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•REC'U IN FILES SECTION
411
\` MAR 1 1 1940 r
_4,
L-674
COPY
FEDERAL RESERVE BANK OF SAN FRANCISCO
March 6, 1940
Walter Wyatt, Esq.
General Counsel
Board of Governors of the Federal Reserve
System
Washington, D. C.
Dear Mr. Wyatt:
Under date of February 21, 1940, I received
from Mr. Thomas B. Paton, Assistant General Counsel to
the American Bankers Association, proposed forms of
collateral note and unsecured note, which Mr. Paton
stated he was revising for distribution to banks in the
various states. Mr. Paton requested that I comment upon
the proposed forms.
I enclose herewith copy of my letter of this
date to Mr. Paton, together with copy of the memorandum
of criticism referred to therein.
Very truly yours,
(Signed)
Enclosures
ACA:MA
Albert C. Agnew
Counsel.
L-674-a
COPY
MAW
••=.
March 6, 3.940
Thomas B. Paton, Esq.
Assistant General counsel
The American Bankers Association
22 East 40th Street
New York, N. Y.
De:a. Mr. Paton:
This is in reply to your letter of February 21,
1940, with which you transmitted forms of collateral note
and unsecured note which you propose to suggest for use by
banks in the various states.
In accordance with your request, I have reviewed
the proposed forms and hand you herewith my comments regarding the same.
Since I note from your letter that you wore mailing similar requests to counsel for the other Federal Reserve
Banks, I am sending a copy of this letter to Mr. Walter Wyatt,
General Ceunsel to the Board of Governors of the Federal Reserve System, whose, office acts as a clearin6 house in matters
of this kind in so far as the Federal Reserve Banks arc concerned.
With kindest personal rL sards, I am
k
Very truly yours,
(Signed)
ALBERT C. AGNEW
Counscl,
Enoloflure
ACA.:11%
L'
-674-b
COPY
March 6, 1940
Re:
Notes Forms of American
Bankers Association
MEMORANDUM TO MR. THOMAS B. PATON:
FROM
MR. ALBERT C. AGNEW.
The following are my comments regarding the "Collateral
Note Form" and "Unsecured Note Form", transmitted with your letter
of February 21, 1940.
COLLATERAL NOTE FORM
Medium of Payment:
The note should provide for the kind of money in which
the obligation is payable, such as "lawful money of the United
States".
Interest:
The note should provide for the payment of interest and
the rate thereof. The amount payable does not appear to include
interest, for the note provides that when the final payment is
made, there shall also be paid the "interest then remaining
unpaid".
"Late Charges":
If too large an amount is inserted as the "late
charge", the note might be rendered usurious. The rule in most
jurisdictions is that a provision in a note or other contract
for the payment of money, by which the debtor agrees to pay
after maturity interest at a higher rate than permitted by the
usury laws, or a sum of money which will exceed that rate, does
not render the note or other ccntract usurious, if the parties in
making the contract act in good faith, without intent of evading the
usury law. Nevertheless, in some states the usury statutes have
boon construed as prohibiting the charging of more than the legal
rate even after maturity. See the Annotation on this subject in
82 A.L.R. at page 1213.
L-674-b
CharGes Collectible in Event of Suit:
In the next to the last line of the second paragraph
on page 1, it might be well to add after the words, "balance
hereof", the words, "together with any unpaid interest".
Neptiability:
Some of the contingencies in the optional acceleration
in the last paragraph on page 2, other than the one in the
clause
subdivision numbered (1), (as well as the one in the first four
lines on page 2), would render the notes nonnegotiable in all
states, while the others would jeopardize their negotiability in
many states. As you know, the general rule is that provisions
which permit the holder to declare the note due upon a contingency
wholly under the control of the holder render the note nonnegotiable,
whereas those which permit the holder to accelerate the maturity
upon contingencies solely within the control of the maker do not.
The most common example of a provision of the first type is one
permitting the holder to declare the note due when he deems himself
insecure - examples of the second type are those permitting the
holder to declare the note due upon a default in the payment of
interest or principal, or in the event of the failure to pay any
one of a series of notes. There is also the third type of acceleration provision which permits the holder to declare the note due
upon the happening of an event indicated in the paper but not
within the control of either the maker or holder, as for example,
one permitting the holder to declare the note due if the maker
should suffer a fire loss. As to this third type, there is such
a contrariety of opinion that it is impossible to draw any conclusion as to what the rule would be in a particular state in the absence of a decision directly in point.
Consent to Extensions of Time:
(Next to last paragraph, page 3). The great weight of
authority is that previsi,ns of the type included in this note,
whereby the maker, endorsers, curetios and guarantors consent to
any and all extensions of time, do not affect the negotiability
of the note. There is, however, a minority rule which has been
adopted in eon.: states, of which Idahe is one, to the effect that
such a provision destroys the negotiability cf the note. See
Union Stockyards National Bank v. Dolan, 14 Idaho 87, 93 Pac. 508;
Sanderson v. Clark, 33 Idaho 359, 194 Pac. 472. See also the excellent Annotation on this subject in 77 A.L.R., at page 1097.
•
111L-674-b
-3-
Authority to Fill in Blank Spaces:
In the fourth line from the bottom on page 3, it might
be well to add after the words, "The Bank is authorized by
each
of the undersigned", the words, "and by all guarantors, sureties
and endorsors hereof", so that any of the parties last named who
may have signed the note before it was completed, will have conc:;nted to the completion.
Transfer by Bank:
Would the second paragraph on page 4 be acceptable to
an agency of discount?
That is, isn't the discharge "from any
liability or responsibility in the matter" toe broad? Presumably,
it is intended to refer to any liability or responsibility with
respect to the collateral arising by virtue of any occurrences
taking place after the transfer is made, but it does not so state.
Reverse Side of Note:
In addition to the guaranty clause on the reverse side
of the note, it would be advisable to provide a separate space
for regular endorsements, preceded by the word "Endorsement" or
"Endorsements". The reason for separating the endorsements from
the guaranty is that there is some question as to whether or not
a guaranty is also an endorsement. Although the majority rule
seems to be that an endorsement in the form of a guaranty, or
one containing a guaranty, operates as a transfer of the instrument and creates the same liabilities as those incurred by an
endorser in addition to the liability of a guarantor, nevertheless there are cases to the contrary - the leading one being
Central Trust Co. v. yirst National Bank, 101 U.S. 68, 25 L. Ed.
