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107 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ·s-562 WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD October l, 1942. Dear Sir: For your information the follov-.'ing letter has been sent in response to an inquiry received from one of the Federal H.eserve Bank~: "Heference is made to your letter of Septen1ber 21, 1942, in which certain questions are raised as to guarantee fees accrued or collected on behalf of the War Department, Navy Department; and Maritime Coiil!l"J..ssion. The quarterly period for computation of the guarantee • fee should begin with the date of the first advance made in contemplation of the guarantee agreement. If the financing institution makes an advance prior to the actual execution of the guarantee agr•3ement but. such advance is madr3 after the approval of the guarantee, the fee would acCi:'Ue fron·, the date of such advance rather than tho date of the guara...'1tee agreement. 11 "Wi.th respect to wa1v::a..ng the collection of nominal amounts of interest or guarantee fees, or disregarding oYerpayments, in connection with loans that have been eepaid in full, it is quite possible that the Federal Reserve Banks may be asked to furnish detailed data as to how the a•nount of the fees is· arrived at, and, ii' so, it is doubtful whether the General Accounting Office would accept anything less than the exact amount due. Whether you wish to take up with financing institutions nominal differences in amounts due is a matter for determination by your Bank, but in any case it is suggested that the Government be credited with the exact amount of fees d~e on each guaranteed loan. On an outstanding loan there is, as you a.ssu'Ile, no objection to carrying forward from one period for adjustment in the next period a small difference between the a.'Uount due and the amount remitted by the financing institution." TO THE PRESIDENTS OF ALL FEDEH.AL RESEaVE BANKS, EXCEPT ATLk'JTA • • S. R. Carpenter, Assistant SecretalJT.
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