Full text of Mimeograph Letters and Statements of the Board : Telegram From Asst. Secretary Bethea re Pawn Transaction in Which Pawnor Is Not Under Personal Obligation to Repay Pawnbroker, Not Subject to Regulation W, Number S-506, Volume 56, Page 259

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259
5... 506

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June 5, 1942
(Addressed to the Presidents of all Federal1Reserve Banks)
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A pawn transaction in which the pawnor

is not under any personal obligati_on to repay the ·
pawnbroker is not a loan and is.not subject to
Regulation W.

However, the mere fact that the

transaction is

called

a pawn does not mean that it

is not subject to Regulation Vv

I

.~ince

there are many

so-called pawn transactions which do in ract involve
an obligation to

••

rep~ •

(Signed) · L. P. Bethea

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