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3*3 X-3064 F E D 2 RAL RESERVE BOARD STAISkiSNT FOR THE PRESS For imredinte r^lewso October 12# 1934. INCREASES IK ADJUSTED DEBIT BALANCE OF AN OLD ^CCOUNT RULING HO. 18 INTERPRETING REGULATION T. In response t o an inquiry the Federal Reserve Board has advised that, i f the adjusted debit balance of an account which has been designated as an "old account" pursuant t o section 7(a) of Regulation T, i s reduced by reason of a s a l e of s e c u r i t i e s or otherwise, the creditor may not thereafter permit the customer t o make any transaction which would r e s u l t in an increase i n the adjusted debit balance except a withdrawal of money made i n conformity with the t h i r d proviso of s e c t i o n 7(a) of Regulation T. In t h i s connection the Board c a l l e d attention t o the fact that a transaction which would r e s u l t i n an increase i n the adjusted debit balance i f standing alone i s not prohibited by s e c t i o n 7(a) i f i t i s part of a "combination of transactions" which r e s u l t s i n no increase i n the adjusted debit balance*
@FedFRASER