Full text of District Notices (Federal Reserve Bank of Dallas) : [Servicemen's Readjustment Act of 1944]

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Federal Reserve Bank
OF D ALLAS

Dallas, Texas, February 23,1945

To All Banking Institutions
in the Eleventh Federal Reserve District:

There are enclosed specimen copies o f the following forms to be used in connection
with the guaranty o f business and farm loans under the provisions o f the Servicemen’s
Readjustment A ct o f 1944:
Finance Form 1821 — Loan Guaranty
Finance Form 1822 — Application for
Finance Form 1822a— Application for
cate)
Finance Form 1824 — Explanation of

Certificate
Farm Loan Guaranty
Farm Loan Guaranty (Dupli­
Farm Loan Guaranty

Finance Form 1841 — Loan Guaranty Certificate
Finance Form 1842 — Application for Business or Business Realty
Loan Guaranty
Finance Form 1842a— Application for Business or Business Realty
Loan Guaranty (Duplicate)
Finance Form 1842b— Supplement to Application for Business or
Business Realty Loan Guaranty (Exhibit A )
Finance Form 1842c— Supplement to Application for Business or
Business Realty Loan Guaranty (Exhibit B)
Finance Form 1844 — Explanation o f Business Loan or Business
Realty Loan Guaranty
Finance Form 1845 — Appraiser’s Check Sheet— Business Loans
Also, there are enclosed a Handbook fo r Lenders, dealing with matters o f policy
and procedure to be followed in connection with home loans, and a leaflet issued by the
Veterans’ Administration, setting forth the changes in and additions to the regulations
governing the guaranty o f home loans and the guaranty o f loans on farms and farm
equipment.
Requests for additional supplies o f forms and additional information regarding the
Servicemen’s Readjustment A ct o f 1944 should be addressed to a Regional Office o f the
United States Veterans’ Administration. Regional Offices serving this district are
located at Waco, T exas; Muskogee, Oklahoma; New Orleans, Louisiana (333 St. Charles
S tre e t); Albuquerque, New M exico; and Tucson, Arizona.

Yours very truly,
R. R. GILBERT
President

CTORY
BUY
U N IT E D
• T A T tl

WAR
ONDS
AMO

STAMPS

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

UNITED STATES OF AMERICA
VETERANS ADMINISTRATION
GUARANTY OF LOANS
REGULATIONS UNDER TITLE III
(Homes and Farms and Farm Equipment)
SERVICEMEN’S READJUSTMENT ACT OF 1944
(Public Law 346— 78th Cong., Ch. 268, 2d Sess.; 58 Statutes at Large 284; 38 U. S. Code 693 et seq.)
N ote : Changes in and additions to the regulations under Title III governing the Guaranty of Home Loans (§§36.4000 to 36.4049), and

Guaranty of Loans on Farms and Farm Equipment (§§36.4100 to 36.4151).)
(c) If the transaction to be closed is
same lender, or a new application if a
essentially the same as indicated in the
different lender, may be submitted. If
original application except that:
accompanying it is a statement by the
GUARANTY OF LOANS (HOME)
borrower and lender that the condition
(1) The amount of the loan actually
The following changes are made to the
of the security is substantially the same
to be made is more than 103% o f the
regulations governing the guaranty of
as when the appraisal report was made,
amount stated in the application, or
loans under Title III of the Servicemen’s
the supplemental or new application may
(2) Personal property to be acquired
Readjustment Act of 1944:
be approved without a new appraisal, if
differs from that described but is for
the supplemental or new application
1. Paragraph fv) is added to § 36.4000,
the same use or purpose and substantially
shall have been received by the Admin­
as follows:
similar in kind, quality and value. Form
istrator within three months from the
1862, Application to Amend Loan Guar­
§ 36.4000. Definitions. * * *
date of the appraisal report.
anty Certificate, will be completed and
(v) “Interest” means the compensa­
(2)
Without reference to the time limit signed in duplicate.
tion fixed by law. or by the parties to a
stated in subparagraph (1) of this sec­
contract, for the use or detention of, or
(d) The lender will forward the orig­
tion, a copy of the appraisal report will
forbearance with respect to money, ir­
inal and copy of Form 1862, Application
be supplied without cost to a prospective
respective of the name applied to such
to Amend Loan Guaranty Certificate, to
new lender or to the original proposed
compensation.
the “Agency”, which will recommend ap­
lender at the currently prescribed price
proval or disapproval and forward both
2. In § 36.4012, paragraph <b) is
for a copy.
to the Veterans Administration office
amended to read as follows:
5. In § 36.4028 the existing text is
which issued the Loan Guaranty Cer­
§ 36.4012 Repayment provisions. * * *
designated (a) and paragraphs (b) and
tificate.
Such office will determine
(b) If the mortgagor consents the
(c) are added as follows:
whether to approve the Application to
mortgage may provide that each monthly
Amend Loan Guaranty Certificate. Such
§ 36.4028 Execution and form of guar­
or other periodical payment shall include
determination will be based on the orig­
anty. (a) * * *
in addition to the proper amount to be
inal application, the evidence submitted
(b) The word principal as used in the
credited to principal and interest a pro­
in or with the original application, the
Loan Guaranty Certificate and the cer­
portionate part of the estimated amounts
application to amend, the recommenda­
tification on the reverse thereof means
required annually for all taxes, ground
tion of the Agency, and such other evi­
the amount of money actually disbursed
rents if any, special assessments if any,
dence, if any, as it considers necessary.
to
or
for
the
account
of
the
borrower.
and fire and other hazard insurance pre­
Notice of action will be given as in the
miums. Such provisions may direct the
(c) The certification by borrower and
case of original applications. If ap­
method of crediting the additional
lender in paragraph III B (3) of the Loan
proved such approval will be appropri­
amounts included in the periodical pay­
Guaranty Certificate as printed in
ately indicated on the original, and such
ments for the purposes stated in this
§ 36.4028 shall be deemed to be correct,
original, duly executed by the Veterans
paragraph.
notwithstanding that the guaranteed
Administration will be forwarded to the
lender. It may be attached to the orig­
loan is secured by a second lien, if, but
3. Paragraph U) is added to § 36.4025,
inal Loan Guaranty Certificate to evi­
only if, such is permissible under the
as follows:
dence amendment thereof as reflected by
regulations and the facts of the case, and
§ 36.4025 Papers required. * * *
such “rider” .
if the application for guaranty indicates
(i)
When applicable, the original and
that the loan is to be secured by a second
7. In § 36.4032, paragraphs (a ), (b)
copy (both signed) of Form No. 1862.
lien.
(3), (e ), and (g) are amended, and para­
Application to Amend Loan Guaranty
6. In § 36.4031, paragraph (a) (1) is
graph (i) is added, as follows:
Certificate, (see § 36.4031 (c> and (d )).
amended and paragraphs (c) and (d)
4. Paragraph (c) is added to § 36.4027,
§ 364032 Construction l o a n s ,
(a)
are added, as follows:
as follows:
Upon the submission to an agency of an
§ 36.4031
Guaranty when effective.
application made pursuant to section
§ 36.4027 Administrator’s action on
(a) * * *
501 (a) or 505 (a) of the act for the
application. * * *
(1)
The disbursement of the amount guaranty of a loan for the construction
(c) (1) If for any reason the loan
named in such report as the principal of
of a dwelling on unimproved property
transaction is not cortcluded and the
owned by the veteran, or under section
the loan has been completed by the
same or another lender thereafter wishes
501 (b) for construction involving alter­
lender, which amount may be not more
to consider making a loan on the same
ations or improvements, the guaranty
than 3% in excess of the amount of the
security described in the original applica­
will be issued to become effective only
tion, a supplemental application, if the1 proposed loan as stated in the original
upon completion of the construction
application for guaranty, without com­
project, and upon fulfillment of the same
plying with the procedure stated in para­
1As printed in the F ederal R egister, Vol­
requirements of this part as are appli­
ume 9, Number 256, Washington, Saturday,
graphs (c) and (d) of this section.
December 23, 1944.
•
•
*
•
•
cable to the guaranty of loans for the
P art 36— R egulations U nder S ervice­
men ’s R eadjustment A ct of 19441

6250110—45

2
acquisition of homes other than by con­
struction.

§ 36.4023
anteed. *

indebtedness originally guaranteed ap­
plied to the indebtedness (as defined in
§ 364000 ( m ) ), computed as of the date
<b) * * •
(a)
The acceptance by the mortgagee
of the claim, and reduced by any pay­
(3)
There is issued by the Adminis­ of a mortgage on any property, title to
ments theretofore made by the United
which is not merchantable;
trator Form 1863, Approval of Escrow
States pursuant to the guaranty.
*
*
*
*
*
Certificate, which may be attached to
10. In § 36.4041, the text immediately
the loan guaranty certificate.
(e) A release by the creditor of the lien
preceding paragraph (a) is amended to
on any of the real or personal property
*
*
*
•
*
read as follows:
securing the guaranteed loan, or any
(e)
Except where the construction
part thereof, unless the Administrator
§ 36.4041 Options available to Admin­
shall have been inspected and approved
consents in writing. Such consent may
istrator. Upon receipt of claim under the
and completion certified by a Federal
be granted if the debt is appropriately
guaranty, or notice of intention to fore­
Agency making or guaranteeing or in­
reduced or on such other terms as the
close, the Administrator shall have the
suring the principal loan on such prop­
Administrator may determine: Provided,
following options:
erty, as contemplated by section 505 (a)
however. That if the land is sought by a
of the act, the Loan Guaranty Certifi­
11. Sections 36.4050 and 36.4051 are
public authority for highway or other
cate shall become effective upon the con­
amended to read as follows:
purposes, consent is hereby given for the
dition, in addition to those set forth in
creditor to release without considera­
§ 36.4050 Forms, construction to be
§ 36.4030, that there be supplied to the
tion or for such consideration as he
placed on reference to. All references in
Administrator a statement by an ap­
deems proper and without reference to
the regulations to Form 1800, Certifica­
praiser on Form 1803 (a), Statement by
the Administrator, the creditor’s lien on
tion of Eligibility, or to other form num­
Appraiser on Completion of New Con­
land without any buildings thereon if
bers shall be construed to include any
struction,
the land so released does not exceed five
revision of the same forms, identified by
(1) He has inspected the construction,
percent of the acreage encumbered and
the same, or by different numbers.
repairs, alterations, or improvements.
does not exceed $200 in value. The same
§ S6.4051
Disqualified lenders and
(2) The same have been constructed
consent is hereby given when the release,
bidders. Except under unusual circum­
and completed in substantial conformity
easement grant, or other instrument is
stances and upon prior approval by the
with the contract, the plans and specifi­
sought by a public or private agency, dr
Administrator an application for guar­
cations (if any), and any authorized
person, for the purpose of pipe line, tele­
anty of a loan will not be approved if
changes therein (if any), permitted by
phone, telegraph or electric transmission
the lender is known to be an employee
these regulations, or, in those cases em­
lines; Provided, however, That when such
of the Veterans Administration or of the
braced in § 36.4024 (c) or § 36.4024 (e)
releases, or grants by the lender for any
Agency; and without such approval, an
there are no plans and specifications,
one or more of the purposes stated in
employee of either may not bid at a fore­
within good building practices.
this paragraph, or otherwise, with or
closure sale of the security for a guaran­
(3) The increased value of the prop­
without specific consent by the Adminis­
teed loan.
erty as completed and which will be en­
trator, shall have decreased the security
cumbered is substantially in accord with
as much as five percent in acreage, or
(58 Stat. 284)
his estimate.
$200 in value, no further releases shall
l seal]
F rank T. H ines,
*
*
*
*
*
be executed, without consent of the Ad­
Administrator of Veterans Affairs.
ministrator.
If
release
of
lien
is
executed
(g)
Upon compliance with the re­
contrary to the provisions of these regu­
D ecember 20, 1944.
quirements of this section and of
lations the amount of the guaranty will
§§ 36.4030 and 36.4031 relating to the
|F. R. Doc. 44-19316; Filed, Dec. 21, 1944;
be
reduced
proportionately
in
the
same
guaranty becoming effective in other
3:57 p. in.]
manner as if the value of the released
than construction loan cases, said Loan
property were applied as a credit on the
Guaranty Certificate shall become effec­
P art 36— R egulations U nder S ervice­
unpaid balance of the loan. The pro­
tive as originally executed (and subject
men ’s R eadjustment A ct of 19441
visions
of
this
paragraph
will
not
be
con­
to § 36.4031), or as amended pursuant
strued
to
affect
the
guaranty
in
the
event
GUARANTY
OF LOANS ON FARMS AND FARM
to approval of application therefor on
of any grant of title or easement that
EQUIPMENT
Form 1862, Application to Amend Loan
leaves unaffected the lien on the prop­
Section 36.4128 (b) is amended to read
Guaranty Certificate. (See § 36.4031 'C)
erty affected thereby; or
as follows:
and (d).)
(f) Sale by reason of foreclosure of a
*
*
*
*
*
§ 36.4128 Execution and form of guar­
superior lien if the holder of the guaran­
anty. * * *
(i) Minor changes may be made in the
teed loan secured by a subordinate lien
<b> The word principal as used in the
plans and specifications or substitution
has knowledge of such foreclosure sale
Loan Guaranty Certificate and the cer­
of material of substantially equal qual­
as much as 10 days prior thereto and
tification on the reverse thereof means
ity or value, as the creditor, the debtor,
fails to notify the Administrator of the
the amount of money actually disbursed
and the builder (contractor) may agree
time and place thereof.
to or for the account of the borrower.
if same are not of a major character and
9.
Section 36.4040 is amended to read (58 Stat. 284)
in the aggregate do not increase or de­
as follows:
crease the cost more than five per centum
[ seal]
F r a n k T. H i n e s ,
of the contract price. This does not
Administrator.
§ 36.4040 Filing claim under guaranty.
modify the provisions of § 36 4031.
Claim
under
the
guaranty
may
be
made
D
ecember
8,
1944.
Changes or substitutions other than as
on Form 1864, Claim under the Guaranty.
herein stated must have the approval of
|F R. Doc. 44-19316; Filed, Dec. 21, 1944;
Subject to the limitation that the total
3:57 p. m.]
the Administrator.
amount payable under the guaranty shall
8.
Paragraph (a) of § 36.4033 isin no event exceed the original amount
1As printed in the F ederal R egister, Vol­
ume 9. Number 256, Washington, Saturday,
amended, and paragraphs (e) and (f)
thereof, the amount payable under the
December 23, 1944.
are added as follows:
guaranty shall be the percentage of the
Losses which are not guar­
* *

U. S. GOVERNMENT PRINTING O F F IC E , 1941

UNITED STATES OF AM ERICA
VETERANS ADMINISTRATION
+

Handbook

for

L enders

Home L oans
Servicemen's Readjustment A c t of 1944

(N O TE: This pamphlet covers matters o f policy and
procedure which should be followed in connection
with loans to veterans subject to guaranty pursuant
to the provisions of the A c t.)

Nothing herein contained shall be construed to modify, revise, or
otherwise alter any of the Regulations of the Administrator of Vet­
erans’ Affairs which are promulgated by him under the “ Servicemen’s
Readjustment Act of 1944” (Public Law 346— 78th Congress).
*

F r a n k T. H i n e s ,
Administrator of Veterans' Affairs.
(n)

IN DEX
Par.

Par.

1.
2.
3.
4.

5.
6.
7.
8.

9.
10.
11.
12.
13.

14.

Policy.
Regulations.
The Veteran.
Veteran’s Eligibility:
(а) Determination.
(б) Identity.
(c) Legal Disability.
Eligible Lenders.
Home Defined.
The Application.
Credit Report:
(a ) Form.
( b) Substance.
(c) Confidential Information.
Appraisal Report.
Insurance Requirements.
Loan Closing Statement.
The Mortgage.
The Guaranty:
(а) Limitations.
(б) Decrease or Increase.
(c) Advances.
(d) Losses Not Guaranteed.
(e) Transfer of Title.
(f) Nature.
The Loan:
(а) Purpose.
(б) Security.
(c) Amount.

15.
16.

17.
18.

19.
20.
21.
22.
23.
24.

25.
(in )

(d) Term.
(e) Interest.
if) Repayment.
iff) Prepayment.
(h ) Charges.
(i ) Refinancing.
Designated Agencies.
Loan Procedure:
(a) Existing Construction.
(b) New Construction.
(c) Construction Loan Charges.
Records.
Default:
(a) Forebearance.
( b) Optional Notice.
(c) Notice Required.
id) Delivery of Notice.
Filing of Claim.
Legal Action:
(a) Notices Required.
(b) Death of Veteran.
Death or Insolvency of Lender.
Subrogation.
Administrator’s Options.
Two or More Applicants.
(а) Veterans.
(б) . Husband and Wife.
(c) Veterans and Nonveterans.
Regional Offices of Veterans Admin
istration.

