The Little River news., 1918-09-18

taO &4yIeH3ctf0n oK encumprencoS upon such lands. which, in the Judgment of said board. were incurred or assumed by said applicant for the aforesaid purposes.
 Sec {. Every applicant for a farm loan sssais state clearly ia his appliea ton ti.@ purposes for witch s"sn io IS desired. and upon it's apprpval oy the board this state.iicnt snail b.. deeisN- ed part of he 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 thlng herein contained be deemed to prevent any, farm owner from selling or leasing lands subject to such in- cumbrance; but if he shall violate hisS 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 loap upon six months mo- tice, and said note or contract shall contain a clause providing therefor.
 Sec. I. Such loans shall be repaid with interest accruing in annual in- stallsnents on the amortization plan. such installments being fixed at such sums as will Cover the interest rate and will iiquidate the debt in a perioa to be agreed on between said board and the applicant, said period to De not less than five nor more than thirty fix years; but any debtor may liaui- date any part or all of his Indebtedness in amounts of $50.00 or multiples there Of upon any amortization payment date.
 Sec. 8. 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- fIAI |. IL. -,,1 sI,u duire each applicant to pay.an initiai charge of ] per cent of the loan grant ed, the minimum charge to be 5000 to cover the cost of appraisal and ex- animation of title.
 Sec. 3. 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- tion of said system of rural credits. shall be placed in the State Treasury ana become a part Of fund to be known as the Arkansas Rural Credi. 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- cruing 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 ReServeFund shall be irreducible. cN- cept that it may be drawn upon to TO- imburse the State for loss incurred in the administration of said system of rural credits.
 Sec. 10. The Legislative Assembly shall provide in such detail IS it .s"a'l deem advisable for the carrying oEt and administering of the provisions of this amendment and shall provide ad equate safeguards against the use oc such loans as an aid to the purchas- ing and holding of lands for the pur- poses of speculation. Such safeguards terms Operate" and occupy" used herein. In the absence of such lsSis- laton, and subject to the same nftcr it's enactment, the State Land Boalt shall proceed to administer said sJs- tenn of rural credits under rules and regulations provided by itself. hut sub iect to the provisions herein contained.
 Sec. Il. The provisions of the Com stitution of Arkansas in conflict Vith this amendment are hereby repealed. in so far only as they conflict her"v ith. The provisions of this am"na'r"nt shall be self-executing, and shall take effect and be in operation GO days af- ter their approval and adoption by the people of Arkansas.
 Approved by the Governor and a}ed in the office of the Secretary of State. March r. 1917.
 Each elector may vote for or against the above amendment.
 Witness my official signature this. .he 24th day of April 1918.
 (Seall TOM J. HERBAL,
 Secretary of State.