876.
NOTE FORM (UNSECURED)
The foregoing comments arc applicable to the unsecured
note form also, except there are, of course, no contingencies
similar to those enumerated in subdivisions (5) and (6) of the acceleration prevision in the collateral note form, in the unsecured
form.
(Si_gned)
ACA:MA
ALBERT C. AGNEW
Counsel
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
„
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Washia
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FEDERAL RESERVE SYSTEM
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RECEIVED AT WASHINGTON, D. C.,
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Noon
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for FRASER
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•
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FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.,
31rhta
1255p jan
Rich-and
20
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Washington
1
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FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.,
12.5anb
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TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C..
119fcq lc,
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Noell
.ashing ton
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.MEMBER BAN
1
RO
/
ORY NOTE SECURED BY OBLIGAIN.THE UNITED STATES
(Date)
(Place)
days after date for value received,
(Not to exceed 15 days)
the
promises
to pay to the FEDERAL RESERVE BANK OF BOSTON, or order, at said Federal Reserve Bank,
Dollars,
having deposited with said Federal Reserve Bank, as collateral security for the payment of this or any other
promissory note or notes made or hereafter to be made by the said bank and payable to the Federal Reserve Bank
of Boston, bonds and other obligations of the United States as follows:—
With power on the non-payment of this or any other such promissory note when due, or at any time or
times thereafter, to sell, assign, transfer and deliver, or otherwise dispose of said security or any security added
to or substituted for the same, or any part thereof, at public auction or private sale, without notice; and the said
Federal Reserve Bank may become the purchaser at any such sale, if at public auction; and any security substituted
for the above, or added thereto, shall be equally covered by this agreement. Should the value of the security
hereby or hereafter pledged depreciate in the judgment of the said Federal Reserve Bank, this bank hereby
agrees to deposit, on demand, additional security satisfactory to the said Federal Reserve Bank.
After deducting all legal or other costs and expenses of collection, sale and delivery, the residue of the
proceeds may be applied to the payment of this or any other such promissory note, whether then payable or not,
returning the overplus to the undersigned.
Bank.
Trust Company.
Cashier.
Treasurer.
B. D. 15
MEMBER BAN.R011111150RY NOTE SECURED BY OBLIG
NS.THE UNITED STATES
(Place)
(Date)
days after date for value received,
(Not to exceed 15 days)
the
promises
to pay to the FEDERAL RESERVE BANK OF BOSTON, or order, at said Federal Reserve Bank,
Dollars,
having deposited with said Federal Reserve Bank, as collateral security for the payment of this or any other
promissory note or notes made or hereafter to be made by the said bank and payable to the Federal Reserve Bank
of Boston, bonds and other obligations of the United States as follows:—
With power on the non-payment of this or any other such promissory note when due, or at any time or
times thereafter, to sell, assign, transfer and deliver, or otherwise dispose of said security or any security added
to or substituted for the same, or any part thereof, at public auction or private sale, without notice; and the said
Federal Reserve Bank may become the purchaser at any such sale, if at public auction; and any security substituted
for the above, or added thereto, shall be equally covered by this agreement. Should the value of the security
hereby or hereafter pledged depreciate in the judgment of the said Federal Reserve Bank, this bank hereby
agrees to deposit, on demand, additional security satisfactory to the said Federal Reserve Bank.
After deducting all legal or other costs and expenses of collection, sale and delivery, the residue of the
proceeds may be applied to the payment of this or any other such promissory note, whether then payable or not,
returning the overplus to the undersigned.
Bank.
Trust Company.
Cashier.
Treasurer.
B. D. 15
•
GENERAL LOAN AND COLLATERAL AGREEMENT.
Emu All girt' btj011rgr lirrgritig that in consideration of advances or rediscounts at
this time or heretofore granted to it by the Federal Reserve Bank of Boston and/or in consideration of
obtaining such further advances, rediscounts, loans or credits as may hereafter be granted to it by the Federal Reserve Bank of Boston, the undersigned bank hereby agrees that as collateral security for any and
all loan s, advances, rediscounts, indebtedness, obligation and liability of the undersigned bank to the said
FederaI reserve bank, now or hereafter existing, matured or not matured, absolute or contingent, and wherever payable, including such as may arise from indorsements of notes, acceptances or any other items, or
paper discounted by said Federal reserve bank or held by said Federal reserve bank as security for any
loans or advances of any sort whatever, and including overdrafts and indebtedness by the undersigned bank
to said Federal reserve bank on account of collections or paper received for collection, said Federal reserve
bank shall hold, retain and have a lien upon all moneys, negotiable instruments, bonds, stocks, commercial
paper, credits, choses in action, claims and demands of every kind at any time in possession or control of
said Federal reserve bank or any of its agents or correspondents, or in transit to it by mail or carrier, belon ing to, for account of or subject to the order of the undersigned bank; and said Federal reserve bank
sha11 have the following rights and powers in respect to such collaterals and every part thereof (in addition
to any other rights which it may have): Said Federal reserve bank may at any time or times collect any
of such collaterals, and it may indorse any thereof in behalf and in the name of the undersigned; and in
case of failure of the undersigned to pay or discharge when due any such loan, indebtedness, obligation
or liability, or in case of failure of the undersigned bank to furnish additional collateral as hereinafter proided, or in case of the insolvency, general assignment, receivership, bankruptcy or failure in business
I the undersigned bank, said Federal reserve bank may sell without notice any of said collaterals at private
r public sale or at broker's board (being at liberty to become the purchaser if the sale is public or at broker's
board) and may apply any and all money or credits, including the proceeds of any such sale, and any debts,
liabilities or balances, due or not due, in favor of the undersigned bank, arising from deposits, discounts,
collections, items in transit, or otherwise, at any time owing or due from or chargeable against said Federal reserve bank, or any of its agents or correspondents, to the payment of expenses of any such sale or
sales, or of the realization or collection of any of said collaterals, or of any of said loans, advances, rediscounts, indebtedness, obligation or liability of the undersigned bank, and to the payment of any and all
loans, indebtedness, obligation or liability of the undersigned bank, whether due or not due; and any or
all loans, indebtedness, obligation or liability of the undersigned bank shall in any of the cases above
stated become due at the option of said Federal reserve bank. If the collaterals securing any loans,
indebtedness, obligation or liability of the undersigned bank to said Federal reserve bank shall at any time
be unsatisfactory in amount or otherwise to said Federal reserve bank, or to any of its officers, the undersigned bank will immediately furnish such further security as will be satisfactory to said Federal reserve
bank. Said Federal reserve bank may assign or transfer the whole or any part of any indebtedness, obligation or liability of the undersigned bank, and may transfer therewith as collateral security therefor, the whole
or any part of the collaterals above referred to, and the transferee shall have the same rights and powers
with reference to the indebtedness, obligation or liability transferred, and the collaterals transferred therewith, as are hereby given to said Federal reserve bank. It is also agreed that this instrument constitutes a
continuing agreement between the undersigned bank and the said Federal reserve bank applying to all
future, as well as existing, transactions between the said parties and also that the force and effect hereof shall
not be terminated by the closing at any time of all transactions between the said parties, but that the same
shall apply thereafter to any new transactions and shall continue in full force until notice is received in
writing by either party from the other of the intention to terminate it, whereupon, it shall be of no effect
for any indebtedness subsequently created.