HANDBOOK FOR LENDERS
HOME LOANS
1. POLICY.
It was the clear intent of Congress that all eligible veterans should
have available to them the full benefits o f Title III. It is the duty
and the desire of the Administrator of Veterans’ Affairs to give effect
to this intent in such a manner that, while following the provisions
of the Act, a minimum of delay or difficulty will be encountered by any
applicant. The Administrator feels justified in depending upon the
support and wholehearted cooperation of all who are in any manner
connected with home, farm, or business financing to the end that this
task, which should be undertaken as a privilege, will be so performed
as to gratify all concerned.
2. REGULATIONS.
Before commencing any lending operations under the Act, all
lenders should familiarize themselves with the Regulations of the
Administrator o f Veterans’ Affairs. Copies of these, as well as copies
of the approved forms mentioned therein, may be had upon application
to the nearest office of the Veterans Administration.
3. THE VETERAN.
It is a responsibility and duty of the lenders to make certain that
all veterans with whom they have dealings fully understand their
rights and privileges under the Act and how to proceed to make
application for a guaranteed loan. Many lenders will have prepared
special facilities for such information and advice including printed
pamphlets or booklets for the guidance of uninformed veterans, based
on the Administrator's Regulations. In any event, lenders should
have on hand a supply of Finance Form 1804 entitled “ Explanation
of Home Loan Guaranty’’ which has been prepared by the Veterans
Administration and which Regulations require the veteran to read
before he makes application for a guaranteed loan. At the time of
making application therefore the veteran should have read this form
and should present his Certificate of Discharge or his Notice of
Separation, or both.
4. VETERAN’S ELIGIBILITY. Form 1800.
(a)
Determination.— The determination of eligibility of the veteran
requires the Veterans Administration to inspect original records in
the possession of the veteran or in lieu therof to refer to records in the
files o f the Veterans Administration or in the files of the Service depart­
ments (W ar Department, Navy Department, Marine Corps, or Coast
Guard).
It is recommended that lenders endeavor to have the veteran where
practicable furnish the lender with evidence of eligibility in the form
of discharge or separation papers or certificate in lieu of lost or de­
stroyed discharge, or properly authenticated photo copies of discharge
(1)

2
or separation papers to be dispatched to the Veterans Administration
together with Form 1800 properly completed.
A photo copy of discharge or separation papers furnished to the
veteran by the Service department may be considered to be properly
authenticated if such photo copy is issued under the seal of the Serv­
ice department. Photo copies of original discharge or separation
papers prepared by persons or agencies other than Service depart­
ments may be considered to be properly authenticated if such copies
are certified by and bear the seal of a Notary Public or other officer
authorized by law to administer oaths or take acknowledgments.
Statement should be placed on the request for Certification of Eli­
gibility (Form 1800) outlining the type of evidence submitted, if such
action is taken, and also a statement o f the “ C” number o f the ap­
plicant, if a “ C” number was assigned by the Veterans Administration
and this number is known to the applicant. A “ C” number is a Vet­
eran Administration file number which is assigned by the Veterans
Administration to applications for pension and for certain other
benefits.
Form 1800 filled in and any supporting documents should be for­
warded to the Regional Office or Combined Facility of the Veterans
Administration located in the State in which the veteran resides. Cer­
tificates of Eligibility for residents of the State of Delaware should
be forwarded to the Philadelphia, Pa., Regional Office. For residents
of Alaska forward to Seattle, Wash. For residents of Puerto Rico
forward to New York City, N. Y.
A discharge or other evidence o f eligibility which is submitted with
a request for Certification of Eligibility will be returned by the Vet­
erans Administration with the Certification o f Eligibility to the lender
who shall return such evidence to the applicant.
I f the guaranty to be requested in this form is less than the maximum
of $2,000, the amount should be determined with sufficient care to insure
that it will be ample to cover the lenders requirements when the loan
is closed. The amount requested here will be set aside by the Adminis­
trator for the loan in question and may not later be increased if the
veteran has used the remainder o f his guaranty for some other pur­
pose. One copy of the form will be returned to the lender after the
Administrator has completed it. The form will then show: (a)
whether the veteran is eligible under the Act, (6) the amount of
guaranty reserved, ( c ) the name and address of the appraiser to be
used, and (d) the name and address of the agency to whom the applica­
tion and other papers should be sent. (See par. 16 (« ).)
I f the status of the veteran is such as to make him eligible for a
guaranteed loan in accordance with the Act and the Regulations, the
maximum amount of the guaranty to which he is entitled will be $2,000
less any portion thereof which may have been utilized by him as the
result of previous applications. Lenders ordinarily should await the
return of this information from the Veterans Administration before
proceeding further with the application. There will be cases, how­
ever, where the veteran is known to the lender or where the lender
has otherwise sufficient reason to believe that the veteran is entitled
to a guaranty in the amount requested. In that event the lender may
decide to proceed without awaiting confirmation, but Form 1800 must
be transmitted in all cases.

3
(5) Identity.— Form 1800 should not be considered to establish the
identity of the veteran. Identification is the responsibility o f the
lender who must sign a statement on the application form to the effect
that he has satisfied himself on this point.
(c)
Legal Disability.—Lenders should familiarize themselves with
State laws governing contracts entered into with minors, persons of
unsound mind, and persons under other forms of “ legal disability.”
Loans to such persons cannot be guaranteed by the Administrator
unless the contract between the borrower and the lender is binding
on both according to State law and the mortgage has the legal effect
intended. This applies also to loans sought or obtained by guardians,
conservators, or other fiduciaries. The Act does not modify State
laws which are applicable in such cases.
5. ELIGIBLE LENDERS.
The Regulations define eligible lenders in accordance with section
500 ( c) of the Act, as “ persons, firms, associations, corporations, and
governmental agencies and corporations, either State or Federal.”
Evidence satisfactory to the Administrator may be required to show
that a lender is equipped to maintain adequate records (see par. 17)
and to properly service guaranteed loans.
6. HOME DEFINED.
A “ home” is defined in the Regulations as—
Any dwelling consisting o f not more than four family units,
or any combination dwelling and business property, the primary
use of which is occupation by the veteran as his home.
7. THE APPLICATION. Form 1802.
Lenders can be o f material assistance to the veteran in completing
his “ Application for a Home Loan Guaranty.” All questions should
be answered as completely as possible. It will be observed that the
original application form (white) has the Loan Guaranty Certificate
(Form 1801) attached to it. The duplicate application (yellow)
which is the copy to be retained by the lender, has no Certificate at­
tached to it. Full instructions for completing both Forms 1801 and
1802 are printed on the application beginning on page 1 thereof.
It is important to note that these instructions provide that the
lender is not to fill in any of the blanks in paragraph I. The Vet­
erans Administration will fill in such blanks. The lender will fill in
all the spaces above paragraph I except the “ L ” number. The lender
also will fill in the property description in paragraph I I on the Loan
Guaranty Certificate, being certain that a carbon impression thereof
appears in paragraph 3, page 1, o f the application form.
The guaranty is so worded that if the amount o f the loan deter­
mined at the time o f closing the loan does not exceed the amount of
the loan applied for by more than 3 percent no supplemental applica­
tion is necessary (see secs. 4031 and 4032 of the Regulations). Minor
variations in amount o f loan applied for and the amount necessary to
close the loan frequently occur as a result of a change in the amount
o f taxes or estimated expenses. This 3 percent should provide an ade­
quate margin for such variations. I f the finally determined loan
amount is less than the amount applied for no supplemental applica­

4
tion is required. 'T h is is because of the per centum limitation pro­
vided in the guaranty.
In any event the Veterans Administration will adjust the veterans
record o f available guaranty from the loan closing statement so that
the veteran will not be penalized in the event the required amount of
guaranty is less than reflected upon this application.
Certain information of probable value was sacrificed in the applica­
tion for the sake o f brevity and simplicity but some or all o f it may
be required when, as and if Form 1802 is revised. Meanwhile it
would be helpful to the prompt and definite establishment of the
veteran’s credit standing if lenders would attach to each application
the veteran’s answers to some additional questions in substantially the
following fo rm :
Present status:
(а) Period o f residence in the city or town__________________
(б) Nature o f business_____________________________________
(c) Name o f immediate superior____________________________
( d) Property owned by veteran and/or spouse, if married :
Type and location

Estimated value

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------- ----------------

$--------------

$ -------------$ -------------(e) Debts owing by veteran and/or spouse, if married, show­
ing: (1) type o f obligation; (2) name of creditor; (3)
amount owing; (4) repayment periods; and (5) repay­
ment amounts required.

( / ) State any physical disability or handicap.
Preservice status:
{a) Home address at time of induction or enlistment:
No. and Street

(b)
(c)
(e)
( /)

City, Tow n

County, Parish

State, District, Territory

Period of residence in that city or town__________________
Occupation then___________ (d) Period so employed_______
Nature of business______________________________________
Name and address of employer___________________________

(g) Name of immediate superior____________________________
(h) Annual income: Salary $________Other $________________
8.

CREDIT REPORT.

(a) Form.—Regardless o f information to be furnished as a per­
sonal statement by the veteran in his application, a credit report should
be forwarded to the agency with other papers as provided in par. 16
{a). The regulations define credit report to mean—
The report submitted by any credit reporting agency o f at least
5 years’ experience with facilities for national coverage, approved

5
by the Administrator, or any other form of report acceptable to
the Administrator for the purpose of determining the applicant’s
credit standing.
(b) Substance.— As is customary with lenders, it is required by the
Act and the Regulations that the present and anticipated income and
expenses of a borrower—in this case the veteran— are such as to indi­
cate the probability of his maintaining current payments on the loan,
taxes, assessments, and insurance. All other matters affecting the
veteran’s credit standing should receive due consideration.
(c ) Confidential Information.—In the foreword to the regulations
it is stated:
* * * The completed application and other papers submitted
should be carefully examined by the applicants * * *.
The purpose o f such statement was to assure that applicants would
have a full and complete knowledge o f the transaction to which they
were a party. However it was not intended that any credit report be
submitted for the applicant’s perusal or that any other confidential
information be disclosed tc the applicant. In such cases as it may be
the creditor’s usual practice to charge the borrower for a credit report,
such item on the loan closing statement Form 1806 shall not state the
name of the credit reporting agency but only “ Credit Report $---------- .”
9. APPRAISAL REPORT. Form 1803.
The appraiser designated by the Administrator in Form 1800 “ Cer­
tification o f Eligibility” should be notified by the lender when the
appraisal is to be made. His report should be included with other
papers sent to the agency as shown in paragraph 16 (a ).
10. INSURANCE REQUIREMENTS.
All insurance carriers must be licensed to do business in the State
wherein the property is situated. The veteran must be given freedom
in procuring acceptable insurance through any authorized insurance
agent or broker that he may select.
The Administrator o f Veterans’ Affairs has established minimum
insurance requirements for protection against fire and other hazards
which it is customary to insure in certain areas and communities.
Therefore, considerable responsibility rests with the creditor and the
veteran to see that their interests are adequately protected.
The minimum requirement is that all buildings the value of which
enter into the appraisal forming the basis for the loan must be in­
sured in an amount at least equal to the amount by which the loan
exceeds the value o f the encumbered land plus the value of those
improvements which are not insurable.
For example:
Insurable improvements valued at_________ __________ $5, 000
Land valued at______________ _______________________
500
Uninsurable improvements valued at________________
200
Total value of property.______________________
Amount o f loan_____________________________________
Amount of guaranty_________________________________
622369°— 45----- 2

5,700
3,000
1, 500

6
The amount o f minimum insurance required would be calculated
as follow s:
Amount of loan______________________________ ______$3, 000
Less: Value of land_________________________$500
Uninsurable improvements------------------ 200
TOO
Minimum insurance required.:________________________ 2,300
This amount o f insurance would be insufficient protection against a
total loss o f the insurable improvements and it would not protect
the veteran’s equity in the property.
The complete protection o f partial losses where policies are sub­
ject to a coinsurance clause requires greater coverage. For instance,
an 80 percent coinsurance clause applied to the above example would
require $4,000 coverage (80 percent of the insurable improvements)
to receive full payment o f a loss of say $3,000. I f only $2,300 in­
surance were carried with this clause applicable, then a $3,000 loss
would result in the payment not of $2,300 but of only $1,725 or
23/40ths of the loss sustained.
Lenders should consult and advise with the veteran regarding the
amounts and kinds of insurance to protect the veteran’s interest in
a property. The amount and kind of insurance, when determined,
are to be set forth in Form 1802, Application for a Home Loan
Guaranty.
At the time of approving the application for a home loan guaranty,
the Administrator may waive all or part o f the insurance requirements
if in the application it is satisfactorily shown that (a) it is impossible
or impractical to obtain the insurance; ( b) such insurance is not cus­
tomarily required by prudent lenders in the community; or (<?) the
lender is willing to make the loan without coverage on one or more of
the buildings or in reduced amount or without certain coverage.
The procuring o f insurance of the amount and coverage stated in
the approved application constitutes conclusive evidence of waiver by
the Administrator, of insurance in excess of the amount stated in or in
connection with the application and also all hazards not mentioned
therein as hazards to be covered.
Lenders must see that the insurance stated in the approved applica­
tion is maintained in force either in that amount or in the amount
o f the unpaid indebtedness, whichever is smaller.
I f the Administrator has waived the insurance under which a loss is
sustained, there is no reduction in the amount of the guaranty. Other­
wise, and for the sole purpose of determining the amount payable
upon a claim under the guaranty, the unpaid balance of the loan will
be deemed to have been reduced by the amount of the uninsured loss.
In no event, however, will such balance be reduced below the value
o f the land plus other property remaining subject to the mortgage.
I f the lender fails to require a provision in the insurance contract
giving the lender the right to any loss payments, the amount payable
under the guaranty will be reduced as in the previous paragraph
under uninsured losses, despite a waiver by the Administrator, unless
the property damage has been restored.
I f stated insurance later becomes unavailable, due notice thereof
must be given by the lender to the Administrator for his determina­
tion of either granting a waiver or declaring the loan in default.

7
11. LOAN CLOSING^STATEMENT. Form 1806.
This form should be sent to the agency with other papers (see par.
16 ( a) ) when it has been prepared to include in column I I I thereof
estimates o f all amounts to be disbursed by the lender for account of
the veteran. It will subsequently be returned to the lender for com­
pletion in connection with closing the loan. At that time column IV
should be filled in to show amounts actually disbursed and, on the
reverse, the “ Report of Closing Loan” executed in accordance with
regulations, section 4031, to make the guaranty effective. The form
should be returned to the Administrator for his files within 2 months
after the loan is closed.
12. THE MORTGAGE.
A mortgage is defined in the Regulations as—
An applicable type of security instrument commonly used or
legally available to secure loans or the unpaid portion of the
purchase price o f real or personal property in a State, District,
Territory, or possession o f the United States of America in
which the property is situated. It includes, for example, deeds
of trust, security deeds, escrow instruments, real estate mort­
gages, conditional sales agreements, chattel mortgages, etc.
Each loan guaranteed in whole or in part by the Administrator must
be evidenced by a note or notes secured by a mortgage except when the
principal amount of the loan does not exceed $500, in which case-the
lender may not require a mortgage.
13. THE GUARANTY. Form 1801.
(a)
Limitations.— The aggregate amount which may be guaranteed
by the Administrator for any one veteran cannot exceecl $2,000 whether
there be one or more loans under the categories of home, farm, or
business as provided for in the Act. Once extended to a veteran, the
amount guaranteed is never reinstated or again made available to him
for any reason. However, the Administrator may extend his guar­
anty to apply on another loan obtained for refinancing in accordance
with section 4042 of the regulations (see par. 23 of this handbook).
The guaranty cannot exceed 50 percent of a loan or loans for any of
the purposes specified in sections 501, 502, or 503 o f the Act.
Section 505 (a) o f the Act provides that when the principal loan—
* * * for any o f the purposes stated in section 501, 502, or
503, is approved by a Federal agency to be made or guaranteed
or insured by it pursuant to applicable law and regulations, and
the veteran is in need of a second loan to cover the remainder
of the purchase price or cost, or a part thereof, * * *
the Administrator may guarantee the full amount of the second loan,
provided:
(1) It does not exceed 20 per centum o f the purchase price or
cost.
(2) The amount guaranteed together with all other guarantees
for the same veteran does not exceed $2,000.
(3) The loan conforms to all other applicable requirements of
the regulations.

8

(&) Decrease or Increase.—The amount of^he guaranty decreases
pro rata wit li any decrease in the unpaid balance of the loan. In other
words, as periodical payments are received and credited so as to reduce
the loan balance, then a proportionate reduction takes place in the
amount guaranteed so that the percentage relationship remains con­
stant. For example: A $3,000 loan, of which $1,500 or 50 percent
was originally guaranteed, has been reduced through curtailments to
$2,000. Thus the loan balance has declined $1,000, or one-third of the
original loan and, therefore, the guaranty is reduced $500, or one-third
of the original guaranty. The loan balance, therefore, becomes $2,000,
and the guaranty is reduced to $1,000, or 50 percent, which is the same
percentage originally guaranteed.
The amount of the guaranty increases pro rata with any increase in
the unpaid principal balance o f the loan. However, it should be noted
that (1) in no event can the amount payable under the guaranty of a
particular loan exceed the original amount guaranteed and (2) any
advances made to the veteran for taxes, assessments, insurance pre­
miums, or emergency repairs necessary to protect the property may
not bear an annual interest rate in excess of 4 percent.
(c ) Advances.—A loan may conceivably be increased from time to
time by reason of advances as above mentioned. I f the addition of
these amounts to the unpaid balance of the loan creates a total in excess
of the original amount of the loan (in part guaranteed) then no part
of such excess is guaranteed. For example: A $3,000 loan of which
$1,500 or 50 percent was originally guaranteed, has been reduced 10
percent through curtailments to $2,700 and there is a consequent
reduction o f 10 percent in the guaranty to $1,350. It now appears
that a new roof costing $400 is necessary to protect the property.
The amount is advanced by the lender and added to the loan, making
the new balance $3,100 or $100 more than the original loan. The
first $300 of the advance is protected to the extent of $150 or 50 percent
by the guaranty which is increased to its original amount o f $1,500.
The additional $100 of the advance, however, will not have the benefit
of the Administrator’s guaranty.
In the event o f advances having been made by the creditor he may,
by agreement with the debtor, apply the regular payments made by
the debtor on account o f principal and interest to repayment o f sucti
advances up to a period not exceeding 12 months. Such an arrange­
ment, per se, shall not be considered a default although notice thereof
to the Administrator must be given within 1 month after the expira­
tion of not to exceed 6 months from the date when payments to apply
against principal and interest were suspended (see par. 18 ( c ) ). To
illustrate: (1) An advance of $300 has been made by the creditor for
repairs. Regular monthly payments o f principal and interest on the
original loan call for $50, which is all the creditor can afford to pay.
Application o f 6 monthly payments o f $50 will repay the advances
I f payments by the debtor cease at this point and continue for 3 months
the creditor may make claim under the guaranty, and the total amount
delinquent is equivalent to 9 monthly installments. (2) In a similar
case where the regular payments are only $25 per month it would
require 12 months to repay the advances. Assuming once more that
payments ceased at the expiration o f this period and were not resumed

9
for 3 months, then the creditor can file claim under the guaranty and
the total amount delinquent would be the equivalent of 15 months’
delinquency. (3) In the event such indulgence to repay advances has
been arranged, but default occurs in the interim through failure to
pay taxes or other such items and persists for 3 months, the creditor
may take action on the basis o f such default as provided in the Regu­
lations and irrespective of any indulgence granted in connection with
the repayment of advances.
The foregoing examples presuppose defaults in addition to the
indulgence granted under certain circumstances for the repayment of
advances. However, the debtor may be able to continue his regular
payments in which event the following will be applicable:
The repayment provisions on account of any advances may not
extend the date o f the final maturity of the loan. This restriction
will create a situation whereby the loan remains in technical default
until such time as the equivalent of the amount advanced has been
repaid either by subsequent interim payments, or by a lump sum at
maturity.
For the objects stated in the Regulations section 4004, instead of
making an advance to be added to the existing loan as set forth above,
the lender and the veteran may decide to take care of the matter
by a second loan in the required amount. Such second loan may be
in part guaranteed by the Administrator provided: (1) the veteran
is entitled to a guaranty in the amount to be requested, and (2) the loan
complies in all respects to the applicable requirements of the regula­
tions, sections 4004, 4005, and 4006.
(d) Losses Not Guaranteed.—“ The -guaranty shall not cover any
loss sustained by the creditor as the result o f :
(1) The acceptance by the mortgagee of a ‘mortgage’ on any
property, title to which is not merchantable according
to customary practices in the community where the prop­
erty is located;
(2) Failure of the mortgagee to procure a duly recorded lien of
the dignity required by the regulations;
(3) Failure of the mortgagee to see that adequate insurance
protection, as required by the regulations, is kept in effect
with appropriate loss payable provisions, or
(4) A tax sale pursuant to execution, or otherwise as provided
by law, occasioned by nonpayment o f taxes accruing
against the mortgaged property after the date of the
‘mortgage’ if ‘mortgagee’ fails to give notice to the A d ­
ministrator o f the delinquent taxes at least 1 month before
such sale.”
(e) Transfer of Title.— If, after obtaining a guaranteed loan on his
property, the veteran conveys title to someone else, the contract or the
guaranty is not terminated or otherwise affected unless (1) the creditor
by express agreement releases or discharges the veteran in any manner
from his personal liability thereon; or (2) the personal liability o f the
veteran is released by operation of law as a result of an alteration in the
original contract without permission of the Administrator by the in­
dulgence o f or agreement with the veteran’s grantee.

