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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE BOARD X-7213 J u l y 26, 1932. SUBJECT: S u g g e s t e d Form of A p p l i c a t i o n f o r D i s c o u n t "by a n I n d i v i d u a l , P a r t n e r s h i p or C o r p o r a t i o n . Dear S i r : There a r e i n c l o s e d f o u r c o p i e s of a s u g g e s t e d form of application for use i n connection with discounts for individuals, p a r t n e r s h i p s or c o r p o r a t i o n s u n d e r t h e p r o v i s i o n s of S e c t i o n 13 o f t h e F e d e r a l R e s e r v e A c t a s amended b y t h e A c t a p p r o v e d J u l y 2 1 , 1 9 3 2 , i f and when t h e F e d e r a l R e s e r v e Board a u t h o r i z e s d i s c o u n t s f o r i n d i v i d u a l s , p a r t n e r s h i p s and c o r p o r a t i o n s u n d e r t h e p r o v i s i o n s o f t h a t s e c t i o n a s amended. There a r e a l s o i n c l o s e d f o u r c o p i e s of a form o f r e s o l u t i o n t o h e a d o p t e d b y t h e b o a r d o f d i r e c t o r s of t h e c o r p o r a t i o n when t h e a p p l i c a n t f o r d i s c o u n t i s a corporationi The i n c l o s e d f o r m s h a v e n o t b e e n c o n s i d e r e d b y t h e F e d e r a l R e s e r v e Board and a r e n o t p r e s c r i b e d b y t h e B o a r d ; b u t they have been prepared f o r the a s s i s t a n c e of t h e F e d e r a l r e s e r v e banks i n p r e p a r i n g forms of a p p l i c a t i o n i n t h i s c o n n e c t i o n and i n order to o b t a i n u n i f o r m i t y i n such a p p l i c a t i o n s i n so f a r as possible. I t i s s u g g e s t e d t h a t y o u submit t h e s e f o r m s t o y o u r X-7213 — 2 — % C o u n s e l f o r c a r e f u l c o n s i d e r a t i o n , i n a s m u c h a s i t may b e d e s i r a b l e or n e c e s s a r y t o make amendments or a d d i t i o n s i n o r d e r t o meet c o n d i t i o n s e x i s t i n g i n y o u r D i s t r i c t . When t h e f o r m s h a v e b e e n r e v i s e d and a p p r o v e d b y y o u r C o u n s e l , p l e a s e s e n d u s f i v e s e t s f o r t h e i n f o r m a t i o n and r e c o r d s of the Board. Very t r u l y y o u r s , Chester Morrill, Secretary. Inclosures. P.S. Since the preparation of these forms, i t has been s u g g e s t e d t h a t an i t e m be added t o t h e form of a p p l i c a t i o n as follows: "The a p p l i c a n t h e r e b y w a i v e s demand, n o t i c e and p r o t e s t a s t o a p p l i c a n t ' s o b l i g a t i o n on a l l p a p e r d i s c o u n t e d b y t h e F e d e r a l r e s e r v e b a n k or h e l d by t h e F e d e r a l r e s e r v e bank a s s e c u r i t y . " This i t e m might a p p r o p r i a t e l y be i n s e r t e d i n t h e i n c l o s e d form of a p p l i c a t i o n immediately a f t e r the f i r s t l i n e on p a g e 8 t h e r e o f . TO GOVERNORS OF ALL F. R. BANKS. X-7208 APPLICATION FOB DISCOUNT B # AN INDIVIDUAL, PARTNERSHIP OR CORPORATION. To t h e F e d e r a l R e s e r v e Bank o f A p p l i c a t i o n i s h e r e b y m a d e , on t h i s 193 , t o t h e F e d e r a l R e s e r v e Bank o f , . "by day of _» . (name a n d a d d r e s s f o r the discount of the of a p p l i c a n t ) commercial, i n d u s t r i a l or a g r i c u l t u r a l paper d e s c r i b e d i n Schedule A attached h e r e t o , a n d s u c h s c h e d u l e i s h e r e b y made a p a r t o f t h i s a p p l i c a t i o n . The a p p l i c a n t h e r e b y c e r t i f i e s t h a t a l l o f t h e n o t e s , d r a f t s o r b i l l s o f e x c h a n g e f o r t h e d i s c o u n t o f w h i c h a p p l i c a t i o n i s h e r e i n made a r e n o t e s , d r a f t s or b i l l s o f exchange w h i c h have b e e n i s s u e d or drawn, or t h e p r o c e e d s of w h i c h h a v e b e e n u s e d or a r e t o b e u s e d i n t h e f i r s t i n s t a n c e , i n p r o d u c i n g , p u r c h a s i n g , c a r r y i n g or m a r k e t i n g g o o d s i n o n e o r more o f t h e s t e p s of t h e p r o c e s s of p r o d u c t i o n , manufacture, or d i s t r i b u t i o n , or f o r t h e purpose o f c a r r y i n g o r t r a d i n g i n d i r e c t o b l i g a t i o n s o f t h e Government o f t h e U n i t e d States. I t i s f u r t h e r c e r t i f i e d t h a t n o n e o f s u c h n o t e s , d r a f t s or b i l l s o f e x c h a n g e was a c q u i r e d f r o m a b a n k . The a p p l i c a n t f u r t h e r a g r e e s t h a t t h e p r o c e e d s o f t h e d i s c o u n t f o r w h i c h a p p l i c a t i o n i s h e r e i n made s h a l l b e u s e d b y t h e a p p l i c a n t t o f i n a n c e c u r r e n t o p e r a t i o n s and s h a l l n o t b e u s e d f o r s p e c u l a t i v e p u r p o s e s , f o r p e r manent o r f i x e d i n v e s t m e n t s , f o r a n y o t h e r c a p i t a l p u r p o s e , n o r f o r t h e purpose of paying o f f e x i s t i n g indebtedness t o other f i n a n c i a l i n s t i t u t i o n s . 96 X-7208 -2— The c i r c u m s t a n c e s g i v i n g r i s e t o t h i s a p p l i c a t i o n and t h e p u r p o s e s for which the proceeds of the discount are to be used are as f o l l o w s : The a p p l i c a n t h e r e b y c e r t i f i e s t h a t e v e r y r e a s o n a b l e e f f o r t h a s b e e n made t o o b t a i n a d e q u a t e c r e d i t a c c o m m o d a t i o n s f r o m o t h e r b a n k i n g i n s t i t u t i o n s and submits t h e f o l l o w i n g i n f o r m a t i o n d e s c r i b i n g s u c h e f f o r t s . The b a n k s t o w h i c h a p p l i c a t i o n s f o r c r e d i t a c c o m m o d a t i o n s h a v e b e e n made and o t h e r i n f o r m a t i o n w i t h r e g a r d t h e r e t o a r e a s f o l l o w s : Name and A d d r e s s o f Bank : D a t e o f : Was a p p l i c a t i o n : R e a s o n s g i v e n f o r r e f u s a l : Appli- : definitely re- : : c a t i o n : f u s e d ? ( Y e s or n o ) The f o l l o w i n g i n f o r m a t i o n i s s u b m i t t e d w i t h r e g a r d t o a l l b a n k s w i t h which the a p p l i c a n t has had banking r e l a t i o n s , e i t h e r a s a d e p o s i t o r or a s a borrower, during the l a s t preceding y e a r . X-7208 •3— Same and A d d r e s s o f Bank Depositor or borrower ( I n d i cate by D or B ) . Date banking relat i o n s commenced. Date banking relations terminated. Amount o f l i n e of credit granted. Amount o f l i n e of credit availed of at present time. F i n a n c i a l s t a t e m e n t s o f t h e m a k e r s and o f t h e e n d o r s e r s o n t h e p a p e r o f f e r e d f o r d i s c o u n t ( i n c l u d i n g a f i n a n c i a l statement of each of t h e p a r t n e r s when t h e a p p l i c a n t i s a p a r t n e r s h i p ) a r e a t t a c h e d h e r e t o , a n d t h e a p p l i c a n t h e r e b y c e r t i f i e s t h a t t o t h e b e s t o f h i s k n o w l e d g e and i n f o r m a t i o n e a c h o f s u c h s t a t e m e n t s c o n t a i n s a t r u e , complete and c o r r e c t s t a t e m e n t of t h e f i n a n c i a l c o n d i t i o