The Little River news., 1918-06-19

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 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 enumerated herein. or if he shall lease such lnnds or sell them to any person not fulfll- 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 ho- tice. and said note or contract shall contain a clause providing therefor.
 Sec. [. Such loans shall be repaid
 *ith intereet accruing in annual in-
 sta lments on the amortization plan. such installments being fixed at such
 sums will cover the interest rate
 md will liGuidate the debt in perio'
 to be agreed on between said boarC
 sAd the applicant. said period to be }ot less than five nor mere than thirty six years; but any debtor may licui- date any part or all of his indebtedness 'n amounts of $50.00 or multiples there ,f upon any amortization paymen: date.
 Sec. 8. The rate of interest on loans ~hall be five per cent per annum: pro tfded that no Farm Credit Bonds shall De sold for less than par; and pro- flded further that the board shall re- quire each applicant to pay an initial l nf ! ed, the minimum charge to be si0.C0 10 cover the cost of appraisal and cx-
 animation Of title.
 Sec. 9. All surplus funds occruing 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- tion of said system of rural credits. shall be placed in the State Treasury
 and become part of fund to bt
 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 ae erung from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a part of it. The said Arkansas Rural Credits deserve Fund shall be irrcducible. ex-
 cert that it may be drawn upon to re-
 
 he administration of said system of
 rural credits.
 Sec. 10. The Legislative Assemb: shall provide in such detail as it shall ieem advisable for the carrying out
 tild administering of the provisions of his amendment. and shall provide ad .quate safeguards against the use e .uch loans as an aid to the purehas- ng and holding of lands for the pUr-
 'o?es of speculation. Such sateSt:;s :'ii: hall include clear definitions of the crms "operate and occupy" usc0 ferein. In the absence of such legis- ation, and subject 10 the same after it's enactment. the State Land Board thall proceed to administer said syS- cm of rural credits under rules arc 'e-uiations provided by itself. but suh- ct to the provisions herein contained. Sec. II. Th9 provisions of the Cen Hutton of Arkansas in conflict Wifh his amendment are hereby repealed. to 'n far only as they conflict herewith. 'he provisions of this amcndnAc'}' hall be self-executinG. and shall tak1 f"ct and be in operation 60 days a'- r their approval and adoption by the .oplc of Arkansas.
 Approved by the Governor. an! fleG 'rch r. 1917.
 Each eiector nay vote for or against above amend -.ent.
 Witness my official signature this 2A'h day of April. 1918. !Seal1 TONI '. TF.Tr:DAL. Secretary Of State