10
( / ) Nature.—To the extent prescribed by the Regulations, the ob­
ligation of the United States by reason of a guaranty of the Admini­
strator of Veterans’ Affairs is that of a guarantor, not an indemnitor.
In other words a lender is protected only to the extent of having
the payment of all or part of a loan, as the case may be, guaranteed
by the Government in the event such payment is not made according
to the contract through no fault of the lender. Indemnification
against ultimate net loss by the lender is not covered by the guaranty.
For example: A $3,000 loan of which $1,500 was originally guar­
anteed, has been reduced through curtailments to $2,000 and the guar­
anty has declined proportionately to $1,000. At this point there is a
default in payments which results in a claim by the lender to the
Administrator under the guaranty. Ultimately the property is sold
by the lender at foreclosure for $500. and the Administrator has paid
the claim of $1,000. The lender is not protected by the guaranty for
the resulting loss o f $500, his position being as follows:
Amount of original loan___________________________________________
Veteran’s payments on principal________________________ $1, 000
Administrator’s payment of lender’s claim under the
guaranty______________________________________________
1, 000
Property sold for_______________________________________ _
500
------------

$3, 000

Net loss to lender_________________________________________________

500

2,500

It is entirely possible that circumstances will materially alter the case
and there will be no ultimate loss to the lender. Let us suppose that in
the above example the property sold for $2,500. Again using round
figures to make the position of all interested parties clear, we have the
following:
Amount of original loan__________________________________________ $3, 000
Veteran’s payments on principal________________________ $1,000
Administrator’s payment of lender’s claim under the
guaranty__________________________________ ____________ 1, 000
Property sold for________________________________________ 2, 500
------------ 4,500
Credit balance______________________________________________
Repayment to Administrator of amount paid under his
guaranty_______________________________________________
Balance due to veteran__________________________________

1, 500
1, 000
500
------------

1,500

14. THE LOAN.
(a) Purpose.—A loan may be guaranteed by the Administrator if
it is made to an eligible veteran for the purchase of a residential prop­
erty or for the construction o f a dwelling on unimproved property
owned by him to be occupied as his home. The loan may be for making
repairs, alterations, or improvements in. or to pay delinquent indebted­
ness, taxes, or special assessments on, a home already owned and occu­
pied by the veteran.
(b ) Security.—Wherever possible loans guaranteed under section
501 of the Act should be secured by a first mortgage on the property.
This will apply in all cases under section 501 {a) which is concerned
with the purchase or construction of a home.
Section 501 (b) applies to loans for repairs, delinquent indebted­
ness, etc. (see par. 14 (a )), and there may be existing liens on the

11
veteran’s home, in which event, the proposed loan may be secured by
a junior lien. In all cases, before guaranty by the Administrator,
due consideration will be given to the amount, interest rate, and ma­
turity of prior liens in order to determine that the veteran is not assum­
ing too great a financial burden in comparison to his probable income.
Loans made in accordance with section 505 (a) of the Act will be
secured by junior liens on the property since secondary loans are
specifically provided for therein under certain conditions more fully
described elsewhere in the handbook. (See par. 13 (a).)
( c ) Amount.— No restriction is placed on the amount of a loan or
loans other than the customary requirements including the ability
of the veteran to repay the debt.
(d ) Term,.—The term of a loan must not exceed *20 years but it may
be made for a shorter period if due consideration is given to such
matters as the amount of the loan, the amount of periodical payments,
the purpose of the loan, the character and condition of the property,
the wishes of the veteran, or other related factors used in prudent
mortgage loan practice.
All loans should be fully amortized in accordance with standard
practice, with the following exception: It may be a term loan matur­
ing not later than 5 years from its date, if it, together with prior
liens— if any; does not exceed two-thirds of the reasonable normal
value of the property.
(e ) Interest.—The rate of interest must not exceed 4 percent per
annum on any guaranteed loan. Secondary loans guaranteed under
section 505 of the Act are additionally limited to a rate of interest
not to exceed that on the primary loan by more than 1 percent per
annum. In other words, if the rate on the primary loan is 2y2 per­
cent per annum, then the rate on the secondary loan cannot be greater
than 31/2 percent per annum.
In all cases the Administrator will pay to the lender at the end of
the first year, one year’s interest at the loan rate on the guaranteed
portion of the loan. For the first year, therefore, the veteran is
relieved of any interest payment on the amount guaranteed.
( / ) Repayment.—Amortization payments may be monthly or at
other regular intervals not longer than annually. By agreement with
the veteran, lenders may provide for the collection o f proportionate
amounts with each regular payment to care for taxes, ground rents,
special assessments, and fire and other hazard insurance premiums.
I f such a provision is made, the lender and the veteran should agree
on the method of handling such additional payments. The note may
be credited as payments are received and charged upon disbursements
by the lender, or a separate trust account may be used for the purpose.
In either case, the lender must apply the total payment to the several
items in the following order:
1. Taxes, special assessments, fire and other hazard insurance
premiums and ground rents (allocated among such items
as the lender elects).
2. Interest on the mortgage debt.
3. Principal of the mortgage debt.
(g)
Prepayment.—The unpaid balance o f an amortized loan may be
paid in whole or in part without premium or penalty at any time, and
instruments which evidence the debt must contain provisions therefor.

12
Similar provisions must be made with respect to a term loan which
may be prepaid in whole or in part upon at least a month’s notice.
(h) Charges.—Neither the lender nor others may require the veteran
to pay a bonus, commission, application fee, or other such charges in
connection with his application for or the making of a guaranteed
loan. The lender may make the customary charges for such items as
credit report, appraisal, survey (if any), certificate of title, and for
recording or other such expenses incurred in connection with closing
the loan. (See par. 16 (c) for Construction Loan Charges.) These
charges may be added to the loan unless otherwise paid by the lender
or the veteran as they shall have agreed. Permission to include
appraisal and other items in the loan is not intended to alter any
existing practice of a lender to absorb such expenses.
(i) Refinancing.—A veteran is not eligible for a guaranteed loan
the proceeds o f which are to be used to refinance another loan pre­
viously obtained by him and used for any of the purposes outlined in
paragraph 13 (a). This restriction applies only to guaranteed loans
sought for the same purpose as that for which the existing loan was
obtained and does not affect the veteran’s eligibility with respect to
guaranteed loans for other purposes to which he may be entitled.
It is not contemplated that an eligible veteran shall be prevented
from obtaining a guaranteed loan for the purpose o f either buying
or building a home merely because there is an existing mortgage or
other lien against the property, which debts are the obligations o f
the present owner, and will not carry over to the property after con­
veyance. However, the guaranteed loan must comply in all respects
to the provisions of the Act and the Regulations, and must be in an
amount sufficient to satisfy all obligations then existing against the
property. Such a transaction would in effect be a sale for all cash
insofar as the present owner is concerned.
Nothing in the Regulations is intended to prevent assumption by
the veteran of an existing first mortgage, provided it otherwise meets
all the requirements of the Regulations at the time of purchase.
15. DESIGNATED AGENCIES.
In accordance with the Act, the Administrator will have designated
certain agencies of he may act as his own agent to certify whether an
application meets the requirements of the Act and Regulations and
to recommend whether it should be approved. This designation will
be made by the Administrator on Form 1800, “ Certification of Eligi­
bility.” It is to this agency that the lender should send all papers
listed in paragraph 16 (a).
16. LOAN PROCEDURE.
(a)
Existing Construction.—When the lender is ready to submit
the papers he should have in his possession the completed application,
the loan guaranty certificate, the credit and appraisal reports and a
certification of the veteran’s eligibility. He should then forward to
the designated agency the following documents:
(1) Certification o f eligibility. (Form 1800,)
(2) Loan guaranty certificate. (Form 1801.)
(3) Original application for guaranty signed by prospective
lender and borrower. (Form 1802.)

13
(4) The credit report.
(5) The appraisal report. (Form 1803.)
(6) Copy of the “ conditional sales agreement” if the loan is to
be predicated on such an instrument.
(7) Proposed loan closing statement of the estimated amounts
to be disbursed by the lender for the account of the bor­
rower. (Form 1806.)
(8) Unless stated in the mortgage, or otherwise in the papers
submitted, a statement of the kinds and amounts of in­
surance to be required to protect the mortgagor, the
lender and the Administrator against loss by fire and
other hazards, and the estimated premium cost thereof.
(See Regulations sec. 4015.)
After reviewing the documents the agency will forward them to
the regional office o f the Veterans Administration with its recom­
mendation. Upon receipt of the papers, the Administrator will de­
termine whether to approve the application for guaranty.
I f the application is disapproved, the Administrator will return all
papers to the lender except the original application and the appraisal
and credit reports together with a letter stating his reasons for dis­
approval. Copies of the letter will be sent to the veteran and to the
agency. In this event, any expenses thus far incurred in connection
with processing the loan must be borne by the lender or the borrower
as they shall have agreed. Within 1 month after receiving the notice
o f denial either the lender or the veteran (or both) may appeal to
the Administrator for a review of his decision. This may be done by
letter or on any prescribed form.
I f the application is approved by the Administrator he will so
notify the veteran and the agency. An appropriately executed con­
tract of guaranty (Form 1801) and all other papers except the orig­
inal application and the appraisal and credit reports will be returned
to the lender with instructions as to closing the loan in a manner to
make the guaranty effective.
The lender may now proceed to dose the loan by securing a certifi­
cate of title, obtaining signatures and acknowledgments, disbursing
the funds as set forth on the loan closing statement and recording
all proper instruments. Within 2 months after closing the loan the
lender is required by Regulations to notify the Administrator by com­
pleting the report of closing the loan as provided on the reverse of
Form 1806 as follows:
1. The principal amount of the note evidencing the loan has been
disbursed.
2. The disbursements have been made for the purpose set forth
in the loan closing statement submitted to the Veterans
Administration and in accordance with the amounts there­
in estimated except as shown by the actual disbursement
in column IV on the reverse hereof.
3. The note and mortgage (or other security instrument) were
validly executed; and the latter was duly acknowledged,
witnessed, or proved, so that it was legally eligible for
recording; and was properly filed for record on the — day
o f ------------------ 19__ a t _____ M. with t h e _______________
Title of

14
__________________ f o r _________________________________
Recording Official

District, County, Parish, Town, etc.

State o f ____________ _____:____ His file number_______
4. The note was duly executed by the debtor and d a ted _day
o f ____________ 19___in the amount o f $_______ bearing
interest a t _% per annum.
5. The loan guaranty certificate number L ______was com­
pleted and appropriately signed by the lender and the
borrower (veteran) as therein provided.
(b) New Construction. — The procedure to be followed for construc­
tion loans is essentially the same as that for other loans but with the
addition of certain steps which are set forth in the following para­
graphs. One of the important points for the lender to note here is
that the Administrator’s guaranty does not become effective until the
construction project has been completed.
In addition to the papers listed in paragraph 16 (a) above which
are to be forwarded to the agency, the lender must also submit the
follow ing:
(1) Complete plans and specifications for the proposed con­
struction.
(2) An estimate, prepared by a qualified appraiser o f the fair
market value of the property on which the improvements
will be situated together with a separate estimate of the
increased value of the property which will result from
the improvements according to the plans and specifica­
tions.
(3) A copy of the agreement or agreements (which may be
unsigned) on which the *proceeds o f the proposed loan
will be disbursed.
The Agency and the Veterans Administration will proceed as in para­
graph 16 (a) above but in addition the lender will be required to supply
Form 1803 (a) which is to be executed by the designated appraiser to
show that:
(a) He has inspected the building as constructed.
(b) The same has been constructed and completed in substan­
tial conformity to the contract, plans and specifications
(if any).
(c) The increased value of the property as completed and which
will be encumbered is substantially in accord with his
estimate.
During the course of construction the Administrator may at his own
expense cause one or more inspections to be made o f the progress and
quality of the work.
(c ) Construction Loan Charges.— In addition to the loan charges
set forth in paragraph 13 ( h) , the lender may contract with the veteran
for the payment to the lender of a reasonable sum for the advance of
funds during construction and for the supervision or inspection of
the work.
17. RECORDS.
The lender must maintain complete and adequate records o f all pay­
ments received and all amounts disbursed with respect to loans in

15
whole or in part guaranteed. I f he does not maintain such records
and a claim is filed under the guaranty, then it will be presumed that
all amounts due and payable according to the terms of the contract,
prior to the date of such claim, were received by the lender and the
burden of proof to the contrary will be upon the lender.
An annual report on the anniversary of the earliest unremedied
default must be submitted to the Administrator concerning any
guaranteed loan which is delinquent, showing amounts received or
disbursed, accrued interest, the unpaid principal balance, any other
items chargeable, the nature of any defaults not previously reported
and such additional information as may be from time to time requested
by the Administrator.
The Administrator has the right to inspect the lender’s records and
all papers pertinent to the loan and guaranty at a reasonable time
and place. I f permission is refused, he may exercise his right of sub­
poena therefor. I f a lender fails to furnish information required by
the Regulations within 2 months after it is requested, the Adminis­
trator will be entitled to obtain the data otherwise, at the expense of
the lender plus $10 to cover estimated overhead.
18. DEFAULT.
(a) Forbearance.—It is the policy o f the Administrator, and should
be that o f the lender, to extend all possible forbearance in deserving
cases which have defaulted, to the end that the loan is again made
current and future defaults prevented. The waiving of any default
with the consent o f the Administrator will not invalidate or otherwise
affect the guaranty. The lender’s views on any forbearance which
should be extended to the veteran may be included with the Notice of
Default provided for in the following paragraphs.
(b) Optional Notice.— The lender may notify the Administrator of
a default at any time after it occurs. He may elect to assert his claim
under the guaranty if the default is not cured and has continued
for a period of (1) 3 months in the case of an amortized loan or
(2 )1 month in the case o f a term loan.
(c ) Notice Required .--Failure of the veteran for a period o f 6
months to pay any amount due for interest or principal, for the liquida­
tion o f advances or by reason o f the indulgence referred to in a previous
paragraph, makes it necessary for the lender to submit the notice of
default within 30 days after the expiration of said 6 months. (See also
par. 13 (c ).)
.
( d ) Delivery o f Notice.— I he lender should mail the notice by
registered mail or personally deliver it in exchange for a written
receipt to the Veterans Administration office at which the Application
for Guaranty was approved or, at the option of the lender, to the
Central Office o f the Veterans Administration, Washington, D. C.
19. FILING OF CLAIM. Form 1805.
The lender may file his claim under the guaranty in the notice o f
default or, at his option, he may make the claim separately at that
time or at a later date. Also at that time or later, as he elects, the
lender may give the Administrator notice o f his intention to fore­
close the mortgage.

16
The amount to be claimed under the guaranty may be arrived at by
the lender in accordance with regulations, section 4040 as follow s:
Subject to the limitation that the total amount payable under
the guaranty shall in no event exceed the original amount
thereof, the amount payable under the guaranty shall be the
percentage of the indebtedness originally guaranteed applied
to the indebtedness (as defined in sec. 4000 (m )), computed as
o f the date o f the claim, and reduced by any payments thereto­
fore made by the United States pursuant to the guaranty.
20. LEGAL ACTION.
(a) Notices Required.—Court action may not be started or notice of
sale given by a lender until at least 30 days after the Administrator
has received the notice of intention to foreclose the mortgage. How­
ever, if the proper protection of the lender’s interests and those of the
Administrator require immediate legal action, the 30 days prior notice
may he waived provided the lender promptly advises the Administra­
tor o f the circumstances. Also, conditions may exist which justify the
appointment o f a Receiver and this in itself will be sufficient excuse for
the lender to begin suit without giving the 30 days prior notice, pro­
vided the Receiver is actually appointed and the Administrator is
notified within 10 days of the lender’s action.
When a lender begins suit or when he gives notice o f a sale without
suit, he must so advise the Administrator within 10 days by registered
mail or personal delivery against receipt.
Similarly, the lender must give notice to the Administrator at least
30 days before a foreclosure sale or the cancellation of a sales con­
tract. The Administrator may bid for the property at the time
and place of the sale on the same terms as other bidders, and he may
exercise any rights which the lender could exercise. These provisions
will apply either before or after payment of the guaranty.
(b) Death o f the Veteran.—Necessary legal steps should be taken
by the lender to protect his own and the Administrator’s interests in
the event of the death of the veteran or o f any person who may be liable
on the note. In addition, the lender may in his discretion, proceed in
probate or otherwise, as may be permissible and feasible, or take any
other appropriate legal action against assets or persons which may be
available to other creditors of the deceased, in order to assert his
claim. The Administrator may at his option, immediately proceed
with respect to the protection of the lien or asserting claim, or as to both
remedies, and he may elect either to proceed in his own name or in the
name o f the lender. On the other hand, at the direction of the Admini­
strator, the lender must proceed in probate or otherwise and in that
event, the Administrator will appoint an attorney and make appro­
priate provisions for paying all costs and expenses.
21. DEATH OR INSOLVENCY OF LENDER.
Immediately upon the death of a lender, whether his estate is solvent
or insolvent, all payments received from the veteran but not yet
credited to the note will be treated as a “ set-off” and considered as
having been credited to the note as of the date o f the last debit to the
veteran’s account, thus reducing the unpaid balance of the loan. This
will include any payments by the veteran for taxes, insurance pre­