n o f t h e maker t h e r e o f . The a p p l i c a n t h e r e b y o f f e r s t o t h e F e d e r a l R e s e r v e b a n k t h e f o l l o w i n g d e s c r i b e d c o l l a t e r a l o r o t h e r s e c u r i t y t o s e c u r e t h e payment o f a n y o r a l l of t h e n o t e s , d r a f t s and b i l l s of exchange f o r t h e d i s c o u n t o f which t h e a p p l i cant has h e r e i n a p p l i e d : The a p p l i c a n t h e r e b y a g r e e s ( a ) t o f u r n i s h t h e F e d e r a l r e s e r v e b a n k such a d d i t i o n a l f i n a n c i a l s t a t e m e n t s , c o p i e s of r e c e n t a u d i t o r s ' r e p o r t s and other c r e d i t information as are requested by the Federal r e s e r v e bank, (b) X-7208 t o submit t o a u d i t s , c r e d i t i n v e s t i g a t i o n s o r examinations by r e p r e s e n t a t i v e s o f t h e F e d e r a l r e s e r v e b a n k when t h e F e d e r a l r e s e r v e b a n k s h a l l s o d e s i r e , and ( c ) t o f u r n i s h any a d d i t i o n a l i n f o r m a t i o n , c o l l a t e r a l , f u r t h e r assurances or s e c u r i t y which the Federal r e s e r v e bank, i n i t s d i s c r e t i o n , may r e q u i r e . Any s u c h a d d i t i o n a l s t a t e m e n t s , c o p i e s o f a u d i t o r s ' s r e - ports , information, collateral, assurances, security, audits, credit i n v e s t i g a t i o n s , o r e x a m i n a t i o n s s h a l l b e f u r n i s h e d or made a t t h e e x p e n s e of the a p p l i c a n t . The F e d e r a l r e s e r v e b a n k , a t i t s d i s c r e t i o n , may c o l l e c t and a t t h e e x p e n s e a n d i n t h e name o f t h e a p p l i c a n t , o r o t h e r w i s e , e n f o r c e t h e payment when d u e o f a n y n o t e , d r a f t o r b i l l o f e x c h a n g e d i s c o u n t e d f o r t h e a p p l i c a n t o r o f a n y or a l l c o l l a t e r a l o r o t h e r s e c u r i t y h e l d h e r e u n d e r , b y s u i t o r o t h e r w i s e , may s u r r e n d e r , c o m p r o m i s e , r e l e a s e , r e n e w , e x t e n d , o r e x c h a n g e a l l o r a n y t h e r e o f , and may a p p l y t h e n e t p r o c e e d s t h e r e o f t o t h e payment o f a n y o b l i g a t i o n of the applicant to i t . The a p p l i c a n t w i l l p a y o r c a u s e t o b e p a i d t o t h e F e d e r a l r e s e r v e bank a l l e x p e n s e w h i c h t h e F e d e r a l r e s e r v e b a n k may i n c u r i n c o n n e c t i o n w i t h t h e c o l l e c t i o n a n d / o r enforcement of any n o t e s , d r a f t s or b i l l s of exchange d i s c o u n t e d f o r the a p p l i c a n t , and any s e c u r i t y or s u b s t i t u t i o n t h e r e f o r , even though no f o r e c l o s u r e or o t h e r l e g a l a c t i o n takes place. The a p p l i c a n t w i l l p a y or c a u s e t o b e p a i d p r o m p t l y when due a l l t a x e s , i n s u r a n c e p r e m i u m s , w a r e h o u s e c h a r g e s , t r a n s p o r t a t i o n c o s t s , and o t h e r e x p e n s e s n e c e s s a r y f o r t h e enforcement, p r e s e r v a t i o n , and/or p r o t e c t i o n of any s e c u r i t y p l e d g e d h e r e u n d e r , i n c l u d i n g t h e e n f o r c e m e n t o f a n y g u a r a n t y which the -5k X-7208 F e d e r a l r e s e r v e 'bank may h o l d h e r e u n d e r , a n d i n c l u d i n g f e e s f o r f i l i n g and r e c o r d i n g mortgages and the l i k e , o r a s s i g n m e n t s t h e r e o f , required by the Federal reserve tank. I f the applicant