the Arkansas Rural
Credit Loan Fund. and the interest ac-
rr':lng from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become a part
of 1T. The said Arkansas Rural Credits
reserve Fund shall be irreducible. ex-
'ept that 1t may be drawn upon to re-
Elburse the State for loss incurred in
he administration of said system Of
"ural credits.
Sec. 10. The Legislative Assembly
shall provide in such detail as it shall
tcem advisable for the carrying out
nd administering of the provisions Of
his amendment. and shall provide ad-
'quate safeguards against the use Of
ing and holding of lands for the pur-
'oses of speculation. Such safeguards
hall include clear definitions Of the
erms Operate" and occupy" used
'erein. In the absence of such legis-
1tion and subject to the same after
its enactment, the State Land Board
hall proceed to administer said sys-
fem of rural credits under rules and
equations provided by itself, but sub
oct to the provisions herein contained.
Sec. II. The provisions of the Con-
titutfon Of Arkansas in conflict with
his amendment are hereby repealed. in
fhe provisions of this amendment
hail be self-executing. and shall take
fleet and be in operation GO days af-
or their approval and adoption by the
,eople of Arkansas.
Approved by the Governor. and filed
= the office Of the Secretary Of State.
Iarch II. 1917.
Each elector may vote. for or against
he above amendment.
Witness my official signature this,
We oath day of April. 1918.
tSeal] TOM J. TERRAL.
Secretary of State.