.3n
00 iturgg
iprra, the
has caused its corporate seal to be hereto affixed and these presents to be signed by one of its officers thereunto duly authorized at
19.....
this
.
day of
(Name of bank)
By
(Title)
[SEAL]
•
FEDERAL RESERVE
BANd4tv
OF NEWYORK
/44ir
20, 1925.
5
*
4)0
Federal Reserve Board,
.jashington, D. C.
ttention of Jr. J. C. Soelj., Assistant Secretary
Dear :,rr.
As requested in your telegram of to-day addressed to
Governor Strong, I am enclosing
2 copies of the Federal Reserve Sank of Hew York
member bank collateral note form
2 copies application for rediscount or advance
copies form of application for rediscount or
advance secured by obligations of the
United States government
2 copies of resolution to be adopted by board
of directors of member bank authorizing
execution of general loan and collateral
agreement, and
2 copies of general loan and collateral agreement.
Very truly yours,
76
-(
J. H. Case
Deputy Governor.
Encs.
.
24 10M $ 24
•
•
•
•
••••••••
LOCATION OF BANK
....•••••••••••0111
•••
DATE
(NOT TO EXCIICD 113 DAYS)
days after date, for value received, the undersigned bank promis
es
to pay to the order of the FEDERAL RESERVE BANK
OF NEW YORK at its
OFFICE IN THE CITY OF NEW YORK, N. Y.
DOLLARS
having deposited with and pledged to the said Federal reserve
bank, as collateral security for the
payment of this and any other liability or liabilities, whether direct
or contingent, of the undersigned bank to the said Federal reserve bank, due or to become due
or that may be hereafter
contracted, notes, drafts, bills of exchange or bankers' acceptances, or
bonds or notes of the United
States, as described in the schedule included in the application for loan,
dated.
accompanying and made a part hereof. The said Federal
reserve bank is also given a
lien, for the payment of this note and any other of the said liabilit
ies upon all the property or
securities now or hereafter left in the possession of said Federal
reserve bank by the undersigned
bank and also upon any balance of the deposit account of the
undersigned bank with the said
Federal reserve bank, and it is hereby agreed by the undersigned
bank that the said Federal reserve bank has the right to require such additional security as it may
deem proper, and, on failure
to respond forthwith to such requirement or on the nonpayment of this
note or on the nonpayment
of any other liability or liabilities of the undersigned bank as above
set forth, the said Federal
reserve bank, or any holder hereof, is hereby given full authority
to sell, assign and deliver, or
collect, the whole or any part of the above named collaterals,
or any substitute therefor, or any
addition thereto, at any public or private sale or on any
brokers' board or stock exchange, at any
time or times hereafter, without demand, advertisement
or notice and, upon such sale, the said
Federal reserve bank or the holder hereof may become
the purchaser of the whole or any part of
such collaterals, free from any right of redemption, and,
after deducting all legal or other costs
and expenses for collection, sale and delivery, may apply
the residue or the proceeds of such
collections, sale or sales to the payment of any, either
or all of the said liabilities, as the said
Federal reserve bank, or its assigns, shall deem proper,
returning the over-plus to the undersigned
bank. It is agreed that in the event of the insolve
ncy or bankruptcy of, or the appointment of
a receiver for, the undersigned bank, this note
and all the said liabilities and each of them shall
at the option of the said Federal reserve bank become
immediately due and payable, without demand or notice.
By
cr. 24 IOM +24
LOCATION OF BANK
•••••••
DATE
(NOT TO 1EXCIIILD 15 DAYS)
days after date, for value received, the undersigned bank promise
s
to pay to the order of the FEDERAL RESERVE BANK OF
NEW YORK at its
OFFICE IN THE CITY OF NEW YORK, N. Y.
— DOLLARS
having deposited with and pledged to the said Federal reserve
bank, as collateral security for the
payment of this and any other liability or liabilities, whether direct
or contingent, of the undersigned bank to the said Federal reserve bank, due or to become
due or that may be hereafter
contracted, notes, drafts, bills of exchange or bankers' acceptances, or bonds
or notes of the United
States, as described in the schedule included in the application for loan,
accompanying and made a part hereof. The said Federal reserve
bank is also given a
lien, for the payment of this note and any other of the said liabiliti
es upon all the property or
securities now or hereafter left in the possession of said Federal reserve
bank by the undersigned
bank and also upon any balance of the deposit account of the undersi
gned bank with the said
Federal reserve bank, and it is hereby agreed by the undersigned bank
that the said Federal reserve bank has the right to require such additional security as it may deem
proper, and, on failure
to respond forthwith to such requirement or on the nonpayment of
this note or on the nonpayment
of any other liability or liabilities of the undersigned bank as above
set forth, the said Federal
reserve bank, or any holder hereof, is hereby given full authority to
sell, assign and deliver, or
collect, the whole or any part of the above named collaterals, or any
substitute therefor, or any
addition thereto, at any public or private sale or on any brokers' board
or stock exchange, at any
time or times hereafter, without demand, advertisement or notice;
and, upon such sale, the said
Federal reserve bank or the holder hereof may become the purchaser
of the whole or any part of
such collaterals, free from any right of redemption, and, after deducti
ng all legal or other costs
and expenses for collection, sale and delivery, may apply the
residue or the proceeds of such
collections, sale or sales to the payment of any, either or all of
tile said liabilities, as the said
Federal reserve bank, or its assigns, shall deem proper, returni
ng the over-plus to the undersigned
bank. It is agreed that in the event of the insolvency or bankrup
tcy of, or the appointment of
a receiver for, the undersigned bank, this note and all the said
liabilities and each of them shall
at the option of the said Federal reserve bank become immediately
due and payable, without demand or notice.
