The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1918-05-29

the satisfaction OF encumbrancee upon
such lands. which, in the judgment OF
said board. were incurred or assumed
by said applicant for the aforesaid
purposes.
Sec. G. Every applicant for farm
loan shall state clearly in his applica-
ton the purposes for which such loan
Is desired, and upon its approval by
the board this statement shall be deem
ed q part of the note or contract under
which the loan is granted. But Ito
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 i'll
cumbrance; but il 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
ICED and directed to require the repay
Nent of said loan upon six months no.
tice, and said note or contract shall
contain a clause providing therefor.
Sec. Z. Such loans shall be repaid
9Th interest GcCruing In annual in
stallmcnts on the amortization plan
such installmcnts being fixed at su"h
sums as will cover the interest ratf
to be agreed on between said hocrf
md the applicant. said period to h-
cot less than five nor more than thirty
tx years; but any debtor may licui-
n amounts of 5000 or multiples there
of upon any amortization payment
date
Sec. 8. The rate of interest on loans
>hall be five per cent per annu,1; pro
vided. that no Farm Credit Eonds shall
be sold for less than par: and pro-
vidcd further that the board shall re-
1uire each applicant to pay an initial
charge OF l per cent of the loan grant
ed. the minimum charge to be $1,000
to cover the cost of appraisal and ex-
animation of title.
Sec. Q. All surplus funds accruinc
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 admins ira
ton of said system of rural credits.
shall be placed in the State Treasury
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 ac-
cruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become part
or 1t. The said Arkansas Rural Credits
Reserve Fund shall be irreducible, OK
,ept that it may be drawn upon to re-
mburse 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 1t shall
ieem advisable for the carrying OUT
nd administering of tho provisions of
his amendment, and shall provide ad-
.quate safeguards against the use of
'uch loans as an aid to the purchas-
ing and holding of lands for the pur-
loses Of speculation. Such safeguards
hall include clear definitions Of the
erms Operate" and occupy" used
'erein. In the absence of such legis-
alton. and subject to the same after
its enactment, the State Land Board
hall proceed to administer said sys-
EN- Of rural credits under rules ant
equations provided by itself. but sub
Get to the provisions herein contained
Sec. IL. The provisions OF the Con-
titution Of Arkansas in conflict with
his amendment are hereby repealed. in
rhe provisions of this amendment
hall be self-executing. and shall take
nect and be in operation 60 days af-
"r their approval and adoption by the
"ople OF Arkansas.
Approved by the Governor. and filed
y the office OF the Secretary of State
arch II. 1917.
Each elector may vote for or against
e above Amendment
Witness my official SIGNATURE this.
20 2+th day of April. 1915.
tSeall TOW 7. TEERAL.
Secretary of State