f a i l t o make a n y p a y m e n t r e q u i r e d i n t h e p r e c e d i n g p r o v i s i o n s o f t h i s p a r a g r a p h , t h e F e d e r a l r e s e r v e b a n k i s a u t h o r i z e d t o do s o and s h a l l have a l i e n upon a l l c o l l a t e r a l h e l d by i t u n t i l i t s h a l l h a v e b e e n f u l l y r e i m b u r s e d f o r a n y a d v a n c e w h i c h i t may h a v e made i n p a y m e n t o f a n y s u c h i t e m s , t o g e t h e r w i t h i n t e r e s t thereon a t the r a t e of # p e r annum. Any c h e c k o r d r a f t r e c e i v e d b y o r f o r t h e F e d e r a l r e s e r v e b a n k f o r t h e a c c o u n t o f t h e a p p l i c a n t may b e p r e s e n t e d f o r payment or f o r w a r d e d f o r c o l l e c t i o n d i r e c t t o the bank upon w h i c h drawn o r a t w h i c h p a y a b l e # Cash, bank d r a f t s , t r a n s f e r s of f u n d s o r b a n k c r e d i t s , o r a n y o t h e r f o r m s o f payment o r r e m i t t a n c e may be a c c e p t e d b y the F e d e r a l r e s e r v e bank i n payment o f or r e m i t tance f o r any such check or d r a f t , but the a p p l i c a n t s h a l l not be e n t i t l e d t o c r e d i t on a c c o u n t o f a n y s u c h c h e c k o r d r a f t u n t i l t h e F e d e r a l r e s e r v e b a n k s h a l l h a v e r e c e i v e d t h e amount t h e r e o f i n a c t u a l l y a n d f i n a l l y c o l l e c t e d f u n d s , a n d t h e amount o f a n y s u c h c h e c k o r d r a f t c r e d i t e d b y t h e F e d e r a l r e s e r v e b a n k may b e charged back to the a p p l i c a n t notwithstanding the check or d r a f t i t s e l f cannot be returned. Upon a n y f a i l u r e o f t h e a p p l i c a n t t o c o m p l y w i t h a n y p r o v i s i o n o f t h i s a p p l i c a t i o n or upon any d e f a u l t i n the payment o f X-7208 -> 9 ^ O b l i g a t i o n t o t h e F e d e r a l r e s e r v e "bank o r i n c a s e a r e c e i v e r or l i q u i d a t o r i s appointed f o r the a p p l i c a n t or any of i t s p r o p e r t y , or i n c a s e of a d j u d i c a t i o n of i n s o l v e n c y , or a s s i g n ment f o r b e n e f i t o f c r e d i t o r s , t h e F e d e r a l r e s e r v e b a n k i s a u t h o r i z e d to d e c l a r e any or a l l o b l i g a t i o n s of the a p p l i c a n t to t h e F e d e r a l r e s e r v e b a n k due a n d p a y a b l e f o r t h w i t h , and t h e same s h a l l t h e r e u p o n b e c o m e so due and p a y a b l e . ,&id i n c a s e o f a n y such d e f a u l t , t h e Federal r e s e r v e bank i s a u t h o r i z e d to s e l l , a s s i g n , and d e l i v e r t h e whole or any p a r t of t h e c o l l a t e r a l h e l d h e r e u n d e r a n d a n y s u b s t i t u t e s t h e r e f o r o r a d d i t i o n s t h e r e t o , and any guaranty h e l d by the F e d e r a l • r e s e r v e bank i n c o n n e c t i o n w i t h t h e a p p l i c a n t ' s o b l i g a t i o n s , a t any p u b l i c or p r i v a t e s a l e w i t h o u t demand, a d v e r t i s e m e n t , o r n o t i c e o f t h e t i m e o r p l a c e o f s a l e o r a d j o u r n m e n t t h e r e o f , f o r s u c h p r i c e a s i t may deem f a i r , t h e a p p l i c a n t h e r e b y w a i v i n g a n y and a l l e q u i t y o r r i g h t o f r e d e m p t i o n whether b e f o r e or a f t e r s a l e hereunder, and, upon such s a l e , t h e F e d e r a l r e s e r v e b a n k may become t h e p u r c h a s e r o f t h e w h o l e o r a n y p a r t o f s u c h s e c u