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APPENDIX 
Prescribed by the Federal Reserve Board, any such note 
cured by a certificate and held by a bank shall be eligible 
for discount or rediscount by the Federal reserve bank 
for the Federal reserve district in which the bank is 
Ocated, Such note shall be eligible for discount or 
"ediscount, whether or not the bank offering the note for 
liscount, or rediscount is a member of the Federal Reserve 
>Ystem and whether or not it acquired the note in the 
first instance from the veteran or acquired it by transfer 
pon the indorsement of any other bank. Such note 
shall not be eligible for discount or rediscount unless it 
188 at the time of discount or rediscount a maturity not 
1 excess of nine months exclusive of days of grace. The 
‘ate of interest charged by the Federal reserve bank shall 
’® the same as that charged by it for the discount or 
"ediscount of 90-day notes drawn for commercial pur- 
0ses. The Federal Reserve Board is authorized to 
2ermit, or on the affirmative vote of at least five members 
f the Federal Reserve Board to require, a Federal 
"serve bank to rediscount, for any other Federal reserve 
sank, notes secured by a certificate. The rate of interest 
for such rediscounts shall be fixed by the Federal Reserve 
Board, In case the note is sold, discounted, or redis- 
‘ounted the bank making the transfer shall promptly 
tify the veteran by mail at his last known post-office 
Address, 
(¢) If the veteran does not pay the principal and inter- 
*t of the loan upon its maturity, the bank holding the 
10te and certificate may, at any time after maturity of 
the Joan but not before the expiration of six months after 
the loan was made, present them to the Director. The 
Director may, in his discretion, accept the certificate and 
Note, cancel the note (but not the certificate), and pay 
the bank, in full satisfaction of its claim, the amount of 
‘he unpaid principal due it, and the unpaid interest 
iccrued, at the rate fixed in the note, up to the date of 
"he check issued to the bank. The Director shall restore 
lo the veteran, at any time prior to its maturity, any 
“ertificate so accepted, upon receipt from him of an 
Mount, equal to the sum of (1) the amount paid by the 
Uniteq States to the bank in cancellation of his note, 
lug (2) interest on such amount from the time of such 
"8yment to the date of such receipt, at 6 per centum per 
Anum. compounded annually. 
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