17
miums, etc., wliich may have been set up as a trust account or otherwise
in accordance with paragraph 14 ( / ) o f this handbook, but any items
o f this nature may be disbursed by the estate if they are due and
payable and the balance, if any, will then be considered as a credit to
the note. These provisions will also apply in the event of—
(a) Insolvency o f the creditor,
( j ) Initiation of any bankruptcy, reorganization, or liquida­
tion proceedings of the creditor whether voluntary or
involuntary,
(c) The appointment of a Receiver for the creditor’s property,
or in any case
(d ) Upon the written request of the debtor if all accrued and
due insurance premiums, taxes, and ground rents have
been paid and appropriate provisions made for future
accruals, and if a corporation,
( e ) Dissolution of a corporation by expiration o f its charter,
or forfeiture, or otherwise.
Any accumulated interest on payments received but not credited to
the note will be used to offset interest due on the note and any excess
credit o f interest will be treated as an offset against any unpaid
advances and the unpaid balance o f the loan.
22. SUBROGATION.
The A ct says, in part, at section 500 (b ) —
No security for the guaranty o f a loan shall be required except
the right to be subrogated to the lien rights of the holder of the
obligation which is guaranteed.
Subrogation means literally “ to take the place of.” When a loan is
made, the lender establishes certain rights which he may exercise
whenever the need arises, in order to protect his interest in the property
upon which he has made the loan. By reason of the payment of a
claim under his guaranty the Administrator will “ inherit” a part of
those rights from the lender, and will “ take the place o f” the lender to
the extent o f such payment. The lender’s rights come first, however,
and any lien rights to which the Administrator may be subrogated
will take effect only after the lender has received the full amount
payable under his contract with the veteran. The rights of the Admin­
istrator will not be impaired even though a creditor partially or com­
pletely releases the debtor or the lien.
Upon request the lender must furnish the Administrator with writ­
ten evidence of any payments received under the guaranty and of the
Administrator’s resulting right o f subrogation.
23. ADMINISTRATOR’S OPTIONS.
When the Administrator has received a claim under the guaranty,
or notice o f intention to foreclose he will have the following options:
(a) Pay the amount in default to the lender within 1 month
as a partial payment under the guaranty. In considera­
tion of such payment the creditor must not exercise any
right he may have to terminate the loan on account of de­
faults which may have occurred previously. Unless the

18
creditor consents, this option may be exercised only once
and in an amount not to exceed 10 percent o f the original
guaranty or the sum of 1 year’s interest and principal
payments, whichever is less.
(b) Pay within 1 month the full amount due under the guar­
anty without requiring foreclosure or personal action.
(c) Pay an amount agreed upon with the creditor, not to exceed
the amount due under the guaranty with the requirement
that the lender institute appropriate foreclosure proceed­
ings and to obtain a judgment against any or all persons
named by the Administrator at that time.
( d) I f the creditor does not begin the appropriate legal action
referred to in ( c ) above within 2 months after notice to
institute such action, the Administrator may begin and
prosecute appropriate foreclosure proceedings either in
his own name on behalf of the United States, or in the
creditor’s name. In this event, the Administrator will
pay all court costs and other expenses and provide the
legal services required.
When the Administrator has received from the lender a Notice of
Intention to Foreclose, he may arrange for a refinancing o f the loan
which will prevent foreclosure. In this event he may allow his guar­
anty to apply to the loan which effected the refinancing.
24. TWO OR MORE APPLICANTS.
(a)
Veterans.—When two or more eligible veterans make applica­
tion for a guaranteed loan and there is no statement to the contrary,
it will be assumed that each veteran is applying for his proportionate
part o f the amount to be guaranteed. For example: Four eligible
veterans sign an application for a guaranteed loan of $8,000 so that
they may together buy a four-family house which all will occupy as
their home. Although each veteran may be entitled to a guaranty of
$2,000, the Administrator may guarantee only up to 50 percent of the
loan in accordance with the limitation of the Act. Therefore, this loan
may be guaranteed to the extent of $4,000. and unless otherwise stated,
it will be assumed that each of the four veterans is applying for a
guaranty o f $1,000. The application may request the $4,000 guaranty
divided between the veterans in any manner so long as no one veteran
applies for a guaranty in excess of $2,000, but the* individual veteran’s
interest in the property must support to the amount of any guaranty
given on his account.
(5)
Husband and W ife.—I f a husband and wife, both eligible vet­
erans, make application and there is no statement to the contrary, it
will be assumed that the guaranty requested will be chargeable first
to the husband and if this is insufficient to cover the amount to be guar­
anteed, then the balance will be chargeable to the wife. For example:
An application is made by a husband and wife, both eligible veterans,
for a $6,000 loan, of which $3,000 is to be guaranteed. Although each
veteran may be entitled to the maximum guaranty o f $2,000. the guar­
anty applied for cannot exceed 50 percent of the loan. To that extent,
the guaranty could be divided between husband and wife in any
manner they choose so long as it does not exceed $2,000 for either of

19
them, but the individual veteran’s interest in the property must sup­
port the amount of any guaranty given on his or her account. In the
absence of any statement to the contrary, however, $2,000 will be
charged to the" husband and $1,000 will be charged to the wife. This
would leave $1,000 o f her guaranty available if she wishes to use it for
some other purpose. The wife will not be so charged if before ap­
proval she has stated in writing her unwillingness to be so charged.
In that event the guaranty will be limited to the amount then available
to the husband.
(o) Veterans and Nonveterans.—Where a veteran applies for a loan
with a nonveteran as a cotenant, the amount to be guaranteed shall be
computed in the same manner as would be the case where two veterans
are applying, except, however, that no guaranty will apply with respect
to the interest o f the nonveteran.
25. REG ION AL O FFICES OF V E T E R A N S AD M IN ISTR ATIO N .
Following is a list o f Regional Offices or combined facilities of the
Veterans Administration as of December 1, 1944.
♦Albuquerque, N. Mex.
*Atlanta Ga
**1315 St. Paul St., Baltimore 2, Md.
*Batavia, N. Y.
♦Bay Pines, Fla.
♦Boise, Idaho.
♦Brecksville, Ohio.
♦Cheyenne, Wyo.
♦Columbia, S. C.
♦Dayton, Ohio.
♦Dearborn, Mich.
♦♦Old Custom House, Denver 2, Colo.
♦Des Moines 10, Iowa.
♦Fargo, N. Dak.
♦Fayetteville, N. C.
♦Fort Harrison, Mont.
♦Hines, 111.
♦♦Federal Bldg., Honolulu 1, Hawaii.
♦Huntington 1, W. Va.
♦Indianapolis 44, Ind.
♦♦Federal Bldg., Jackson 107, Miss.
♦Jefferson Barracks 23, Mo.
**1009 Wyandotte St., Kansas City 6, Mo.
♦Lexington, Ky.
♦Lincoln 1, Nebr.
♦♦Federal Bldg., Little Rock, Ark.
♦Los Angeles 25, Calif.
♦Lyons, N. J.
♦♦Federal Bldg., Manchester, N .H.

♦Minneapolis 6, Minn.
♦Montgomery 10, Ala.
♦Murfreesboro, Tenn.
♦Muskogee, Okla.
♦Newington, Conn.
**333 St. Charles St., New Orleans 12,
La.
**215 W. 24th St., New York 11, N. Y.
♦♦New Custom House, Philadelphia 6,
Pa.
*♦1001 Liberty Ave., Pittsburgh 22, Pa.
♦Portland 7, Ore.
♦♦Federal Bldg., Providence 2, R. I.
♦Reno, Nev.
♦Roanoke 17, Va.
*707 Market St., St. Louis, Mo.
♦Salt Lake City 3, Utah.
♦San Francisco 21, Calif.
♦♦Federal Office Bldg., Seattle 4, Wash.
**Sioux Falls, S. Dak.
♦Togus, Me.
♦Tucson, Ariz.
♦Waco, Tex.
**300 Indiana Ave. NW., Washington
25, D. C.
♦West Roxbury 32, Mass.
♦White River Junction, Vt.
♦Wichita 2, Kans.
♦Wood, Wis.

♦Combined facility.
♦♦Regional office.

O. S. GOVERNMENT PRINTING OFFICE: 1 9 45

VETERANS ADMINISTRATION
F in a n ce F o r m 1821

Page 1

United S tates

of

A merica

2Inait (guaranty Certificate
ISS U E D B Y

VETERANS ADMINISTRATION

State

Number L. F.

(To be filled in by V . A .)

(Where property is located)

(Lender)

(Borrower—Veteran)

(Exactly as payee’s name will appear on note)

(House or box number,

R. F. D. or street, post office, county)

(Exactly as to be signed on note and mortgage)

(House or box number, street, post office, county)

(State)

(State)

I
A . This certificate shall become effective when the requirements of the statute and regulations have been complied with and
the acts certified in part III hereof have been accomplished in compliance with said requirements.
B. When it becomes effective as hereinabove prescribed, this certificate shall obligate the United States of America to pay to
the legal holder of the “note” described on the reverse hereof upon his duly filing claim therefor:
1.
All or such portion of the maximum amount hereby guaranteed as becomes payable upon the conditions, at the
times stated in, and in accordance with the provisions of the Servicemen’s Readjustment Act of 1944 (38 U. S. Code 693;
58 Stat. 284) and the regulations issued pursuant thereto which are in effect on the date of this certificate. In no event
will the obligation under this certificate exceed $2,000. Subject to the foregoing, this guaranty is f o r ---------- per centum
of the principal amount of said “note,” but not for more than $_____________________
In no event will it exceed said per­
centage of the principal amount.
2. A t the expiration of 1 year from the date of the “note,” an amount equal to the interest for 1 year at the contract
rate on that portion of the indebtedness ( “note” ) originally guaranteed hereby, such payment to be credited on the
indebtedness as prescribed by said regulations.
C. Executed on behalf of the United States of America by the Administrator of Veterans’ Affairs, through the undersigned
authorized agent on this date, to become effective in the manner hereinabove prescribed.
D ated _____________________ ________________________________

A dministrator of V eterans ’ A ffairs ,
NOTE.— If loan is not closed, proposed lender, or
when paid the holder of the note, will mark this certifi­
cate “ Canceled,” sign thereunder, and return to Veterans
Administration.

By
At

(Authorized agent)

(Post office)

II
Description of Property To Be “Mortgaged”
(Lot and block, section and township, land lot and land district, etc., and surveyor's field notes where appropriate, and any other language proper to
complete description. Include description o f personal property, if any. Describe fully. Show serial numbers, if available, or any other means of
t
identification)

Premises identified a s _____________________________________________________________________________________________________________
(Name o f farm, if any, and R. F. D.

Also number or name of

nearest highway)

(City, town, village)

(County, parish)

(State, district, territory)

and further described as:

( If more space is needed, detach and continue description on reverse)

IS—42455-t

(Continue legal description if necessary in the space below)

in
Certification by Borrower and Lender
A . W e hereby warrant that (1) the undersigned borrower named on the reverse hereof executed the note, the face amount
of which is $---------------------------- consisting of $------------------------------ principal and $___________________ interest as defined in
the regulations; (2) it is dated th e ______________ day o f _____________________________ 19_____ ; (3) borrower(s) and mort­
gagor (s) delivered it together with the “ mortgage” (as defined in the regulations) bearing the same date, and executed
to secure payment of said note; (4) said note and mortgage are in the form and type contemplated in the application
of the undersigned pursuant to which this loan guaranty certificate was issued; and (5) the principal stated above has
been paid to, or according to the directions of, the undersigned borrower (s).
B. The undersigned lender warrants that (1) the same “mortgage,” duly executed and witnessed, acknowledged, or proved
as provided by law, was properly filed, or filed for record, if and as provided by law on the ______________ day
o f ------------------------------------ , 19-------, a t ------------------------------ M ; and was given file N o .________________________by the recorder
or other proper official; (2) that it covers the property described on the reverse hereof, which is the same property
described, or otherwise identified, or referred to, in the above-mentioned application for guaranty, and in this loanguaranty certificate, or in the application to amend loan-guaranty certificate, if any, applicable to such loan; (3) that
no lien superior to said “ mortgage” has intervened since the date of said application unless the application indicates it
is for a loan to be secured by a second lien as prescribed by the regulations; and (4) if the approved application for guar­
anty related to a loan wholly or partly to be secured by a hypothecation or a pledge of personal property, such hypothe­
cation or pledge has become effective by appropriate delivery to the lender and no superior lien has intervened since date of
application.

(If a corporation)

(All signatures must be in ink)
Mr.
Mrs.
M is s _____________________________________________

Date

( Lender (s) )

[

CORPORATE
SEAL

]

By

(Secretary)

(Title (president, vice president, etc.))

Mr.
Mrs.
M iss_____________

D a te_____________________________________

Mr.
Mrs.
M iss________________________________________________________________
(Borrower (s))

NOTE 1.— I f the note is nnsecnred, references to “ mortgage” in paragraphs “ A ” and “ B” above are inapplicable. (See regulations, se(. 4108,
par. c.)
NOTE 2.— I f the local law provides for filing only, not recording, chattel mortgages or similar instruments, paragraph “ B” above nevertheless iB
to be completed. It refers not only to the county recorder or clerk, but also the State commissioner o f motor vehicles or other officials who keep
motor-vehicle mortgage records, and to other similar officials, State or county. See section 4133 of regulations.
U. S. GOVERNMENT PRINTING OFFICE

10---- 42455-1

Dec. ’44—760M

VETERANS ADMINISTRATION
* Finance? F o r m 1822

Page 1

VETERANS ADMINISTRATION

APPLICATION FOR FARM LOAN GUARANTY

State

Number L. F.
(To be filled in by V . A .)

(Where property is located)

1.

(Lender)

2. _________________________________________________

(Exactly as will appear on note)

(Borrower— Veteran)

(Exactly as will appear on note and mortgage)

(Street number, city, county)

(R. F. D., city, county)

(State)

(State)

INSTRUCTIONS
(Read carefully before beginning fo fill out this form)

I. L oan Guaranty Certificate (Form 1821).
Fill in all spaces at top of the form, except the “ L. F .” number. Also complete part II, “ Description of Property
To Be Mortgaged,” in such manner that all required information will be duplicated by a carbon impression in the
proper spaces on page 1 of the application. I f it is necessary to continue the property description on the reverse side
of the certificate, use space on page 2 of the application for the carbon impression thereof. The certificate may be
separated from the application along the perforated line at the bottom of the page. Submit it to the agency with the
application and other papers. (See regulations, sec. 4125.) No copy of the certificate other than the original is
necessary. It will be signed and returned to the lender by the Veterans Administration if the application is approved.
II. A pplication

for

F arm L oan Guaranty (Form 1822).

(a) This form is to be executed in duplicate (use Form 1822 a ). The duplicate copy does not have the certificate
attached and will be retained by the lender. The original signed copy will be permanently retained by the Veterans
Administration and should be sent to the agency with other papers. (See regulations, sec. 4125.)
( b) Every question must be answered.
applicable.

Place a check mark (V ) in space for answer to any question that is not

(c) If the loan is to be secured by personal property, but exceeds $1,000, answer question 16 (o) with respect to
the land on which it is to be used, notwithstanding the land is not described on page 1 and is not to be encumbered.
(See continuance of instructions, page 4)

Description of Property To Be ^Mortgaged”

3.

(Lot and block, section and township, land lot and land district, etc., and surveyor’ s field notes where appropriate, and any other language proper to
complete description. Include description o f personal property, if any. Describe fully. Show serial numbers, if available, or any other means of
identification)

Premises identified a s _______________ _______ __________________ ___ ______________________________________________________________
(Name o f place, if any. and R. F. D.

nearest highway.

Also number or name of

Street and number in city, etc.)

(City, town, village)

(County, parish)

(If more space is needed, continue carbon copy of description on reverse)

(State, district, territory)

16— 43AB5-1

P age 2

4.

Applicant’s a g e ------------

5. S e x ----- ---------------

8. Date of b irth ____________ __________________

6. Race -----------------------------

7. Service or Serial No______ _____________

9. Place of birth __________________ ........ ................................__............................... ....

10. Indicate by cross ( X ) the branch of service in which you served:
□

Army

□

Navy

11. Date entered service------------------------------------------- ---

□

Marine Corps

□

Coast Guard

12. Date separted from active d u ty _____ _______________________ ___

13. Rank and organization at time of separation _____ __________________________________________________________________________
14. I f you have served in any branch under another name, state that name, the branch, and dates between which you served
under that name.
15. Check one: □

I f none, so answer____________ ______ _______________________________________ _________________ ____________

Married

□

Single

□

Divorced

□

Widower (or Widow).

Number of children............................ ..........

Full name of wife or husband ____________________________________________________________________________ __________________
Boys’ ages --------- ---------------------- --------— ___________________

Girls’ ages ........................ .... ......................................._....................

16. Farming Experience:

Types op
Farming
(b)

Dates
(a)

17.

(a) Lender’s

(seller’s)

$________________

Number op Years as Laborer, Renter, Sharecropper, Owner,
or Student (State Which)
(c)

Location
<d)

estimate of value of property which will be encumbered to secure the

Buildings, $________________

loan?

Land,

( b) Personal property (identify generally) _______ ___ ____________

(c) Name and location of farm, highway numbers, and distance and direction from nearest town
(d)

I f tenant, state amount of rent ______________________________

( /) Do you have option to purchase?--------------------(h) W oodland------------------

( e) Unexpired term _______________ ____ __________

(g ) Number of acres, cultivated_________ _____ ________ ___________

(t) Pasture la n d ___________

(j) W astelan d___________

(k) Total acres _________ ____

( l) Amount and kind of fencing______________________________ _____ ____________ ________ ____ _________ _________ ___________
(m) Source of water supply-------- ----------------------------------------------

(n) Is electricity available for lights, power? .............

(o) Describe dwelling— number of rooms, type of construction, e t c ._________________ _____ _______________________________

------------------------------------------------------------------------------------ ^---------------------------------------------- ------ -------------------------------(p) Kind and size of outbuildings _____________________________________________________________________- .....................................
( q) What estate in the land described on page 1 hereof are you to own or do you now ow n ?............ ........-____ _____________
( State whether fee simple or other estate.

I f a lease only or sharecropper, state)

(Also state whether all or an undivided interest; and if latter, how much)

(r) Do you occupy or intend to occupy the farm as your hom e?__________

(s) Do you operate or intend to operate the

farm yourself?__________ (as provided in sec. 4100 (b) of the regulations).
18. Proposed Farm Operations:

Acres
(b)

Crops
(a)

16- 42455-1

Production
(0

To Be Sold
(d)

Unit Price
(e)

T otal, $.

Total
(0

Page 3
19. Production of Livestock and Livestock Products:

Livestock
(a)

Number on Hand
(b)

Production
(c)

Be Sold
(d)

To

Unit Price
(e)

Total
<«
$

*

—

T o t a l , $ ______________

I. Assets

Total assets (from col. I ) .......................$.

(а) C a s h .............

II. Liabilities

(б) Value of land
(c)

Buildings

. .

(d) Machinery
(e)

Livestock

(/)

Other

Indebtedness:
(а) Secured

. . . $______________

.

(б) Unsecured ..................................

. .

(c) Total indebtedness.................

. . . .

(d) Net w o rth .......................

(9)

,
$.

T o t a l , $.

21

I. Estimated Income

Total income (from col. I ) .................... $.

