The Little River news., 1918-07-03

ehe satisfaction of encumprances upon such lands, which, hn the Judgment of said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for a farm loan shall state clearly in his applica- tion the purposes for which such loan Is desired, and upon its approval by the board this statement shall be deen- ed 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 loan when once made, nor shall any thing herein contained be deemed tf prevent any farm owner from sellfn, or leasing lands subject to such in cumbrance; but if he shall violate hi said contract by applying the money borrowed to purposes other than tho$C stated in his application or enumera ted or sell t.em 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 ment Of said loan upon six months no ttee. and said note or contract shall contain clause providing therefor.
 Sec. !. Such loans shall be repaid ~ith interest accruing in annual i:l- stallmentS on the amortization plan, rrch installrents being fixed at such sums will cover the interest rate '.nd will liGuidate the debt in a period 'o be agreed on between said board .nd the applicant, said period to be 1ot less than five nor more than thirty siN years: but any debtor may liqEi- date any part or all of his indebtedness in alaounts of $50.00 or multiples there of upon any amortization payment date.
 Sec. 8. The rate of interest on loans Shall be five per cent per annum pro- EiAed. that no Farm Credit Bonds shall he sold for less than par; and pro- sided further that the board shall re- Iuire each applicant to pay an initial charge of 1 per cent of the loan grant d, the minimum charge to be $1o.6o 10 cover the cost of appraisal and eX- animation of title.
 Sec. 9. All surplus funds accruing from the operation of the system of rural credits herein provided for, after paEtng interest accruing on the afofe- said bonds, and all operating and other expenses arising from the administra ton of said system Of rural credits shall be placed in the State Treasury ;tnd become a part of fund to be Reserve Fund" Said Arkansas Rural f'redits Reserve Fund shall be loaned on farm lands in the lnaKncr herein provided for the Arkansas Rural |"cdit Loan Fund. and the interest ac- :fuinG froia loans made from said .*T 'tansas Rural Credits Reserve Fund .Hlall be added to it and become a D. f it. fine said Arkansas Rural ( .'et' 4 deserve Fund shall be irHedueiblo. eS- 2crt that it may De drawn upon to t'a- a1hurse the State for loss incurred in .ho administration of said system Cf aral credits.
 See. 10. The Legislative Asscmh',- shall provide in such detail as il sE;. ,een advisable for the car9>sta;e #..' nd administering of the prov -iou.. Z his amendment. and shall provide tee'- .&uate safeguards against the u.e o' sEch loans as an aid to the pUrCGu$- 5ng and holding. of lands for tke rrr- poses of speculation. Such safeguaf,.; hall include clear definitions of t." efm$ "operate" and "occup*" u.=. 3 .crcin. In the absence of such leEis- 3tion, and subject to the same after ts enactment, the State Land Eos T thall proceed to administer said S&a- lem of rural credits under rules :5.d aeEulations provided hy itself, but sHh- .ect to the provisions herein cont&inei.
 Sec. II. The provisions of the Cor- this amendment arc hereby repealed. in so far only as they conflict hereW.i;is. The provisions of this amtntlf.ftas' shall be self-czecuting, and eh:5,} ta' fleet and be in operation @ days a. ter their approval and adoption by t5.r people of Arkansas.
 Approved by the Governor. and fiI"d in the office of the Secretary of State March r. 1917.
 Each elector may vote for or against he above amendment
 Witness my official signature this he 24th day of April. 1918
 lSeal] TOM ]. TEERAL.
 Secretary of State