The Dawson news. (Dawson, Ga.) 1889-current, 1914-12-01

granted a loan from the fund shall
pay to the cotton loan committee a
sum equal to three per cent of the
face amount of the loan granted, and
the applicant shall authorize the cot
ton loan committee to deduct or
Withhold this amount from the pro-
! together with all interest earned
| from the investment thereof shall
constitute mutual borrowers guar
antee fund to be used % for the
payment of expenses of administra-
ton, which, it is estimated, will in no
event exceed Is of one per cent OF
the loan fund created; CD to make
up any deficiency in the amount
available for payment of the class
"A" and class "B" certificates with
interest resulting from losses sustain
ed by reason of any loans made from
the said loan fund or otherwise; the
balance, including all interest earned
thereon, shall be returned pro rata
to the borrowers.
The cotton loan committees shall
control the guarantee fund so Great
ed, and may, in its discretion, invest
all or any portion thereof in class
a. certificates herein provided for.
All applications for loans shall be
made not later than February LIST,
1915, and all loans made shall ma
ture on or before February LIST,
1915; provided, however, that the
central committee in its discretion
may authorize the cotton loan COM
mittee to extend any or all loans for
a period not to exceed six months af-
ter February LIST, 1915, if in the
Judgment of said central committee
conditions at that time justify such
extension.
Calls for payment of subscription
to class "A" certificates shall be
made as nearly pro rata as possible.
In the event that on February 1st,
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 released from the pay
ment of the balance of their sub
scriptions which have not up to that
time been called for Provided, al
ways, that the fund shall not be con-
strued to have been established for
any purpose until class "a" subscrip-
lions shall have been received to the
extent of $100,000,0OO.
AS monies become available for re-
payment to the subscriber they VIII
be applied against both class AZ and
class "B" certificates, but the per-
centage of reduction in the case of
class "B" certificates shall be one
half of that in the case Of class "A
certificates until the amount OF the
latter outstanding shall be reduced
to the amount of class "B' certifi-
Gates then outstanding, after which
the percentage of reduction shall be
the same. For example, If a pay
ment is made on the class A GER
tifcates to the amount of ten per
cent of the face amount Of such GER
tificates then outstanding a payment
shall at the same time be made upon
the class "B' certificates to the eX-
tent of five per cent of the amount
then outstanding. Again, if pay
ment on the class CA certificates is
made of an amount equivalent to 12
per cent of the amount then out
standing at the same time payment
on account of class 'B" certificates
will be made of an amount repre-
senting 1 q per cent of the aggregate
of calss "B' certificates then out
standing, which method of payment
shall be continued until the amount
of the two classes of certificates out
standing shall be the same, after
which all sums distributed shall be
divided pro rata among all certificate
holders, regardless of the two classes.