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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO . THE FEDERAL RESERVE BOARD X-6156 October 11, 1928. SUBJECT: Amendment to Regulation A. Bear S i r : This i s to advise you that the Federal Reserve Board has amended Section XI (3) of Regulation A, Series of 1928, so as to r ^ i d as follows: "(3) The storage i n the United States or in any f o r e i g n country of r e a d i l y marketable staples, provided that the b i l l i s secured a t the time of acceptance by a warehouse, terminal, or other similar r e c e i p t , conveying security t i t l e to such s t a p l e s , issued by a party independent of the customer or issued by a grain elevator or warehouse company duly bonded and licensed and r e g u l a r l y inspected by State or Federal a u t h o r i t i e s with whom a l l r e c e i p t s for such staples and a l l t r a n s f e r s thereof are r e g i s tered and without whose consent no s t a p l e s may be withdrawn; and provided f u r t h e r that the acceptor remains secured throughout the l i f e of the acceptance. In the event t h a t the goods must be withdrawn from storage p r i o r to the maturity of the acceptance or the retirement of the c r e d i t , a t r u s t r e c e ipt or other similar document covering the goods may be s u b s t i t u t e d in l i e u of the o r i g i n a l document, provided that such s u b s t i t u t i o n I s conditioned upon a reasonably prompt l i q u i d a t i o n of the credit* In order to insure compliance with t h i s condition i t should be required, when the original document i s released, e i t h e r (a) that the proceeds of the goods w i l l be applied withiti a s p e c i f i e d time toward a l i q u i d a t i o n of the acceptance c r e d i t or (b) that a new document, similar to the o r i g i n a l one, w i l l be r e s u b s t i t u t e d within a s p e c i f i e d time," ALL GOVERNORS Digitized forTO FRASER Very t r u l y yours, Walter L. Eddy, Secretary. AND CHAIRMSN.
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