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253 BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM S-499 WASHINGTON ADORES& OFFICIAL CORRESPONDENCE TO THE BOARD May 29, 1942 Dear Sir: 'I'he follm'fing is tho text of a telegram sent to a Federal H:"..l~JerY€ Bank on ;,;ay 27, 1942, with reference t.o cha!'gc accounts under Rogulati:m W: More fact ti'lat e.ll or portion of charge account is considered bad debt and charged off or absorbed in rosc..;rvo would not relax prohibition of section 5(b) of Regulation 1H i f charge account is in dofault under saction 5(c) a!'l.d default has not b0en cured bjr onu of methods in section 5(d). Charg;_~ off or absorption in reservB would not abolish 1indebtednuss 1 referred to in section 2(g). Ho'aever 'indebtedness' under 2(g) does not include indebtedness which is legally unenf'orceable.11 11 ... .... • Very truly yom·s, ~ . -~;?"A~ ~-· r-'- --·· ~~-·· J / L. P. Bethea, Assistant Secretary. TO THE PRSSIDEi.\lTS OF ALL FEDERAL itESSRVB BAi1il:S '
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