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S-31 Reg. U-20 INTERPRETA'I'ION OF L.AW OR REGULATION (Copies to be sent to all Federal reserve banks) September 2, 1957. Mr. , Vice President, Federal Reserve Bank of _____ , , \ Dear Mr. Further reference is made to your letter of August 23, 1937, inclosing a copy of a lGtter from Mr. , Vice President of the -· Bank, , _ , inquiring whether the provisions of Regulation U, a;:l amended to September 1, 1937, are applicable to a loan mado by 11 bank prior to the enactment of the Securities Exchanee Act of 1954., for tho purpose of purchasing or carrying a stock which subr>equently became a stock registered on .s. national socuri ties exchange. Mr. asks whether the rGgula tion should be regarded as not applicable in such a case because there were no stocks "registered on a national securities exchange" pr:i.or to 1954. The regulation is applicable, with certain exceptions, to any loan initially made for the purpose of purchasing or carrying a stock "registered on a national secm:i ties exchange", and the phrase quoted has reference to the present status of the stock. Accordingly, a loan for the purpose of purchasing or carrying a particular stock is for tho purpose of purchasing or carrying a registered stock if that particular stock is now registered, and this would be true even if the stock was not registered at the time the loan was originc:;.lly made, as would be the case if the loan had been made prior to the enactment of the Securities Exchange Act of 1934. Very truly yours, ) • (Signed) L. P. Bethea L. P. Bcthoa, Assistant Secretary. 452
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