Evening star., 1922-03-07
FINAL AGREEMENT
ON SOLDIER BONUS
REACHED IN HOUSE

REACHED IN HOUSE
CONTINUED from First Psge.)
loan basis (as defined in subdivision
F Of this section), such loan to mature
on or before September 80, 1926. The
rate of interest charged upon the loan
by the bank shall not exceed by more
than per cent per annum the rate
charged at the date of the loan for
the discount Of Commercial paper un-
der section IS of the federal reserve
act by the federal reserve bank for
the federal reserve district in which
the bank is located.
Note to BE Cancelled.
'c) If the veteran does not pay
the principal and interest of the loan
within six months after its maturity,
or in any event by September 80,
1925, the bank shall present the GER
tificate and the note to the Secretary
of the Treasury not earlier than May
80, 1925, and not later than October
Is, 1925. The Secretary shall there
upon cancel the note and the certifi-
cate and pay to the bank the amount
Of the unpaid principal due 1t. and
the unpaid interest accrued, at the
rate fixed by the note. up to the date
of the check issued to the bank. The
the loan basis of the certificate at the
time of its receipt by tho Secretary
and the amount 50 paid to the bank
shall be Immediately paid by the Sec
retary to the veteran If living. In
case of the veterans death after the
expiration of the six months after
the maturity of the loan or in the
case of his death after September 80,
1925, such difference shall be paid to
the beneficiary under the certificate,
except that if such beneficiary dies
before the veteran and no new bene-
In the first instance has not yet been
then the payment shall be
made to the estate of the veteran.
In Case of Death.
"(d) II the veteran dies before
the principal Is due, the amount or
tho unpaid principal and the unpaid
interest accrued up to the date Of his
death, shall be Immediately due and
payable. In such case or if the
due, but before the expiration of the
six months after the principal is due,
or before October l, 1925. the bank
shall upon notice Of death present
the certificate and note to the Secre-
tary, who shall thereupon cancel the
note and pay to the bank in full sat
isfaction of its claim the amount of
the rate fixed in the note. accrued up
to the date of the check issued to
the bank; except that IL prior to the
payment the bank is notified Of the
death by the Secretary of the Treas
ury and fails to present the certifl-
fifteen days after notice, such inter-
est shall be only up to the fifteenth
lay after such notice. The Secretary
shall deduct the amount SO paid
from the face value (As determined
under section SOD of the certificate.
"(el. When any loan is in default
the bank shall, within thirty days
thereafter. notify the Secretary of
the Treasury of the facts relative to
the note. the name of the veteran and
the number OF his certificate.
"(f). The loan basis Of any certifi-
cate At any time shall, for the pur-
poses Of this section. be the amount
interest thereon from October l, 1922,
to such time. at the rate of Az per
centum per annum compounded an
nually.
No Extra Fees.
"(g). No payment upon any note
shall be made under this section by
the Secretary of the Treasury to any
bank. unless the note when pre-
sented to him, is accompanied by an
affidavit made by an officer of the
bank before a notary public or other
Of the Secretary, and stat
ing that the bank has not charged or
collected or attempted to charge or
collect, directly or indirectly. any fee
or other compensation Except inter-
est as authorized by this section), in
"a
made under this section by the bank
to a veteran. Amy bank. which. or
director. officer or employe thereof,
who does SO charge, collect or at
tempt to charge or collect any such
fee or compensation shall be liable
hundred dollars to be recovered in q
civil suit brought by the veteran.
"(h). The Secretary of the Treasury
shall make regulations for the en-
forcement of the provisions of this
section"
This safeguarding provision as to
the bill:
mo certificate issued or right con-
ferred under the provisions of this
title shall be negotiable or assignable
or serve as security for loan other
than one made under the provisions
of 5o2 and 5o4 tthe provisions author:
Any loan made in vio-
lation Of any provision Of this section
shall be held void. Whenever the
Secretary Of the Treasury finds that
any such certificate or right has been
negotiated or assigned or has served
Of this section, the rights of the vet
eran, under this title shall be for
feited.'
N~<rrr>
After September 30. 1925. the gov
ernment would loan to veterans on
certificates the amount advanced II
the loan was made before October
1, 1928. being IS per cent of the sum
Of (1) the adjusted service credit of
the veteran Figured on the basis of
81 q day for domestic service and
maximum fixed at s625 for those who
served overseas and $500 for those
who did not) plus (2) interest thereon
from October l. 1922. to the date of
the making of the loan, at the rate
of ~ per cent annually, compounded
If the loan were made after
October 1. 1928. anu before October
/, 1912 (the date of the maturity Of
the certificate), the amount ad-
vanced would be 20 per cent of the
sum Of % the service credit in
creased Dy 20 per cent, Plus (Z)
interest at the rate of ~ per cent,
compounded semi-annually.
If a veteran defaulted for one wear
in his payments to the government
his certificate would be voided. but
IL he borrowed less than the maxi
mum authorized by the law he would
be paid 80 per cent of the difference
between what he borrowed and
what he was authorized by the law
to borrow.