At each meeting of the executive committee, or finance committee, or whatever committee has the supervision of loans, a list of all loans made since the last meeting of the committee is submitted, and the list is formally approved by the members of the committee placing their signatures

EXECUTIVE
COMMITTEE

on the page. This record is a part of the minutes of the committee. In some companies the list is typewritten on a blank sheet or sheets of paper, which are filed in a loose-leaf binder. Figuure 193 shows a printed form for this use.

BILLS DISCOUnted.

Although trust companies are in many states forbidden to discount paper, there are several states in which they are permitted to handle this business, and the necessary forms are therefore included here.

By some companies all applications for discounts are entered in an "Offering Book," wherein are shown the maker or makers of each note, the endorsers, the name of the person or firm by whom the discount is desired, the amount and time of the note, and any remarks which will aid in forming a judgment as to the desirability of the paper. A column is also provided in which to note whether the paper is accepted or rejected. But many companies dispense with the use of this book, and depend for this record upon the minutes of the finance committee.

When paper offered for discount has been accepted, it is entered in the Discount Register, a form of which is shown in Figure 194. This record shows all necessary data regarding each note. The notes are en

tered in the order in which they are received, and are numbered in con-secutive order, the numbers being written or printed in the register, and from there copied on the notes.

At the close of the day the columns of the register showing the amounts of bills discounted and of discount or interest are footed for the day's work, and the totals are usually entered in the general journal directly from the register, although some companies prefer to have each note entered separately in the general journal from debit tickets furnished by the discount clerk. The credits for the Bills Discounted account on the general books are generally made from credit tickets furnished by the discount clerk; but discount registers are in use which provide for the record of discounts paid. If such a register is used, the general bookkeeper gets the total credits, as well as the total debits, for the Bills Discounted account directly from the register.

After a note has been entered in the register, a memorandum of its due date should be made in the discount tickler, a common form of which is shown in Figure 195. If preferred a card tickler may be used instead of the book.

The note should next be entered in the Discount Line Ledger (also -called the Customer's Liability Ledger), three different forms of which

are shown in Figures 196, 197 and 198. The headings of the columns make these figures self-explanatory. It will be noted that the ledger shown in Figure 197 separates accommodation and commercial paper, while that shown in Figure 198 separates paper on which the customer is maker from that on which he is endorser. The object of this record is to show the amount of paper that is being carried for each customer, so as to prevent any one from getting more than his proper amount of credit; and also to show the kind of paper usually offered by the customer and the parties whose paper he handles.

Other Asarts, and of what

to the order of Charles S. Spring Three hundred and fifty or the Fourth Trust Company

at

осве

-per cent. per annum, payable semi-annually.

€ 8/6/06

2142

7—1906

June 7

promise to pay

Dollars,

Value received, with interest

Walter J. Moon

FIG. 199.-COMMON FORM OF NOTE.

For the purpose of procuring credit from time to time from you for our negotiable paper or otherwise, we furnish you with the following statement which fully and truly sets forth our financial condition on the ...day of ..190..; which statement you can consider as continuing to be full and accurate unless We agree to notify you promptly of any change that materially reduces our pecuniary

notice of change is given you. responsibility In consideration of the granting of such credit, we agree that if we at any time stop payment or become insolvent, or commit an Act of Bankruptcy, or if any of the representations made below prove to be untrue, or if we fail to notify you of any material change as above agreed, then and in either such case all our obligations held by you shall immed iately become due and payable without demand or notice, and the same may be charged against the balance of any deposit account kept by us with you, we hereby giving a continuing lien upon` such balance of deposit account from time to time existing to secure all our obligations held by you.

Total

Other indebtedness

and of what composed.

Total Liabilities.

Capital

Surplus, including Undivided Profites
Total

Contingent Liability.

Accommodation Endorsements.

Endorsed Bills Receivable Outstanding..

Specify any of above assets or liabilities pledged as, or secured by, collateral, and state collateral..

FIG. 200.-FORM FOR STATEMENTS OF BORROWERS.

A common form of a note is shown in Figure 199.

Applicants for discounts are usually required to fill out statements showing the condition of their business, as a means of determining the amount of credit, if any, which it is safe to give them. A standard form for such statements has been adopted by the American Bankers' Association, which is shown in Figure 200. This form is for the use of corporations asking for accommodation. The form for individuals and partnerships is much the same, except that it omits the items applicable only to corporations.

FIG. 200.-FORM FOR STATEMENTS OF BORROWERS (Continued).