The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1918-05-15
mo satisfaction Of encumbrances upon

the satisfaction OF encumbrances upon
such lands. which, in the judgment Of
said board, We're incurred or assumed
by said applicant for the aforesaid
purposes.
Sec. G. Every applicant for farm
loan shall state clearly in his appilca-
ton the purposes for which such loan
is desired, and upon its approval by
the board this statement shall be DEEM
ed part of the note or contract under
which the loan is granted. But 10
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 selling
or leasing lands subject to such i'll
cumbrancc; but if he shall violate his
said contract by applying the moneys
borrowed to purposes other than those
stated in his application or enumeratc cd
herein. or if he shall lease such lands
or sell them to any person not fulfill
ing the conditions and purposes pro-
viCIed for herein. said board is author
lied and directed to require the repay
mert 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 rcpai d
nth interest accruing in annual in
stallments on the amortization plan,
such inSta 1lmcntS being fixed at such
sums rs will cover tho interest rate
md viii iOuidate the debt in 2 period
% be agreed on between said Ec;' ri
nd the applicant. said period 20 he
l0t less than five nor more than thit.E-
tx years: hut any debtor may licri-
late any part or all of his Indebtedness
i accounts OF $4,000 or multiples th.ic-
If upon any amortization payment
date.
Sec. s. The rate of interest on loans
hall be five per cent per annun: pro-
ridcd, 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 pay initial
charge of 1 per cent of the loan grant
I'd, the minimum charge to be $1,000
% cover the cost of appraisal and e%-
animation OF title.
Sec. Q. All surplus funds accruing
rom the operation of the system Of
rural credits herein provided for. aftcr
paying interest accruing on the afore-
said bonds. and all operating and other
expenses arising from the admlnistra-
shall be placed in the State Treasury
and become a 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 ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become q part
Of it. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, ex-
;ept that it may be drawn upon to re-
'mburse the State for loss incurred in
The administration of said system Of
"ural credits.
Sec. 10. The Legislative Assembly
hall provide in such detail as it shall
'cem advisable for the carrying out
nd administering of the provisions of
his amendment, and shall provide ed
quate safeguards against the use of
UGH loans IS an aid to the purchas-
'.ie and holding of lands for the pur-
'os"s of specula ton. Such safeguards
th;:ll include clear definitions of the
erms Operate" and occupy" used
acrein. In the absence of such lees
stion. and subject to the same after
hall proceed to administer said sys-
en- of rural credits under rules and
equations provided by itself, but sub
ct to the provisions herein contained.
Sec. IL. The provisions of the Con-
titution of Arkansas in conflict with
80 far only they conflict herewith.
rhe provisions of this amendment
hall be self-executing. and shall take
feet and be in operation 60 days af
az their approval and adoption by the
"ople of Arkansas.
Approved by the Governor, and filed
the office of the Secretary of State,
farch Il. 1917.
Each clector may vote for or against
- above amendment.
Witness my official signature this,
18th day of April. 1918.
tseall TOM J. TERRAL.
Secretary of State.
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