The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1918-06-05

the satisfaction Of encumbrances upon
such lands. which, ia 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-
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 no
failure to apply such funds to the
purposes stated in such application or
enumerated herein shall invalidate a
loan when once made, nor snail an!
thing herein contained be deemed 10
prevent any farm owner from selling
or leasing lands subject to such in
cumbrance; but IL he shall violate ms
said contract by applying the none!
borrowed to purposes other than those
stated in his application or enunlerated
herein. or if he shall lease such lands
or sell them to any person not fuifill-
ing the conditions and purposes pro-
vided for herein, said board is author
lied 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 reps id
with interest accruing in annual IN
stallments on the amortization pt; II,
such installments being fixed at such
sums as will cover the interest rate
and will liQuidate the debt in a period
to be agreed on between said board
and the applicant, said period 10 be
not less than five nor more than thirty
six years: but any debtor may liaui-
date any part or all of his indebtedness
IN amounts of $1,000 or muitiplcs there
Of upon any amortization payment
date.
Sec. s. The rate Of interest on loans
shall be five per cent per annum: pro-
vided. that no Farm Credit Bonds shall
be sold for less than par; and pro-
"ided further that the board shall re-
luire each applicant to pay an initial
charge of per cent of the loan grant
ed the minimum charge to be $lo.oo
to cover the cost of appraisal and eX-
animation Of title.
Sec O. All surplus funds accruing
from the operation of the system of
rural credits herein provided for after
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 part Of fund to DC
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-
crGing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become part
Of it. The said Arkansas Rural Credits
Reserve Fund shall be irrcducihlc, cN-
rept that it may be drawn upon to re-
;!aburse the State for loss incurred III
he administration of said system OF
rural credits.
Sec. 10. The Legislative Assembly
slal provide in such detail it shall
icem advisable for the carrying out
nd administering of the provisions q
his amendment. and shall provide ed
.nuate safeguards against the use CT
@ucl loans as an aid to the purchas-
ing and holding of lands for the pUr-
,oses Of spccUla ton. Such safeguards
hall include clear definitions of the
.ernS Operate" and occupy" used
herein. IL the absence of such logis-
'ation, and subject to the same after
its enactment. the State Land Board
@hall proceed to administer said sy&-
tenn of rural credits under rules and
regulations provided by itself, but sub
iect to the provisions herein contained.
Sec. IL. The provisions of the Con-
-titution of Arkansas in conflict with
this amendment are hereby repealed. in
50 far only rs they conflict herewith.
The provisions of this ame ndmont
fleet and be in opera ton GO days at
tcr their approval and adoption by the
,eople Of Arkansas.
Approved by the Governor. and filed
IN the office OF the Secretary of State,
March II. 1917.
Each e,ector ray vote for or against
,,@ above amendment
Witness my official signature this,
he cath day OF APRIL. 1918.
[Seall TOM '. TEEP.tI.
Secretary of State.