Full text of Mimeograph Letters and Statements of the Board : Telegram From Asst. Secretary Bethea re Overdraft Resulting From Drawing of Check Is an Extension of Credit, But Is Not Subject to Regulation W, Number S-501, Volume 56, Page 255

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255
S-501

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TELEGRAM

May 29, 1942 .

(Addressed to the Presidents of all Federal
Reserve Banks)

An overdraft resulting frbm the
drawing of a check is an extension of credit,
but in the usual case it is not "in the form
of a loan" within the meaning of section 2(i),
and therefore is not subject to Regulation W
unless used as a means of evasion.

(Signed)

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L. P. Bethea
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