Page:United States Statutes at Large Volume 43 Part 1.djvu/157

 126 SIXTY—EIGHTH CONGRESS. Sess. I. Ch. 157. 1924. the beneficiary in the first instance has not yet been named, the amount of the face value of the certificate shall be paid to the { ·'¤§°°¤*"fY}’,}g5*’°‘ estate of the veteran, If the veteran dies after making application m mum ` under section 302, but before J anuaxy 1, 1925,_then the amount of the face value of the certificate shal be paid in the same manner as if his death had occurred after January 1, 1925. Loanprivileges. A LOAN PRIVILEGES. u Ag¤;gdm;:w'°”m Sec. 502. (a) A loan may be made to a_ veteran upon his adjusted p° service certificate only in accordance with the provisions of this section. Bank uuthvrizedlfjg (bi) Any national bank, or any bank or trust company incorpoiZ°mQ§i-°§!§i.x:e§°:L¤ma rate imder the laws of any State, Territory, possession, or the by °°"“*°°‘°· District of Columbia (hereinafter in this section called " bank "), is authorized, after the expiration of two years after the date of the certificate, to loan to any veteran u on his promissory note secured by his adjusted service certificate {with or without the consent of Am<>¤¤¢r¤¤¢ri¤¢¤d· the beneficiary thereof) any amount not in excess of the loan basis Pau. n. 127- (as defined in subdivision (g) of this section) of the certificate. I¤=¤¤¤*¤“°"°°· The rate of interest charged upon the loan by the bank shall not exceed, by more than 2 per centum per annum, the rate charged at the date of the loan for the discount of 90-day commercial paper under section 13 of the Federal Reserve Act by the Federal reserve b b K bank for the Federal reserve district in which the bank is located. b,E,'i;1?'°°°" Y Mm Any bank holding a note for a loan under this section secured by a certificate (whether the bank originally making the loan or a bank to which the note and certificate have been transferred) may sell the note to, or discoimt or rediscount it with, any bank Dimmu mq by authorized to make a loan to a veteran under this section and Fedem1r¤¤&v¤b¤¤k· transfer the certificate to such bank. Upon the indorsement of any bank, which shall be deemed a waiver of demand, notice, and protest by such bank asto its own indorsement exclusively, and subject to regulations to be prescribed by the Federal Reserve Board, any such note secured by a certificate and held by a bank shall be eligible for discount or rediscount by the Federal reserve bank for the Federal reserve district in which the bank is located. Such note shall be. eligible for discount or rediscount whether or not the bank oiferin the note for discount or rediscount is a member of the Federal Reserve Siystem and whether or not it ac uired the note in = the first instance rom the veteran or acquired itiiuy transfer upon M°*“’“’ ’°°“*‘°"· the indorsement of any other bank. Such note shall not be eligible for discount or rediscount unless it has at the time of discount or t rediscount a maturity not in excess of nine months exclusive of ‘°°"‘°" days of grace. The rate of interest chargpd by the Federal reserve bank shall be the same as that charged y it for the discount or Redeemer by ree- rediscount of 90-day notes drawn for commercial purposes. The $$*§cs§§’§f§V§,, ‘,§§,§‘,§, ,2 Federal Reserve Board is authorized to ermit, or on the aiiirmative serve ¤¤¤¤$· vote of at least five members of the %`ederal Reserve Board to require, a Federal reserve bank to rediscount, for any other Federal reserve bank, notes secured by a certificate. The rate of Y _ t I interest for such rediscounts shall be fixed bg the Federal Reserve S,,;,,°§{‘§Y,§,'}§§,§'“” ° Board. In case the note is sold, discounte, or rediscounted the bank making the transfer shall promptly notify the veteran by Mum if mm mt mail at his last known post—ofl“ice address. paid amacumy. (c) If the veteran does not pay the principal and interest of the loan upon its maturity, the bank holding the note and certificate may, at any time after maturity of the loan but not before the expiration of six months after the loan was made, present them