The Little River news., 1918-07-17

she 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 & 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 sta atement 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 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 enumerated 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. no- tice. and said note or contract sha II contain clause providing therefor. Sec. z. Such loans shall be repaid with interest accruing in annual in- stallments on the amortization plan. such miscellaneous being fixed at such sums will cover the interest rate
  to be agreed on between said board and the applicant, said period to be not less than five nor more than thirty six years; but any debtor may lidui- late any part or all of his indebtedness 'N amounts of $5000 or multiples there of upon any amortization payment date.
 Sec. 8. The rate of interest on loan .halI be five per cent per annum: pro- vided, that no Farm Credit Bonds shall
 
 .'ided further that the board shall re- luire each applicant to pay an initial rharge of 1 per cent of the loan grant I'd. the minimum charge to be $lo.o0 to cover the cost of appraisal and ox- animation of title.
 Sec. 9. All surplus funds accruing from the operation of the system Of rural credits herein provided for, after paying interest accruing on the aforc- Said bonds. and all operating and other expenses arising from the adninistra- ton of said system of rural credits. 'hall be placed in the State Treasury known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rural 'redits Reserve Fund shall be loaned on farm lands in the manner herein oroNided for the Arkansas Rural Credit Loan Fund, and the interest &C., "ruing from loans made from said Ar ':snsas Rural Credits Reserve Fund hall be added to it and become part f It. The said Arkansas Rura! CreQlts ceserve Fund shall be irrcducihle. eS- cpt that it may be drawn upon to re- i,lburse the State for loss incurred in he administration of said system of ural credits.
 Sec. 10. The Legislative Assembly hall provide in such detail as it shall, eem advisable for the carrying ou: ad administering of the provisions ot His amendment, and shall provide ad- luate safeguards against the use Of uch loans as an aid to the purchas- ng and holding of lands for the pur- ,oses of speculation. Such safeguards hall include clear definitions of th" Hrms Operate" and occupy" used crein. In the absence of such legis- ,tion, and subject to the same after ts enactment. the State Land Boayd hall proceed to administer said sys- em of rural credits under rules and egulations provided by itself, but sub ct to the provisions herein contained. Sec. II. The provisions of the Con- titution of Arkansas in conflict with his amendment are hereby repealed. ir The provisions of this ame endment hall be self f-cxecuting. and shall take feet and be in operation 60 days af- 1T their approval and adoption by the "ople of Arkansas.
 Approved by the Governor. and filed the office of the Secretary of State. arch r. 1917.
 Each elector may vote for or against He above amendment.
 Witness my official signature this.
 2.th day of April s1siS.
 tSeall TOM '. TEER.;L.
 Secretary of State.