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X-8079 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS For immediate release October 17, 1934* TRANSFER OF TRANSACTIONS FROM CASH ACCOUNTS. Ruling No. 26 interpreting Regulation T. The Federal Reserve Board has been asked f o r a ruling on the following f a c t s : A customer requests a broker t o purchase for the customer's account certain r e g i s tered s e c u r i t i e s t o be paid f o r by the customer in cash. The customer has a bona f i d e intention t o pay in cash; but, when d e l i v e r y day arr i v e s , he finds that he has not s u f f i c i e n t cash to pay for the securit i e s in f u l l and desires to pay f i f t y percent and have the broker carry the s e c u r i t i e s in his margin account u n t i l the customer i s ready to make payment in f u l l . The question i s presented whether the broker may transfer such transaction from the customer's cash account to his margin account. In reply the Board advised that the transfer of such a transaction from a cash account t o a margin account i s expressly permitted i n exceptional cases by section 6 of Regulation T, i f authorization i s obtained from the business conduct committee or other suitable committee of the appropriate national s e c u r i t i e s exchange*
@FedFRASER