(a) C r o p s .............................................$____________________

II. Estimated Expenditures
(a) Farm operating

( b) L iv e s to c k ____________________

___________________

and

(c) Compensation or pension from

living

expenses . . . $________________

U. S. Government______________________________

(b) P a y m e n t

of

d e b t s _______ __________________
(cZ) Other income of veteran . . .
(e)

___________________

Of wife (or h u sban d)............

...... . . . .......................

(c) T a x e s _________

________________

(d) O t h e r _________

________________

(e) Total expenditures...........................
( /) Excess of income over expendi­

(/)

T otal, $_________ ______

tures ..................................................$.

22. Have you applied to the Administrator of Veterans’ Affairs for guaranty of any other loan or loans?
(Yes or No)

I f yes, give the following information for each application:
Date of Application (s)
(a)

Name

and

Address of Lender(s)
(b)

Purpose cf Loan(s)
(c)

War Loan
Closed

Amount of Guaranty
(e)

<d)

$

___________________________________
23. (a) Is loan to be secured by a second lien pursuant to sec. 505 of the act? _____________________________________________
(6) I f “ yes” state name and address of holder of primary loan __________________________________________ ~ _____________
------------------------------------------------------------------------------. -----------(d)

Interest rate -------------% per year

payments? $-----------------------------

(c) Amount of primary loan $-------------------------------------- -------- —

(e) Final maturity date? ______________________ ,_____ ____________

(g ) How often d u e ?_____________________ ____

( / ) Amount

(h) Name of Federal agency making,

insuring, or guaranteeing primary lo a n ? __________ ____ ___________________________________________________________________
24.

Property Insured
(a)

- __ __

.

____

___________

Fire
or No)
(b)

Amount

(Ye*

_____ _________

<«>

. . . .

___

Annual Premium
per $1,000
(d)

Other

(Specify Amount, Nature—
e, g, storm, hail, etc.)
(e)

Annual Premium
per $1,000
(8T)

_________________

25. (a) Purpose of the loan hereby applied for i s : _________________________________________ _________ _______
(6) Cost to veteran of real or personal property to be purchased, $______________
ments to any buildings or equipment, $_______ ______

ness, state amount of loan f o r : (i) Taxes, $______________
quent indebtedness, $---------------------

(c) Repairs, alterations, or improve­

(d) I f for taxes, special assessments, or delinquent indebted­
(ii) Special assessments,

............ ........

(iii) Delin­

(iv) Total amount o f _____________________ ___ ____outstanding, $........ .............. —
(State which)

Payable this fiscal year, $---------------------

(v) Payable per year, $______________ , beginning ______ _________________ ___

26. (a) Amount of loan now applied for, $____________________________

(b) Rate of interest___________________% per year.

(c) M aturities________________________________________________________________________________________________________________
(d) Secured by mortgage o r ___________________________________________________________________________ ____ _________________
(Deed of trust, conditional sales contract, etc.)
NOTE.—Must be first lien except as otherwise provided in regulations.

27. Amount of guaranty hereby requested,

...............................

28. Have you read or had read to you Form 1824, “ Explanation of Farm Loan Guaranty” ?

--------------

29. The person signing this application as the veteran hereby represents that he is the veteran named in question 2 on page 1
of this application.

His identity as such has been established to the satisfaction of the lender b y ------------------------------------

(State method, e. g., personal acquaintance o f stated period ; comparing signature and description on certificate o f discharge, etc.)
10- 12465-1

Page 4
30. All the information reflected by the application is true to the best of lender’s information and belief.
31. The undersigned borrower (veteran) and lender (or seller) hereby apply for guaranty by the United States of America
of a loan in accordance with this application, which is also an application to the lender by the borrower for said loan; said
guaranty to be pursuant to the Servicemen’s Readjustment Act of 1944 (58 Stat. 284), which act and the regulations
issued pursuant thereto and in effect on the date of the loan guaranty certificate issued pursuant to this application, shall
be a part of the contract between the United States of America, the borrower, the lender, and each of them.
32. Borrower and lender understand and agree that, if issued, the guaranty will be issued in reliance upon the information
contained in this application.
33. The lender, or authorized employee, or agent of the lender, has read this entire application as completed, has seen and
spoken with applicant, believes he is the veteran, and he appears to be competent to understand the nature of the trans­
action and enter into it.
(I f a corporation)
A tte st..

Lender.

Secretary.
D a te ________________________________________

[

CORPORATE
SEAL

By ------------------------------------- -------------------- ------(Authorized signature)

(Tide)

]

Date

(Borrower (s) )

Signatures of lender and borrower must correspond in every detail with the name as typed at top of page 1, notwith­
standing name of borrower so shown may differ from name in question 14.

A married woman will include her surname

before marriage, but sign husband’s surname as her present surname.
34.

Recommendation of Designated Agency
We, the certifying agency, after consideration of all the facts, believe that the loans for which guaranties are sought are
for the purposes stated in the application; that the property purchased or to be purchased with the proceeds of the loan
will be used in and will be useful and reasonably necessary to the efficient conduct of the bona fide farming operations of
the applicant, whose ability and experience and proposed operations are such that there is reasonable likelihood of his
success; and that the purchase price of the property is not in excess of the reasonable normal value thereof.
This application and the attached papers are forwarded to the Administrator of Veterans’ Affairs by the undersigned
designated Federal agency, which hereby recommends that said Administrator { a ^ p r o v e ^ } sa^

application for a

guaranty.

(Chairman o f committee)

(Member)

-------------------------------------(Member)

(Designated agency)

B y ------------------------------------------

(Member)

(Authorized signature)

D ate_____
IN STRU CTION S— Continued
III. Reference is made to the following sections of the regulations for guidance in connection with applications for (a) purl
chase of a farm (4 124-4132); ( b) new construction (4 1 3 2 ); (c) repairs, alterations, improvements, delinquent
indebtedness, taxes, special assessments (4 104-4107); (d) purchase of personal property (4 1 0 4 ); (e) two or more
borrowers (4122).
IV. I f the loan is for any of the purposes in paragraph III (c) above (section 501 (b) of the act) and is to be secured by a
junior lien because of existing prior liens, attach a signed memorandum stating with respect to such prior liens;
(a) date, original amount, and unpaid balance of loan; (6) amounts and frequency of payments required and per­
mitted; (c) rate of interest; (d) whether any payments are past due and the amounts thereof; (e) whether any taxes,
special assessments, or insurance premiums are due but unpaid and the amounts; ( /) date of most recent appraisal of
the property and value therein stated; (g ) date and nature of default, if any.
V. The veteran should have read Form 1824, “ Explanation of Farm Loan Guaranty,” before signing application.
VI. Permissible loan charges, see regulations, section 4116.
VII. I f the loan is not to be secured by a “mortgage,” see regulations, section 4124, paragraph 5.
VIII.

A notary’s certificate is not required on the application.

Nevertheless, it must be remembered that Federal statutes

provide severe penalties, including forfeitures, fines, and imprisonment for fraud on the part of the applicant and also
as to any person who shall “knowingly make or cause

to be made, or conspire, combine, aid or assist in, agree to,

arrange for, or in any wise procure the making or presentation of a false or fraudulent affidavit, declaration, certifi­
cate, statement, voucher, or paper, or writing purporting to be such,” concerning any application for the guaranty of a
loan by the Administrator (38 U. S. Code 697, 715, 450, 451, 454a, 556a; 18 U. S. Code 80).
U. S. GOVERNMENT PRINTING OFFICE

16-42455-1

Dec. ’44—750M

VETERAN^ ADMINISTRATION
F in a n ce F o r m 1824

VETERANS ADMINISTRATION

EXPLANATION OF FARM LOAN GUARANTY
(Under the Servicemen’s Readjustment Act o f 1 9 4 4 )
(Veteran should read this explanation before signing the application fo r m )

1. The Veterans Administration has no authority to make a loan. The loan is made by banks and other lenders at not
over 4 percent interest. There are no “designated lenders.” All lenders are “eligible.” When made in accordance with
the regulations, the loan may be partially guaranteed by the Administrator. The guaranty is available on purchase money
notes also. For convenience these transactions are called loans in this explanation. Payments may extend over a maximum
period of 20 years, but not longer than the useful life of property (real or personal) which is security for the loan.
2. I f the veteran fails to make payments as they become due according to his contract with the lender the lien may be
foreclosed and the property sold. If the Veterans Administration is required to pay any or all of the amount guaranteed,
the veteran will become; obligated for the repayment to the Government of the amount paid on account of the guaranty.
3. Interest for the first year on the amount guaranteed will be paid by the Government. The veteran does not repay this
interest.
4. Any lender has the right to refuse to make a loan, with or without stating a reason. The fact that a particular
lender refuses to lend the money does not mean that another lender may not be willing to lend it. The Veterans Adminis­
tration will determine whether to guarantee the loan on the basis of the facts presented, irrespective of who may be the
proposed lender (or seller).
5. Neither the act nor the regulations limit the amount of the loan, but the maximum amount of guaranty available
to an eligible veteran is $2,000. Once this amount has been guaranteed by the Administrator it cannot be made available on
another loan, for any purpose.
6. Under certain conditions the Administrator may guarantee a loan secured by a “ second mortgage,” for the purpose
of acquiring a farm, if the “first mortgage” is to secure a loan made, guaranteed, or insured by a “ Federal agency.” Most
lenders can furnish details about such a loan.
7. The Veterans Administration will not undertake to advise a veteran whether to purchase a specific property. This
is a decision the veteran must make on his own responsiblity after obtaining such information as he considers proper. Infor­
mation of a general character will be supplied on request of the veteran. In any important deal it usually is wise to obtain
some expert advice on the particular facts, and applicable law, before signing any agreement. Advice should be obtained
from a person qualified on the particular subject and who does not represent any other party to the deal. Care should be
taken to see that the acreage actually is the amount purchased. The county clerk or judge can supply the name of the official
surveyor or another surveyor. Your county agent or State commissioner of agriculture, or similar official, can supply
certain other information, or the names and addresses of others who can.
8. Read the entire application Form 1822 before answering the questions in it. This will suggest several matters which,
while not precisely covered in the application, require careful consideration in the purchase of a farm. For example: (a)
productivity and soil type, sufficiency of timber to furnish wood for fuel and lumber for repairs on the farm, erosion haz­
ards, size, and is the farm adaptable for the type of farming contemplated; (&) probable cost of upkeep of buildings, fenc­
ing, erosion control, taxes, water supply, and other costs; (c) nearness of suitable schools, churches, recreation centers,
shopping facilities, markets for produce, produce-buying routes, etc., railroad stations, and type of roads; (d) suitability of
living conditions to size of family, and ages of children.
9. The purchase of a farm is an important transaction. To be successful, all factors must be carefully considered. A
copy of the regulations, which are a part of the contract, is available at any office of the Veterans Administration and prob­
ably at any bank or other lending institution.
10.
I f loan is not closed the proposed lender, or when paid the holder of the note will mark Finance Form 1821, “ Loan
Guaranty Certificate,” “ Canceled,” sign thereunder, and return to Veterans Administration.
16— 42454-1

F rank T. Hines,
Administrator.

t

INSTRUCTIONS TO LENDERS
I M P O R T A N T — T he instructions below should be read b y the
lender b e fo re securing appraisal or presenting application

No. 1.— When “ Certification of Eligibility” Form 1800 designates as appraiser the Chief Reviewing Appraiser of the
Farm Credit Administration, the lender will, when requesting the service forward the amount of the fee indicated on the
Form 1800. The remittance will be payable to the Federal Land Bank and accompany the request for appraisal report when
mailed to Chief Reviewing Appraiser, care of Federal Land Bank in the district in which the property to be appraised is
located. The lender shall furnish at the time of his request for appraisal, description of the real property, distance and
direction to nearest town, name of farm, if any, number of highway or name of road on which located, and any other infor­
mation that might be helpful to the appraiser in locating the property to be appraised.
No. 2.— When “ Certification of Eligibility” Form 1800 designates as appraiser the Veterans agricultural loan commit­
tee for real or personal property, the lender shall notify the committee whose address is in care o f the farm supervisor of
the Farm Security Administration of the area in which farm operations are to be conducted.
No. S.— When loan application and related papers, are completed the lender shall forward all papers to the Veterans
agriculture loan committee as indicated in the foregoing paragraph.
No. U.— Amendments to Veterans Administration regulations as they occur will be published in the Federal Register, as
required by law.
16— 4 2 4 5 4 -1
U . S . GOVERNMENT PRINTING O F F I C E

VETERANS ADMINISTRATION
•Finance F o r m 1822 a

Page 1

VETERANS ADMINISTRATION

APPLICATION FOR FARM LOAN GUARANTY

State

Number L. F.

(Where property is located)

(To be filied in"by~V."A.")

2............ .......................................................................................... ...........

(Lender) "(Exactly as will appear on note)

(Borrower—Veteran)

(R, F. D., city, county)

(Exactly as will appear on note and mortgage)

(Street number, city, county)

(State)

(State)

INSTRUCTIONS
(Read carefully before beginning fo fill ouf tjr&form}
I. L oan G uaranty Certificate (Form 1821).
Iso complete part II, “ Description of Property
Fill in all spaces at top of the form, except the “ L. F .” numbt
duplicated by a carbon impression in the
To Be Mortgaged,” in such manner that all required informati<
proper spaces on page 1 of the application. I f it is necessary to
imTe the property description on the reverse side
of the certificate, use space on page 2 of the application
;bon impression thereof. The certificate may be
m of the page. Submit it to the agency with the
separated from the application along the perforated line
copy of the certificate other than the original is
application and other papers. (See regulations, sec.
'terans Administration if the application" is approved.
necessary. It will be signed and returned to the lend'

II.

A pplication

for

F arm L oan Guaranty (Form 1822).

(a) This form is to be executed in duplica
attached and will be retained by the lender..
Administration and should be sent to the
( b) Every question must be answer!
applicable.
(c) If the loan is to be secured by _
the land on which it is to be used, ftjKwiths

1822 a ) . The duplicate copy does not have the certificate
1 signed copy will be permanently retained by the Veterans
ther papers. ( See regulations, sec. 4125.)
ace a check mark (V ) in space for answer to any question that is not

;o>&1 property, but exceeds $1,000, answer question 16 (o) with respect to
ding the land is not described on page 1 and is not to be encumbered.
:« continuance of instructions, page 4)

cription of Property To Be “ Mortgaged5

3.

(Lot and block, section and township, land lot and land district, etc., and surveyor’s field notes where appropriate, and any other language proper to
complete description. Include description of personal property, if any. Describe fully. Show serial numbers, if available, or any other means of
identification)
Premises identified as

nearest highway.

(Name o f place, if any, and R. F. D.

Also number or name of

Street and number in city, etc.)

(City, town, village)

(County, parish)

(If more space is needed, continue carbon copy of description on reverse)

(State, district, territory)

Page 2

4. Applicant’s a g e --------------

5. S e x ---------------------

8. Date of birth -----------------------------------------------

6. R a c e ___________________

7. Service or Serial N o .___________________

9. Place of b ir th ______________________________________________________________

10. Indicate by cross ( X ) the branch of service in which you served:
□

Army

□

Navy

□

11. Date entered service-----------------------------------------------

Marine Corps

□

Coast Guard

12. Date separted from active d u ty _________________________________

13. Rank and organization at time of separation____________________________________________________________________________„___
14. I f you have served in any branch under another name, state that name, the branch, and dates between which you served
under that name.
15. Check one: □

If none, so answer________________________________ _______________________________________________________

Married

□

Single

□

Divorced

□

Widower (or Widow).

Number of children

Full name of wife or husband _________________________________________________________________________
Boys’ ages ---------- -----------------------

---------------------- --------------

Girls’ ages ___ _____ ______ _______ _____ _

16. Farming Experience:

Dates
(a)

17.

(a) Lender’s

Types op
Farming
00

(seller’s)

$-------------------------

Number of Years as Laborer, Renter, Sharecropper, Owner,
or Student (State Which)
(c)

Location
<d)

estimate of value of property which will be encumbered to secure the

Buildings, $-------- ^---------------

loan?

Land,

(6) Personal property (identify generally) _______________________

(c) Name and location of farm, highway numbers, and distance and direction from nearest town
(d) I f tenant, state amount of rent _______________________________
( / ) Do you have option to purchase?--------------------(h) Woodland ----- -----------

(e) Unexpired term _____________________

(g ) Number of acres, cultivated_________________________

(i) Pasture la n d ------------------

( ;) W asteland___________

(k) Total a c r e s____

(Z) Amount and kind of fencing__________________________________________________________________________________
(m) Source of water supply___________________________________
(o)

(n) Is electricity available for lights, power?

Describe dwelling— number of rooms, type of construction, etc. _____________ ____ _________________________

(p) Kind and size of outbuildings__________________________________________________________________________________________
(q) W hat estate in the land described on page 1 hereof are you to own or do you now ow n ?______ _____ __________________ _

(State whether fee simple or other estate. If a lease only or sharecropper, state)
( a Ts o

state whether all or an undivided interest; and i f latter, how much)

(r) Do you occupy or intend to occupy the farm as your hom e?----------------

(s) Do you operate or intend to operate the

farm yourself?__________ (as provided in sec. 4100 (b ) of the regulations).
18. Proposed Farm Operations:

Crops
(a)

_ ______

Production
(c)

Acres
(b)

-

1G— 1 24 48 -1

—

.

To Be Sold
<d)

Unit Price
(e)

Total
(f)

------------------- -----------

----------------

T o t a l , $.

Page 3
19. Production of Livestock and Livestock Products:
L iv e s t o c k
(a )

N

um ber o n

H

and

P

(c )

T

U n i t P r ic e
(e)

T o B e S old
(d)

r o d u c t io n

(b)

otal

(f)
.$

,

..............

.

-

T otal, $____________ _____ __________
20.

I. Assets

Total assets (from col. I ) .................... $------------------------------

(a) C a s h .................................... „ . .

II.

(b) Value of la n d ....................

.

Liabilities

Indebtedness:

(c) B u ild in g s .........................................

(а) Secured

(d) Machinery

(б) Unsecured ........................ .........

......................................

. . . $---------------------

(e) L iv e sto c k .........................................

(c)

(/)

(d) Net w orth.................................... $___________________

(g

Other

........................................,

,

Total indebtedness.................

............. ........ ...........

T otal, $.

)

21

I. Estimated Income

.............$ ------------------------

Total income (from/col. I
II. Estim

(a) C r o p s ............................ » . . . . !

penditures

(а ) Farm operating
(6 ) L iv e sto c k ....................................

.................

a n d li
expenses

(c) Compensation or pension from

(б ) Paynue>uJ

U. S. Government......................................

of

debt

(c)

(d) Other income of veteran . . .

(d)

QO XNta^^Pend itu r e s .......................

(e) Of wife (or husband)..............

(/V E x c e ss of income over expendi-

( /)

^ ^ t u r e s ......................................... $

T otal, $.

>r guaranty of any other loan or loans?

