C8 
APPENDIX 
bank, or the Federal Farm Loan Board or the Federa 
Reserve Board. 
Sec. 5. That if any clause, senten.e, paragraph, of 
part of this Act shall for any reason pe adjudged by any 
court of competent jurisdiction to be invalid, such judg 
ment shall not affect, impair, or invalidate the remainder 
of this Act, but shall be confined in its operation to the 
clause, sentence, paragraph or part thereof directly in- 
volved in the controversy in which such judgment shal 
have been rendered 
LOANS TO VETERANS ON SECURITY OF ADJUSTED 
SERVICE CERTIFICATES 
Sections 502 and 508 of the World War Adjusted Compensation Ac! 
of May 19, 1924, as amended by acts of July 3, 1926, March 3 
1927, March 4, 1929, and February 27, 1931 
Sec. 502. (a) A loan may be made to a veteran upor 
his adjusted service certificate only in accordance with 
the provisions of this section. 
(b) Any national bank, or any bank or trust company 
incorporated under the laws of any State, Territory, 
possession, or the District of Columbia (hereinafter in 
this section called “bank”), is authorized, after the 
expiration of two years after the date of the certificate. 
to loan to any veteran upon his promissory note secured 
by his adjusted service certificate (with or without the 
consent of the beneficiary thereof) any amount not in 
excess of the loan basis (as defined in subdivision (g) of 
this section) of the certificate. The rate of interest 
charged upon the loan by the bank shall not exceed, by 
more than 2 per centum per annum, the rate charged at 
the date of the loan for the discount of 90-day commercial 
paper under section 13 of the Federal Reserve Act by the 
Federal reserve bank for the Federal reserve district in 
which the bank is located. Any bank holding a note for 
a loan under this section secured by a certificate (whether 
the bank originally making the loan or a bank to which 
the note and certificate have been transferred) may sell 
the note to, or discount or rediscount it with, any bank 
authorized to make a loan to a veteran under this section 
and transfer the certificate to such bank. Upon the 
indorsement of any bank, which shall be deemed a waiver 
of demand, notice, and protest by such bank as to its own 
indorsement exclusively, and subject to reculations to be