The Little River news., 1918-10-02

mo eatIofAetIon of encumDrancsA upon such lands. which, in the judEmerI ry said board, were incurred or assum- I by sAid applicant for tho aforesaid
 Sec. .. Every applicant for farr, loan shall state clearly in his appliea ton the purposes for which such io U ts desired, and upon it's approval lri cd part of the note or contract Unde which the loan is grRnte1s ent t', failure to apply such funds to b;: purposes stated in such application T enumerated herein shall fnva'tlate < loan when once made. nor shall ar,N- thing herein contained be- deeDe1 r prevent any farm owner from selli' z or leasing lands subject to 'sus'h r. cumbrance: but if he shall violate said contract by applying the nions 5 borrowed to purposes other than tn" ; stated in his application or enurreratS herein: or if he shall lease such hr T or sell them to any person not fr M ing the conditions and purposes sty--S-s. vided for herein. said board ia ap''riss ized and directed to require the F -s' ment of said loan upon six ntonfh'' ~ tice, and said note or contra ct st.'alf contain a clause providing therefo".
 Sec. '. Such loans shall be r"ef f5 with interest accruing in annual stallments on the amor tizatior e. ". such insta1lm ents bein~ fixed @t S" sums as will cover the interest ra
 
 to be agreed on between said hpii and the applicant, said period t@ s not less than five nor more than ttti:ty'- six years; but any debtor rnaY liussi- date any part or all of his indehteGn in amounts of S50.00 or multiples thnr+- Of upon any amortization payment date.
 Sec. 8. The rate of interest on lopNss shall be five per cent per annuHn; lsr@- vided. that no Farm Credit Bonds shall be sold for less than par: ard pro- vided further that the board shall 5e- quire each applicant to pay an initi"l ed. the minimum charge to be sle.eo to cover the cost of appraisal and ex- animation of title.
 Sec. g. All surplus funds accruiny rural credits herein provided for, after paying interest accruing on the aforo- said bonds. and all operating and other expenses arising from the ad.ninistrN- shall be placed in the State Treasure and become a part of fund to ha known as the Arkansas Rural Credit Reserve Fund" Said Arkansas Rur"l on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund, and the interest ac- cruing from loans made from said Ar kansas Rural Credits Reserve Fund shall be added to it and become a part. of.ft. The said Arkansas Rural Credits Reserve Fund shall be irreducihle. ex- cept that it may be drawn upon to r- imburse the State for loss incurred n the administration of said system of rural credits.
 Sec. TO- The Legislative Assembly, shall provide in such detail as 1t shall deem advisable for the carrying out and administering of the provisions cc this amendment. and shall provide ad eQuate safeguards against the use of such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards shall include clear definitions of the terms operate" and "occupy" used herein. In the absence of such leEiS- lation. and subject to the same after It's enactment. the State Land Board shall proceed to administer said sys tenn of rural credits under rules end regulations provided by itself. but sn~
 Sec. Il. The provisions of the Con- stitution of Arkansas in conflict win this amendment are hereby repealed n go far only as they conflict herewit,. The provisions of this amendrre shall be self-executing, and shall tai @ effect and be in operation GO days ar- ter their approval and adoption by tie people of Arkansas.
 Approved by the Governor and flef in the office of the Secretary of Statc, March r. 1917.
 Each elector may vote for or again [ the above amendment.
 Witness my official signature this, the 24th day of April, 1918.
 (Seal1 TOM J. TERRALA,
 Secretary of State.