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65 BOARD OF GOVERNORS OF' THE FEDERAL RESERVE SYSTEM S-547 WASHINGTON ADDRESS Of"f"ICIAL CORRESPONDENCE TO THE BOARD September 5, 1942. Dear Sir: The Board has received inquiries relative to the revision of obligations arising out of credit extended to automobile salesmen for the purchase of demonstrators,which was formerly exempt under old section 6(h) of Regulation W. It is understood that, because of the unforeseen difficulties that have been Pncountered by the automobile trade, some salesmen are n?w unable to retire such obligations. It is the Board 1 s view that if the credit was extended originally for less than 12 months, the maturity of the obligation may be extended to 12 months from the date the credit was originally extended, in view of section 10(a). It is the Board's view also that if the Re~istrant accepts a Statement of Necessity in accordance with section 10\d), which, in view of the aforementioned difficulties, would seem to be proper in many cases, the renewed obligation may provide for instalments running 12 months from the date of the renewal. Of course, if the note was originally made before September 1, 1941, it may be renewed in accordance with the principles stated in W-28. Very truly yours, ~_;?q~*--ยท L. P. Bethea, Assistant Secretary. TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS.
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