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X-7711 : 4 7 3 INTERPRETATION OF BANKING ACT OF 1933. (Copies to be sent to a l l Federal Reserve Banks) December 11, 1933. Mr. Xi. B. Williams, Federal Reserve Agent, Federal Reserve Bank of Cleveland, Cleveland, Ohio. Dear Mr. Williams: This refers to your l e t t e r of September 12, 1933, i n c l o s i n g a copy of a form of notice of intention to withdraw savings deposits from the ' Trust Company of , • You s t a t e that i t i s proposed to reprint t h i s form so as to include therein a statement to the e f f e c t that, i f the intended withdrawal i s not accomplished within a s p e c i f i e d period a f t e r the date of maturity, the funds are to be reinstated as savings deposits to the credit of the depositor's account; and you request to be advised, whether, i n the opinion of the Board, a notice of intention to withdraw such dep o s i t s containing such a provision would be in harmony with Section V(f) of the Board's Regulation Q,. As you know, the above-mentioned s e c t i o n of Regulat i o n Q, provides t h a t , a f t e r the expiration of the period of notice given with respect to the intended withdrawal of a savings deposit, such deposit becomes a deposit payable on demand; but that the owner of such deposit may advise the bank i n writing that the deposit w i l l not be withdrawn or that i t w i l l again be subject to the requirements applicable to savings deposits, i n which event such deposit again c o n s t i t u t e s a savings deposit a f t e r the date upon which such advice i s received by the bank. I t i s not required that such written notice ; 474 X-7711 Mr. L. B. Williams - 2 rzith respect to the depositor's intention not to withdraw the deposit must be given a f t e r the expiration of the period of notice of h i s intention to withdraw the deposit. After careful consideration of this matter, the Board i s of the opinion that the provision proposed to "be added to the inclosed form of notice of intention to withdraw savings deposits would cons t i t u t e written notice within the meaning of the s e c t i o n i n question, and t h a t , i f the deposit i s not withdrawn within the period s p e c i f i e d , i t would again "become a savings deposit " i t h i n the meaning of Regulat i o n Q, upon the expiration of such period. It should "be noted, however, that no i n t e r e s t may be paid by the bank for the period intervening between the date of the expiration of the period of notice with respect to intended withdrawal and the date on which the deposit again becomes a savings deposit, I t should also be noted that, i f the provision here under consideration be adopted by the bank, the requirements of Section VI of Regulation Q,, r e l a t i n g to the withdrawal of savings d e p o s i t s , must be observed. Very truly yours, (Signed) Chester Morrill Chester Morrill, Secretary.
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