The New York herald., 1922-03-08
Loan Privileges Before October
l.. 1925,

i, 1870.
Section 502 (A). A loan may be made
to any veteran prior to September.
1925. upon such adjusted service GER
tificate only in accordance with the
provisions Of this section.
(B) Any national bank, or any bank
or trust company incorporated under
the laws of any State. territory. pos
session or the District of Columbia
hereinafter in this section called
.'bank'D, is authorized TO loan to any
veteran upon his prornissory note se-
cured by his adjusted service certi-
ficate with or without the consent OF
the beneficiary thereof any amount
not in excess of 20 per ccntun OF
the loan basis Gas defined in subdi-
vision (FD of this section) OF the
certificate, such loan to mature
on or before September 80. 1928.
The rate of interest charged upon
the loan by the bank shall not
exceed. by more than per centum
PER annum. the rate charged at the
date OF the loan for the discount of
commercial paper under Section ];
of the Federal Reserve act, by the
Federal Reserve Bank for the Fed
eral Reserve district in which the
bank is located.
(C) If the veteran does not pay the
principal and interest of the loan
within six months after It's maturity
Cor on or before September 60 fe25).
the bank shall present the certificate
and the note to the Secretary Of the
Treasury not earlier than May 90.
1895, 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 1t, and the
unpaid interest accrued. at the rate
fixed in the note, UP to the date OF
the check issued to the bank. The
difference between so per centum OF
the loan basis OF the certificate at
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, IL liv-
ing. II the veteran dies before such
difference can be paid to him. il shall
be paid to the beneficiary under the
certificate; except that IL such bene-
ficiary dies before the veteran and no
new beneficiary Is named, or IL tho
beneficiary i'm the first instance has
not yet been named. then the pay
ment shall be made TO the estate Of
the veteran.
(D) If the veteran dies before the
maturity OF the loan the amount OF
the unpaid principal and the un-
paid interest accrued up to the date
or his death shall be Immediately
due and payable. In such case, or if
the veteran dies. after the maturiey
of the loan (but either before the
expiration Of six months after the
maturity of the loan or before Oc-
tober /. 1920, the bank shall. upon
notice OF the death. present the GER
tihcate and note to the Secretary,
who shall thereupon cancel the note
(but not the certificate) and pay to
the bank, in full satisfaction OF It's
claim. the amount of the unpaid
principal and unpaid interest. at the
rate fxed in the note. accrued up TO
the date OF the check issued to the
bank; except that II, prior TO the
payment, the bank Is notified OF the
death by the Secretary OF the Treas
ury and fail to present tho ccrti-
ficate and note to the Secretary
within fifteen days after the no
tice. such interest shall be only
mp to the fifteenth day after such
notice. The Secretary shall deduc.
the amount so paid from the face
value Cas- determined under section
remainder in accordance with the
provisions OF section sol.
(E) When any loan becomes In
default the bank shall within 80 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 ccr-
tincate at any time shall. for the
purposes Of this section. be the
amount OF the adjusted service
credit. plus interest thereon from Oc-
tober I. 1922. to such time. at tho
rate OF ~ per centum per annum,
compounded annually.
CO. No payment upon any notes
shall be made under this section bv
the Secretary Of the Treasury TO
any bank, unless he note when pre-
sented to him. Is accompanied by an
affidavit male by an officer OF the
bank before n 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 collect, directly or Indirectly. any
fee on other comp, nsation teNccpt
interest ~ a".horizcl by this see