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ANALYSIS O F REPLIES RECEIVED PROM THE RESERVE BANKS
I
TO QUESTION RE CHANGES IN REGULATION H (Letter 12-17-46)

Question 4»

Apart from the standard conditions of membership, what changes, if
any, should be made in the text of Regulation H?

No change:
NEVJ YORK
CLEVELAND
RICHMOND
ST. LOUIS
Suggested changes:
BOSTON:

Section 6. Eliminate.
Section 7> VJhether or not Sec. 6 is eliminated
revise Sec. 7 to end sub-paragraphs (a) and (c)
in each case after words "prescribed by the Board."

c

PHILADELPHIA: Footnote 12. Chang© to read: "This does not
prevent a bank from investing the funds of several
trusts in a single real estate loan of a type which
could properly be purchased in its entirety by each
trust participating in the loan."
Standard Condition No. 6. Amend to eliminate requirement of security on funds covered by FDIC insurance.
ATLANTA:

Appendix. Expand to include additional Federal
laws to which State member banks are subject such
as Sections ll(m) and 22(g).

CHICAGO: Footnotes 6 and 7» Incorporate in text of Regulation as part of Section 6.
MINNEAPOLIS:

Section 8.

Section 9(b).

Eliminate or greatly condense.

Eliminate.

Section 10. Eliminate last paragraph.
KANSAS CITY: Amend to add paragraph providing that an affiliate, a majority of the stock of which is owned
by a member bank, shall not acquire any assets or
do any business which the member bank itself could
not acquire or do.



-.2 -

DALLAS.

Eliminate standard conditions in regulation but
reproduce in appendix.
Recommend that standard conditions be incorporated
in and made part of-application for membership.

SAN 3EANCISCO:




Section 7. Eliminate.

Section 6. Amend to embody standard conditions in
form which, upon admission of bank, will constitute
a contract binding upon bank admitted. (Suggest
numerous changes in form of conditions.)