SOME LEGAL ASPECTS OF GUARANTEED WAR LOANS

Authors

William B. Cudlip, Member of the Michigan bar

Abstract

Of the many innovations in the field of commercial banking since 1933, one of the most important introduced as a result of the war emergency is the "guaranteed" war loan plan which was authorized by the President under Executive Order 9112, dated March 26, 1942. Under the plan any loan made by any financing institution, including specified government agencies, to a borrower engaged in the production of war materials may be guaranteed by the War or Navy Departments or the Maritime Commission of the federal government, in those cases where the borrower is unable to obtain adequate financing without such guarantee. In this paper, I shall review the more important characteristics of the plan, the general procedure in making loans of this type, the loan transaction and some of the legal problems incident to such extension of credit.

Recommended Citation

William B. Cudlip, SOME LEGAL ASPECTS OF GUARANTEED WAR LOANS, 41 Mich. L. Rev. 389 (1942).
Available at: https://repository.law.umich.edu/mlr/vol41/iss3/3