The Little River news., 1918-07-24

Che 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 a farm loan shall state clearly in his applica- tton the purposes for which such loan Is desired, and upon its approval by 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 q loan when once made, nor shall ahy- thing herein contained be deemed to 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 such lands or sell them to any person not fu'nfl- 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- 'ice. and said note or contract shaH 'ontain a clause providing therefor. Sec. I. Such loans shall be repaid ~ith interest accruing in annual in .tallments on the amortization plan 'uch installments being fixed at such sums as will cover the interest rate md will liQuidate the debt in perioc O be agreed on between said hoard nd the applicant. said period to be ot less than five nor more than thirty ix years: but any debtor may lqui- ate any part or all of his indebtedness amounts of $50.00 or multiples there- f upon any amortization payment late.
 Sec. 8. The rate of interest on loans hall be five per cent per anrum; pro- ided. that no Farm Credit Bonds shall e sold for less than par; and pro- -ided further that the board shall re- uire each applicant to pay an initial 'harge of per cent of the loan grant d, the minimum charge to be S1O.e0 cover the cost of appraisal and ex- imitation of title.
 Sec g. All surplus funds accruing rom the operation of the system of 'ural credits herein provided for, after 'aying interest accruing on the afore- aid bonds, and all operating and other ion of said system of rural credits. hall be placed in the State Treasury md become part of fund to be lnown as the "Arkansas Rural Credit 'redits Reserve Fund shall be loaned n farm lands in the manner herein ,:ovided for the Arkansas Rural 'redit Loan Fund. and the interest ac- .ruing from loans made from said Ar -ansas Rural Credits Reserve Fund iall be added to it and become part f it. The said Arkansas Rural Credits .eserve Fund shall be irreducible ex- opt that it may be drawn upon to re- nburse the State for loss incurred in 2e administration of said system of ural credits.
 Sec. 10. The Legislative Assembly hall provide in such detail as 1t shall eem advisable for the carrying out d administering of the provisions of
 is amendment, and shall provide ad tuate safeguards against the use of E and holding of lands for the pur- ,ses of speculation. Such safeguards tall include clear definitions of thu rms Operate" and occupy" used arein. In the absence of such leGiT .tion, and subject to the same after s enactment, tie State Land Board hall proceed to administer said sys 'fl of rural credits under rules auc ,ssulations provided by itself, but sub
 t to the provisions herein contained. Sec. II. The provisions of the Con- .4itution Of Arkansas in conflict with his amendment are hereby repealed. in far only as they conflict herewith. he provisions of this amendment
 ect and be in operation 60 days af- r their approval and adoption by the
 aple of Arkansas.
 Approved by the Governor. and filed
 the office of the Secretary of State. arch r. 1917
 Zach elector max vote for or against
 above arnen4I,uentss
 Witness my official si~nature this.
 2,;h day of Ap--ii. 1aiS.
 'Seall TONI T. TEI:RAL.
 Secretary of State.