22. Have you applied to the Administrator of Veter|

(Yes or No)

I f yes, give the following information for each*
•Da t e

of

A

p p u c a t io n

(s )

N

am e

and

of

P

Lh m d e r ( s )

urpo se o f

Lo

an

(s )

W

ar L oan
lo sed

C

< c)

(a )
------------------------- —

A

G uaranty

m o u n t of

<d)

<e )

-

NX"

$ ...............................................................

' ))

NX
23. (a) Is loan to be secured by a second lien pursuant to sec. 505 of the a c t ? -------------------------------------------------------- ----------(b)

I f “ yes” state name and address of holder of primary loan ------- ----------------------------------- -------------- ----------------------------

...______________________________ ______ ___________________(c) Amount of primary loan $...................................................... -.............
(d) Interest r a t e _________ :% per year
payments? $..................................

(e) Final maturity d a te ? -----------------------------------------------------

( / ) Amount of

(g ) How often due? .........................................( h) Name of Federal agency making,

insuring, or guaranteeing primary lo a n ?__________ _______________________________________________________________________
24.
P

roperty

Insured

(a)

F ir e

(Yes or No)

A

mount

•

A

nnual

P

r e m iu m

PER $ 1 ,0 0 0

(c )

(b )

( S p ecify A m ou n t, N ature —
e. g , storm , haU, etc.)

- Oth er

A

P r e m iu m
$ 1 ,0 0 0
<R)

nnual
per

(e )

(d )

_____________ _________
25. (a) Purpose of the loan hereby applied for i s : ____________________________________________________________________________

(b y Cost to veteran o f real o r personal property to be purchased, $----- — — ____
ments to any buildings o r equipment, $_________ ___ _
ness, state amount o f loan f o r : ( i ) Taxes,
quent indebtedness, $.........................

(c ) Repairs, alterations, or im prove­

(d ) I f fo r taxes, special assessments, o r delinquent indebted­

___________—

(ii) Special assessments,

-------------------

(iii) Delin­

(iv ) T otal amount o f ..................1 .................................. outstanding, $---------------- -—

P ayable this fiscal year, $............ . ...........

.(State which)

(v ) Payable per year,

..................—, beginning _ ................................................

26. (a ) A m ount o f loan now applied fo r , $_____________________ ____ ...

(b ) R ate o f in te re s t---------------------------- % per year.

( c ) M a tu ritie s ________________ ____________________________________________________ ___________________________ _______________
(d ) Secured by m ortgage or ........................................... ...................................................................................................................................

(Deed of trust, conditional sales contract, etc.)

NOTE.—Mast be first lien except as otherwise provided in regulations.
27. A m ount o f guaranty hereby requested, $______^___________
28. H ave you read or had read to you F orm 1824, ^E xplanation o f F arm Loan Guaranty” ?

---------- -

29. The person signing this application as the veteran hereby represents that he is the veteran named in question 2 on p age 1
of this application.

H is identity as such has been established to the satisfaction o f the lender b y ...........................................

(State method, e. g., personal acquaintance of stated period; comparing signature and description on certificate of discharge, etc.)
16— 4 2 4 4 8 -1

Page 4
30. All the information reflected by the application is true to the best of lender’s information and belief.
31. The undersigned borrower (veteran) and lender (or seller) hereby apply for guaranty by the United States of America
of a loan in accordance with this application, which is also an application to the lender by the borrower for said loan; said
guaranty to be pursuant to the Servicemen’s Readjustment Act of 1944 (58 Stat. 284), which act and the regulations
issued pursuant thereto and in effect on the date of the loan guaranty certificate issued pursuant to this application, shall
be a part of the contract between the United States of America, the borrower, the lender, and each of them.
32. Borrower and lender understand and agree that, if issued, the guaranty will be issued in reliance upon the information
contained in this application.
33. The lender, or authorized employee, or agent of the lender, has read this entire application as completed, has seen and
spoken with applicant, believes he is the veteran, and he appears to' be competent to understand the nature of the trans­
action and enter into it.
{ I f a corporation)

A tte st............................................................... .. ............... .......

.....

Secretary.
D a te ..................... ........................ ..................... .....

Lender.

By
(Authorized signature'

CORPORATE
SEAL

j

(Title)

(Borrower (s) )

Signatures of lender and borrower must correspond in every detail with the name as typed at top of page 1, notwith­
standing name of borrower so shown may differ from name in question 14.

A married woman will include her surname

before marriage, but sign husband’s surname as her present surname.
34.

Recommendation of Designated Agency
W e, the certifying agency, after consideration of all the facts, believe that the loans for which guaranties are sought are
for the purposes stated in the application; that the property purchased or to be purchased with the proceeds of the loan
will be used in and will be useful and reasonably necessary to the efficient conduct of the bona fide farming operations of
the applicant, whose ability and experience and proposed operations are such that there is reasonable likelihood of his
success; and that the purchase price of the property is not in excess of the reasonable normal value thereof.
This application and the attached papers are forwarded to the Administrator of Veterans’ Affairs by the undersigned
designated Federal agency, which hereby recommends vthat said Administrator { approve^6 } sa^

application for a

guaranty.

(Chairman o f committee)

(Member)

(Member)

(Designated agency)

----- -------------------------------(Member)

B y ..................................................

(Authorized signature)

D ate........ .
INSTRUCTION S— Continued
III. Reference is made to the following sections of the regulations for guidance in connection with applications for (a) purchase of a farm (4124-4132); (6) new construction (4 1 3 2 );

(c) repairs, alterations, improvements, delinquent

indebtedness, taxes, special assessments (4104-4107); (d) purchase of personal property (4104) ; (e) two or more
borrowers (4122).
IV. I f the loan is for any of the purposes in paragraph III (c) above (section 501 (b) of the act) and is to be secured by a
junior lien because of existing prior liens, attach a signed memorandum stating with respect to such prior liens;
(a) date, original amount, and unpaid balance of loan; (6) amounts and frequency of payments required and per­

mitted; (c) rate of interest; (d) whether any payments are past due and the amounts thereof; (e) whether any taxes,
special assessments, or insurance premiums are due but unpaid and the amounts; ( /) date of most recent appraisal of
the property and value therein stated; ( g ) date and nature of default, if any.
V. The veteran should have read Form 1824, “ Explanation of Farm Loan Guaranty,” before signing application.
V I. Permissible loan charges, see regulations, section 4116.
V II. If the loan is not to be secured by a “mortgage,” see regulations, section 4124, paragraph 5.
VIII. A notary’s certificate is not required on the application.

Nevertheless, it must be remembered that Federal statutes

provide severe penalties, including forfeitures, fines, and imprisonment for fraud on the part of the applicant and also
as to any person who shall “knowingly make or cause

to be made, or conspire, combine, aid or assist in, agree to,

arrange for, or in any wise procure the making or presentation of a false or fraudulent affidavit, declaration, certifi­
cate, statement, voucher, or paper, or writing purporting to be such,” concerning any application for the guaranty of a
loan by the Administrator (38 U. S. Code 697, 715, 450, 451, 454a, 556a; 18 U. S. Code 80).
U . S . G O V E RNM ENT P R I N T ! » C O F F IC E

16— 42448-1

Dec. ’44—750M

v

VETERANS ADMINISTRATION
. F in a n ce F o r m 1845

No. L - B ________________
(To be filled in by V. A .)

V eterans A dministration

APPRAISER’S CHECK SHEET
Business Loans
To

the

V

A d m in is t r a t o r ,

eterans

A

d m in is t r a t io n

:

In connection with the application for guaranty o f the business loan being negotiated b y :

(Name o f veteran-borrower)

(Address: Show street No., city, State)

(Service serial No.)

w ith ____________________________________________________________ , ______________________________________
(Name of lender)

(Address: Show street No., city. State)

the following information is submitted fo r consideration o f the designated agency and the Adm inistrator:
Total purchase price________________________________________ $________________
Amount o f loan_____________________________________________

________________

Amount o f guaranty applied for.____________________________

________________

Purpose of Loan

Type of Organization

□

To purchase an existing business.

□

Operate as individual.

□

To purchase_______________________________

□

Operate as partnership.

□

Operate as ____________________

(Describe)

--------------- ------------------------------------ -----------

(Describe)

These questions pertain either to manufacturing, wholesale, retail, or service establishments, including
restaurants and other types o f eating and drinking places.
I f applicable, the lender will supply information as follow s:
1. Is the public now being adequately served by businesses o f this t y p e ? _________________ Yes □

No □

2. Are such businesses old and well established ?__________________________________________ Yes □

No □

3. Will existing businesses afford keen competition?________________________

Yes

□

No □

4. Have any businesses o f this type closed recently?_____________________________________ Yes

□

No □

( I f answer is yes, show number and state briefly the cause.) ________________________

5.

Is the location which has been selected desirable fo r this type o f business?---------------- Yes □

No □

1 6-4 20 28 -1

2

6. Are there other similar establishments nearby?______________________________________ Yes □

No □

7. From what sources will the business draw its trade?

8. Are the display windows suitable?____________________________________________________

Yes □

No □

9. Is the store front modern and attractive ?_____________________________________________

Yes □

No □

For future needs?_________ Yes □

No □

10. Is the space adequate fo r present needs?

Yes □

No □

11. Is the building of sound construction, and attractive?_________...______.1______________

Yes □

No □

12. Will any m ajor remodeling or alterations be necessary?_______________________________ Yes □

No □

13. Are the plumbing facilities adequate?__________________________________ ______________ Yes □

No □

14. Is there a satisfactory heating plant?___________________________________________ _ _____ Yes □

No □

15. Are there any built-in fixtures or equipment?--------------------------------- ---------------------------- Yes □

No □

16. Are the terms o f the lease satisfactory?_________- ____________________________________ Yes □

No
« □

(a )

Does it provide fo r cancellation ? Y e s Q

No O

For subleasing? Yes □

No □

For renewal ? --------------- ------- ------- ----- -------------------------------------------------- ---------- ------ Yes □

No □

17. Does it provide for reimbursement for alterations?---------------------------------------------------- Yes □

No □

18. Is the rent a fixed dollar amount?

Yes □

No □

Amount-------------------------------------- $■........ -

19. I f a percentage o f sales, state percent and how computed---------------------------------------------

20. What is your estimate o f gross sales per month?

$--------------------------

Expense?

$--------------------------

Net? $________________
21. Are sales for cash or cr e d it?_____________________________________________ __

If credit, show the usual

terms ____________________________________________________________ T_________________________________
22. What do suppliers think o f the prospects for success for a business o f this type in this trading area?

i e — 42>I2S-1

3
23.

What do local businessmen in noncompeting lines think of the prospects for success fo r a business o f this
t y p e ? ---------------------------------------------------------------- ------------------- -----------------------------------------------------------

24. Have you checked applicant’s references?__________________________________ ___________ Yes □

No □

25. Their opinion _______________________________________ ________________________________________________

26. The Business Loan Guaranty regulations o f the Servicemen’s Readjustment A ct define “ reasonable
normal value” as follow s:
“ Reasonable normal value for-the purposes o f the A ct is that which can be justified as a fair and
reasonable price to be paid fo r the real or personal property fo r the purposes fo r which it is being
acquired, assuming a reasonable business risk, but without undue speculative or other hazard as to the
future o f such value.
“ The purpose and intent are to assure that the price to be paid is not in excess o f that on which a
fair profit can be earned based on (a) the past record, if a n y ; (b ) the reasonable probabilities o f the
future; and (c) reasonably efficient management.”
27. In your opinion does the purchase price stated herein represent a reasonable normal
value as so defined?___________ ________ _____________ ___________________ _______r----- Yes □

No □

28. Comments, if a n y :

The answers to the foregoing questions and the statements made above are true and complete to the best
o f my information and belief. I have no financial interest in the subject matter of the transaction contem­
plated and do not represent a lender wholly or partially controlled by the vendor. The information here­
inabove contained is and shall be confidential and shall not be disclosed except as provided by law.

(Signature of person functioning as appraiser)

(Appraiser’s business address— street and number)

(Type his name on this line)

(City or town and State)

(Name o f his employer)

(Employer’ s address)

(Date)

(Title, if any)
U. S . GOVERNMENT PRINTING O FFICE

10 — 4 2 6 2 8 - 1

VETERANS ADMINISTRATION
F in a n ce F o r m 1 8 1 1

U N ITE D S T A TE S O F A M ER IC A

LOAN GUARANTY CERTIFICATE
Issued by
VETERANS ADMINISTRATION

S tate_________________________

No. L -B

(To be filled in by V . A .)

(Where property is located)

(Borrower-veteran, exactly as to be signed on note and mortgage)

(Lender, exactly as payee’s name will appear on note)

(R. F. D. or street)

(Post office)

(R. F. D. or street)

(County)

(Post office)

(County)

(State)

(State)

I
A. This certificate shall become effective when the requirements o f the statute and regulations have been complied
with and the acts certified in part III hereof have been accomplished in compliance with said requirements.
B. When it becomes effective as hereinabove prescribed, this certificate shall obligate the United States o f America
to pay to the legal holder of the “ note” described on the reverse hereof upon his duly filing claim therefor:
1. All or such portion o f the maximum amount hereby guaranteed as becomes payable upon the con­
ditions, at the times stated in, and in accordance with the provisions o f the Servicemen’s Readjustment
A ct o f 1944 (38 U. S. Code 693; 58 Stat. 284), and the regulations issued pursuant thereto which are in
effect on the date o f this certificate. In no event will the obligation under this certificate exceed $2,000.
Subject to the foregoing, this guaranty is f o r _______ per centum o f the principal amount o f said “ note,”
b.ut not fo r more than $____________________ In no event will it exceed said percentage o f the principal
amount.
2. A t the expiration o f 1 year from the date of the “ note,” an amount equal to the interest fo r 1 year
at the contract rate on that portion o f the indebtedness ( “ note” ) originally guaranteed hereby, such pay­
ment to be credited on the indebtedness as prescribed by said regulations.
C. Executed on behalf o f the United States o f America by the Administrator o f Veterans’ Affairs, through the
undersigned authorized agent on this date, to become effective in the manner hereinabove prescribed.
D a te d _____________________________

A d m in is t r a t o r

By

N o t e .— If loan is not closed the proposed lender, or when
paid, the holder of the note will mark this certificate “ Can­
celed,” sign thereunder, and return to Veterans Adminis­
tration.

At

of

V eterans’ A

f f a ir s ,

(Authorized agent)

(Post office)

II
Description of property to be “mortgaged” (Lot and block, section and township, land lot and
land district etc. and surveyor’s field notes where appropriate, and any other language proper
to complete description. Include description of personal property, if any. Describe fully: Show
serial numbers, if available, or any other nTeans of identification.)

Premises identified a s ________________________________________________________________________________________
(Name o f place, if any, and R. F. D. Also number or

name o f nearest highway.

Street and number in city, etc.)

(City, town, village)

(County, parish)

(State, district, territory)

and further described a s :

( I f more space is needed, detach and continue description on reverse)

10— 42565-1

(Continue legal description if necessary in the space below)

III
CERTIFICATION BY BORROWER AND LENDER
A . We hereby warrant that (1) the undersigned borrower named on the reverse hereof executed the note, the
face amount o f which is $_____________ consisting o f $----------------------principal and $______________ interest,
as defined in the regulations; (2) it is dated t h e ________________ day o f ______ ____ ...______________ 19____ ;
(8) borrower (s) and m ortgagor (s) delivered it together with the “ mortgage” (as defined in the regulations)
bearing the same date, and executed to secure payment o f said note; (4) said note and mortgage are in the
form and type contemplated in the application o f the undersigned pursuant to which this loan guaranty cer­
tificate was issued; and (5 ) the principal stated above has been paid to, or according to the directions of, the
undersigned borrower ( s ) .
B. The undersigned lender warrants that (1) the same “ mortgage” duly executed and witnessed, acknowledged,
or proved as required by law, was properly filed, or filed fo r record, if and as provided by law on th e _________
day o f _______________________19_____ ; a t ------------------------------ M ; and was given file N o_______________by the
recorder or other proper official; (2 ) that it covers the property described on the reverse hereof, which is the
same property described, or otherwise identified, or referred to, in the above-mentioned application fo r guar­
anty, and in this loan guaranty certificate or in the Application to Amend Loan Guaranty Certificate, if any,
applicable to such loan; (3) that no lien superior to said “ m ortgage” has intervened since the date o f said
application, unless the application indicates it is fo r a loan to be secured by a second lien as prescribed by the
regulations; and (4 ) i f the approved application fo r guaranty related to a loan wholly or partly to be secured
by a hypothecation or a pledge of personal property, such hypothecation or pledge has become effective by
appropriate delivery to the lender and no superior lien has intervened since date o f application.
(A ll signatures must be in ink)

(I f a corporation)
Mr.
Mrs.
Lender (s).

Secretary.

By _ .
CORPORATE
SEAL
(Required here in all cases)

Date

________ __________ __ ____

(Title (president, vice president, etc.))

Mr.
Mrs.
M iss... -__
Mr.
Mrs.
M iss_____
B oivow er(s).

N ote 1.— I f the note is unsecured, references to “mortgage” in paragraphs “A ” and “B” above are inapplicable.

(See regulations,

Sec. 4205, 4208.)
N ote 2.— If the local law provides for filing only, not recording, chattel mortgages or similar instruments, paragraph “ B ” above
nevertheless is to be completed. It refers to not only the county recorder or clerk, but also to the State Commissioner of
Motor Vehicles or other official who keeps motor vehicle mortgage records, and to other similar officials, State or county.

Jan. 46—600M

ia—42565-1

U. S. GOVERNMENT PRINTING OFFICE

P age 1

F in a n ce F o rm 1842

V E TE R A N S A D M IN IS TR A TIO N

APPLICATION FOR BUSINESS
OR BUSINESS REALTY LOAN GUARANTY

No. L - B ______________________

S tate_________________ _____ ________

(To be filled in by V . A .)

(Where property is located)

1_____________________________________________

2_____________________________ ______ _____________
(Borrower-veteran, exactly as to be signed on note and mortgage)

(Lender, exactly as payee’ s name will appear on note)

(R. F. D. or street)

(Post office)

(R. F. D. or street)

(County)

(Post office)

(County)

(S tate)

(State)

INSTRUCTIONS
(Read carefully before beginning to fill out this form)

I. L oan Guaranty Certificate (Form 1841).

Fill in all spaces at top o f the form, except the “ L -B ” number. Also complete Part II, “ Description o f
Property to be Mortgaged,” in such manner that all required information will be duplicated by a carbon
impression in the proper spaces on page 1 o f the application. If it is necessary to continue the property
description on the reverse side o f the certificate, use space on page 2 o f the application fo r the carbon impres­
sion thereof. The certificate may be separated from the application along the perforated line at the bottom
o f the page. Submit it to the agency with the application and other papers. (See regulations, sec. 4225.)
No copy o f the certificate other than the original is necessary. It will be signed and returned to the lender by
the Veterans Administration if the application is approved.
II.

