A revolving loan fund of three hundred thousand dollars ($300,000) is provided for making loans to the students of the University of Arkansas in order to assist worthy young men and women who are residents of Arkansas to pursue their studies at the university.
Any person who is a student in the University of Arkansas and who is a bona fide resident of this state shall be eligible to participate under the provisions of this subchapter.
The Board of Trustees of the University of Arkansas shall annually review and approve a procedure to accept or reject applications for loans from the revolving loan fund.
The person securing a loan shall give his or her promissory note with interest to be established by the Board of Trustees of the University of Arkansas which shall be not less than four percent (4%) nor more than eight percent (8%) per annum.
Not more than the full cost of tuition shall be loaned to any one (1) person in any one (1) academic year under the provisions of this subchapter.
The Board of Trustees of the University of Arkansas shall establish rules regarding the manner and time of the repayment of the note.
The statute of limitations shall not run against notes made pursuant to this subchapter, nor shall the fact that the maker of the note may be a minor when the note is executed impair its validity.
The interest on the notes when paid in shall be added to the revolving loan fund and the whole sum shall be used as a revolving perpetual fund to carry out the purposes of this subchapter.
The disbursing agent of the University of Arkansas is authorized to draw the sums referred to in this subchapter in cash from the State Treasury as they may be needed, but not exceeding forty thousand dollars ($40,000) at any one (1) time.
