Show W World orld War Vets of Utah Can Borrow v More Than Million On Certificates Loan Value Today Is 8 z Sj Cents on Each Dollar of Face Value Banks Not Required Require to Lendon Lend on Policies and Are Subject to Penalty If They Seek to Gain Cain Greater Return Than Law Allows B HARDEN X By Br Special p lent of or tAJ Examiner Copyright 1927 by y Consolidated Press Association WASHINGTON Jan 1 l Some adjusted t d service cates S issued by tho the United States government to veterans of tile the World war became two years old today and anel hence henc available as cOl- cOl cOllateral col collateral lateral for tor bank loans loam Their ag- ag ae loan value Is I and before the present Infant year runs Its lis course moro I will have o been added I Calculations b by the th veterans bu bureau reau estimate the tho following loAn b n values available January 1 I by St States Alabama Alaska Arizona Arkansas 32 California Colorado Connecticut Delaware District of o Columbia Florida Florida 0 Georgia Idaho Illinois Indiana Iowa lo Kansas Kentucky Louisiana Maine Milne 14 Maryland 37 Iota 0 r lC I i I Michigan ic O 1 i i Minnesota ota S MiSSissippI Missouri 3 Montana Nebraska r Nevada New Hampshire New Jersey 27 New cw l Mexico New ew York North orth Carolina North Dakota Bakota Ohio Oklahoma Oregon 1 Penn Pennsylvania Rhodo Rhode Island 11 South Carolina South Dakota Tennessee Texas xu t Utah 1021 U Vermont Virginia Washington 2 Ye West e t Virginia Wisconsin t Wyoming Although the these thc c figures are imposing Inc In ing they arc aggregates and the loans loan must bo be divided among a t large number of persons As II a matter matte of ot fact the average face value of ot the adjusted service to Is 1029 and It It I is II ed el that the tha the av average age loan value ot of ofa ofa a 0 year two certificate Is only approximately 90 90 he loan value alue of the increases s as they grow older as do life lite Insurance policies written by commercial companies for tor these certificates In reality are year O year 20 I endowment policies D By fly 1930 the loan value of tile the th cent cent- certificate Issued thus far will have havo Increased to and oth- oth ers erT will 1 have been b en added tor for vet vet- lorans have hav until January 1 1923 to apply for certificates and ond the records show that applications have riot not yet et been received from veteran of the tho army oX or orthe the navy and of the tho marines RED HED It Is not likely that It will wilt be necessary to call police pollee reserves to 10 prent pr k-ent k a I riot among amonI the tho bank bank- bankers bankers banker ers er In their competition to make ke loans on adjusted d service certificates cates cate Such loans are by a m maze male ze of ot legal red rd tape The veteran must be known to the banker to be ba the one named In the certificate notice of the loan must be sent to the veterans bureau and various affidavits must be bl pro pre prepa pre prepared pa pared red In the event tile the note noto Is dis- dis discounted dis discounted counted with tho federal reserve bank or le 18 I taken over by the th vet vet- vet vet-eran crane bureau If It not riot paid at ma- ma ma maturity In the tho latter atter event the th ho- ho bureau horeau bu bureau reau will pay ray the th bank Its It duo dUG and hold tile the and noto willie while six per cent Interest compounds an- an annually an annually until the tho veteran redeems redeem them or dies when wilen the th balance will be paid the tho hene beneficiary In the second laco the law re- re reQuires re requires quires quiros that such boan loans be ba made at ata L 5 rate of Interest not exceeding 2 per cent above the discount rate rote or of the Iho federal resen resent e bank hank of or the dl district tor 90 SO day commer commercial lal pa- pa t pa-t cr er cr Tills This moans means at present an Interest rate of 6 per cent for tor loans on these thue certificates which Is not nn in n some sections for tor such nn n paper and III Is lower than the tho legal contract rate of Interest In all I ex- ex excepting ex excepting 11 states Loans LORns evident evidently ly Iy are to h bo be on commercial termS for notes cannot be b discounted with the federal reserve banks bank It they run longer loncer than nine nin months NO O COMPULSION There Is I no compulsion u upon on a bank to lend money on the adjust adjust- adjusted cd ed service certificates and the lh bank I bankI sUbject to penalty It Ir It attempt di- di directly directly di directly or Indirectly to get a II greater grenter return for Cor the loan than the terms named In the tho act Individuals have I Ino no legal les-al l c l standing to mako loans on onI I the certificates certificate I Veterans Veteran may negotiate loan loans without consulting the beneficiaries named in the certificates When the certificate Is two years year old the thc loan value Is approximately icon on each dollar ot of o face faco value to put It roughly The exact loan value may ho be b calculated by multiplying the loan baste basis stated In the tho certificate bythe by the the face tace value For or In- In Instance instance In Instance stance a certificate effective Jan Jan- January Jan January uary 1 1925 Issued l to a a v teran 30 years ears old with II a a race fate value ot of 1000 shows after aner two years a aloan aloan aloan loan value of ot which mul- mul multiplied mul multiplied by the face tace value of ot I gives a loan lonn value In 1927 1127 of Experience of o life Ilfe ili companies shows that the thc great mn- mn ma of made mada to policy hold bold holders ers are arc not repaid but are deduct deducted ell ed cd front from the tho amount ultimately beneficiaries It Is anticipated ed therefore that a large largo proportion proportion tion of the thc loans made mode to veterans I on their adjusted service certificates cates will not bo ho repaid but will find themselves eventually In let the slon of the tho 1 there to have interest eat Into the sum to bo be paid beneficiaries ul- ul ultimately ul ultimately |