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FEDERAL RESERVE BOARD WASHINGTON address official correspondence to the federal reserve board x - 4 2 0 7 Deceriber 12, I92U SUBJECT: Necessity of new Clayton Act Application where 1/1 rector has resigned from and again i s elected to serve the same i n s t i t u t i o n . Dear S i r : The question has recently been r a i s e d whether an o f f i c e r or d i r e c t o r of a bank who has received permission from the Federal Reserve Board under the Kern Amendment to the Clayton Act to serve such bank and l a t e r resigns h i s p o s i t i o n as o f f i c e r or d i r e c t o r , mast apply again f o r the permission Of the Board i f he subsequently desires to serve the same i n s t i t u t i o n . This i s a question upon which t h e Board'has never h e r e t o f o r e been called to r u l e . I t i s believed thkt the mOst reasonable i n t e r p r e t a t i o n of the law is t h a t a resignation from a bank which a d i r e c t o r has been permitted to serve by permission of the Board i s ipso facto a termination of the permission in so f a r as service upon that p a r t i c u l a r bank i s concerned. Such a resignation i s i n r e a l i t y an abandonment by the d i r e c t o r of h i s r i g h t to serve the part i c u l a r bank. I t i s a voluntary relinquishment of a p r i v i l e g e granted to him, There are also c e r t a i n p r a c t i c a l considerations which would make t h e requirement f o r a new permit in such cases d e s i r able. Conditions may change materially between the date of the permit and t h e time when the director wishes to renew h i s connection with the uank from which he has resigned. The Board, moreover, would r a r e l y receive information as to changes of t h i s character, i f a new a p p l i c a t i o n were not required. You are advised, therefore, that i n cases of t h i s kind the Board w i l l require t h a t the director in question make a new application to the Board f o r permission to serve the bank or banks from which he has resigned, together with the other banks which he i s serving a t the time. By order of the Federal Reserve Board. Very t r u l y yours, Walter L. Eddy, Secretary TO ALL FEDERAL RESERVE AGENTS
@FedFRASER