Word: bankes
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Dates: during 1970-1979
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Last week two outside directors of Atlanta's National Bank of Georgia, which was once headed by Lance, issued a 131-page accounting snowing that the bank had loaned the Carters almost $7 million. But the directors reported: "We have seen no evidence that the proceeds of these loans were, at least to the knowledge of anyone at N.B.G., used outside the Carter peanut business...
...report did, however, detail a sometimes sloppy relationship between Lance's bank and the Carter enterprise in Plains. Loans to build a new warehouse and to construct a peanut sheller at one time totaled about $1 million. On two occasions, the bank reduced the interest rates on these loans, eventually to a rate of 1½ percentage points above the prime rate. At the time of the last rate reduction on the construction loan, the prime rate, which banks charge their most credit-worthy customers, was 7%. Said Lance: "There were good and sufficient banking reasons for those decisions...
...storage of peanuts pending their resale. By the time Jimmy was elected President, at least $3.6 million was outstanding on the loan. The family business was supposed to keep on hand a fixed amount of peanuts or, if they had been sold, to pay the proceeds to the bank...
However, the Carter family business had been receiving from customers checks that had been drawn on insufficient funds and thus could not be cashed. At one point, the value of the collateral had fallen to $357,000, while the loan balance totaled $833,000. In June 1977, the bank asked Billy to stop using that account...
Despite the N.B.G. directors' report, Lance is still not in the clear. Left unresolved by the bank report is the grand-jury investigation into his banking practices. Some result of that probe is expected in six to eight weeks...