C0 
APPENDIX 
(d) If the veteran fails to redeem his certificate from 
the Director before its maturity, or before the death of 
the veteran, the Director shall deduct from the face value 
of the certificate (as determined in section 501) an amount 
equal to the sum of (1) the amount paid by the United 
States to the bank on account of the note of the veteran, 
plus (2) interest on such amount from the time of such 
payment to the date of maturity of the certificate or of 
the death of the veteran, at the rate of 6 per centum per 
annum, compounded annually, and shall pay the remain 
der in accordance with the provisions of section 501. 
(e) If the veteran dies before the maturity of the loan, 
the amount of the unpaid principal and the unpaid 
interest accrued up to the date of his desth shall be 
immediately due and payable. In such case, or if the 
veteran dies on the day the loan matures or within six 
months thereafter, the bank holding the note and certifi- 
cate shall, upon notice of the death, present them to the 
Director, who shall thereupon cancel the note (but not 
the certificate) and pay to the bank, in full satisfaction 
of its claim, the amount of the unpaid principal and 
unpaid interest, at the rate fixed in the note, accrued 
up to the date of the check issued to the bank; except 
that if, prior to the payment, the bank is notified of the 
death by the Director and fails to present the certificate 
and note to the Director within fifteen days after the 
notice, such interest shall be only up to the fifteenth day 
after such notice. The Director shall deduct the amount 
so paid from the face value (as determined under section 
501) of the certificate and pay the remainder in accord- 
ance with the provisions of section 501. 
(f) If the veteran has not died before the maturity of 
the certificate, and has failed to pay his note to the bank 
or the Federal reserve bank holding the note and certifi- 
cate, such bank shall, at the maturity of the certificate, 
present the note and certificate to the Director, who shall 
thereupon cancel the note (but not the certificate) and 
pay to the bank, in full satisfaction of its claim, the 
amount of the unpaid principal and unpaid interest, at 
the rate fixed in the note, accrued up to the date of the 
maturity of the certificate. The Director shall deduct 
the amount so paid from the face value (as determined 
in section 501) of the certificate and pay the remainder 
in accordance with the provisions of section 501.