New Britain herald., 1922-03-07
COMPROMISE BILL FOR VETS' BONUS
 NOW MADE PUBLIC
(continued From First Page)

"(B)-Any national bank, or any bank or trust company incorporated under the laws of any state territory possession or District of Columbia thereinafter in this section called bankD, Is authorized to loan to any veteran upon his promissory note se- cured by his adjusted service certiti- cate (with or without the consent of of the beneficiary thercoD any amount not in excess of 50 per centum of its loan basis Gas defined in subdivision F of this section) such loan to mature on or before September 80 1925. The rate Of interest charge. upon the loan by the bank shall no, exceed by more than two per centun per annum the rate charged at ttt date Of the loan for the discount of commercial paper under section 13 oi the federal reserve act by the federal reserve bank for the federal reserve district in which the bank is located. IT Payment Is Not Made "(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 30, 1925 the bank shall present the certificate and the note to the secretary of the treasury not earlier than May 3o 1925 and not later than October 15 1925. The secretary shall thereupon cancel the note and the certificate and pay to the bank the amount of the unpaid principal due it. and the un- 1 paid interest accrued to the bank The difference between so per centum Of the loan basis Of the certificate al the time Of its receipt by the secre tary and the amount so paid to the bank shall be Immediately paid by the secretary 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 30
 1925 such difference shall be paid tc the beneficiary under the certificate except that if such beneficiary dies before the veteran and no new bene. ficiary is named, or if the benefciar, in the first instance has not yet beer named, then the payment shall be made to the estate of the veteran.
 In Event of Death.
 | "p)D If the veteran dies before l the principal is due, the amount of
 the unpaid principal and the unpaid
 interest accrued up to the date of his
 death shall be immediately due ana l n n y-o h T,,
 eran dies after the principal is due
 but before the expiration of the six
 months after the principal is due or
 before October 1, 1925, the bank shall upon notice of death present the cer-
 tificate and note to the secretary, who shall thereupon cancel the note and | pay to the bank in full satisfaction
 of its claim the amount of the un-
 paid principal and interest at the rate l fixed in the note, accrued up to the date of the check issued to the bank
 except that if prior to the payment l the bank is notified of the death by
 the secretary of the treasury and fails
 to present the certificate and note to 1 the secretary within l5 days after mo- | tice. such interest shall be only up | to the 1 5th day after such notice. The secretary shall deduct the amount 20 | paid from the face value Gas de- termined under section 50D of the certificate.
 "(E) When any loan is in default. the bank shall within 30 days there after notify the secretary of the | treasury of the facts relative to the note. the name of the veteran and the number of his certificate.
 The Loan Basis.
 "(F) The loan basis of any certiti- cate at any time, shall. for the pur- poses of this section, be the amount of the adjusted service credits, plus interest thereon from october 1. 1922, to such time, at the rate of AZ per centum per annum compound an- nually.
 "(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 present. ed to him, is accompanied by an af- fdavit made by an officer of the bank before a notary public or other officer designated for the purpose by regulation of the secretary, and stat ing that the bank has not charged or | collected or attempted to charge or l collect, directly or indirectly, any fee or other compensation except inter- est as authorized by this section in re- l spect to or because of any loan made under this section by the bank to a veteran. Any bank which, or dlrec- tor officer or employe thereof who does so charge, collect or attempt to charge or collect any such tee or compensation, shall be liable to the veteran for a penalty Of one hundred dollars to be recovered in a civil suit brought by the veteran.
 "(H) The secretary of the treasury shall make regulations for the en- forcement of the provisions ot thls section" -......
 This safeguarding provision as 10 loans and certificates is contained m the bill:
 Are Negotiable.
 "No certificate issued or right con ferred under the provisions Of thls title shall be negotiable or assignab'e or serve as security for a loan other than one made under the proVisions of 5Oo and 504 (the provisions an- nrn nrnnrD LEAF