The Little River news., 1918-09-25

e0o o4tl0factl0n Of 0ncumor4nce0 upon such lands. which, in the judgment of by said applicant for the aforesaid purposes.
 Sec. 6. Every applicant for farm loan shall state clearly in his applica- tion 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 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 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 enunerated herein, or if he shall lease such lands or sell them to any person not fulfill 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 mo- tice. and said note or contract shall contain a clause providing therefor.
 Sec. '. Such loans shall be repaid with interest accruing in annual in stalIments on the amortization plan, such installments being fixed at such sums as will cover the interest rate and will liquidate the debt in a period 70 be agreed on between said board tnd the applicant. said period to be tot less than five nor more than thirty six years; but any debtor may liqui- late any part or all of his indebtedness n amounts of $50.00 or multiples there of upon any amortization payment late
 Sec. S. The rate of interest on loans hall be five per cent per annum; pro- tided that no Farm Credit Bonds shall be sold for less than par; and pro- Io1 IL. ,t.,JI tuire each applicant to pay.an initial 'harge of 1 per cent of the loan grant d. the minimum charge to be s10.00 10 cover the cost of appraisal and ex- animation of title.
 Sec. 9. All surplus funds accruing from the operation of the system of rural credits herein provided for after paving interest accruing on the afore- aid bonds, and all operating and other expenses arising from the administra- tion of said system of rural credits. shall be placed in the State Treasury ano become part of fund to be known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural ,redits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund, and the interest cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a part If 1t. The said Arkansas Rural Credits Reserve Fund shall be irreducible. cH sept that 1t may be drawn upon to ,nburse the State for loss incurred in he administration of said system of ural credits,
 Sec. 10. The Legislative Assembly shall provide in such detail as it sha'' leem advisable for the carrying ort nd administering of the provisions of his amendment, and shall provide ad .Quate safeguards against the use of 'uch loans as an aid to the purchas- inn md hoI Of 1o de f1r hn ,oses of speculation Such safeguards hall include clear definitions of the erms operate" and occupy" used lerein. In the absence of such legis- ation, and subject to the same after it's enactment, the State Land Board hall proceed to administer said sys- tenn of rural credits under rules and egulations provided by itself. but sub iect to the provisions herein contained.
 Sec II. The provisions of the Con- stitution of Arkansas in conflict with this amendment are hereby repealed, in so far only as they conflict herewith. The provisions of this amendment shall be self-executing, and shall take nffect and be in operation 60 days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor and filed in the office of the Secretary of State. March IT, 1917.
 Each elector may vote for or against 'he above amendment.
 Witness my official signature this, he 24th day of April. 1918.
 lSeall TOM J. TERRAL.
 Secretary of State.