A

p p l ic a t io n

for

B u s in e s s

or

B u s in e s s R e a l t y L o a n

Guaranty

Supplement (E X H IB IT A and EXH IBIT B) (Form 1842 b and Form 1842 c ).
(a.) The application and Exhibit A are to be executed in duplicate in every case. Exhibit B also in
duplicate is only required if the loan is in excess o f $5,000. The duplicate will be retained by the lender.
The original signed copy will be permanently retained by the Veterans Administration and should be sent to
the agency with other papers. (See regulations, sec. 4225.)
(6 ) Every question must be answered except that if no real property is to be encumbered, questions 18
to 24 inclusive, need not be answered. Place a check mark ( V ) in space for answer to any question that is
not applicable.
(See continuation of instructions, page 4)

3.
Description of property to be “ Mortgaged.” (Lot and block, section and township, land lot, and land
district etc. and surveyor’s field notes where appropriate, and any other language proper to complete
description. Include description o f personal property, if any. Describe fully: Show serial numbers, if
available, or any other means o f identification.)

Premises identified a s ________________________________________________________________________________________
(Name of place, if any, and R. F. D.

Also number or name of

nearest highway, street and number in city, etc.)

(City, town, village)

(County, parish)

(State, district, territory)

(I f more space is needed, continue carbon copy o f description on page 2 o f application)
1 8 -4 2 5 6 5 -1

Page 2

\

4 . A p p lican t’s a g e ------------5. S e x _______________ 6. R a c e __________________ 7. Service or serial N o ________________________
8 . D ate o f b i r t h -----------------------------------------------

9. Place o f b i r t h ________________________________________________________

10. Indicate by a cross (x ) the branch o f service in w hich you se rv ed :
□

A rm y

□

N avy

□

M arine Corps

□

Coast Guard

11. D ate entered s e r v ic e ------------------------------------------- 12. D ate separated fro m active d u t y ______________________________
13. R an k and organization at tim e o f se p a ra tio n _________________________________________________________________ .__________
14. I f you have served in any branch under another nam e, state that nam e, the branch, and dates between which
you served under th at nam e.
15.

I f none, so a n s w e r__________ ________________________________ _____ ________________________

H ave you applied to the A dm in istra to r o f V eteran s’ A ffa irs fo r guaran ty o f any other loan or loans ? _________
(Yes or no)

I f yes, give the follow ing inform ation fo r each application.
A*)
Date of
Application (s)

(e)
Purpose
o f Loan(s)

(b)
Name and Address o f Lender (s)

.

-

.

(<*)
Was Loan
Closed ?

(«)
Amount of
Guaranty

--------

16. (a ) Purpose o f loan hereby applied f o r : __________________________________________ ____ _— _____ ________________________ _
______________________________....________________________________________________
( b ) Purchase price, ? ___________________
(c) A m o u n t o f loan hereby applied fo r $ ______________________*
requested $ ___________________

( /)

(d) R ate o f in te r e s t------------ %

(e )

G uaranty

Secured by a ________________________ m ortgage, o r ______________________________ _

( g ) F o r _______________years (h) Payable $ ___________________ e a c h ______________________
(a) Is loan to be secured by a second lien pursuant to section 5 05 o f the A c t ? ------------------------------------------------------( b) I f “ y es,” state nam e and address o f holder o f prim ary lo a n _____________________ j.____________________________

___________________________
1 7.

_______________________________________________________________________ (c ) A m o u n t o f prim ary loan $ _____________________
( d) In terest r a t e ________% per year,

(e) Final m a tu rity d a t e _____________________________________

( / ) Am ount

o f paym ents $___________________ ( g ) H ow often d u e ______________________________ (h) N am e o f Federal agency
m aking, insuring or guaranteeing prim ary l o a n ___________ ____________ ______________________________________________
18 L sn d *
n
’

„

(a ) The land h a s ---------------------------------fe e t fron tage
o n ___________________________________ Street (o r r o a d ),
and i s ------------------------------------------------- feet deep.

Plat .— Indicate below shape, location, and dimensions of
lot, distance from nearest intersections, and names of

streets or roads-

A re a

a b o u t----------------------------------------------- (sq. ft . or a c r e s ).

N

(b) E asem ents (location and pu rpose: A lso m ark
on d ia g ra m ).

s
s'

19.

L ea se h o ld -------------------------

R ental, $ ___________________per year.

Lease is d a t e d ___________________

(Yea or no)

and e x p ir e s ---------------------------------------

O p tio n s: Renewable f o r ________y e a r s :

Purchasable fo r $.

Option expires
10-42066-1

Page 3

20.

W h a t estate in the land described on page 1 h ereof are you to own or do you now ow n?
(State whether fee simple, or other estate.

I f a lease only, so state and when it expires)

(Also state whether all, or an undivided interest; and if latter, how much)

2 1 . S tre e t: (a) R ig h t-o f-w a y w id t h _______________feet.
__________ fe et wide,

( b) Surfaced w i t h ____________________________________________
(c) Curbs and gutters in p la c e __________________ (d) Sidew alks in p la c e -------------------------(Yes or no)

22. U tilities (answ er “ Y e s ” or “ N o ” as to each connected to the building) :
(public m a in ) __________

(c ) Public s e w e r s _______________

su p p ly : P u b lic _____________

P r iv a t e _____________

(Yes or no)

(a )

E le c tr ic ity __________

(d) Septic tank and d r a in __________ __

( b ) G as
(e) W a te r

O ther ( s p e c i f y ) _______ _ _______________________________________

23. Structure: (a.)'When b u ilt_________ (b) Type of construction: F ra m e__________ Brick veneer--------------M asonry___________ O ther__________________________________ ; (c) R oof m aterial________________________
(d) Stories above basem ent________________ (e) Floor a re a ________________sq. ft. ( / ) For improvements
other than buildings use separate sheet and describe fully.
24. Taxes and assessments: (a) Real estate taxes: Amount levied this fiscal year, $_______________ ( b) Special
assessments: Total amount outstanding $_________________________________ ; ( c ) Amount payable this fiscal
--------------------(d) Per year $____________ _______, b eg in n in g -------------------------------------------------:-----year
25. Personal status o f veteran:
( a) Period o f residence in this city, county, or tow n ________________________________________________________
(b) Indicate by X : ______ Married _______ Single _______ Divorced ----------- W idower
(c) Number o f dependents____________ (d ) A g e s ________________________________________________________
26. Data concerning spouse:
(a) Name ___ ____________________________________ ____________________ ____ _______________________________
( b) Occupation________________ (c) Income per year: (i) Salary $------------------- (ii) Other $------------------(d) Employed b y __________________________________________________________________________________________
( / ) Assets owned separately by spouse or jointly by veteran and spouse (other than property described in
Par. 3 hereof or in Supplement to this Application (Exhibit A or B as applicable)) :
Type of A sset

Owned in the Name of

Estimated Value

?—

27.

D ebts ow ing by spouse, show ing (a) type o f oblig atio n s; ( b) nam e o f c re d ito r; ( c ) am ount o w in g ; (d) repay­
m ents p eriods; and ( e) repaym ents am ounts required.

28. H ave you read or had read to you F orm 1844, “ Explanation o f Business or Business R ealty Loan G uaranty” ?
(Yes or no)

29. Insurance will be obtained a g a in s t:

(a) F ire $ _________________

coverage, F orm N o ______________ $___________________

( 6 ) W in d storm $ ----------------------

(c ) Extended

(d) O t h e r ______________________________________________________
(Specify)

30. T he person signin g this application as the veteran hereby represents that he is the veteran nam ed in question 2
on page 1 o f this application.

H is identity as such has been established to the satisfaction o f the lender b y

(State method, e. g., personal acquaintance of stated period ; comparing signature and description on certificate o f discharge ; etc.)

31.

A ll the inform ation reflected b y the application is tru e to the best o f lender’s inform ation and belief.
10—

1 2 5 6 & -1

P age 4

3 2 . The undersigned borrow er (veteran) and lender (o r seller) hereby apply fo r guaranty b y the U nited States
o f a loan in accordance w ith this application, which is also an application to the lender by the borrow er fo r
said lo a n ; said guaran ty to be pursuant to the Servicem en’s R eadju stm en t A c t o f 1 944 (5 8 Stat. 2 8 4 ) , which
A c t and the regulations issued pursuant thereto and in effect on the date o f the loan guaran ty certificate issued
pursuant to this application shall be a part o f the contract between the U nited States, the borrow er, the
lender, and each o f them .
33. B orrow er and lender understand and agree that, i f issued, the guaran ty will be issued in reliance upon the
inform ation contained in this application.
34. The lender, or authorized employee, or agent o f the lender, has read this entire application as completed, has
seen and spoken w ith applicant, believes he is the veteran, and he appears to be com petent to understand the
nature o f the transaction and to enter into it.

(If a corporation)

Lender.

A ttest
Secretary.
(Authorized signature)

(Title)

[CORPORATE
SEAL]

(If required by State law)

Borrower ( s ) .
(Date o f application)

Signatures o f lender and borrow er m ust exactly correspond in every detail w ith the nam es as typed at top o f page
1— notw ithstanding nam e o f borrow er so shown m ay differ fro m nam e in question 14.

A m arried w om an will

include her surnam e before m arriage, but sign husband’s surnam e as her surnam e.
Recomm endation o f D esignated A g en cy
T his application and the attached papers are forw ard ed to the A d m in istra to r o f V etera n s’ A ffa ir s b y the under­
signed designated Federal agency, which hereby recom m ends th at said A d m in is tr a to r _____________________________ _
said application fo r a guaranty.

(Designated agency)

______________________________

B y -------------------------------------------------------------

(Date o f recommendation)

(Authorized signature)

IN S T R U C T IO N S — Continued
II I. Reference is m ade to the follow in g sections o f the regulations fo r guidance in connection w ith applications
fo r (a ) acquisition o f a business, sec. 4 2 0 4 ; (b) purchase o f supplies, equipment, m achinery o r tools (n ew o r
u s e d ), sec. 4 2 0 5 ; (c ) purchase o f business realty, sec. 4 2 0 8 ; ( d ) tw o or m ore borrow ers, sec. 4 2 2 2 ; ( e ) second
loans under section 5 05 (a ) o f the A c t, sec. 4 2 2 1 .
I V . The veteran should have read F o rm 1 84 4, “ Explanation o f Business or Business R ealty Loan G uaranty,”
before sig n in g appplication.
V . P erm issible loan charges, see regulations, sec. 4 2 1 6 .
V I . A n o ta ry ’s certificate is not required on the application.

N evertheless, it m u st be rem em bered th at Federal

statutes provide severe penalties including forfeitu res, fines, and im prisonm ent fo r frau d on the p a rt o f the
applicant and also as to any person who shall “ know ingly m ake or cause to be m ade, or conspire, combine,
aid or assist in, agree to, arran ge fo r, or in anyw ise procure the m ak in g or presentation o f a fa lse or frau d u ­
lent affidavit, declaration, certificate, statem ent, voucher, or paper, or w ritin g purporting to be such,” con­
cerning any application fo r the gu aran ty o f a loan b y the A dm in istrator.

(3 8 U . S . Code 697 , 7 1 5 , 4 5 0 , 4 5 1 ,

4 54 a , 5 5 6 a ; 18 U . S. Code 8 0 .)
Jan. 4 5 — 600M

19—

42565-1 Vu. 8. government pr in t in g

o f f ic e

F in an ce F o rm 1848a

Page 1

VETERANS ADMINISTRATION

APPLICATION FOR BUSINESS
OR BUSINESS REALTY LOAN GUARANTY

S t a t e ....................................................................
(Where property is located)

1

N o. L - B __________________________
(To be filled in by V. A .)

2

________ _______________________________________________________________________________________________________________________

............................. ........................ ........................ ..............................................- ............................... ................................................

(Lender, exactly as payee’s name will appear on note)
(R. F. D. or street)

(Post office)

(County)

(Borrower-veteran, exactly as to be signed on note and mortgage)
(R. F. D. or street)

(Post office)

(State)

(County)
(State)

IN S T R U C T IO N S
(R ead carefu lly before beginning to fill out thin fo rm )

I. L oan Guaranty Certificate (Form 1841).
F ill in all spaces at top o f the fo rm , except the “ L - B ” number.
P roperty to be M ortgaged ,” in such m anner that all required infor

nbtes&ffry to continue the property

impression in the proper spaces on page 1 o f the application,

.the ajjfmcation fo r the carbon im pres-

description on the reverse side o f the certificate, use space on pa
sion thereof.
o f the page.

g the perforated line at the bottom
papers.
(See regulations, sec. 4 2 2 5 .)

The certificate m a y be separated fro m the app
Subm it it to the agency w ith the application a

be signed and returned to the lender by

N o copy o f the certificate other than the original is ne
the V eterans A dm inistration i f the application is

II. A

p p l ic a t io n

for

B u s in e s s

or

G uaranty

B u s in e s

orm 1842 b and F orm 1842 c ) ,

Supplement (E X H I B I T A and E

re to be executed in duplicate in every case. E xh ibit B also in
is In excess o f $ 5 ,0 0 0 . The duplicate will be retained by the lender,
anently retained by the Veterans A dm inistration and should be sent to

(a ) T he application and,
duplicate is only required
The original signed co
the agency with other
(6 )

plete P a rt II, “ D escription o f
illip e duplicated b y a carbon

(S ee regulations, sec. 4 2 2 5 .)

E v ery question m ust be answered except that i f no real property is to be encumbered, questions 18

to 24 inclusive, need not be answered.

Place a check m ark ( V ) in space fo r answ er to any question th at is

not applicable.
(S ee continuation o f instructions, page 4 )

3. Description o f property to be “ M ortgaged .”

(L o t and block, section and township, land lot, and land

district etc. and surveyor’s field notes where appropriate, and any other language proper to complete
description.

Include description o f personal property, i f any.

Describe fu lly : Show serial num bers, i f

available, or any other m eans o f identification.)

Prem ises identified as

(Name of place, if any, and R. F. D. Also number or name of.

nearest highway, street and number in city, etc.)

(City, town, village)

(County, parish)

(State, district, territory)

(If more space is needed, continue carbon copy of description on page 2 o f application)

4. Applicant's a g e --------- 5. S e x ___________ 6. R a c e _____________ 7. Service or serial N o___
8. Date o f b ir t h __________________________ 9. Place o f b ir t h ____
10. Indicate by a cross (x ) the branch o f service in which you served:
□ Arm y
□ Navy
□ Marine Corps
□ Coast Guard
11. Date entered se rv ice ---------------------- ------------- 12. Date separated from active d u ty _________________________
13. Rank and organization at time o f separation________________________________________________________________
14. I f you have served in any branch under another name, state that name, the branch, and dates between which
you served under that name. I f none, so answer_____________________________________________________________
15.

Have you applied to the Administrator o f Veterans’ Affairs for guaranty o f any other loan or loa n s?_______
(Yes or no)

I f yes, give the following information fo r each application.
(O)
Date o f
Application (a)

(e)
Purpose
of Loan (8)

( b)
Name and Address o f Lender(s)

____________

___

_____

_______________________________

_______

_

_____________________

----

-

(d)
Was Loan
Closed ?

(e)
Amount of
Guaranty

_

_____

16. (a) Purpose o f loan hereby applied f o r : _____
__ (b) Purchase price, $_________
(c) Amount o f loan hereby applied fo r $_________________
(d) Rate o f interest______ %
(e) Guaranty
requested $________________ ( / ) Secured by a ____________________ mortgage, o r __________________________
_______________________(g ) F o r ______________ years (h) Payable $________________ ea ch ___________________
17. (a) Is loan to be secured by a second lien pursuant to section 505 o f the A c t ? _______________________________
( b) I f “ yes,” state name and address o f holder o f primary loa n ___________________________________________
(c) Amount o f primary loan $.
(d) Interest r a t e ______ % per year, (e) Final maturity d a te _________________ ._____________ ( / ) Amount
of payments $________________ (g) How often d u e _________________________ (h) Name o f Federal agency
.making, insuring or guaranteeing primary lo a n ___________________________________________________________
18. Land:
P l a t .— Indicate below shape, location, and dimensions of
(a) The land h a s __
___________ feet frontage
lot, distance from nearest intersections, and names of
streets or roads.
o n __________________
_______ Street (or road),
and i s ----------------------------------------- feet deep. Area
N
a b ou t--------------------------------------- (sq. ft. or acres).
(6 ) Easements (location and purpose: Also mark
on diagram ).

W

19.

Leasehold_______ ____ _

E

Rental, $________________per year. Lease is d a ted ___

(Yes or no)

and expires

Options: Renewable f o r _______years: Purchasable for $.

Option expires
16-42660-1

P age 8

2 0.

W h a t estate in the land described on page 1 hereof are you to own or do you now ow n ?
(State whether fee simple, or other estate. If a lease only, so state and when it expires)
(Also state whether all, or an undivided interest; and if latter, how much)

2 1 . S tre e t: (a ) R ig h t-o f-w a y w id t h ______________ feet.
( b) Surfaced w i t h ------------------------------------------------------------------__________ feet wide. ( c ) Curbs and gutters in p la c e -------------------------— (d) Sidew alks in p la c e -------------------------(Yes or no)
(Yes or no)
22. U tilities (answ er “ Y e s ” or “ N o ” as to each connected to the b u ild in g ):
(public m a i n ) __________

(c) Public s e w e r s _____________—

su p p ly: P u b lic _____________

P r iv a t e _____________

23. Structu re: (a ) W h e n b u ilt __________
M a s o n r y _____________

(d)

(a )

E le c tr ic ity ----------------

(d) Septic tank and d r a in --------------------

( b ) G as

(e ) W a te r

O ther ( s p e c i f y ) --------------------------------------------------------------------------

( 6 ) T yp e o f con stru ction: F r a m e ------------------

Brick v e n e e r — -------------

O th e r _________________________________________; (c) R o o f m a te r ia l--------------------------------------------

Stories above b a se m e n t________________ _

(e) F loor a r e a ---------------------------- sq. ft .

( / ) F or im provem ents

other than buildings use separate sheet and describe fu lly.

24. T axes and assessm en ts: (a) Real estate ta x e s : A m ount levied this fiscal year, $ --------------------------

( b ) Special
assessm ents: Total am ount outstanding $ _______________________________________ ; (c ) A m ou n t payable this fiscal

year $ ---------------------------25.

(d) P er year $---------------------------------- , b e g in n in g ------------------------------------------------------------------

Personal status o f v etera n :
(а ) Period o f residence in th is city, county, or town
(б ) Indicate by X : ________M arried ________ Single
(c )

26.