r i t y f r e e f r o m a n y s u c h r i g h t o r e q u i t y o f redemption, I n c a s e o f any s u c h s a l e , a f t e r d e d u c t i n g a l l c o s t s , a t t o r n e y s ' f e e s , and o t h e r e x p e n s e s o f c o l l e c t i o n , t h e F e d e r a l r e s e r v e b a n k may apply the r e s i d u e of the p r o c e e d s of such s a l e or s a l e s to the p a y ment o f a n y o r a l l o b l i g a t i o n s o f t h e a p p l i c a n t t o t h e F e d e r a l r e s e r v e bank, whether due or n o t , a s the F e d e r a l r e s e r v e bank s h a l l deem p r o p e r , a n d a n y b a l a n c e r e m a i n i n g s h a l l b e p a i d t o t h e a p p l i c a n t . 101 X—7208 i 7 - Without l i m i t i n g or a f f e c t i n g such r i g h t s of the Federal r e s e r v e "bank s o t o s e l l a p a r t o r a l l o f s u c h s e c u r i t y , t h e F e d e r a l r e s e r v e bank i s f u r t h e r a u t h o r i z e d a t i t s o p t i o n and i n i t s d i s c r e t i o n t o c o l l e c t o r c a u s e t o "be c o l l e c t e d o r o t h e r w i s e c o n v e r t e d i n t o moneya l l o r a n y p a r t o f t h e s e c u r i t y h e l d h e r e u n d e r , "by s u i t o r o t h e r w i s e , and i s a u t h o r i z e d i n s u c h c a s e t o s u r r e n d e r , c o m p r o m i s e , r e l e a s e , renew, extend, or exchange any o f such s e c u r i t y w i t h o u t p r i o r n o t i c e or consent of the applicant. P r o c e e d s o f c o l l e c t i o n s so made, a f t e r f i r s t deducting c o s t s , a t t o r n e y s ' f e e s and expenses of c o l l e c t i o n , may b e a p p l i e d t o t h e p a y m e n t o f a n y o r a l l o b l i g a t i o n s o f t h e a p p l i c a n t t o t h e F e d e r a l r e s e r v e b a n k , w h e t h e r due o r n o t . In the e v e n t o f a n y l e g a l p r o c e e d i n g s , a l l c o s t s and r e a s o n a b l e a t t o r n e y s * f e e s i n c u r r e d b y t h e F e d e r a l r e s e r v e b a n k s h a l l become p a r t o f t h e o b l i g a t i o n o f t h e a p p l i c a n t to the Federal r e s e r v e bank c o v e r e d by the provisions hereof. Upon a n y t r a n s f e r o r p l e d g e o f a n y o b l i g a t i o n o f t h e a p p l i c a n t , t h e F e d e r a l r e s e r v e b a n k may d e l i v e r t h e c o l l a t e r a l o r a n y p a r t t h e r e o f o r i n t e r e s t t h e r e i n o r a n y g u a r a n t y o r o t h e r document h e l d hereunder in connection with the a p p l i c a n t ' s o b l i g a t i o n s t o t h e F e d e r a l r e s e r v e b a n k t o t h e t r a n s f e r e e o r p l e d g e e , who s h a l l t h e r e u p o n b e c o m e v e s t e d w i t h a l l t h e p o w e r s and r i g h t s h e r e i n g i v e n a n d s h a l l h a v e t h e same r e m e d i e s a s i f o r i g i n a l l y named h e r e i n . The F e d e r a l r e s e r v e b a n k s h a l l b e p r o t e c t e d i n a c t i n g upon any n o t i c e , r e q u e s t , c o n s e n t , c e r t i f i c a t e , w r i t i n g , r e s o l u t i o n or o t h e r p a p e r o r document b e l i e v e d b y i t t o b e g e n u i n e and t o h a v e X-7208 —B been s i g n e d , executed, p a s s e d , or p r e s e n t e d by the proper p a r t i e s . The a p p l i c a n t a g r e e s t o b e a n d r e m a i n b o u n d f o r t h e p a y m e n t o f a l l o b l i g a t i o n s t o t h e F e d e r a l r e s e r v e b a n k p u r s u a n t h e r e t o and t h a t t h e l i e n h e r e o f and a n y p l e d g e o r p l e d g e s h e r e u n d e r s h a l l r e