The Little River news. (Ashdown, Little River County, Ark.) 1897-current, 1918-05-08

the satisfa ction Of encumbrances upon
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-
llon 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 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 il 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
lZed and directed to require the repay
ment of said loGn upon six months no.
tlce, and said note or contract shall
contain clause providing therefor.
Sec. Z. Such loans shall be repaid
With interest accruing in annual in
stalimcntS on the amortization plan,
such installments being fixed at such
5unls IS will cover the interest rate
md Will iiGuiGate the debt in period
to be 2-feod on between said board
and the applicant. said period to be
#"t Les taan five nor more than thirty
TX %C&f@: but any debtor may liQui-
2ta ~ part on all of his indebtedness
u! amounts of $1,000 or multiples there
or upon any amortization payment
Sec. s. The rate OF interest on loans
hall be five per cent per annum: pro-
Hiied' that no Farm Credit Bonds shall
&c sold for less than par: ard pro-
Eided further that the board shall re
CURE each applicant to pay an initial
charge of pcr cent Of the loan grant
I'd, the minimum charge to be $1,000
20 cover the cost of appraisal and eX
animation of title.
Sec. 9. All surplus funds accruing
from the operation Of the system of
rural credits herein provided for. after
paving interest accrUing on the afore-
said bonds, and all operating and other
lion of said system OF rural credits
shall be placed in the State Treasury
and become part Of a fund to be
known as the Arkansas Rural Credit
Credits Reserve Fund shall be loaned
on farm lands in the manner herein
provided for the Arkansas Rural
Credit Loan Fund, and the interest &C
rruing from loans made from said Ar
kansas Rural Credits Reserve Fund
shall be added to it and become part
of it. The said Arkansas Rural Credits
Reserve Fund shall be irreducihle. OK
"c?t that it may be drawn upon to re-
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 as ii shall
deem advisable for the carrying out
lnd administering of the provisions of
his amendment and shall provide i'd
'luate safeguards against the use of
+uch loans as aid to the purchas-
ing and holding of lands for the pur-
'oses of speculation. Such safegua rds
shall include clear definitions of the
hcrein In the absence of such leeis-
'ation, and subject to the same after
its enactment. the State Land Board
shall proceed to administer said Syr-
tenn of rural credits under rules and
regulations provided by itself, but sub
i"ct to the provisions herein contained
Sec. II. The provisions of the Con-
'itution of Arkansas in conflict with
this amendment are hereby repealed in
so far only they conflict herewith.
The provisions of this amendment
shall be self-executing. and shall take
feet and be in operation GO DAYS af-
Ter their approval and adoption by the
'eople of Arkansas.
Approved by the Governor, and filed
II the office of the Secretary of State,
March II. 1917
Each elector may vote for or against
he above amendment.
Witness my official signature this
he cath day of April 1915.
(Seal] TOM J. TE.HRAL.
Secretary of "a to