Blair v. First Trust & Savings Bank of Miami

FOSTER, Circuit Judge.

Respondent is a bank doing business in Miami, Fla., and as part of its business it makes and negotiates mortgage loans ón real estate. In addition to the regular interest, it charges a fee of about two per cent, for services in connection with a loan, including its negotiation with others. When a loan is approved, the commission is deducted and the net amount paid to the borrower. Respondent keeps its books and makes its returns on the cash basis. Pending the payment or the further negotiation of a loan, the commission is carried on the books as a deferred liability.…