main u n d i s t u r b e d n o t w i t h s t a n d i n g any d e l a y , e x t e n s i o n o f t i m e , subs t i t u t i o n o f s e c u r i t y , renewal, or o t h e r indulgence g r a n t e d by the F e d e r a l r e s e r v e bank i n c o n n e c t i o n w i t h any n o t e , d r a f t or b i l l o f exchange d i s c o u n t e d f o r t h e a p p l i c a n t or s e c u r i t y h e l d hereunder, hereby waiving a l l n o t i c e of such delay, extension, s u b s t i t u t i o n , renewal, or other indulgence. The a p p l i c a n t e x p r e s s l y r e s e r v e s t h e r i g h t to a n t i c i p a t e t h e payment of any o b l i g a t i o n to t h e F e d e r a l r e s e r v e bank under t h i s or any o t h e r a p p l i c a t i o n , but a g r e e s t h a t any p a y m e n t so made b y i t may b e a p p l i e d on a n y o f i t s o b l i g a t i o n s to t h e F e d e r a l r e s e r v e b a n k , w h e t h e r due o r n o t , i n s u c h o r d e r a s t h e F e d e r a l r e s e r v e b a n k may e l e c t . The a p p l i c a n t h e r e b y a g r e e s t h a t w h e r e v e r t h e o b l i g a t i o n of the applicant i s referred to herein, i t includes the a p p l i c a n t ' s o b l i g a t i o n to t h e F e d e r a l r e s e r v e bank a s maker, drawer, a c c e p t o r , indorser or guarantor o f any n e g o t i a b l e or n o n n e g o t i a b l e i n s t r u ment, or i n any o t h e r manner. (S ignature)' HOTE: When made b y a n i n d i v i d u a l , t h e a p p l i c a t i o n f o r d i s c o u n t o f n o t e s , d r a f t s o r b i l l s o f exchange s h o u l d be s i g n e d by t h e i n d i v i d u a l . 103 - 9 When made b y a p a r t n e r s h i p , t h e a p p l i c a t i o n should, b e s i g n e d b y o n e o f t h e members o f t h e p a r t n e r s h i p and s h o u l d b e accompanied by a c e r t i f i e d copy of the p a r t n e r s h i p agreement, i f a n y , a s amended t o t h e d a t e o f t h e a p p l i c a t i o n . When made b y a c o r p o r a t i o n , t h e a p p l i c a t i o n s h o u l d b e s i g n e d b y o n e o f i t s d u l y a u t h o r i z e d o f f i c e r s and s h o u l d b e a c companied by a c e r t i f i e d copy o f t h e r e s o l u t i o n of i t s board of d i r e c t o r s a u t h o r i z i n g s u c h o f f i c e r t o make t h e a p p l i c a t i o n o n b e h a l f o f t h e c o r p o r a t i o n . Such a p p l i c a t i o n s h o u l d a l s o b e a c companied by a c e r t i f i e d copy of the c o r p o r a t i o n ' s A r t i c l e s o f A s s o c i a t i o n or Charter and of the b y - l a w s of the c o r p o r a t i o n , a s amended t o t h e d a t e o f t h e a p p l i c a t i o n . X-7208 X-7208-a "" RESOLUTION OF 30&RD OF DIRECTORS Of i P P L I C M T CORPORATION RESOLVED, That and the (name) _________ (name) " the (office) (office) o f t h i s c o r p o r a t i o n , o r e i t h e r of them, h e , and t h e y are h e r e b y , a u t h o r i z e d a n d empowered f o r and i n t h e name a n d o n "behalf o f t h i s c o r p o r a t i o n t o e x e c u t e a n d / o r d e l i v e r t o t h e F e d e r a l R e s e r v e Bank o f „ the f o l l o w i n g papers and documents: (1) A p p l i c a t i o n f o r the discount of any n o t e s , d r a f t s or b i l l s o f e x c h a n g e owned "by t h i s c o r p o r a t i o n , s u c h d i s c o u n t t o "be a t t h e r a t e o f i n t e r e s t p r e s c r i b e d "by t h e F e d e r a l r e s e r v e h a n k w i t h t h e a p p r o v a l o f t h e F e d e r a l He s e r v e B o a r d , on a f o r