The Little River news., 1918-06-26


 shs 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. 6. Every applicant for farm loan shall state clearly in his applfca- ton the purposes for which such loan is desired and upon its approval py the board this statement shall be deem- ed 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 loan when once made, nor shall any thing herein contained be deeme1 10 prevent any farm owner from selllng or leasing lands subject to such in- cunbrance: 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 lanes or sell them to any person not fulnil- 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 :. tice, and said note or contract shall contain a clause providing therefor.
 Sec. z. Such loans shall be repaid rith interest accruing in annual in stallments on the amortization pla H. uch insta1lments being fixed at such
  nd will liquidate the dehk in a period O be agreed on between said board nd the applicant, said period to he tot less than five nor more than thirty late any part or all of his indebtedn ess r amounts of $50.G0 or multiples there f upon any amortization payment date.
 Sec. 8. The rate of interest on loans Gall be five per cent per annum: pro- vided. that no Farm Credit Bonds shall De sold for less than par; and pro- vided further that the board shell re- 'uire each applicant to pay an initial 'harge of 1 per cent of the loan grant d. the minimum charge to be $10.00 to cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruing from the operation of the system of paying interest accruing on the afcre- said bonds. and all operating and other -xperses arising from the administra- ton of said system of rural credits. 'hall be placed in the State Treasury md become part of a fund to be -nown as the Arkansas Rural Credit ;eserve Fund" Said Arkansas Rural 'redits Reserve Fund shall be loaned on farm lands in the manner herein |redit Loan Fund. and the interest ac- 'rung from loars made from said Ar ';ansas Rural Credits Reserve Fund hall he added to it and become a part f it. The said Arkansas Rural Credits Reserve Fund shall be irreducible. cx- 'ept that it may be drawn upon to re- rnburse the State for loss incurred in he administration of said system of ural credits.
 Sec. 10. The Legislative Assembly hall provide in such detail as it shall ieem advisable for the carrying out nd administering of the provisions of lis amendment. and shall provide ad- duate safeguards against the use os Uch loans as aid to the purcEas- IF and holding of lands for the pur- oses of speculation. Such safeguards hall include clear definitions of the rms operate" and occupy" used erein. In the absence of such logis- s enactment. tic State Land Board .iiall proceed to administer said sys- em of rural credits under rules ard "rulations provided by itself, but suN .t to the provisions herein contained. Sec. II. The provisions of the Gen. 'itution of Arkansas in conflict with his amendment are hereby repealed. in far only as they conflict herewith. he provisions of this amendmca: hall be self-cxecuting. and shall tc'e Feet and he in operation 60 days af- Y their approval and adoption by the -onle of Arkansas.
 Approved by the Governor. and filed
 the office of the Secretary of State "rch T.. 1917.
 Each elector may vote for or against above amendn"nt.
 Witness my official signature this 24th day of April. 1oiS
 [Seal] TOM J. TEER.L.
 Secretary of State.