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X-9017 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS For immediate r e l e a s e . November 8, 1934. 'V17HBRAVAL OF PROCEEDS OF SALE OF UNREGISTERED, NON-EZEMFTED SECURITIES FROM RESTRICTED NEW ACCOOlfT. Ruling No. 36 i n t e r p r e t i n g Regulation T. The F e d e r a l Reserve Board has been asked whether under Regulation T a broker may pay t o a customer from a r e s t r i c t e d new account t-oe proceeds of t h e s a l e of u n r e g i s t e r e d , non-exempted s e c u r i t i e s s o l d i n such account. In reply t h e Board r u l e s t h a t , i n the absence of other m a t e r i a l f a c t s , the b r o k e r may permit t h e withdrawal of any p a r t of the proceeds of such s a l e , i f the s a l e , t h e payment of t h e proceeds i n t o t h e account, and t h e payment of t h e proceeds from the a c c o u n t , a l l occur on t h e same day so t h a t t h e withdrawal of t h e proceeds c o n s t i t u t e s a p a r t of a combination of t r a n s a c t i o n s which does not r e s u l t i n a net withdrawal or i n an i n c r e a s e i n the excess of t h e a d j u s t e d d e b i t balance of t h e account over the maximum z l o a n value of t h e s e c u r i t i e s i n t h e account i n v i o l a t i o n of s e c t i o n 4(d) of t h e R e g u l a t i o n .
@FedFRASER