Capital journal. (Salem, Or.) 1919-1980, 1922-03-07


,--v within fifteen days after no.
.%,, .'cs such interest shall be only up
~ w tbe fifteenth day after such no
nce, The secretary shall deduct
w. amount so paid from the face
"aIuo (as determined under sec
tion SOD of the certificate.
n(e) When any loan is in de-
,ou1t the bank shall within 80
Savc thereafter notify the secre-
torv of the treasury of the facts
solatiye to the note, the name of
me veteran and the number Of his
certificate
Loan Basis Fixed.
"(f) The loan basis Of any GER
,sicate at any time shall, for the
nurpose of this section, be the
AMOUNT of the adjusted service
credit, plus interest thereon from
october 1, 1922, to such time, at
the rate of A "a per centum per
aunum 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 designated for the
purpose by regulation Of the sec
retary, and stating that the bank
has not charged or collected or
attempted to charge or collect, di-
rectly or indirectly, any fee or
other compensation Except inter-
est as authorized by this section)
In respect to or because of any
loan made under this section by
the bank to a veteran. Any bank
which, or director, officer, or en-
ploye thereof, who does so charge,
collect or attempt to charge or COL
lect 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.
"(h) The secretary of the treas
ury shall make regulations for the
enforcement of the provisions of
this section"
This safeguarding provision as
to loans and certificates is con-
tanned in the bill:
Certificates Not Negotiable.
No certificate issued or right
conferred under the provisions of
this time shall be negotiable or
assignable or serve as security for
loan other than one made under
the provisions of 502 and 5O4 (the
provisions authorizing loans by
banks or the federal government
ANY loan made in violation OF any
provision of this section shall be
held void. Whenever the secre-
tary of the treasury finds that
any such certificate or right has
been negotiated or assigned or
mas served as security in violation
OF provision of this section, the
rights of the veteran under this
title shall be forfeited"
After September 80, 1925, the
government would loan to vet
erans on certificates the amount
advanced of the loan We're made
before October l, 1928, being S5
per cent of the sum of (1) the ad-
1usted service credit of the vet
eran, figured on the basis of 81 a
uay Tor domestic service and $1.25
!or overseas service with the max
mum fixed at 1925 for those who
served overseas and $500 for those
VINO did not, plus (2). interest
nereon from October l, 1922, to !
the date of the making of the
4oah Oh 4 12 per cent annually, |
compounded annually.
Default Voids Certificate.
II the loan were made after Oc-
tober 1, 1922, and before October
l., 1912, (the date of the maturity
OF the certifiCate) the amount ad-
Vanced would be 70 per cent of the
sum of (1) the service credit in
creased by 25 per cent, plus (2)
interest at the rate of A u per cent
compounded semi-annually.
II veteran defaulted for one
year IN his payments to the gov
ernment his certificate would be
Hoided, but if he borrowed less
than the maximum authorized by
Tue law he would be paid 80 per
'ent OF the difference between
wnat he borrowed and what he
was authorized by the law to bor-
row. II veteran held his certifi-
'aIe Ior the full twenty years he
would be paid the sum of his serv-
lce credit increased by per cent,
plus 1a per cent interest, com