Norwich bulletin., 1922-03-08


be dated October /. 1922; would mature
In 2 years, or at the death Of the vet
eran, and, in either case, would have q
face value equal to the sum of I'D the
adjusted service credit of the veteran in
creased by 25 per cent plus (2) interest
thereon for. 20 years at the rate Of 1-2
per cent compounded annually. The to-
tai amount would be approximately
equal to So15 times the adjusted service
credit of the veteran"
This credit would be figured on the
basis Of S1.25 for each day Of overseas
service and 81 for each day Of home ser
vice. but in no event could the credit ex-
coed $500 in the case of q veteran who
performed no overseas service, and 1925
in the case Of a veteran who served over
seas.
Banks Authorized to Loan.
Prior to September 80, 1925, any ma
| tionaI bank, or any bank or TRUST COM
| pany Incorporated under the laws of any
state territory, possession, or the Dis
| trict Of Columbia, would be authorized
to loan to a veteran on the certificate any
| amount not in excess OF SO per cent. Of
| the adjusted service credit plus interest
| at 4 10 per cent. from October 1. 1922.
| The loan would have to mature not Ia
! ter than September 80, 1925, and the rate
/ of interest charged BY the bank could not
| exceed by more than two per cent. year
| the rate charged at the date of the loan
| for the discount of n.nety-day CONNER
eia! paper by the federal reserve bank N
! the federal reserve district in which IS
= located the bank making the advance to
| the veteran.
If G. veteran detaulted IN the payment
| Of principal and interest to the bank Cor
six months after maturity of the io4n
the bank would be reqvired to present the
/ veterans note and certificate to the
| treasury not earlier than May SO, 1895.
| and not later than October Is, 1925 and
| tina government would cash the cert e.
/ cate 7'le bank would be paid the prr-
| c:pal and interest up to the date oil ray
ment by government, and the veteran,
! II living, or, il dead, his beneficiary or
/ his estate, would be paid the difference
| between the amount. paid the bank and
80 per cent. Of the loan value of the GER
tifeate at the time OF its receipt by the
treasury.
Government Loans in 1928.
/ After September 80 1925, the govern.
ment would make loans directly to vet
Grams on the certificates. From thai
date to October 1, 1928, the maximum
Of such loan would be s. per cent. Of
the sum OF the adjusted service credit
of the veteran plus interest from Octo
Der 1, 1922, at 4. IL per cent, com
pounded annually. If the loan wer,
! made after October 1, 1928. the LOAF
value would be 70 per cent. Of the ad
justed service credit increased by q
per cent. and interest thereon from DC
| toher l, 1922, to the date of the loan a
3 IL per cent. compounded annually
/ Advances by the government could b
repaid upon an amortization plan b
e means Of a fixed number of annual in
staIlments sufficient to cover "a inter
est on the unpaid principal at the rat
\ of IL per cent and I'D such amour
f of the principal as would extinguish tn
J, debt within an agreed period net ez
2 ceeding the life Of the certificate.
i Should veteran default in any pay
e ment for a period of one year, the ceI
tificate would be declared forfeited. Ha
e he borrowed an amount less than tn
}. maximum authorized by the bill h
# would be paid 80 per cent. of the differ
ence between that maximum and II
r amount actually borrowed. In the cas-
of the death Of the veteran before ii
loan was paid, his beneficiary or his ei
r tate would be paid the face value of Il
certificate less the amount due on tt
loan
Application for government loar