The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
X-8032 i ! vi l i n g 1 0 • 2 F E D E R A L R E S E R V E B O A R D STATEMENT FOR THE PRESS For release in the O c t o b e r 2, 1934. evening papers, October 2, 19 34 arisen in con- INTERPRETATION OF M a R G I ^ REQUIREMENTS "Old accounts" In response to a number nection with section 7(a) of questions which have of R e g u l a t i o n T, the Board has issued the following interpretations: 1, The account account as it that may be designated as stood at with such changes as section 7(a) an old of the account 2. The regulation if to November 15, 1934, as at the beginning any t r a n s a c t i o n which cannot be 3* the 1934, such account under on October such account as 1, 1934. an old account and may permit transactions but there may not in be included account if of b u s i n e s s it had been designated as on October 1, 1934, so included must be made in and or trans- a new account. After an account has regulation permits at an old account any transaction which have been made in the an old account 1, is account had been designated as of business such designation; in any account designated ferred to the account on October could have been permitted in at the beginning account pending could not opening of business creditor may designate any time prior the the an old been designated as the withdrawal of cash an old or s e c u r i t i e s account the only if the -2account is an unrestricted does not make the 4. If, the time account X-8032 on October account a restricted between the securities account cannot be d e s i g n a t e d as an old whichever from the is on October the later, account are on October 1, 1934 and such account as an old account, has been any -withdrawal of money or account the withdrawal account. opening of business of the d e s i g n a t i o n of stricted 15 and i f account unless 1.5 o r o n t h e or unless the from the date of account, it is such an unre- such designation, cash and/or replaced before the there account securities is withdrawn designated as an old account# 5. the time If, between the of the opening of designation of sults consisting in an increase securities of of a s a l e in the securities 1934, old account, in the adjusted debit balance account designated 1, and there account or any and replacement purchase which re- purchased and any debit for cluded in the on October such account as an has been any additional purchase substitution business as the of t h e cost thereof account, the cannot be in- an old account but may be transferred to a new account. 6. quent to the September 30, 1934, account exactly as i t October made Even though transactions 1, 1934, as subsequent to an old the have been made in an account creditor may f o r convenience existed at the account and may transfer September 50, 1934, may be t r a n s f e r r e d any money and/or the old account in beginning accordance with of business all section 7(a) designate on transactions to a new account, securities subse- to which also lawfully withdrawn from of the Regulation*
@FedFRASER