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228 BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM S-486 WASHINGTON ADOREBB Df"f"ICIAL CDRREBPDNDENCE TD THE BDARD • May 23, 1942 Dear Sir: • For your information, there are set forth below the answers to certain questions that have arisen in connection with guarantees made b.1 the Federal Reserve Banks as fiscal agents of the United States, pursuant to Executive Order 9112 of March 26, 1942 • • 1. In submitting applications for guarantees of loans made pursuant to Executive Order 9ll2, pl<:Jase include in all instances your recommendation as to the rate of gu:..:.r::mtee fee to be charged. • 2. In order that the pro.ctice with respect to the collection of guarantee fees ~~ be substantially uniform throughout the System, it is suggested that where practicable the lo~ agreement provide for the payment of such fees r..t quarterly interve.ls. 3. It is understood that in some instance~ the Federal Reserve Banks have exparienced considerable difficulty in obtaining adequote state- • • • ments from procurement officers with respect to applications for guarantees. It is not expected that the procurement officers will be asked to make formal certifications to the Federal Reserve Banks, but that they uill furnish the Reserve Bunks, in writing, such information as they haYe vdth re:spect to the applicant's ability to perform the contract and the need for fulfillment of the contract in the prosecution of the war. The submission of applications to Uashington should not be deleyed because of th~ inability to obtain us complete information from procurement officers as r~t be desirable. 4. In ordor that the War Department, Navy Department, and Maritime Comnission may have adequate information-with respect to the terms and conditions u_~der which loans are made or guaranteed on their behalf, it will be appreciated if you v:ill have financing institutions furnish you with two copies of any loan agreement that is executed and forward one cop,y thereof to the Board for transmission to the Har Department, Navy Department, or Maritime Commission, as tho case m~ be. VerJ t~Jly yours, P~M;.vt. ~-A._ THE PRESIDENTS OF ALL ~~~·-·r~"'""'""'"' RESERVE BANKS • .. - L. P. Bethea, Assistant Secretary. .•
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