••••••
•••••
By
•
Cr. 10 12M 7-24
SEIONSTRUCTIONS AND
SPECIMEN FORM ON BACK
•
•
•
•
APPLICATION FOR REDISCOUNT OR ADVANCE
SHEET No.
To be made in duplicate.
TO THE FEDERAL RESERVE BANK OF NEW YORK,
FEDERAL RESERVE P. 0. STATION,
NEW YORK, N. Y.
Dated
192
The
24 15
7: 0
pi 1
00 I
IC3
3 L •Z
-
MAKER
ADDRESS
INDORSERS
BUSINESS
EIRT•D NET WORTH
(
RATING)
OR
BY
MATURITY
RATE OF
INTEREST 0
DISCOUNT
RECEIVED
;
Bank of
hereby makes application for:
(a) The rediscount of notes, drafts, bills of exchange or acceptances aggregating $
, which
are listed in detail in the following schedule:
(b) An advance of $
upon its promissory note, secured by the notes, drafts, bills of exchange or acceptances
aggregating $
which are listed in detail in the following schedule:
You are hereby authorized to charge the rediscounts or advance above described to our account with you at maturity.
DEPOSITORS
OR
PURCHASED
1 -z
i
P
AMOUNT
i
I
'
TOTAL
, Cashier of the
Bank of
, hereby certify that to the best of my knowledge and belief, the original loans which are evidenced
by the notes, drafts, bills of exchange or acceptances listed in the foregoing schedule, were made for agricultural, industrial or
commercial purposes, and I further certify that, to the best of my knowledge and belief, the notes, drafts, bills of exchange
or
acceptances listed in this schedule are eligible for rediscount with or purchase by Federal Reserve Banks under the regulations
of
the Federal Reserve Board.
On this date the total amount of money borrowed by this bank on bills payable, rediscounts or
otherwise, is:
Federal Reserve Bank $
Other Banks
Cashier.
0
•
*EASE NOTE CAREFULLY
Please give, with respect to each name, commercial agency rating if available,
and your estimate of present net worth, if your files contain such information. Indicate
your estimate of the net worth by placing the letters "N.W." before your figures.
Insert the name of the agency at the top of the column if ratings are given.
Insert either a "D" or a "P" in the column headed "Depositors or Purchased"
to indicate whether the paper was discounted for a depositor or purchased. The "D"
should appear on the line with the name of the discounter.
Please show in the appropriate column the rate of interest or discount received
by you on all paper offered for rediscount.
Insert an "S" in the column headed "Statement," on the line with each party
whose statement is on file.
. Notes, drafts, bills of exchange and acceptances submitted for rediscount or as
collateral should be indorsed in blank in the following form:.
First National Bank, Blankville, N. Y.
Cashier.
Each indorsement of a member bank should be signed by an officer whose
signature and authority to indorse have been filed with this bank.
A promissory note of a member bank must have a maturity not exceeding
fifteen days from date of discount.
Industrial and commercial paper must have a maturity not exceeding ninety
days from date of rediscount, or from date of advance, if used as collateral.
Agricultural or live stock paper must have a maturity not .exceeding nine
months from date of rediscount, or from date of advance if used as collateral.
For further information regarding paper eligible for rediscount or
purchase by Federal Reserve Banks, see Regulations A and B, Series of
1923, Federal Reserve Board.
FEDERAL RESERVE BANK OF NEW YORK
SPECIMEN FORM OF APPLICATION SHOWING DESIRED
ARRANGEMENT OF DETAILS
EST °
.
MAKER
OR
ADDRESS
PROM
I
1 UP
1
C.P
BUSINESS
:Agency)
INDORSERS
Scudder
.P. Crawf
ca.
NET WORTH
RATING
(By
B la nItvl lie
d
I
O
10,000
Fa rrn9 r
,Feed & Grai 50/75 -11-
O>
g
MATURITY
c7
-
gi
n
8/3
.71
STATEMENT
NUMBER
AMOUNT
$
50
6
For purchase of fee
2 F.J
Crockett
West Blankville • Farmer
For purchase of hor
N.W. 3,500
8/15
3 W.B. Richter
Annie Richter
idfr.Baske ts 20/35 -2
Wife
N.W. 1,000
For purchase of materials
8/30
4
Builders
Brooklyn
7 125-1 5/
Blankville
• Brick Mfrs. 35/50-2 For purchase of brick
Over
Packers
Chicago
1,000,000
9 18
/
Gen
al Building Co.
Jones Brick Co.
5 Western Packing Co.
6
Unit d Woolen Co.
A.B. Jones
, & Co.
8 IA or is Harvey
J
A. . Schmidt Co.
10
Blankville
Flom
Boston
ZI
6
1,05.0,
4;
500:
6
9 30
/
500/750-1
5ln"
5,000
6
B la nkvl lle,
Hardware
10/20-2i
10/10
For purch ase of' hardware for 'sea onal require ments
6
850
Blankville
Cattle dealer
2/3-3
For purchase of*catt,le ti Collat al,
CA1 on ten head cattle.
10/15
6
500
Blankville
Butter & gEg 35 50-1
/
Collateral W/R's fot. 10,000 lbs. butter.
10/22
Furniture Co., Inc.
