The New York herald., 1922-03-08
Loan Privileges After Septem-
Der 80, 1925.


eral is hereby authorized and d.
rected 10 instruct postmasters OF the
first. second and third classes 10 take
applications of veterans for Govern
ment loans and collect payments
thereon.
Section 504.-(A). Application for
Government loans may be made at
any post Office OF a first, second or
third class. such loaas, secured by
the adjusted service certificate, shall
be made by tho Secretary OF the
Treasury, with or without the con-
sent OF the beneficiary, and payments
thereon collected. In accordance with
the provisions OF this title. under
rules and regulations to be prescribed
by him. He shall supply postnas-
ters Of the first. second and third
classes with blanks upon which vet
Grams may make applications for
Government loans. Such applica-
tions shall be In tho form prescribed
by the Secretary OF the Treasury.
and have attached thereto a form
of pronssory note to be executed by
the veteran, and q receipt to be de-
livered TO the veteran, which snail
be signed by tho postmaster receiv-
ing the application, and which shah
acknowledge the receipt Of the note
and the certificate, and contain de-
script!on OF each. The postmaster
shall thereupon transmit to the Sec
retary Of the Treasury the applica-
tion, note and certificate. Upon the
approval OF the loan by the Secretary
OF the Treasury he shall transmit
to the veteran a check for the amount
OF the loan. He shall also issue in
triplicste statement showing the
cP ha the
number of his certificate. and
schedule of the amounts OF the sew
eral payments, and the dates when
due. The original of the statement
shall he retained with the application,
the duplicate shall be transmitted TO
the postmaster receiving the applica-
ton and the triplicate to the veteran.
The postmaster holding such state
ment shall receive and fndorse
thereon the payments made by the
veteran; shall give a receipt to the
veteran, and shall promptly transmit
payments to the Secretary of the
Treasury. Such payments shall be
covered into the Treasury as mlscel-
laneous receipts. The veteran shall
make repayment Of the loan upon an
amortization plan by means OF a fixed
number of annual installments suffi-
cient to cover (1) interest on the un-
paid principal at the rate Of AZ per
centum per annum, and CD such
amount of the principal as will ex-
tinguish the debt within an agreed
period not exceeding the life of the
certificate.
(B) IL the veteran fails to make
any payment when due, and such
default continues for the period of
nf
The Treasury shall declare the certi-
ficatc of the veteran to be forfeited
and cancel and surrender the note TO
the veteran; but if the Secretary OF
the Treasury subsequently, finds any
such certificate was forfeited by
mistake. or under any misapprehen-
sion of fact. he shall reinstate the
same upon payment of amount then
due the Government on the loan, and
upon the receipt OF new note from
the veteran on the same terms as the
original note for the remaining
amount due.
Paragraph C20.--The veteran Is in
default and his certificate IS ior-
feited when he has borrowed an
amount less than the maximum
authorized under either subdivision
(A) or (R) of section sos, the Sec
retary OF the Treasury shall pay to
him so per centum of the difference
between what he has borrowed and
the maximum which he was author
lied to borrow under either subdi-
vision (A) or (B) of section sos.
If tho veteran dies before such so
per centum can be paid to him, 1t
shall be paid TO the beneficiary under
the certificate, except that IL such
"a sne t.nfn
and no new beneficiary Is named. or
IL the beneficiary in the first instance
has not yet been named. then the
payment shall be made to the estate
OF tho veteran.
Section 505.-No Government loan
shall be made upon any certificate
prior TO October |. 1925. The amount
OF such loans to any one veteran
outstanding at any time shall no.
exceed:
CAS- If the loan Is made on or
after October 1. 1926, and before
October 4. 1928, S5 per centum OF
the sum OF Cd the adjusted service
credit OF the veteran plus ca inter-
est thereon. from October !, 1922,
TO the date of the making OF the
loan. at the rate OF - per centum
per annum, compounded annually, or
tR) II the loan is made on or
after October i. 1928. ana before
october /, 1912. 20 per centum OF
the sum of 1) tho adjusted service
credit OF the veteran increased by 20
per centum. plus CD interest thereon
from October l. 1922. TO the date OF
the making OF the loan, at the rate
of AZ per centum per ahhuii' coni-
bounded annually.
nartffirnta issued or
right conferred under the provisions
NJ This title shall. except for the pur-
nose of securing a loan made under
The provisions of section 502 or 50i.
he negotiable or assignable or serve
ne security for loan. Any negotia-
tion. assignment or loan made In
violation of any provision of this
section shall be held void
Section 507. In the case or the death
OF the veteran or the forfeiture OF
his certificate any Government loan
made upon the certificets, and the
note IN respect thereto. shall be cam
celed. and In case such loan has
been cancelled az result OF the dsath
Of the veteran the Secretary OF the
Treasury shall deduct the amount
of the unpaid principal and interest
Of the loan from the amount OF the
face value OF the certificate In re-
spect 10 which the loan Is made.
Section sos. Any certificate issued
under the provisions Of this title
shall have printed upon its face the
conditions and terms upon which II
is issued and TO which II is subject,
including loan values under sections
5o2 and sos.
Section 500. If the veteran dies
after making application In accord
ance with the provisions Of section
903 and before october I, 1922. the
amount OF the adjusted service credit
OF the veteran shall be paid by tho
Secretary of tho Treasury 10 his