The Little River news., 1918-07-10

such lands, which, ii1 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 it's approval py the board this statement shall be deem- ed a part of the ncte or contract uEder which the loan is granted. But no failure to apply such funds to the purposes stated in such application or enumerated herein shall invalidafe 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 1n- eumbrance; but if he shall violate hls 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 ful1lil- . 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 snail contain a clause providing therefor
 Sec. '. Such loans shall be repaid rith interest accruinG in annual in- stallmonts on the amortization plan. uqh installments hcin% fixed at su"h 'ums ns will cover tho interest rate t.3d will luuidate the debt in n pcri"" 0 be agreed on between said boa'F nd the applicant said ~period 10 be ,ot less than five nor mofethan thirtr- K years: but any debtor may liqui- fate any part or all of his indebtedness n ai.lounts of $50.00 or multiples therc- f upon any amortization payment late.
 Sec. 8. The rate of interest on loans hall be five per cent per annun; pro- ided. that no Farm Credit Bonds shall 'e sold for less than par: end pro- .'ided further that the board shall re. luire each applicant to pay an initial charge of per cent of the loan grant d, the minimum charge to be SfOoO to cover the cost of appraisal and ex- animation of title.
 Sec 3. All surplus funds accruinE from the operation of the system of paying interest accruing on the afore- 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 and become a part of fund to he known as the Arkansas Rural Credit Reserve Fund.- Said Arkansas Rural 'redits Reserve Fund shan be loaned provided for the Arkansas Rural credit Loan Fund. and the interest ac- .ruing from loans made from said Ar sansas Rural Credits Reserve Fund shall be added to it and become part If it. The said Arkansas Rural Credits 2eserve Fund shall be irrcducibie, cx- ept that it may be drawn upon to re- ,nbursc the State for loss incurred i:; he administration of said system of ural credits.
 Sec. 1o.' 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 aH sauate safeguards against the use of uch loans as an aid to the purch&s- ! ng and holding of lands for the pur7 .oses of speculation. Such safeguardS hall include clear definitions of tht arms Operate" and occupy" use erein. In the absence of such legisI ation, and subject to the same aftch IS enactment. the State Land Poa,{ hall proceed to administer said sysn 'em of rural credits under rules an esulations provided by itself, but sul} eet to the provisions herein contained
 Sec. Il. The provisions of the Co14 titution of Arkansas in conflict wi' his amendment are hereby repealed, 2 far only as they. conflict herewith he provisions of this amcndmo hall he sclf-executing, and shall takI feet and be in operation 60 days s "r their approval and adoption by thU eople of Arkansas.
 Approved by the Governor. and f,a the office Of the Secretary of Statd arch 17. 1917.
 Each elcctor may vote for or againsl
 a bove amendment
 Witness my official signature this
 2ith day of April. 1918.
 fseall TOM !. TERRAL
 Secretary of Statev