A.S. Ccrc
J.B. Cox
Samuel Hood
Mfrs. Woo
President
200
Blankville
Mfrs.
75/125-1
10/30
President
N.W. 25.000
Secretary
N.W. 10,000
It
Physician
...LW. 40,000
purchase of Limb r and °the mater!al:.
If
PLEASE NOTE SPACE LEFT BETWEEN 1.:_\.(
1T1',7,1
6
Cr!28 25 DI 4▪ -24
fa
kLICATION FOR REDISCI#N11tR ADVANCE
1
l
SPECIAL FORM* i
SHEET NO.
SECURED BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT
To be made in duplicate.
TO THE FEDERAL RESERVE BANK OF NEW YORK,
Corner Nassau and Pine Streets,
New York, N. Y.
E
61,
5.
1
00
0.,
A 0
TaZ
til
Dated
192
Bank of
hereby makes application for: —
The
(a) The rediscount of notes secured by bonds, notes, or certificates of indebtedness of the United States Govern, which are listed in detail in the following schedule:
ment aggregating $
upon its promissory note for
(b) An advance of $
days, secured by bonds, notes, or
certificates of indebtedness of the United States Government or by our customers notes so secured aggregating
which are listed in detail in the following schedule:
$
You are hereby authorized to charge the rediscounts or advance above described to our account with you at maturity.
NUMBER
FROM
I UP
MAKER
—
ADDRESS
INDORSERS
=
g
RATE OF
INTEREST
OR
DISCOUNT
RECEIVED
AMOUNT OF
NOTE
AMOUNT OF
COLLATERAL
-
TOTALS
, Cashier of the
Bank of
, hereby certify that to the best of my knowledge and belief the original
loans which are evidenced by the notes listed in the foregoing schedule, were made for the purpose of carrying
or trading in bonds, notes or certificates of indebtedness of the United States Government, and are secured by
a pledge of the collateral above described.
is
On this date the total amount of money borrowed by this bank on bills payable, rediscounts or otherwise,
I Federal Reserve Bank $
Other Banks
Cashier
•
•
BD-
•
RESOLUTION.
WHEREAS this bank has from time to time obtained advances from and rediscounted its
commercial paper and bills receivable with the Federal Reserve Bank of New York, and
WHEREAS the said Federal Reserve Bank of New York has required further security for the
payment of such advances and rediscounts and of such other advances and rediscounts as may
hereafter be made by the said Federal reserve bank to and for this bank, and
WHEREAS it is desirable that this bank should comply with such request of the Federal Reserve Bank of New York in this regard,
Now,THEREFORE, BE IT RESOLVED that the president, any vice president and cashier of
this bank are, or either of them is, hereby authorized to execute and deliver in behalf of this
bank a general loan and collateral agreement in favor of the Federal Reserve Bank of New York
in such form as may be required by the said Federal Reserve Bank of New York.
I, the undersigned, do hereby certify that the foregoing
is a true and complete copy of a resolution duly adopted by the board of directors
of the
held at a duly
called meeting thereof at which a quorum was present, at the office of the said bank
on the
day of
19
.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of said bank this
day of
19 .
[SEAL}
Cashier
(or)
Secretary of Board of Directors.
•
BD-
•
•
•
•
11.
52
RESOLUTION.
WHEREAS this bank has from time to time obtained advances from and rediscounted its
commercial paper and bills receivable with the Federal Reserve Bank of New York, and
WHEREAS the said Federal Reserve Bank of New York has required further security for the
payment of such advances and rediscounts and of such other advances and rediscounts as may
hereafter be made by the said Federal reserve bank to and for this bank, and
WHEREAS it is desirable that this bank should comply with such request of the Federal Reserve Bank of New York in this regard,
Now,THEREFORE, BE IT RESOLVED that the president, any vice president and cashier of
this bank are, or either of them is, hereby authorized to execute and deliver in behalf of this
bank a general loan and collateral agreement in favor of the Federal Reserve Bank of New York
in such form as may be required by the said Federal Reserve Bank of New York.
I, the undersigned, do hereby certify that the foregoing
is a true and complete copy of a resolution duly adopted by the board of directors
held at a duly
of the
called meeting thereof at which a quorum was present, at the office of the said bank
on the
19
day of
.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of said bank this
day of
19 .
[SEAL]
Cashier
•
(or)
Secretary of Board of Directors.
•
p.
•
•
•dik
•BD-53
GENERAL LOAN AND COLLATERAL AGREEMENT.
