Salt Lake Telegram | 1933-09-06 | Page 13 | Home Loan Bonds Appear This Week

HOME LOAN BONDS APPEAR THIS WEEK By HIRAM 1 ERTELL Associated Press Financial Writer NEW YORK Sept G A G-A A new type of security security created created d by a a recent act of congress and unique in many ways will will be launched officially this week under the watchful ey cyp of the federal go government The latest addition to the governmental governmental governmental govern govern- mental securities family is the HomeOwners HomeOwners' HomeOwners HomeOwners' Home HomeOwners HomeOwners' Owners' Owners Loan corporation and Wall Wallstreet Wallstreet Wallstreet street long accustomed to financial innovations is awaiting with keen interest in interest interest in- in terest active trading in the bonds of this concern With an authorized capital of 2 the the corporations corporation's subscribed subscribed subscribed sub sub- scribed capital by capital by the United States treasury will treasury will be As de described descrIbed de- de scribed by the home owners' owners loan lohn act the corporation is designed to save the homes of owners unable to secure funds to meet mort mortgages ages or orin in case of the Impending distress o of foreclosure proceedings The bonds will carry an interest rate of not more than 4 per cent and run not longer than 18 years Interest Interest Interest Inter Inter- est but not principal is guaranteed by the government The liens Hens will willbe be exempt from all taxes except surtaxes surtaxes sur sur- sur- sur taxes estate inheritance and gift taxes The securities are thus an Instrument Instrument Instrument ment of the government rather than L Lan an obligation and as such are ranked by Wall street sheet bond experts in the same class as the federal land bank bonds Interest on the latter loan however Is not guaranteed by th the government go Pending receipt of an an official prospectus prospectus prospectus pros pros- outlining the status of the new bonds which is expected within th the tho next day or two Wall street last week began limited trading on a when when- Issued basis baris These operations ceased however at the request of officials of the loan corporation and will not be resumed until the publication of the prospectus The bonds are therefore not currently quoted lii the New York market Specialists in the mortgage bond field estimate that there arc are approximately approximately approximately home mortgages mortgages mort mort- gages now in irs existence Homes not exceeding valuation are eligible eligi ble for aid under the home borne owners' owners loan act