The Barre daily times. (Barre, Vt.) 1897-1959, 1922-03-07
LOAN PROIISION
or THE BONUS BILL
Continued from FIRST page

secretary, who shall thereupon cancel
the note and pay to the bank in full
satisfaction Of its claim the amount of
unpaid principal and interest at the
rate fixed in the note, accrued up to
the date of the check issued to the
bank; except that if prior to the pay
ment the bank is notified of the death
by the secretary of the treasury and
fails to present the certificate and
note to the secretary within Is days
after notice, such interest shall be only
up to. the 18th day after such notice.
The secretary shall deduct the amount
so paid from the face value (as deter
mined under section SOIL of the GER
tificate.
"(E). 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 I
cate at any time, shall, for the pur-
pose Of this section, be the amount OF
the adjusted service credit, plus inter
est thereon from Oct. |, 1922, to such
time, at the rate Of Az per centum
per anniim compounded annually.
"(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 presented
to him, is accompanied by an affidavit
made by an officer of the bank before
a notary public or other officer desig-
mated for the purpose by regulation OF
the secretary, and stating that the
bank has not charged or collected or
attempted to charge or collect, direct
lv or indirectly, any fee or other COM
pensation Except interest as author
lied by this section) in respect to or
because OF any loan made under this
section by the bank to veteran. Any
bank, or director, officer or employee
thereof, which charge or collect or at
tempt to charge or collect any such fee
or compensation shall be liable to the
veteran for a penalty OF one hundred
dollars to be recovered in civil suit
brought by the veteran.
"tH). The secretary of the treasury
shall make regulations for the enforce
ment Of the provisions Of this sec
ton
This safeguarding provision as to
loans and certificates is contained in
the bill:
mo certificate issued or right con-
ferred under the provisions of this IL
tie shall be negotiable or assignable or
serve as security for loan other than
one made under the provisions of SOP
and 504 1.-THE provisions authorizing
loans by banks or the federal govern
ment) any loan made in violation of
any provision of this section shall be
held void. Wherever the secretary of
the treasury finds that any such certi-
ficate or right has been negotiated or
assigned or has served as security, in
violation of provision OF this section,
the rights of the veteran under this
title shall be forfeited"
After Sept. 80, 1925, the government
would loan TO veterans on certificates,
the amount advanced if the loan were
made before Oct. l, 1923, being IS per
cent of the sum of a. the adjusted
credit Of the veteran Figured on the
basis of 81 day for domestic sery-
ice and $l.25 for overseas service with
the maximum fixed at 1925 for those
who served overseas and $500 for those
who did not, plus t2) interest thereon
from Oct. /. 1922. TO the date Of the
making Of the loan, at the rate of Az
per cent annually, compounded an
nually.
If the loan were made after Oct. !
|, 1928. and before Oct /, 1912 1.-THE
date of the maturity of the certiiicatel
the amount advanced would be 20 per !
cent of the sum OF "a the service cred /
il increased by % per cent plus ~ in
terest at the rate of AZ per cent COM |
pounded semi annually.
If a veteran defaulted for one year I
in his payments to the government his .
certificate would be voided, but il he /
borrowed less than the maximum au- /
thorized by the law, he would be paid
10 per cent Of the difference between 7
what he borrowed and what he was
authorized by the law TO borrow. Ii a
veteran held his certificate for the full
twenty years he would be paid the
sum of his service credit increased by
Is per cent plus Az per cent interest
annually.