108. Forms Of Notes

There are a few points that may prove interesting and instructive in the forms of notes. The note shown in Figure 72 on page 156 is the most common. The due date must be figured out by the bank and noted on the bottom of the note.

A very convenient form of note is shown in Figure 73 on page 156. The due date is settled at the time the note is drawn and specifically mentioned in the body of the note. This is valuable in definitely determining the due date at the time the note is drawn. It is hardly likely that a note will be drawn to fall on a holiday or Sunday when the due date is thus specified. At least the drawer can make a proper memorandum for his own use.

Notice

Please keep this memorandum, as no further notice will be sent you by the Company. It is expected that all notes will be paid at maturity, unless previous arrangement is made.

My note for $...................................., due at Mutual Trust CO., Port Chester, N.Y.,......................................................19........

$.................... Port Chester, N.Y.,................19....

....................................after date for Value Received...........................promise to pay to the order of myself........................................................................................................Dollars at Mutual Trust Company of Westchester County

No............................. Due......................................................................................

Figure 74. Note.

No. $......................................... .................................................19

....................months after date................promise to pay

Due. to the order of........................................................................at the

Merchants' National Bank,

............................................................................................Dollars for value received.

Figure 75. Note.

Figure 74. On Page 158 Shows A Note In Use By An Active Trust Company In The Suburbs Of New York. The Notice On The Stub Attached To The Note Is Filled Out, Torn Off And Handed To The Maker When The Loan Is Made. The Company Has An Extra Supply Of The Stubs, In Pad Form, For Use When The Borrowers Are The Endorsers And Not The Makers Of The Notes.

The note shown in Figure 75 on page 159 has a very convenient arrangement of the number of the note and the due date. When running over a number of notes in search of a particular one, it is very convenient to have the dates on the upper right hand corner, so that all desired information is revealed when the corner is turned up in thumbing through.

109. Offering Book

In some banks no loans of any size are made until they are properly approved by the board of directors, or an executive committee of their number. If the discounts are very active, an offering book may be found useful. A form is shown in Figure 76 on page 161. When this book is used the members of the committee passing on the loans should sign the page of the book. An "A" in the remarks column indicated that the loan has been accepted and an "It" that it has been refused. This book will be found useful only in banks where much paper presented is refused. If the officers are able to forecast what the probable action of the executive or discount committee will be, the discount register will answer the purpose of the committee. A good form is shown in Figure 77 on page 161. Every note should receive a number when it is entered on the records of the bank. It is customary for the executive committee to meet weekly and when officers have the ability to pass on the loans as noted above, they may be accepted and entered chronologically in this register. There is an objection to this register in that it is very difficult to trace a piece of paper that has been renewed several times back to its inception. Many notes are renewed either in whole or in part and in determining whether or not to allow a borrower an extension, the question as to what he has paid on previous renewals, or whether he has renewed at all, enters very largely into consideration. To provide a record that will make it possible to trace a loan back through its various stages, a form as shown in Figure 78 on page 162 has been devised.

Date,............................................................................................................

Figure 76. Offering Book.

Date.................................................................................................................

Figure 77. Discount Register.

Date,.................................................................................................................................................................................

Date,............................................................................................................................................................................................

Figure 78. Discount Register.