The Little River news., 1918-10-23


 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 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 a loan when once made, nor shall any thing herein contained be deemed to prevent any. farm owner from seliins 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 applica ton 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 mo- contain clause providing therefor.
 Sec. z. Such loans shall be repaid rith interest accruing in annual i1- -tallments on the amortization plan. uch miscellaneous being fixed at sr"h sums will cover the interest rat. nd will liouidate the debt in a perinf be agreed on between said boa r' ad the applicant. said period to he 'ot less than five nor more than thirty K years: but any debtor may Iiaui- . amounts of $50.0o or multiples there f upon any amortization payment fate
 Sec. 8. The rate of interest on loans >hail be five per cent per annum; pro sided, that no Farm Credit Bonds shall 1e sold for less than par: and pro- tiGed further that the board shall re iuire each applicant to pay'an initfa' ,harge of 1 per cent of the loan grant. d. the minimum charge to be s1o.of 70 cover the cost of appraisal and ex. animation of title.
 Sec. g. 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 Axpenses arising from the administra- ton of said system of rural credits. hall be placed in the State Treasury nc become part of fund to he ;;nown as the "Arkansas Rural Credit Reserve Fund" Said Arkansas Rural "rcdits Reserve Fund shall be loaned on farm lands in the manner herein provided for the Arkansas Rural Credit Loan Fund. and the interest ar- kansas Rural Credits Reserve Fund shall be added to it and become a part af it. The said Arkansas. Rural Credits Reserve Fund shall be irreducible. eX- .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 hall provide in such detail as 1t shall eem advisable for the carrying out nd administering of the provisions Of his amendment, and shall provide ad. -quate safeguards against the use of uch loans as an aid to the purchas- 1g and holding of lands for the pur- oses of speculation. Such safeguards hall include clear definitions of tn" rms Operate" and "occupy" used erein In the absence of such legs ation. and subject to the same after IS enactment the State Land Board hall proceed to administer said sys- em of rural credits under rules and "e,ulations provided by itself. but sub -"t to the provisions herein contained.
 Sec. Il. The provisions of the Con- titution of Arkansas in conflict with his amendment are hereby repealed. in he provisions of this amendment "all be self-executing, and shall take Feet and be in operation GO days af TT their approval and adoption by the ,ople Of Arkansas.
 Approved by the Governor. and filed the office of the Secretary of State. arch 17. 1917.
 Each elector may vote for or against
 above amendment.
 Witness my official signature this, 70 2A'h day of April. 1918.
 .Seall TOM J. TERRAL.
 Secretary of State.