m p r e s c r i b e d o r a p p r o v e d b y t h e F e d e r a l r e s e r v e bank, which form has been submitted t o the Board o f D i r e c t o r s of t h i s corporation. (2) The n o t e s , d r a f t s o r b i l l s o f e x c h a n g e c o v e r e d b y s u c h a p p l i c a t i o n a n d m a d e , a c c e p t e d o r i n d o r s e d i n t h e name o f t h i s c o r p o r a t i o n by such o f f i c e r s or e i t h e r of them. BE IT FURTHER RESOLVED, That i n o r d e r t o s e c u r e t h e p a y m e n t o f any or a l l of such n o t e s , d r a f t s or b i l l s of exchange d i s c o u n t e d by the Federal r e s e r v e bank f o r t h i s c o r p o r a t i o n and to guarantee the f a i t h f u l performance of any contract entered i n t o w i t h the Federal r e s e r v e b a n k , t h e s a i d o f f i c e r s o f t h i s c o r p o r a t i o n b e , and e a c h o f them i s h e r e b y , a u t h o r i z e d a n d empowered i n t h e i r d i s c r e t i o n t o p l e d g e a n d h y p o t h e c a t e w i t h t h e F e d e r a l r e s e r v e b a n k a n y c o l l a t e r a l Or p r o p e r t y M X-7208-a 2 te i 0 5 • b e l o n g i n g t o t h i s c o r p o r a t i o n a n d a n y c o l l a t e r a l o r p r o p e r t y w h i c h t h e y may i n t h e i r d i s c r e t i o n , from time t o t i m e , s u b s t i t u t e t h e r e f o r , and any c o l l a t e r a l o r p r o p e r t y w h i c h may be r e q u i r e d f r o m t i m e t o t i m e a s a d d i t i o n a l s e c u r i t y f o ? t h e payment o f any s u c h n o t e s , d r a f t s or b i l l s o f e x c h a n g e . S u c h o f f i c e r s a n d e a c h o f them a r e f u r t h e r a u t h o r i z e d and empowered t o do s u c h a c t s and t o e x e c u t e s u c h a d d i t i o n a l a g r e e m e n t s o r i n s t r u m e n t s i n t h e name and on b e h a l f o f t h i s c o r p o r a t i o n a s may h e n e c e s s a r y o r d e s i r a b l e t o meet the requirements of the Federal reserve bank. BE IT FURTHER RESOLVED, That the _ _ _ _ _ _ _ _ _ _ cers) (name o f o f f i (offices) o f t h i s c o r p o r a t i o n , a n d e a c h o f t h e m , b e , and i s h e r e b y , a u t h o r i z e d and empowered t o r e c e i v e on b e h a l f o f t h i s c o r p o r a t i o n t h e p r o c e e d s o f a n y s u c h d i s c o u n t a n d t o i n d o r s e i n t h e name a n d on b e h a l f o f t h i s c o r p o r a t i o n a n y checks or d r a f t s r e p r e s e n t i n g the proceeds of any such d i s c o u n t . CERTIFICATE I h e r e b y c e r t i f y t h a t t h e f o r e g o i n g i s a t r u e and c o r r e c t copy o f a r e s o l u t i o n r e g u l a r l y adopted by the Board of D i r e c t o r s o f the (name o f a p p l i c a n t ) on the day o f 193 , a t which m e e t i n g a quorum w a s p r e s e n t a n d v o t e d . (Corporate Seal) Secretary. SCHEDULE A. The f o l l o w i n g i s a l i s t o f t h e c o m m e r c i a l , i n d u s t r i a l o r a g r i c u l t u r a l p a p e r f o r t h e 3 5 d i s c o u n t o f w h i c h a p p l i c a t i o n was made by (Name and a d d r e s s o f a p p l i c a n t ) t o t h e F e d e r a l R e s e r v e Bank o f day o f Number from 1 up. , 19 Name and A d d r e s s Indorser Maker or Acceptor on t h e , and t h i s s c h e d u l e c o n s t i t u t e s a p a r t o f t h a t a p p l i c a t i o n . Business (Indicate purpose f o r which p a p e r was i s s u e d or proceeds u s e d . ) Maturity date Bate of Interest Mount Security. Jwaa Q cn
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