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R-101 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM STATEMENT FOR THE PRESS October 27, 1937 For release in morning newspapers of Thursday, October 28, 1937. The Board of Governors of the Federal Reserve System today adopted the follov:ing resolution: BE IT RESOLVED, That, effective November 1, 1957, the supplement to Regulation U is amended by changing the maxirnum loan value figure of said supplemc;nt to lmum loan value figure per cent" in the first paragraph 11 45 11 60 per cent", and by cblmging the max- 11 60 graph of said supplement to per cent" in the second para11 75 per cent", so that as thus amended the supplement will read as follows: "SUPPLEMENT TO REGULATION U ISSUED BY THE BOAPJ) OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective November 1, 1957 For the purpose of section l of Regulation U, the rnaxim1lm loan value of any stock, whether or not registered on a national securities exchange, shall be 60 per cent of its current, market value, as determined by any reasonable method. I,oans to hrokers and d.ealers. Notwithstanding the foregcing, a stock, if registered on a national securities exchunge shall hJ.ve a special maximum loan value of 75 per cent of its current market value, as determined by any reasonable method, in the case of a lo::-.n to n. broker or dealer from whom the bauk ucct)pts in good faith a signed statement to the effect (1) that he is subject to the provisions of Regulation T (or t:1at }le does not extend or rnair.tain credit to or for custom~rs ext~ept in accordance therewith as if he were subject thereto), and (2) that the securities hypothecated to seC"clre the loan are securities carried for the account of his custo:ners other than his partners." 214
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