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357 X-9556 INTERPRETATION Banking Act of 1955 (Copies to be sent to all Federal reserve banks) March 24, 1.956. Mr. R. L. Austin, Chairman, Federal Reserv~ Bru1k of Philadelphia, Philadelphia, Pennsylvania. Dear Mr. Austin: This refers to your letter dated Murch 12, 1956, presenting the question whether deposits of a volunteer fire company and of a ladies auxiliary affiliated with the fire company may be classified as savings deposits, under the definition contained in section l(e) of Regulation Q. The Board understands from your letter that the fire company is chartered by the State as a non-profit organization; that its membership includes the citizens of the community who pay annual dues of a nominal amount; that most of the income of the company is derived from dues, festivals, carnivals, and rental of the fire hall for meetings; that the Borough in which the fire company is located contributes a flat sum of $150 per month which is used largely to pay the driver; and that the Borough sometimes gives assistance in the purchase of new equipment. It is also understood that the ladies auxiliary is comprised of members of the firemen's families and friends and that its activities are partly social, although it often assists in the raising of money for the benefit of the fire company by serving 358 X-9556 - 2 - dinners to various organizations. It is the vleVI of the Board that organizations of the type described above are not in the same catesory as fire departments of municipalities and that the question here i_)resented is not governed by the ruling contained in the Board's letter of February 27, 1936 (X-9508), regardin.:; deposits of municipalities and departments thereof. The Board is of the opinion that volunteer fire companies and ladies auxiliaries of such companies, of the type described above, may properly be considered as organizations "operated primarily for religious, philanthropic, charitable, educational, fraternal or other similar purposes" and, since it is understood that the organizations are not operated for profit, deposits of thei:r funds in a member bank u.ay be classified as savings deposits, proviried they conform to the other requirements of section l(e) of Regulation Q. Very truly yours, (Signed) Chester Morrill Chester Morrill, Secretary.
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