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LOAN SOUGHT BY SHUT BANK IN HUBBARD WOODS Depositors Act for 2d State Institution. The Hubbard Woods Trust and Savings bank, which was closed on Feb. 14, has applied to the Finance corporation for loan to permit full payment of liabilities to depositors, it was learned yesterday. This is the second closed Illinois bank to apply for such loan, the first being the Cheltenham Trust and Savings bank, whose receiver, Frank McKey, is asking the corporation for $140,000 to permit full discharge of the bank's obligation to depositors. The application of the Hubbard Woods bank has been consideration for three weeks. The amount of the requested loan was not made public. Inasmuch as State Auditor Oscar Nelson has appointment of of the bank to facilitate the loan, the negotiations on behalf of the bank are being conducted by depositors' committee, headed by Frederick Dickinson of Winnetka. Sims Expects Quick Action. Mr. Dickinson declined to discuss the negotiations, but Howard M. Sims, agent for the corporation in the Chicago federal reserve district, said that approval of both the Cheltenham and Hubbard Woods applications might be forthcoming from Washington within few days." Directors of the corporation in Washington have policy of following the tions of the loan committees in each federal district, according to Mr. Sims. Receivers and stockholders of closed banks have shown a surprising forbearance thus far in the matter of seeking loans, Mr. Sims said. The district embraces the five states of Illinois, Indiana, Iowa, and So far we applications from only two banks in Illinois, one in Indiana, and in Iowa," said Mr. Sims. "This may be due partly to the fact that such were discouraged at the outset, the corporation feeling that loans to keep banks open should be given first attention.' Iowa Bank May Reopen. If the loan is granted to the Iowa that one of the largest in the state, will be able to reopen, Mr. Sims said. If the Hubbard Woods bank gets Its loan the bank will also reopen, not to continue business, but to liquidate the assets and pay depositors in full. The operations of the corporation are carried on in much the same fashion as those of bank, Mr. Sims said. Bank receivers, or stockholder committees, submit applications for loans together with schedule of the face and market values of collateral to be offered. Bank examiners study the collateral submit tions to the loan committee, comprising group of bankers and headed by Mr Sims. We will loan up to 100 per cent on sound mortgages," said Mr. Sims. We will go as high as 80 per cent on prime bonds, 50 per cent on depreciated bonds, and lesser percentages on slower assets."