, 1922-03-07


paid principal and the unpaid interest
accrued up to the late Of his death.
shall be Immediately due and payable.
In such case. or n the veteran dies aft
er the principal Is due but before the
expiration OF tho six months after the
principal is due pr before October i.
1925. h bank shall upon notice Of
death present the certificate and note
to the secretary. who shall .asreupon
cancel the note and pay 10 h bank
In full satisfaction OF its claim the
amour. OF tho unpaid principal and
inter.st at the rate fixed in the note.
zccrued up TO tho date Of tho check
issued to the bank: except that 80 prior
to h payment the bank is notified
OF h death by the secretary Of the
treasury and fails to present tho Ger
uncate and note TO the secretary with
in is days after notice. such interest
shall be only up TO the fifteenth day
and after such notice Tho secretary
shall deduct the amount 50 paid from
the face value las determined under
section SOD Of the certificate
te) When any loan Is in default.
The bank hail within so days thcreaf-
ter notify the secretary Of the treasury
of tho facts relative to the note, the
name OF the veteran and the number
OF his certificate
10 The loan basis u any eerdn-
a 1 at any time. shall, for the pur-
pose Of this section. be the nou Of
tho adjusted service credit, plus inter
est thereon from October ]. 1872, TO
such time. at tho rate Of AZ per cent
um per annum, compounded annually.
'tg1 No payment on n noto shall
be r1rde under this section by the rec
rotary OF the treasury TO any bank, UNI
less the note. when presented TO him
Is accompanied by affidavit made by
an officer OF the bank before a notary
public or other officer designated for
the purpose by regulation OF the score.
tary. and stating that tha bank has not
charged or collected or attempted 10
collect. directly or indirectly, n fee
or other compensation Except inter
est as provided in this section) with
respect or becauss OF any oar made
under this section by the bank TO a
veteran. Any bank whose director,
officer or employe thereof. III does
so charge. collect or attempt to charge
or collect any such fec or ompensa-
toAf tat OE tA%otG W lh0 NCltTun IOT
a penalty OF one hundred dollars to be
recovered in a civil suit brought by
the veteran.
"UD-Tho secretary OF the treas.
ury shall make regulations for the
enforcement of the provisions of this
section,
This Safeguarding provision as to
oans and certificates as is contained
in the bill:
mo certificate issued or right con
ferred under the provisions OF this
title shall be negotiable or nssignabie
OF serve as security for a loan other
than one made under the provisions
OF $50 and 5O4 Uhe provisions auth
orlzing loans by banks or the federal
government). Any loan made in VIC
lation or any provision OF this sec
tion shall be held void. Wheaever che
SECRETARY OF the treasury finds that
any such certificate or right has been
negotiated or assigned or has SERVED
as security in violation Of a pro
vision of this section. the rights OF
the veteran under this title shall be
forfeited"
After September 80, 1895. the gov.
eminent would loan to veterans on
certificates. the noun advanced Il
the loan we're made before October i,
1928. being SIS per cent OF the sum OF
% the adjusted service credit of the
veteran figures on the basis OF 81 a
day for domestic service Inc Size
for overseas service with the max
imum fixed at se25 for those who
served overseas and $500 for those
who did not. plus C2) interest there
on from October /, 1929. to the date
of the making of the loan, at the rate
OF Az per cent annually compound
ed annually
II the loan were made AFTER Octo
Der l. 1928. and before October 1
1912. the date of the maturity of tn,
certihcate) the mount advanced
would be 20 per cent of the sum Of
a. tho service credit increased by 2;
OF Az per cent, compounded semi
annually.
! II a veteran defaulted for one yeal
in his payments to the government his
certincate would be voided. but IL he
borrowed less than tho maximum au.
thorized by the law he would be paid
80 per cent of the difference between