Article Text
BANK RECEIVER TO TAKE BONDS, COURT'S RULING Mortgages May Be Exchanged By Belle Vernon Trust Co. For Home Loan Bonds Judge D. W. Henderson today approved an application of Receiver Arthur McCune of the Valley Deposit and Trust company. of Belle Vernon, to accept bonds of the Home Owners Loan Corporation in exchange for mortgages held on a dozen or more properties. thus reverting the homes back to their original owners The more is the first to have been made by defunct banks of the county since the Home Owners Loan act was passed by Congress in October and should the practice become general it would mean the reversion of hundreds of properties from the banks asset lists back to owners. The petition was presented by Attorney H. George May. counsel for the receiver. and came at the instance of State Secretary of Banking William D Gordon, who indicated that he wished to co-operate in every way with the federal government to help in the program of business recovery which, "if effective will benefit all closed institutions." Mortgagors in each instance, and there were twelve listed in the petition, had made application for aid from the Home Owners Loan Corporation. With formal court approval of the bank receiver's petition. each of these twelve applicants will receive back their properties in exchange for the corporation's bonds. Attorney May explained that in each instance the mortgages were those owned outright by the bank.
