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FEDERAL RESERVE BOARD 1-4343 WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD May 29, 1925. Dear S i r : In the absoncc of lir. Wyatt, I arn e n c l o s i n g f o r your i n formation a copy of the opinion rendered May 25th "by the Supreme Court of the United S t a t e s a f f i r m i n g the d e c i s i o n of the United S t a t e s Circ u i t Court of Appeals in the case of D. S. Sowe11 v . Federal Reserve Bank of D a l l a s . I think you w i l l f i n d t h i s d e c i s i o n p a r t i c u l a r l y i n t e r e s t i n g because i t involves the f o l l o w i n g p o i n t s , a l l of which are of s p e c i a l i n t e r e s t to the Federal reserve "banks: 1. A p p l i c a b i l i t y of the "assignee clause" on S e c t i o n 24 of the J u d i c i a l Code to a s u i t a r i s i n g under the laws of the United S t a t e s . 2. E f f e c t of a p r o v i s i o n in a promissory n o t e that the maker waives p r o t e s t , n o t i c e tnereof and d i l i g e n c e i n c o l l e c t i n g . 3. Whether a s u i t by a Federal reserve bank to enforce a note h e l d by i t as " c o l l a t e r a l security" to secure the indebtedness of a member bank to i t must bo stayed u n t i l i t can be determined whether the other c o l l a t e r a l h e l d by the Federal reserve bank i s s u f f i c i e n t to pay the indebtedness of the member bank. Very t r u l y yours, George B. Vest, A s s i s t a n t Counsel. Enclosure:
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