N um ber o f dep en d en ts______________

_________Divorced

(d) A g e s ----------------------

D ata concerning sp ou se:
(a ) N am e __________________________
( b) O ccup ation___________________

(c ) Income per y ear

( d) Em ployed b y __________________
(e ) A t ---------------------------------------------( /)

and spouse (other than property described in

A ssets owned separately by spouse or join tly t?
Par, 3 hereof or in Supplem ent to t h i g ^ ^ l i c a t i

Type of Asset

(E x h ib it A or B as a p p lic a b le)) :
Owned in the N am e o f

Estim ated Value

$-

$----------------$---------------27.

D ebts ow ing by spouse, show ing (a ) type o f ob ligation s; ( 6 ) nam e o f c red ito r; (c ) am ount o w in g ; (d) repay­
m ents p eriods; and ( e ) repaym ents am ounts required.

28. H ave you read or had read to you F orm 1 844, "E x p la n a tio n o f Business or Business R ealty Loan G uaranty” ?
(Yes or no)
29. Insurance will be obtained a g a in s t:

(a) F i r e $ .......... .....................

coverage, F orm N o ______________ $ ___________________
30.

( 6 ) W in d storm $----------------------

(c ) Extended

(d) O t h e r _____________ _________________________________________
(Specify)

The person signin g this application as the veteran hereby represents th at he is the veteran nam ed in question 2
on page 1 o f this application.

H is identity as such has been established to the satisfaction o f the lender by

(State method, e. g.. personal acquaintance of stated period; comparing signature and description on certificate of discharge; etc.)

31.

A ll the inform ation reflected b y the application is true to the best o f lender's inform ation and belief.
16-42560-1

Page 4

32. The undersigned borrower (veteran) and lender (or seller) hereby apply fo r guaranty by the United States
o f a loan in accordance with this application, which is also an application to the lender by the borrower fo r
said loan; said guaranty to be pursuant to the Servicemen’s Readjustment Act o f 1944 (58 Stat. 284), which
A ct and the regulations issued pursuant thereto and in effect on the date o f the loan guaranty certificate issued
pursuant to this application shall be a part o f the contract between the United States, the borrower, the
lender, and each o f them.
33. Borrower and lender understand and agree that, if issued, the guaranty will be issued in reliance upon the
information contained in this application.
34. The lender, or authorized employee, or agent o f the lender, has read this entire application as completed, has
seen and spoken with applicant, believes he is the veteran, and he appears to be competent to understand the
nature o f the transaction and to enter into it.

(If a corporation)

Lender.

A tte st______________
Secretary.
(Authorized signature)

(Title)

[CORPORATE
SEAL]

(If required by State law)

Borrower (s ) .
(Date o f application)

Signatures o f lender and borrower must exactly correspond in every detail with the names as typed at top o f page
1— notwithstanding name o f borrower so shown may differ from name in question 14. A married woman will
include her surname before marriage, but sign husband’s surname as her surname.
Recom m endation o f D esignated A g en cy

This application and the attached papers are forwarded to the Administrator o f Veterans’ Affairs by the under­
signed designated Federal agency, which hereby recommends that said Adm inistrator_________________________
said application fo r a guaranty.

( Designated agency)

__ — ___________________

B y ---------------------------------------------------

(Date o f recommendation)

(Authorized signature)

IN S T R U C T IO N S — Continued

III. Reference is made to the following sections o f the regulations fo r guidance in connection with applications
fo r (a ) acquisition of a business, sec. 4204; ( b) purchase o f supplies, equipment, machinery o r tools (new o r
u sed), sec. 4205; (c ) purchase o f business realty, sec. 4208; (d) two or more borrowers, sec. 4222; ( e ) second
loans under section 505 (a ) o f the Act, sec. 4221.
IV. The veteran should have read Form 1844, “ Explanation o f Business or Business Realty Loan Guaranty,”
before signing appplication.
V. Permissible loan charges, see regulations, sec. 4216.
VI. A notary’s certificate is not required on the application. Nevertheless, it must be remembered that Federal
statutes provide severe penalties including forfeitures, fines, and imprisonment fo r fraud on the part o f the
applicant and also as to any person who shall “ knowingly make or cause to be made, or conspire, combine,
aid or assist in, agree to, arrange for, or in anywise procure the making or presentation o f a false or fraudu­
lent affidavit, declaration, certificate, statement, voucher, or paper, or writing purporting to be such,” con­
cerning any application fo r the guaranty o f a loan by the Administrator. (38 U . S. Code 697, 715, 450, 451,
454a, 556a; 18 U . S. Code 80.)
16— 42666-1

Jan- 45—600M

u. » .

government printing o ffice

VETERANS ADMINISTRATION
Finance Form 1842b

VETERANS ADMINISTRATION

No. L - B __________________

To be filled in b£ V. A.

Supplement to
APPLICATION FOR BUSINESS OR BUSINESS REALTY LOAN GUARANTY
EXHIBIT A
Note (a ).— I f purpose of loan is to establish a business, state fully the nature thereof, your qualifications and experience to
operate it, and describe the equipment, machinery, tools, or supplies you desire to purchase.
Note (b ).— I f purpose of loan is to purchase all or part of an existing business, state fully the nature thereof and your qualifi­
cations and experience to operate it.
N ote (c ).— I f purpose of loan is to purchase additional equipment, machinery, tools, supplies for an established business, describe
sapie fully.

On loans for such purpose the Earnings Data called for in 5 is not required.

1.

2*. I f purpose of loan is to establish a new business, the following information is required:

Veteran’s Estimated Income and Expense for the Next 12 Months
I. INCOME

II. EXPENSE

Source:
a. From

a. Total estimated income from Col. I___________ $_________
salesof goods and services_______ $__________________

b. Cost of goods and services sold.. $---------------------

b. Compensationor pensionfrom Government..

$_____________

c. Operating expense------------------ $---------------------

e. Other____________ ____________________________

$

d. Income and other taxes_______ $______________

Total, $_____________
d. Specify source of Other Income (c)

e. Payments on loans____________

$---------------------

/ . Other business expense________ $......................... $.
g. Excess of all income over total business ex­
pense....... .................................................................... $
h. Estimated personal and living expense--------- $.

See reverse side hereof for financial data required to complete this application.
lender in all cases.

This form must be signed by borrower and

I f loan applied for is in excess of $5,000 do not fill in reverse hereof, use Exhibit B, Finance Form 1842c.
1 6 -4 2 5 6 7 -1

3 . F in an cial statem en t o f

as o f

(N am e(s) o f veteran and firm name, i f any)

--------------- , 1U__

F ill in all blanks u sin g “ non e” i f approp riate.

C a sh on han d and in b a n k ..________ ________________ $

N o te s, conditional sales con tracts, ch attel m ort­

A ccou n ts receivable_______ - ___________________1..............
.

A ccounts p ayab le_______________________________________

T o ta l____________________________________________

Incom e or oth er ta x e s__________________________________

“Land and b u ildin gs____________________________________

T o ta l_____ _________ ____ ____________________ ____

.

F ix tu r e s , m ach in ery, to o ls , equipm ent, or oth er

A l l liabilities due a fte r 1 y e a r (m t g . on R . E . □

fix ed a s s e t s ___________________________________________

chattel m tg . □
(d escribe) □

L ife insurance— C ash su rren der valu e ( n e t ) ----------

Good

T o ta l a ll lia bilities___________________________

T o t a l._________________________ _________________

$

4 . A r e y o u a co-m ak er, endorser, o r g u a ra n to r on a n y o b lig a tio n ?

□

Yes

□

N o.

Condensed S ta tem en t o f S a les, P rofits, o r L o ss
La st year

G ro ss sa les---------- -------------------

(e)
(f)

$-

C o st o f goods sold-------------------- ------ ----------------------

G ross sa les________________ _____ ___________________

--------------------

(a)

--------------

( 6 ) C ost o f goods sold________________________________

-

---------------

(c) O p e ra tin g expenses ( t o t a l ) * ___________________

D e p r e c ia tio n ______________________________________

-

----------

(d)

N e t pro fit o r lo ss b e fo re ow n er’s w ith d r a w a ls -

------------------------

(c ) O p e ra tin g expenses

(d)

$ __

I f yes, describe

This near to date

(a)
0>)

other

N e t w orth ______ ____ ____________________________________

O th e r a s s e t s ___________________ _______ __________________

5.

cond. sales contract □

______________ _____ ___________________)

R eserve accounts-,______________________________________

w ill _______________ _______________________________

Prepaid exp en se_____________ ____ ______________________

T o ta l____________________ _____ _________________

$...

g a g e s, or other oblig ation s due w ithin 1 y e a r___

M e rch a n d ise, su pp lies o r oth er in ven to ry __________

( t o t a l ) * ----------------------------

T o ta l w ith d ra w n b y o w n er------------------------------•Do not include personal income taxes.

D e p r e c ia tio n _________________________________ ____

( e ) N e t profit or loss b efore ow ner’s w ith d raw als..
( /)

T o ta l w ith d raw n b y ow ner_____________________

6. G ive n am e a n d a d d ress o f th ree credit re fe re n c e s:

E a c h o f th e u n dersigned represen ts th a t to the best o f h is know ledge and b e lie f all the in fo rm a tio n in this E x h ib it A is tru e and
com plete.

•

B orrow er a n d len der un derstan d and a gree th a t, i f issued, the g u a r a n ty w ill be issued in reliance upon th e in fo rm a tio n con­
ta in e d in th is E x h ib it A and th e application o f w hich it is to be considered a p a rt.

A t t e s t -------

Lender.

Secretary.

B y -------------( Authorized signature)

CORPORATE SEAL

(Title)

( I f required b y S ta te law)]

Borrower ( s ) .

(Date o f application)
U. S. GOVERNMENT PRINTING OFFICE

is—4 2 5 8 7 -1

Jan. 45—600M

VETERANS ADMINISTRATION
F in a n ce F o r m 1842c

VETERANS ADMINISTRATION

--------------

No. L -B __________________

(To be filled in b y V. A.)

Supplement to
APPLICATION FOR BUSINESS OR BUSINESS REALTY LOAN GUARANTY
EXHIBIT B
(For use only when loan applied for is in excess o f $5,000)

Financial statement o f ______ ______

.

__________________________________________________________ as o f --------------------------------- 19
(Name(s) of veteran and firm name if any)
(Fill in all blanks, using “ none” where appropriate)

1.

L

H.

ASSETS

LIABILITIES

A. Amounts due in not more than 1 year— secured or unsecured.
Notes:
(a) Cash on hand and in bank_____________________ $_______________

(o) T o banks (except (e))-------------------------------------$-----------------------

(b) Notes receivable (good)_________________________________________

(6) T o others (except (c))------------------------------------ -------------------------

(c) Accounts receivable (good)_____________________________________ „

(c) Conditional Sales Contracts or Chattel Mort­
gages (itemize on separate sheet)-------------- -------------------------

(d) Merchandise (how valued):

(d) Accounts payable------------------------------------------- ------------------- ------

(i) Finished___________________ $_______________

(e) Income and other taxes______________________ ________________
(ii) In process_________________________________
(f) Other liabilities payable, due in not more
(iii) Raw material__________________________ ______ _____________
(e) Other (itemize on separate sheet)_______________ _________________
(/)

than 1 year (itemize on separate sheet)----- ----------------------(g)

f

Total current liabilities____________$-----------------------

*Total current assets______ ___________ $_______________
B. Amounts payable, due m ore than 1 year.

(ft) Buildings____________________________________________________ ___

(ft) Secured by—
(1) Mortgages on real estate______________ $---------------------

(£) Machinery and equipment_____________________ ________________

(2) Conditional Sales Contracts or Chattel

(j) Furniture and fixtures__________________________ ________________

Mortgages____________________ ____ — _______________

(ft) Life insurance— Cash surrender value (net)____ ________________
(l) Prepaid expenses_______________________________ ________________

(i) All other liabilities (secured or unsecured)—
(Itemize on separate sheet)

(m) Goodwill________________________________________________________

(j) Reserve accounts (itemize)_____ _____________ ______________

(n) Patents and trade marks_______________________ _______ _________

(ft)

(o) Other assets (itemize on separate sheet)_________ __________

(J) Net worth__________________ ,JL.------------------------ $— ....................

(p)

Total____________________________________

$_____________ _

(m)

------------------------

Total liabilities_____________________ $------------------------

Total________________________________ $---------------------

2.
(a) *Contingent liabilities: Accounts or notes receivable, discounted or sold with endorsement or guaranty, $__________

(Name of assignee)
(6) f l f any of the current liabilities are secured, state amount and itemize collateral pledged as security

(c)

Is the amount stated in (a) included in I ( / ) ___________________________________ ; in II (g) -----------------------------------------(Yes or no)
(Yes or no)
See reverse side h ereof for financial data required to com plete this application
16— 4 2 6 4 8 -1

3. Comparative statement o f sales, profit or loss, etc.

(«) Cross sales

.... .

5th Prior Year

4th Prior Year

3d Prior Year

2d Prior Year

Last Year

1

2

3

4

5

$____________

$__________

$.....................

$____________

$ _ .

This Year to
Date 19___
6

..............

$-

(6) C ost of goods sold________________________
(«) *Operat,ing expenses (total)
(<f) D epreciation. _______

___

(e) N et profit or loss before owner(s) with­
drawal (s) . . _____________ ___

(f)

___

T ota l withdrawn b y owner (s)____________

—

................

—

................... -

............ .........
-

-

* Do not Include personal income taxes.
Each of the undersigned represents that to the best of his knowledge and belief all the information in this Exhibit B is true and
complete.
Borrower and lender understand and agree that, if issued, the guaranty will be issued in reliance upon the information contained in this
Exhibit B and the application of which it is to be considered a part.

Attest
Secretary.

Lender.

/(Authorized signature)

CORPORATE SEAL

(If requiredby State law)

--------------------------------------------------------

(Title)

(Date ofapplication)
Jan. 45—200M

Borrower(s).

U. S . e O V M M lE N T PRINTINS OFFICE

10 — 4 2 5 4 8 -1

VETERANS ADMINISTRATION
' Flnancfe F o r m 184A

VETERANS ADMINISTRATION

EXPLANATION OF BUSINESS LOAN OR BUSINESS REALTY LOAN GUARANTY
( Under the Servicem en’ s R eadjustm ent A ct o f 1944 )
Veterans should read this explanation before signing the application form
1. The Veterans Administration has no authority to make a loan. The loan is made by banks and other lenders at not over 4
percent interest. When made in accordance with the regulations it may be partially guaranteed by the Administrator. The guar­
anty is available on purchase money notes also. For convenience these transactions are called loans in this explanation. Payments
may extend over a period of 20 years subject however to the requirement that the maturity shall not be in excess of the normal
useful life of the collateral and the earning capacity of the business.
2. If the veteran fails to make payments as they become due according to his contract with the lender the property may be
foreclosed. If the Veterans Administration is required to pay any or all of the amount guaranteed, the veteran will become obli­
gated for the repayment to the Government of the amount paid on account of the guaranty.
3. Interest for the first year on the amount guaranteed will be paid by the Government. The veteran does not repay this
amount.
4. Any lender has the right to refuse to make a loan, with or without stating a reason. The fact that a particular lender
refuses to lend the money does not mean that another lender may not be willing to lend it. The Veterans Administration will de­
termine whether to guarantee the loan on the basis of the facts presented, irrespective of who may be the proposed lender (or
seller).
5. Neither the act nor the regulations limit the amount of the loan, but the maximum amount of guaranty available to an
eligible veteran is $2,000. Once this amount has been guaranteed by the Administrator it cannot be made available on another
loan, for any purpose.
6. Under certain conditions the Administrator may guarantee a loan secured by a “ second mortgage,” obtained for the pur­
pose of acquiring a business or business realty, if the “first mortgage” is to secure a loan “made, guaranteed, or insured” by a
“ Federal agency.” Most lenders can furnish details about such a loan.
7. The Veterans Administration will not undertake to advise a veteran as to the purchase or nonpurchase of a specific prop­
erty as this is a decision for which the veteran must accept personal responsibility, but information of a general character may be
made available. However, there may be essential elements of a proposed transaction which require specialized knowledge and it
may be to the veteran’s interest to consult experts in such matters whose own interests are not involved, before agreeing to any
transaction. Similarly it may be advisable to consult disinterested experts as to the legal and other details pertaining to the
transaction.
8. You may obtain a loan for the total price of the equipment, machinery, or tools you desire to purchase, or you may obtain
a loan for the initial down payment if you prefer to conserve the amount of guaranty that will be required to obtain the loan.
The loan for a down payment may be obtained for as much as one-third of the purchase price but may not be in excess of $1,000.
The smaller down payment you make, the less of your guaranty right you will have to use. This is because you will not need to
borrow so much for the down payment. This is the amount for which you will need the guaranty, not the remaining balance. On
the other hand there are many situations where in fact it will be better business to make a larger down payment.
Circumstances will govern which plan is to your best interest, but it is important to remember that the total guaranty available
to you is $2,000. Later you may need an additional loan for some permissible business purpose. Furthermore, should you
desire to purchase a home or farm, the loan will ordinarily require a substantial guaranty and, therefore, you should endeavor to
conserve the amount of your guaranty.
9. Read the entire Application Form 1842 and Exhibit A , Form 1842B. This will suggest matters which, while not precisely
covered in the application, require careful consideration in the purchase of a business or the purchase of fixtures, machinery,
equipment, tools, or supplies, if you are going to establish a new business, for example:
(a) Experience in the line of business you intend to buy or establish is one of your most valuable assets. I f you
lack the experience but have some knowledge of the business, it may be desirable to establish a partnership with someone
who has had actual experience in operating the same kind of a business. Most newly established businesses fail for lack of
managerial capacity or sufficient working capital.
( b) Guaranty of loans to provide working capital is not included in the Act. It is, therefore, an absolute necessity
that you have sufficient cash or other working capital to assure the business a chance of success. Without sufficient working
capital you will be in immediate difficulty. Budget your operations realistically and obtain expert accounting advice with
respect to records you will require for tax purposes and other reports required by various State and Federal laws that regulate
business.
(c) I f you are going to be a retailer, choose the location of your business carefully, as a great deal of your chance for
success depends on location, the kind of people likely to buy, the amount of the rent, the condition of the building, the modern­
ness of fixtures, and store front. Check your competition and know what you will have to meet. Decide on your policies
of operation, lower prices, poorer quality and volume, or higher-priced quality merchandise. Be sure you have the tempera­
ment necessary to meet and sell the public.
(d) The problems of manufacturing or wholesaling involve an entirely different set of factors, but here again experience
and working capital are most frequently the deciding factors between success or failure.
10. The purchase or establishment of any business has many hazards. Eliminate all the foreseeable and be sure you are pre­
pared for some of the unforeseen. A copy of the regulations, which are part of the contract, is available at any office of the
Veterans Administration and probably at any bank or other lending institution.
F r an k T. H ines ,
Administrator.
U. S GOVERN MENT PRINTING OFFICE

16— 42616-1