Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-03-23
BANKERS FULLY PROTECTED
UNDER COOPERATIVE PLAN

session Of any cotton produced
by any of it's grower-members,
indicated on said lists, or other
wise Except in the case Of such
groWer-member as may be eX-
pressly reserved by the bank
from the operation Of the agree
ment), and to sell the cotton in
accordance with the terms of
the contract between the asso-
citation and it's members, upon
these express conditions, to-wit:
Ia. That the association pay
over to the bank, for the &C
count of the grower-members
listed by it as debtors and to hte
extent of the debts indicated,
all net monies which would 9TH
erWise be payable to the said
grower-member out of the sale
Of the cotton delivered by them
to the association.
Bank Comes First
(b) That the association will
make no payment directly to any
such groWer-member until the
lien of the bank, as indicated,
with cost, charges and interest,
has been satisfied in full.
&c; That the association rec
ognizes the lien of the bank as
superior to any and all rights
of the association.
d. That any advanced pay
ment arranged through any
method by the association paya-
BILE to any grower-memher on
n he
debt there indicated, shall be
paid over to the bank, for and
on account Of such government
bers.
That if the lien is properly
covered and paid by such pay
ments made through the asso-
citation for and on account Of
such members, the bank def.
nitely obligates itself to pay over
any surplus out of such funds to
the said grower member or to
credit same to the accounts of
such groWer-members and to no.
tify members accordingly.
f. That the association will
handle through the bank all
banking transactions covering
the accounts Of such grower
members if they can be so han
died without inequity to other
cooperating banks or other
banks signing similar agreements
in the general district.
g. That the bank recognizes
that all acts Of possession, han
ding, pledging and selling cot.
ton covered by the liens held by
1t, shall be deemed done in it's
behalf, and on it's account, and'to
the full extent Of its lien rights
and no further: and that the
bank expressly permits the as
ISOLATION to take possession and
title for the purpose Of handling
all such cotton in accordance
with the agreement between the
grower and the association.
4. The association agrees to
notify the grower as to each pay
ment made on his behalf to the
bank. --
S. The bank agrees formally
to release crop liens when such
liens are satisfied, upon request
by the grower or the associa-
tion.' II 1900 .st... .r5a.,~
Several Agreements Signed
After the terms of the credit
agreement had been outlined
fully, Zach banker attending the
convention was furnished with a
printed copy of the agreement in
blank, and during the afternoon
I was informed that several
agreements had been formally
signed.
It is the belief Of the associa.
ton that practically every bank
in the state that handles any cot
ton accounts, or which does any
business with cotton growers
will sign the agreement, and
this of course will prove very
helpful to the organization in
handling the 1922 crop Of cotton
for it's members.
The agreement, I learned,
represented the joint labor of a
committee Of prominent Texas
bankers, and it is believed COW
ers every point at issue and
meets practically every objec.
ton that could be offered by a
banker. It's provisions absolutely
destroy the contention of some
skeptics that the cooperative
movement makes no provision
for protecting the interests Of
country bankers and merchants
who are called upon usually to
finance the cotton-grower
through the crop-making period.