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Have No Good Security Can Use Collateral LOANS FROM Statement Made By the Citizens State Bank The receivers and liquidating agents for fifty or closed diana banks may get some of the which the government aside for the release of frozen assets in these institutions but the prediction in local financial circles, Saturday, that none of would come to the banks of Hamilton county particularly the Westfield State Bank and the Citizens State Bank. of Noblesville, both of which are now being liquidated. Those expecting Christmas money from this source are likely to be disappointed. Harry Talbert, in charge of the Westfield bank, with his attorney, Ralph Waltz, and H. Baker, in charge of the local bank, were at Indianapolis, Thursday, having been called there for explanations of the new move for the release of frozen assets. They were presented seven sets of application blanks to be used in asking for tion Finance Corporation loans with the assets of the banks to be pledged security. They were told that the first step in getting these proposed loans was submit praisals of assets the institutions. H. Baker. special representative for the Citizens State Bank, of Noblesville, covered the ground well yesterday afternoon when he released for publication statement to the effect that none of these banks "are going get any money for the release of the frozen assets unless they put up good collateral. He went on to explain the set up of the machinery looking to loan. Five appraisers must be named. One must be banker, one farmer, one business man and the two others are to be substantial citizens. None of them to be either directly or indirectly affiliated with the bank either depositor or creditor, whose assets they are to pass on. will be the duty of the appraisers to estimate the operating expenses of the institution covering period of from three to five years, at the same time keeping in mind the value of the assets. said that most of the assets Westfield bank are tied in which, of course, the government will not accept collateral for loans of any institutions and Mr. Baker says, speaking of the Noblesville bank, that the outstanding loans secured by collateral are largely with the government now for money borrowed by the bank. Of course this collateral went with the loans when they were sold to the government and they cannot released until the loans are paid. Baker further said he did not lieve that there was sufficient collateral left in the local bank justify securing loan for the payment of dividends to depositors. He thinks a serious question whether or not the State Banking department would approve sufficient amount of the collateral left in the bank to secure loan of any amount. With each loan now in the possession the liquidating agent must financial statement as to the worth of the makers of the notes in the event they are put for collateral. Baker said the worth of some the men was such that he would not attempt to induce the government to make loan on the paper. "With new bank that may have closed and has no money borrowed, is entirely different," said Baker. "Then it has all of its assets and course it naturally follows that at least some of its collateral is good and by putting up such security can the which government going to release for the payment of frozen assets. clear. At the ment we do think we have ficient good collateral ask loan much as would like for the have their money tied