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266 S-252 Reg. Q-42 (Copies to be sent to all Federal Reserve Banks) February 15, 1941 Mr. , Vice President, Federal Reserve Bank of ----- Dear Mr. This refers to your letter of JanuarJ 30, 1941, with enclosures, requesting the Board's views with respect to the question whether a deposit carried by the ______ State Bank of , , -------' in the name of ·' Inc., may proper~ be classified as a savings deposit within the meaning of the Board 1 s Regulation Q. • It is understood timt , Inc., is a nonprofit organization and that its parpose apparently is to effect a reduction in the cost of electrici -:-r used by it;s mC;Jmbors. It is noted also that according to the caslL~r of the State Bank of the orga.nization has no ca.nital stock; tha-t it has received a direct loan from the Government t>s proceeds of wh:i.eh have been used to build lines for distributio;· of electric pm;;er; and that the organization 1 s entire earnings are applied to expensc:s a;:1d to the retirement of this loan. Regardl.e:;;s of the fact that , Inc., may not be operated for profit, it docs not appear that the orgtmiza.tion is operated primarily for "religious, philanthropic, charitable, educational, fratwrnal or other similar purp0sos 11 within tho meaning of the definition of a "savings deposit 11 contai!1ed in R(;gulu.t~on Q. Accordingly, it is th(::; view of the Board that a deposit of _____ , Inc., ma,y not properly be classified as a savint::s deposit under the Regulati.,;n. • Very truly yours, (Siened) • L. P. Bethea L. P. Bethea, Assistant Cecrete.ry •
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