Knatu All Hint hu 01!tub Prtsents that in consideration of advances or rediscounts at
this time or heretofore granted to it by the Federal Reserve Bank of New York and/or in consideration of
obtaining such further advances, rediscounts, loans or credits as may hereafter be granted to it by the Federal Reserve Bank of New York, the undersigned bank hereby agrees that as collateral security for any and
all loans, advances, rediscounts, indebtedness, obligation and liability of the undersigned bank to the said
Federal reserve bank, now or hereafter existing, matured or not matured, absolute or contingent, and wherever payable, including such as may arise from indorsements of notes, acceptances or any other items, or
paper discounted by said Federal reserve bank or held by said Federal reserve bank as security for any
loans or advances of any sort whatever, and,includingswerdrafts and indebtedness by the undersigned bank
to said Federal reserve bank on account of collections or paper received for collection, said Federal reserve
bank shall hold, retain and have,a lien upon all moneys,,negotiable instruments, bonds, stocks, commercial
paper, credits, choses in action, claims and demands of every kind at,any time in possession or control of
said Federal reserve bank or any of its agents or correspondpnts, or in transit,to it, by,mail or, carrier, belonging to, for account of or subject to the order of the undersigned bank; and said Federal reserve bank
shall have the following rights and powers in respect to such collaterals and every part thereof (in addition
to any other rights which it may have): Said Federal reserve bank may at any time or times collect any
of such collaterals, and it may indorse any thereof in behalf and in the name of the undersigned; and in
case of failure of the undersigned to pay or discharge when due any such loan, indebtedness, obligation
or liability, or in case of failure of the undersigned bank to furnish additional collateral as hereinafter provided, or in case of the insolvency, general assignment, receivership, bankruptcy or failure in business
of the undersigned bank, said Federal reserve bank may sell without notice any of said collaterals at private
or public sale or at broker's board (being at liberty to become the purchaser if the sale is public or at broker's
board) and may apply any and all money or credits, including the proceeds of any such sale, and any debts,
liabilities or balances, due or not due, in favor of the undersigned bank, arising from deposits, discounts,
collections, items in transit, or otherwise, at any time owing or due from or chargeable against said Federal reserve bank, or any of its agents or correspondents, to the payment of expenses of any such sale or
sales, or of the realization or collection of any of said collaterals, or of any of said loans, advances, rediscounts, indebtedness, obligation or liability of the undersigned bank, and to the payment of any and all
loans, indebtedness, obligation or liability of the undersigned bank, whether due or not due; and any or
all loans, indebtedness, obligation or liability of the undersigned bank shall in any of the cases above stated
become due at the option of said Federal reserve bank. If the collaterals securing any loans,
indebtedness, obligation or liability of the undersigned bank to said Federal reserve bank shall at any time
be unsatisfactory in amount or otherwise to said Federal reserve bank, or to any of its officers, the undersigned bank will immediately furnish such further security as will be satisfactory to said Federal reserve
bank. Said Federal reserve bank may assign or transfer the whole or any part of any indebtedness, obligation or liability of the undersigned bank,and may transfer therewith as collateral security therefor, the whole
or any part of the collaterals above referred to, and the transferee shall have the same rights and powers
with reference to the indebtedness, obligation or liability transferred, and the collaterals transferred therewith, as are hereby given to said Federal reserve bank. It is also agreed that this instrument constitutes a
continuing agreement between the undersigned bank and the said Federal reserve bank applying to all future, as well as existing, transactions between the said parties and also that the force and effect hereof shall
not be terminated by the closing at any time of all transactions between the said parties, but that the same
shall apply thereafter to any new transactions and shall continue in full force until notice is received in
writing by either party from the other of the intention to terminate it, whereupon, it shall be of no effect
for any indebtedness subsequently created.
4111 oil duos 1111'punt the,
has caused its corporate seal to be hereto affixed and these presents to be ,signed by one of its officers thereunto duly authorized at
this
day of
.
19 .
:•A•:••i
(Name of bank)
I3y
(Title)
[SEAL]
•
•0
•
FEDERAL\RESERVE BANK OF PHILADELPHIA
925 CHESTNUT STREET
'") 3
GEORGE W. NORRIS. GOVERNOR
WILLIAM H. HUTT,DEPUTY GOVERNOR
WILLIAM A.DYER,cAsNtER
RICHARD L.AUSTIN
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
HENRY B.THOMPSON
DEPUTY CHAIRMAN OF THE BOARD
ASSISTANT CASHIERS
C.A. Mc ILHENNY
JAMES M.TOY
FRANK W.LA BoLD
W.J. DAVI S
ASSISTANT FEDERAL RESERVE AGENTS
R.M.MILLER,JR
S. R. EARL
ARTHUR E.POST
WALTER T_GROSSCUP
January 20, 1925.
Federal Reserve Board,
Washington, D. C.
Dear Sirs:
Inconformity with your request as
contained in your telegram of January 20th,
Trans. #525, we are enclosing two copies
of Member Bank Collateral Note Form and
of Application for Rediscount or Advance.
Very truly yours,
-,
C. A. McIlhenn)
Assistant Cashier.
encl.
CM.Q
30i1(.1
•
•
BD
•-•
94
(place)
(date)
...._._days after date
.
(not to exceed 15 days)
the_____...
(hereinafter referred
to as member bank)
promises to pay to the order of the FEDERAL RESERVE BANK OF PHILADELPHIA, at its
office in the city of Philadelphia, Pennsylvania,
Dollars,
for value received, without defalcation, hereby waiving all benefit of any stay of execution, and of
any exemption or privilege under any law now or hereafter in force, in any suit on this note. As
collateral security said member bank has delivered the bonds and/or notes of the United States
Government, having a par or face value of $_._ .......—.......................described below, or on the attached schedule,
all of which are owned by said member bank or are used as collateral for this indebtedness with the
consent of the owners thereof; or the notes, drafts, bills of exchange, and/or bankers' acceptances
amounting to $
,described on the attached schedule.
Amount
COLLATERAL
(if Liberty Bonds, state whether ist, 2nd, 3rd, etc.)
Interest rate
of collateral
Date of
issue
Maturity
Said collateral security and any heretofore or which may hereafter be deposited with said
Federal Reserve Bank shall be applicahle
to secure the payment of this or any past or future similar obligation or liability of said
member bank to said Federal Rererve Bank, and
all securities so deposited and held at any time shall stand as one general continuing collateral
security for the whole or any part of said
member bank's similar obligations or liability to saia Federal Reserve Bank, so that the
deficiency on any one shall be made good from the
collateral for the rest. Said member bank hereby agrees that if at any time the collateral
shall become unsatisfactory to it, said member bank will, within two hours after demand, securities held by said Federal Reserve Bank
deposit with said Federal Reserve Bank such
ac!ditional security as shall be satisfactory, and that in default thereof this note and
held by said Federal Reserve Bank shall become instantly due and payable precisely asany other of said member bank's similar obligations
though it or they had actually matured. Said member bank hereby authorizes and empowers said Federal Reserve Bank, on default in the
liability of said member bank at maturity or on becoming due al aforesaid, at any time payment of this or any other similar obligation or
or times,
whole or any part of such collateral securities, either at public or private sale, without previous to sell, assign, transfer and deliver the
bank, with the right of becoming the purchaser and absolute owner thereof, free of all trusts and demand upon, or notice to said member
claims and any equity of redemption, or
to surrender and deliver any or all of such collateral securities upon payment at
expenses of collection, sale and delivery, and interest, to apply the residue of the maturity, and after deducting all legal or other costs, and
proceeds to pay any or all of said obligations or liabilities,
returning the overplus, if any, to said member bank, and said member bank will still remain
liable
thereon. Said member bank further agrees that upon any transfer of this note said Federal Reservefor any amount so unpaid with interest
Bank may deliver said collateral or any
part thereof to the transferee, which transferee shall thereupon become vested with all
the powers and rights hereinabove given to said
Federal Reserve Bank in respect of said note and collateral, and said Federal Reserve Bank shall be thereafter forever
relieved and
fully
discharged irons any liability or responsibility in connection therewith.
