Salt Lake Telegram | 1932-04-06 | Page 15 | Santa Claus? Sure! Realty Bonds Find

SANTA SA NT A GLAUS CLAUS SURE SUREl REALTY BONDS FIND D By FRA FRANK K II n. NELL Associated Press Pres Financial Writer NEW YORK April 6 Now 6 Now that it has helped the nations nation's banking system system tem tern to overcome Its most critical hurdie hur die dle In the road to eventual recovery the Reconstruction Finance corporation corporation corpora corpora- tion is converging a good part of ot its efforts on the real estate loan situa situa- tion In New York City where the Reconstruction Reconstruction Re Re- construction Finance corporation is directing Its first major efforts to relieve relieve relieve re re- re- re lieve the real estate loan situation there are said to be of real estate bonds In default As As' part of ot the work of thawing out this situation situa tion George E. E Roosevelt was made chairman of a committee of bankers which early this year set out to coordinate coordinate coor coor- the efforts of unorganized holders holders hold hold- ers of real estate bonds to salvage their investments in foreclosed enter enter- To date the committee has been asked to represent holders of of real estate bonds The Reconstruction Finance corporation corporation cor cor- enterprise however is not aimed to benefit directly the frozen rozen situation in which defaults have already already al al- al ready occurred Instead it Is setting up a plan designed to help owners of guaranteed mortgage bonds The guaranteed bond is generally reco recognized as the most conservative of ot all real estate bond Investments Under the stale state law bonds of this char character may be issued to an amount equal to only 66 p per r cent of the appraised appraised ap ap- ap praised valuation of ot the properties against which they are arc direct charges There are arc of such bonds issued against New York City real estate But the owners of or these bonds comprise banks Insurance insurance insure ance companies and individual investors tors tars representative of probably every state in the union Under the plan now contemplated the Reconstruction Finance corporation corpora tion will wm advance probably 00 to to a special bankIng bank bank- Ing tag pool to which the four largest guarantee houses will also contrib ute This pool pooi will be employed to furnish funds needed in special instances instances instances in in- stances to meet bond matur maturities ties There will be approximately 00 of such maturities this year it is estimated of or which it Is expected 70 per cent or will willbe be r re renewed 1 and 30 per cent or paid oft off