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X-6123 FEDERAL RESERVE BOARD WASHINGTON address official correspondence to the federal reserve board SUBJECT: August 3 0 , 1928. Amendment t o R e g u l a t i o n A, S e r i e s o f 1928. Dear S i r ; T h i s i s to a d v i s e you t h a t S u b - d i v i s i o n ( d ) o f R e g u l a t i o n A, S e r i e s of 1928, r e l a t i n g to r e d i s c o u n t s b y F e d e r a l r e s e r v e b a n k s f o r i n t e r m e d i a t e c r e d i t b a n k s , h a s b e e n amended t o r e a d a s f o l l o w s : 11 (d) Discounts f o r F e d e r a l i n t e r m e d i a t e c r e d i t b a n k s . Any F e d e r a l r e s e r v e b a n k may d i s c o u n t a g r i c u l t u r a l p a p e r f o r a n y F e d e r a l i n t e r m e d i a t e c r e d i t b a n k ; b u t no F e d e r a l r e s e r v e b a n k s h a l l d i s c o u n t f o r any F e d e r a l i n t e r m e d i a t e c r e d i t b a n k a n y s u c h p a p e r w h i c h b e a r s t h e i n d o r s e m e n t of a n y nonmember S t a t e b a n k o r t r u s t company w h i c h i s e l i g i b l e f o r membership in the F e d e r a l r e s e r v e system under the terms of s e c t i o n 9 of t h e F e d e r a l R e s e r v e Act a s amended. In d i s c o u n t i n g such paper each F e d e r a l r e s e r v e bank s h a l l g i v e p r e f e r e n c e t o t h e demands of i t s own member b a n k s and s h a l l h a v e due r e g a r d t o t h e p r o b a b l e f u t u r e n e e d s of i t s own memb e r b a n k s . E x c e p t w i t h t h e p e r m i s s i o n of t h e F e d e r a l R e s e r v e B o a r d , no F e d e r a l r e s e r v e b a n k s h a l l d i s c o u n t p a p e r f o r a n y F e d e r a l i n t e r m e d i a t e c r e d i t b a n k when i t s own r e s e r v e s amount t o l e s s t h a n 50 p e r c e n t of i t s own a g g r e g a t e l i a b i l i t i e s f o r d e p o s i t s and F e d e r a l r e s e r v e n o t e s in a c t u a l c i r c u l a t i o n . E x c e p t w i t h t h e p e r m i s s i o n of t h e F e d e r a l R e s e r v e B o a r d , t h e a g g r e g a t e amount of p a p e r d i s c o u n t e d b y a l l F e d e r a l r e s e r v e b a n k s f o r a n y one F e d e r a l i n t e r m e d i a t e c r e d i t b a n k s h a l l a t no t i m e e x c e e d an amount e q u a l t o t h e p a i d - u p a n d u n i m p a i r e d c a p i t a l a n d s u r p l u s of s u c h F e d e r a l i n t e r m e d i a t e c r e d i t bank." The F e d e r a l R e s e r v e B o a r d i s d e s i r o u s t h a t no p u b l i c o r o t h e r a n n o u n c e m e n t of t h i s amendment be made a t t h i s t i m e . By o r d e r of t h e F e d e r a l R e s e r v e B o a r d . Very t r u l y y o u r s , E. M. M c C l e l l a n d , Assistant Secretary. TO CHAIRMEN AND OF ALL F.R.BANKS. GOVERNORS
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