(name of member bank)
(signature of authorized officer)
(title)
(signature of authorized officer)
(title)
Information for member banks
Section 13 of the Federal Reserve Act authorizes any Federal reserve bank to make advances
to its
member banks on their promissory notes for a period not exceeding 15 days, secured by such notes,
drafts,
bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Federal reserve
banks under the provisions of the Federal Reserve Act, or by the deposit or pledge of bonds or
notes of the
United States. Demand notes, not having a definite maturity, are not eligible. Member bank
collateral notes
secured by bonds of railroad, public utility, or industrial companies, or municipal warrants,
are not eligible.
If any of the collateral described above is excess collateral on account of another loan,
the fact that it
has been previously deposited should be stated together with the amount and date of
maturity of said other
loan. If commercial, industrial, or agricultural paper is offered as collateral, the notes
must be listed on the
regular form of application for rediscount or advance (BD-29). If bankers' acceptances
are offered, they
must be listed on form BDB. If notes secured by obligations of the Government are
offered, they must be
listed on the form entitled "Special form of application for rediscount or advance,"
printed on buff paper.
•
•
SO 94
(place)
(date)
days after date
(not to exceed 15 day..-)
(hereinafter referred
the.
to as member bank)
promises to pay to the order of the FEDERAL RESERVE BANK OF PHILADELPHIA, at its
office in the city of Philadelphia, Pennsylvania,
OOOOOO....•••....
ars,
for value received, without defalcation, hereby waiving all benefit of any stay of execution, and of
any exemption or privilege under any law now or hereafter in force, in any suit on this note. As
collateral security said member bank has delivered the bonds and/or notes of the United States
Government, having a par or face value of $
__described below, or on the attached schedule,
all of which are owned by said member bank or are used as collateral for this indebtedness with the
consent of the owners thereof; or the notes, drafts, hills of exchange, and/or hankers' acceptances
amounting to $
,described on the attached schedule.
Amount
COLLATERAL
(if Liberty Bonds, state whether zst, 2nd, 3rd, etc.)
Interest rate
of collateral
Date of
issue
Maturity
Said collateral security and any heretofore or which may hereafter be deposited with said Federal Reserve Bank shall be applicahle
to secure the payment of this or any past or future similar obligation or liability of said member bank to said Federal Re-crve Bank, anti
all secerities so deposited and held at any time shall stand as one general continuing collateral security for the whole or any part of said
member bank's similar obligations or liability to sate Federal'Reserve Bank, so that the deficiency on any one shall be made good from the
collateril for the rest. Said member bank hereby agrees that if at any time the collateral securities held by said Federal Reserve Bank
shall become unsatisfactory to it, said member bank will, within two hours after demand, deposit with said Federal Reserve Bank such
aediticnal security as shall be satisfactory, and that in default thereof this note and any other of said member bank's similar obligations
held by said Federal Reserve Bank shall become instantly due and payable precisely as though it or they had actually matured. Said meinher bank hereby authorizes and empowers said Federal Reserve Bank, on default in the payment of this or any other similar obligation or
liability of said member bank at maturity or on becoming due a; aforesaid, at any time or times, to sell, assign, transfer and deliver the
whole or any part of such collateral securities, either at public or private sale, without previous demand upon, or notice to said member
bank, with the right of becoming the purchaser and absolute owner thereof, free of all trusts and claims and any equity of redemption, or
to Furren der and deliver any or all of such collateral securities upon payment at maturity, and after deducting all legal or other costs, and
expenses of collection, sale and delivery, and interest, to apply the residue of the proceeds to pay any or all of said obligations or liabilities,
returning the overplus, if any, to said member bank, and said member bank will still remain liable for any amount o unpaid with interest
thereon. Said member bank further agrees that upon any transfer of this note said Federal Reserve Bank may deliver said collateral or any
part thereof to the transferee, which transferee shall thereupon become vested with all the powers and rights hereinabove given to said
Federal Reserve Bank in respect of said note and collateral, and said Federal Reserve Bank shall be thereafter forever relieved and fully
discharged irLan any liability or responsibility in connection therewith,
(name of member bank)
(signature of authorized officer)
(title)
(signature of authorized officer)
(title)
Information for member banks
Section 13 of the Federal Reserve Act authorizes any Federal reserve bank to make advances to its
member banks on their promissory notes for a period not exceeding 15 days, secured by such notes, drafts,
bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Federal reserve
banks under the provisions of the Federal Reserve Act, or by the deposit or pledge of bonds or notes of the
United States. Demand notes, not having a definite maturity, are not eligible. Member bank collateral notes
secured by bonds of railroad, public utility, or industrial companies, or municipal warrants, are not eligible.
If any of the collateral described above is excess collateral on account of another loan, the fact that it
has been previously deposited should be stated together with the amount and date of maturity of said other
loan. If commercial, industrial, or agricultural paper is offered as collateral, the notes must be listed on the
regular form of application for rediscount or advance (BD-29). If bankers' acceptances are offered, they
must be listed on form BDB. If notes secured by obligations of the Government are offered, they must be
listed on the form entitled "Special form of application for rediscount or advance," printed on buff paper.
roRm
Sheet No.
(SEE OTHER SIDE)
Federal
41104ATION
FOR
REDISCOU.
ADVANCE
Reserve Bank of Philadelphia:
Date
The
Bank
of
submits herewith the items listed below:
Company
(a) For rediscount, amounting to $
; or
(b) As collateral for an advance of $
upon its promissory note.
You are hereby authorized to charge the rediscounts or advance above described to our account with you, at maturity.
Purchased paper must be indicated by the letter "P."
Depositor's paper must be indicated by the letter "D," which should appear on the line with the name of the discounter.
Indicate your own estimate of the net worth by placing the letters "N. W." before your figures. Insert the name of the agency if ratings are given.
Please give careful attention to regulation regarding borrower's statements, on other side.
II111.1r
LIST NOTES IN THE ORDER OF THEIR MATURITY.
