The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-10-28
RESERVE BOARD MAKES PUBLIC FULL
DETAILS OF THE COTTON pL AN
CONTINUED from Page One.)

and by evidence Of proper insurance,
All cotton accepted as security must
be located in warehouses CT other
buildings under the ownership and
control of some person firm OF cor
poration other than the borrower,
and in approving such loans the To-
cal and State committees shall re-
spectivoly pass upon the sufficiency
of such warehouse receipts and insur-
ance and shall be satisfied that such
cotton Is free from all liens except
that created by. the loan or loans
from the fund to the borrower for
which such cotton Is pledged as part
security for such loans, and the COM
mittees approving such loans shall
likewise be satisfied that the cotton
offered as security is, of the grade or
quality specified in the application.
Cali expenses. such as warehouse
charges and insurance premiums,
shall be borne by the borrower.
"In addition to the security herein
before specified. every applicant
granted a loan from the fund shall
pay to the cotton loan committee a
sum equal to per cent. of the face
applicant shall authorize the cotton
loan committee to deduct or withhold
this amount from the proceeds OF
such loan. ALI sums SO paid together
with all interest earned from the in
vestment thereof shalfi' constitute a
mutual borrowers guarantee fund 20
be used. az for the payment of ex-
penses of administration, which 1t is
estimatea will in no event exceed is
Of Ger cent. of the loan fund Great
ed; (2) to make up any deficiency in
the amount available for payment OF
the class A and class B certificates
with interest resulting from losses
sustained by reason of any loans
made from the said loan fund or 9TH
e.wise; the balance, Including all In
terest earned thereon, shall be re-
turned pro rata to the borrowers.
'The cotton loan committee shall
control the guarantee fund so created
and may. in its discretion. invest ali
or any poriicn thereof in ciass "a
certificates herein provided for.
| "All applications for loans shall be
| made not later than February 1, 1915
and all loans made shall mature on
or before February 1, 1916; provided
| however, that the central committee
| In its discretion may authorize the
cotton loan committee to extend any
Cr all loans for a period not to ex-
ceed six months after February l.
1916, IL In the Judgment OF said CEN
trai committee conditions at that
time justify such extension
Calls for payment of subscriptions
TO class "a certificates shall be made
as nearly pro rata as possible. In
the event that on February l, 1915
applications for loans shall not have
been received to the extent OF the
full amount subscribed the fund shall
nevertheless be closed at the amount
then applied for and loaned, and class
"A subscribers shall thereupon be re.
leased. from the payment of the bal
anee Of their /. subscriptions which
| nave not mp to that time been called
Tor. Provided, always. that the fund
snail not be construed to have been
established for any purpose until
| class "a subscriptions shall have been
received to the extent OF 800. 0.000, 900
"As moneys become available fol
repayment to the subscriber, they
will be applied against both class "A
and class 'B certificates, but the per,
| centage OF reduction in the case o.
class 'B' cersS1 1cates shall be one
half of that ~ the case Of class "A
certificates until the amount OF the
latter outstanding shall be reduced to
the amount OF class 81 certificates
then outstanding, after which the per.
centage of reduction shall be the
same. For example, If payment IL
made on the class "A certificates to
the extent OF 10 per cent. OF the face
amount OF such certificates then out
standing, payment shall at the same
time be made npon the class tB' Ger.
tdhcates to the extent of per cent
OF the amount then outstanding
Again. IL q payment on the class "A
certificates fs made on an amount
leduivalent to s1-2 per cent. OF the
amount then outstanding, at the same
time q payment on account OF class
~ certificates will De made OF ar
amount representing 3-4 per cent
Sc the aggregate OF class n. ceftifi
Gates then outstanding. which method
OF payment shall be continued nnti
the amount Of the two classes OF Ger,
sficates outstanding shall be tho
same. after which al sums distribnt.
est shall be divided pro rata among al
Certificate hnidets. regardless OF tile
1.-TWO clnsses." .as8
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