The Dawson news. (Dawson, Ga.) 1889-current, 1914-12-01
OFFICIAL TEXT OUTLINING THE
PLAN OF THE COTTON LOAN FUND

All loans made from the fund Gre
ated shall bear interest at the rate
of six per cent per annum and all APP
plications for loans must be made
through banks or bankers, who shall
in each instance accompany the ap-
plication for such loans with sub
scription to class "B" certificates in
an amount equal to 25 per cent OF the
amount of the loan applied for. The
subscriber to class "B" certificates
applying for a loan for a customer
will not be required to endorse the
note of such customer, and shall not
be entitled or permitted to receive
from such customer the payment of
any commission on account of OBJ
! tanning such loan.
All loans made shall be first ap-
proved by the proper local commit
| tee, by the appropriate state COM
mittee and by two members of the
cotton loan committee. When appli-
cations for such loans have been ap-
proved as above provided the notes
evidencing same, together with the
collateral required under the terms
/ of this plan, must be forwarded to
| LIE OllIC6 VI IuS COIlOn iOdn WIN
| tee with Instructions as to the dispo-
sition of the proceeds, and must, as
stated, be accompanied with the sub
scription of the bank or banker for
warding the application to an amount
of class "B" certificates equal to 20
per cent of the amount applied for.
In order to make the subscriptions
to class "B' certificates Immediately
available each subscription accompa-
MED by a New York draft of the
bank or bankers through which the
application is made, drawn to the or
der Of the cotton loan fund, or in
such manner as the cotton loan COM
mittee shall designate, said draft to
be for an amount equal to % per
cent of the loan applied for, and up
on the granting of such loan class
"B" certificate for this amount shall
be issued. In this manner Is per
cent of each loan will be provided by
the fund obtained from class "a"
subscribers and Is per cent from
class ''B" subscribers.
All loans shall be evidenced by
notes in form approved by the cotton
loan committee and shall be secured
by cotton on the basis of six cents per
pound for middling in addition to the
guarantee fund hereinafter described.
AS evidence of security offered
each note rendered with an applica-
ton for a loan must be accompanied
by receipts of approved warehouses
and by evidences of proper insurance.
All cotton accepted as security must
be located in warehouses or other
buildings under the ownership and
control of some person, firm or cor
poration other than the borrower,
and in approving such loans the local
and state committees shall respect
lively pass upon the suffciency Of such
warehouse receipts and insurance
and shall be satisfied that such cot
ton 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 committee APP
proving such loans shall likewise be
satisfied that the cotton offered as
security is of the grade or quality
specified in the application.
All expenses such as warehouse
charges and insurance premiums
shall be borne by the borrower.
In addition to the security herein
| before specified every applicant