Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1934-09-15

tlrSt mortgage on the properly ana an
rights may also be required. Ordinarily.
also. the applicant Will be required 70
make an Arrangement satisfactory 10 the
Corporation ~ which the Corporation
viii receive a reasonable percentage Of all
receipts received by or due 70 the appn-
cant on account Of the sale OF ore taken
from the property on which the loan Is
based; and an assignment Of favorable
milling, smelling, sales or transportation
contract may also be required The fol-
lowing may also be acceptable 70 the
Corporation as additional security a
first mortgage on ehatties, Al assign-
ment Of current accounts rnOtes re-
ceivable. trade acceptances. warehouse
receipts on ore or metals stored In
bonded warehouses, or q first lien on
other assets Of sound marketable value.
s. COMPLIANCE WITH MIRA. CODE
Each applicant must execute a certificate
that It Is complying with and win
continue to comply with the approved
code OF fair competition for the type
OF operation being conducted By the
applicants, or, II there is no approved
code OF fair competition for the busi-
ness In which the applicant Is engaged,
that Il has signed and Is complying with
or VIII continue TO comply with the
Presidents Unemployment Agreement pro-
mulgated under authority OF section 4
TAI of the National Industrial Recovery
Act and/Or any other agreement pro-
mulgated by the President under the
National Industrial Recovery Act
tAnother paragraph provides that all
purchases must be made from Blue Eagle
0rms.)
Q CHARGES, COMMISSIONS, BONUSES,
FEES. ETC.
Payment OF bonuses, fees or commissions |
Tor the purpose Of, or In connection with, |
loans is prohibited. The Dor
rover, however, subject TO the prior |
q aff he no
ed 70 pay the actual reasonable costs /
Incurred In Connection with the loan. /
such charges may include reasonable COM
pensatiOn OF services rendered by attor-
uey, appraisers, accountants, etc, but not |
in any event for alleged services in con-
neetiOn with the presentation OF the APP
plicati0n to the Corporation. Such charges /
must be fully disclosed. A fee based
upon a percentage Of the loans win be
objected to, as also will fees or charges
made contingent upon the obtaining Of
he loan. Applicants Will be required to
furnish satisfactory proof in the appn- /
alton that no bonus, fee, or commission
las been or Will be paid, and that no
other than reasonable COM
lensatiOn for services required in making
he loan, fully disclosed and itemized
las been or win be paid.
:. SALARIES AND DIVIDENDS
The applicant must agree that so long
IS any portion Of the loan remains
ire not deemed by the Corporation to be
80 long a. any portion Of the loan
emains outstanding, no dividends may
ny distribution (except compensation :
or service regarded by the Corporation
3 reasonably made by partnership or
Individual applicants. without the consent [
the Corporation
8. AUDITs AND APPRAISALs
An In Of khn ay.kl .
nd an appraisal Of the properties in
Olyed by a reputable mining engineer,
9th satisfactory to this Corporation, and
lade as OF a date not more than
the application. win be required in
with each application.
0. DEPOSIT go yOVER COST OF
EXAMINATION
The APPLICANT will be required, upon re-
uest by the Corporation TO make a de-
osit, In an amount TO be determined in
lch case by the Corporation, to cover the
,st OF any field work which may be
ecessary IN connection with the examin- r
ton Of the property of the applicant. !.
uch examination Will not be undertaken l
ntil the required deposit is made. j
}. METHOD OF FILING APPLICATION
Applications should be filed direct o
on at its office at 1875 II Street NV,
Tashington. ID. c. No applications Will
2 considered unless submitted on the y
roper forms. which may be obtained by d
riting to the Washington office OF the z
OrporatiOn >
. ACTS OF CONGRESS APPLICABLE
TO LOANS OF THE CHARACTER :
HEREIN DESCRIBED
The following section Of Public Act
o. All. Seyenty-third Congress. apple
de to loans OF the character referred to
this Circular, Is quoted for the infor-
alton OF applicants:
SEC. IA. The Reconstruction Finance
Corporation Is authorized and en-
powered TO make loans upon adequate
security. based on mineral acreage to
recongnized and established Incorporated
agencies, individuals. and partnerships
ENGAGED In the business of mining,
milling, or smelling Of ores.