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8 8 8 FEDERAL RESERVE BOARD WASHINGTON X-6845 ADDRESS OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE BOARD March 19, 1931. SUBJECT: Continuation C e r t i f i c a t e s as to Bonds of Federal Reserve Agents and A s s i s t a n t Federal Reserve Agents. Dear S i r ; I t has t e e n the p r a c t i c e i n some crises , when premiums are paid upon "bonds of Federal reserve agents, or a s s i s t a n t Federal r e serve agents, for the surety company t o i s s u e what i s known as a "continuation c e r t i f i c a t e " . This continuation c e r t i f i c a t e s t a t e s that i n consideration of the sum paid, the surety company "hereby continues i n force" the bond i n question "for the extended term "beginning" on a c e r t a i n day and ending one year t h e r e a f t e r . This c e r t i f i c a t e i s signed by the corapary's attorneys i n f a c t and i n some cases the signatures of such attorneys i n f a c t are.witnessed. The acceptance of such a continuation c e r t i f i c a t e might be regarded as an agreement or understanding that the e f f e c t i v e period of the bond i t s e l f should terminate on the date of expiration stated i n the c e r t i f i c a t e . The standard form of bond heretofore approved by the Federal Reserve Board does not contain any expiration date but runs f o r an i n d e f i n i t e period, and i t i s important that there be no confusion on t h i s p o i n t . A modification of the p r o v i s i o n s of the standard bond through the acceptance of yearly continuation c e r t i f i c a t e s might have the e f f e c t of jeopardizing or complicating the enforcement of the l i a b i l i t y of the surety company on the bond. The Federal Reserve Board d e s i r e s that i n the f u t u r e such continuation c e r t i f i c a t e s as to surety bonds should not be accepted and that i n l i e u thereof simple r e c e i p t s f o r payment of premiums due be taken. If a continuation c e r t i f i c a t e of the kind described above has been h e r e t o f o r e accepted with regard to any bond now outstanding covering y o u r s e l f or any of your a s s i s t a n t s , i t i s requested that a new bond be executed at t h i s time i n each such case. This procedure w i l l eliminate any p o s s i b l e confusion or uncertainty i n t h i s matter. By order of the Federal Reserve Board. TO ALL FEDERAL Very t r u l y yours, B. M. McClelland, A s s i s t a n t Secretary. RESERVE AGENTS EXCEPT HEW YORK.
@FedFRASER