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Xr&074 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS For immediate r e l e a s e October 13, 1934 MARKET VALUE AMD LOAN VALUE OF SECURITIES INVOLVED IN SUBSTITUTIONS. RULING NO. 25 INTERPRETING REGULATION T. The F e d e r a l Reserve Board has been asked t o r u l e upon t h e f o l l o w i n g q u e s t i o n : 11 s t r i c t e d account d e s i r e s t o s u b s t i t u t e s e c u r i t i e s • A customer "with a r e The s u b s t i t u t e d s e c u r i t i e s must have a c u r r e n t market value equal t o t h a t of t h e s e c u r i t i e s withdrawn; otherwise, t h e r e would be a n e t withdrawal, under Regulation 4(d)• The q u e s t i o n i s whether the s u b s t i t u t e d s e c u r i t i e s must a l s o have a loan value equal t o t h a t of t h e s e c u r i t i e s withdrawn#" The Board r e p l i e d t h a t , under s e c t i o n 4(d) of Regulation T, n e i t h e r t h e c u r r e n t market value nor the maximum l o a n value of t h e s e c u r i t i e s s u b s t i t u t e d i n a r e s t r i c t e d account should be l e s s t h a n t h e c u r r e n t market value or the maximum loan v a l u e , r e s p e c t i v e l y , of the s e c u r i t i e s withdrawn, u n l e s s any d i f f e r e n c e between such values i s made up by a d e p o s i t of cash or u n l e s s the account i s made an u n r e s t r i c t e d a c c o u n t .
@FedFRASER