Evening star., 1933-11-04
MORTGAGE ruling
IS WELL RECEIVED
Trade Commission Makes
Revisions in Exemption
Regulations.
(Continued From First Page)

value less than $500, but not less than
$50. But no person who sells any Sc
curity exempted by virtue Of this para
graph shall be immune from the liabili-
ties imposed upon such person If the
security were not SO exempted, unless
such person shall, prior to the time OF
such sale, give the purchaser (unless
such purchaser be a financial institu-
ton or insurance company and be
under State or Federal supervisory a
statement briefly setting forth:
"(a) The location of the real estate
or leasehold.
"(b1 The number and total amcs mt
OF securities issued under the mort
gage or deed of trust, and, II Securl-
ties in addition to those actually is
sued are authorized to be issued under
the mortgage or deed of trust, state
ment of the total amount so author
lied to be issued
"(c) The amount Of discounts, bro
kerage charges, fees (other than prop
erty insurance) and all other expenses
incurred by the borrower in connection
with the loan, or charged for servlclng
such loan, briefly itemized.
"(d) The assessed value of the un-
derlying property as of the time OF
. the issuance of the securities where
the same is available or, if not avail
able, then the assessed value nearest
to such date.
Taxes Assessed.
"(e) The aggregate taxes assessed
against the underlying property for
the latest year prior to the issuance
of such security for which such as
sessment has been made, together with
a statement of any special assessments
that may have been made against such
property but remain unpaid.
. "0) The amount for which the un-
derlying property was appraised IN
connection with the mortgage or deed
of trust. together with the name OF
the appraiser and statement of his
interest in or connection with the is
suer, or. if no appraisal was made In
such connection, the amount Of any
other appraisal known to the seller
and the date and circumstances under
which such appraisal was made.
"(g) The person or persons (not In
cluding agents of such persons) who
examined the title and/or guaranteed
such title
"(h) The names Of the trustees, If
any. under the mortgage or deed OF
terest In or connection with the issuer,
Il any.
"d) The rights OF the security hold
er, summarized, upon default In pay
ment of the interest or any other pay
ment required to be made under the
terms of such security or the mortgage
or deed Of trust.
"G) The nature OF any retirement,
sinking fund or amortization provision.
"(k) The amount of the insurance
outstanding upon the underlying prop.
erty its character, and the obligations
Of the mortgagor to maintain such in
surance.
"n) The purposes for which the un-
DERIVING property is used or is to be
used, with brief description Of the
nature of such property.
Construction Mortgage.
"(m) In the case of construction
mortgage, a statement to that effect
together with a statement regarding
the liability of the underlying security
for prior mechanics. material mems
and similar liens (the character and
scribed) II any such liability may ex-
ist, and a statement as to the availa-
bility Of funds to complete the struc-
ture
"(n) In the case of a security guaran-
teed by a corporation other than the
issuer, summarized balance sheet OF
such corporation of date not more
than 80 days prior to the issuance Of
such security, which shall clearly set
forth the contingent liabilities of such
corporation"
empts securities comprising an issue
which Is exchanged for other outstand-
ing securities, whether or not partial
I>a ole fal in
nection with such exchange, which
comply with the following conditions:
"D That the aggregate amount (be-
ing the capital amount or par value Of
the outstanding securities sought to be
exchanged. or. If there be no capital
amount or par value the stated value
of such securities) Of the outstanding
securities sought to be exchanged does
not exceed 100000.
"(2) That the isSuer shall not within
one year prior to the exchange herein
sought to be effected have offered to
exchange securities of an aggregate
amount. as defined in paragraph O
above, in excess of 100000. inclusive
Of the securities herein exempted.
"(3 That although the security be
accorded an exemption under this rule,
no person offering such security for
exchange shall be exempt from the
liabilities imposed upon such person If
the security were not so exempted, un-
less such person prior to the time OF
such offer Of exchange shall give the
holder of the security to be exchanged
Gunless such holder be a financial in
stitution or insurance company and be
under State or Federal supervisory
statement briefly setting forth:
nenoSit Agreement
"(a) In case the securities are called
for deposit, a summary of the deposit
agreement (Which shall expressly set
forth the provisions of the deposit
agreement with respect to the circum-
stances under which the depositors will
become bound by any plan of readjust-
ment or reorganization and with re-
spect to the rights Of holders of Ger
tifcates Of deposit to withdraw their
securities and with respect to the
terms and conditions upon which such
rights may be exercised, including all
charges therefor, and the general pur-
pose of such charges) accompanied or
followed by summary Of the plan for
reorganization, stating therein specifi-
cally In both instances, so far as appli-
cable in each instance, by whom the
fees Of the issuer and its members
(including within such term COM
mittee). its counsel, the reorganization
managers and their counsel, and the
depositary are to be determined and
r,,1t of what funds SIIcb cbarpeS are To