The Little River news., 1918-10-09

is desired, and upon it's approval by the board this statement shall be deem- cd 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 invalldate loan when once made. nor shall any thing herein contained be deemed 10 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 s1ch layeS 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 repa9- ment of said loan upon six months no tice. and said note contract snail contain clause providing therefor
 Sec. 7. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan. such installments being fixed at such sums will cover the interest rate and will iiqudate the debt in period to be agreed on between said boa~d and the applicant. said period to be not less than five nor more than thirtv- six years: but any debtor may liqui- date any part or all of his indebtedness in amounts of s50.00 or multiples there of upon any amortization payment
 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 paysan initio- charge of 1 per cent of the loan grant ed. the minimum charge to be $10.0m to cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruing 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 adminfstra- tion of said system Of rural credits. shall be placed in the State Treasury ana become part of a fund to be known as the Arkansas Rural Credit 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 &C., 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 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 it shall deem advisable for the carrying ont >:sI administering of the provisions of this amendment, and shall provide ad- eauate 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 safegua .5 shall include clear Gccc:liti.:.- of ts ,
 erms operate" and "occCpy" uSad heyein. Tn the absence of such legis- lation, and subject to the same after it's enactment. the State Land BoarG shall proceed to administer said sys- tenn of rural credits under rules a:-, yesulations groyid:d hs i..slf. ..+. s.. , sGct to the PtoYisions hefsiA ds".d. . Sec H. The pfovisions of the os<e stitution of Arkansas in cft,;..ss.:... With this amendment are hereby fepaaled, in so far only as they conflict herewith. The provisIons of this amendment eiasct and be in operation 60 days af- ter their approval and adoption by t. q people of Arkansas. -@
 Approved by the Governor. and fled in the office of the Secretary of State, March IT. 1917.
 Each elector may vote for or against the above amendment.
 Witness my official signature this, the 24th day of April. 1918.
 lSeall TOM J. TERRAL, Secretary of State..