LEAVE DOUBLE SPACE AFTER EACH NOTE
o
EM
PLACE
PAYABLE
MAKER
ADDRESS
BUSINESS
INDORSERS
ESTIMATED
NET WORTH
OR RATING
oz
x rc
00
w
U /- 0
hi Z lis i 0 hi
iq
;rig
.
05
•zo.
0 cc
0
D.
".• 0-ZX
P4Z r.D
<21.1
w „0 u
DUE
AMOUNT
>0 (
EL
<
re 5
x
TOTAL
I certify that, to the best of my knowledge and belief, the original loans which are evidenced by the items listed above were made for agricultural,
industrial, or commercial purposes, and that they are eligible for rediscount under the provisions of the Federal Reserve Act and the regulations of the
Federal Reserve Board.
It is hereby certified that in offering the notes, drafts and bills of exchange scheduled in this application for rediscount to the Federal Reserve
Bank of Philadelphia, the undersigned has complied with the provisions of the Act of Congress approved July 1, 1922, by restricting the amount loaned
to any of the borrowers mentioned herein as therein provided, and that it will continue to restrict the amount loaned to said borrowers in accordance
with the provisions of said act so long as the obligations of said borrowers are under discount with the Federal Reserve Bank of Philadelphia.
On this date, the paid-in capital of this institution amounted to $
; the surplus,
total deposits, $
Total amount of money borrowed on Bills parable with you, $
Rediscounts with you $
with others, $
with others, $
Bank
Company
(Place)
(Signatures and titles of officers designated in authorizing
resolution, Form BD-1.)
(SEE OTHER SIDE)
NOTE CAREFULLY.
PLlk
AUTHORIZING RESOLUTION
copy of "Authority to Rediscount" (Form ED-1) must be
A certified
Federal Reserve Bank.
on file with the
ENDORSEMENTS
Notes, drafts and bills of exchange submitted for rediscount should be indorsed in' the
FIRST NATIONAL BANK, BLANKVILLE, PA.
following form:
(Written signature and official title)
Each indorsement of a member bank should be signed by an officer whose signature and
authority to endorse have been filed with the Federal Reserve Bank.
• •
STATEMENTS
Member banks must have in their files copies of .financial statements with respect to all
notes offered for rediscount, which have been purchased from sources other than a depositor
or a member bank. If statements are not on file, the paper is not eligible for rediscount. Purchased paper should be indicated o)i, the application for rediscounts by the letter "P" placed after
the amount.
With respect to any other note offered for rediscount, member banks should have on file
a financial statement if the aggregate of obligations of the borrower rediscounted and offered for
rediscount at the Federal Reserve Bank is equal to or more than $5,000, or 10 per cent of the
paid-in capital of the member bank, unless it is secured by a warehouse, terminal, or other similar
receipt covering goods in storage.
However, the Federal Reserve Bank may require information as to the assets and liabilities
of any maker or endorser whose paper is presented, and in all cases prompt action on applications
is facilitated by furnishing such information, drawn from signed statements where statements are
on file with the member bank, or otherwise from the bank's own knowledge. Forms for furnishing
such information will be supplied upon request.
MATURITIES
A promissory note of a member bank must have a maturity not exceeding 15 days from
the date of discount. Industrial and commercial paper must have a maturity not exceeding 90
days from the date of rediscount, or from the date of advance if used as collateral. Agricultural
or live stock paper must have a maturity not exceeding 9 months from the date of rediscount, or
from the date of advance if used as collateral.
CHARACTER OF PAPER ELIGIBLE
In order to be available for rediscount, the paper must have been issued or drawn for
current commercial or industrial transactions, or agricultural or live stock operations. A statement showing the borrower to have a reasonable excess of quick assets over current liabilities
may be accepted as evidence that the paper represents a current transaction. The proceeds must
have been or are to be used in producing purchasing, carrying, or marketing goods in one or more
of the steps of the process of production, manufacture, or distribution. A judgment note is
eligible provided it contains a clause authorizing a confession of judgment only if not paid at
maturity. If it authorizes a confession of judgment at any time before maturity, it is not negotiable
and therefore not eligible for rediscount.
PAPER NOT ELIGIBLE
No paper is eligible which has been issued or drawn for carrying or trading in stocks,
bonds, or other investment securities, except bonds and notes of the Government of the United
States, or the proceeds of which have been or are to be used for permanent or fixed investments
of any kind, such as land, buildings, or machinery. A demand note is not eligible, as it does not
have a definite maturity.
For further information regarding rediscounts, communicate with the Federal Reserve Bank.
SPECIMEN FORM OF APPLICATION SHOWING DESIRED ARRANGEMENT OF DETAILS
LIST NOTES IN THE ORDER OF THEIR MATURITY.
LEAVE DOUBLE SPACE BETWEEN EACH NOTE
MAKER
PLACE
PAYABLE
ADDRESS
ESTIMATED
NET WORTH
OR RATING
BUSINESS
DUE
ER
AMOUNT
0
INDORSERS
C. P . Scudder
A. P. Crawford
Blankville
Phila.
Farmer
Feed & Grai
Nest ern Packing Co.
Chicago
Packers
Home Furniture Co.
A. S. Cox
Samuel Hood
Blankville
11
mw
Mm
0<
,x
Mfrs.
Builder
-Hardware
New York
Phila.
over
1,000,000
yes
N.W.75,000 D ,yes 5
N.W.25,000
N.W.40,000
2-3-18
6,000
3-11-18
N.W.10,000
50/75-11 2 D yes 6
/
(Dun's)
10,000
3-23-18
7,500
TOTAL
23,500
1!
r R.., )-29
)
.
Sheet No.
(SEE OTHER SIDE)
OrPlikATION
FOR
REDISCOUre*ADVANCE
•
Federal Reserve Bank of Philadelphia:
Date
of
Bank
Company
The
submits herewith the items listed below:
(a) For rediscount, amounting to $
; or
(b) As collateral for an advance of $
upon its promissory note.
You are hereby authorized to charge the rediscounts or advance above described to our account with you, at maturity.
Purchased paper must be indicated by the letter "P."
Depositor's paper must be indicated by the letter "D," which should appear on the line with the name of the discounter.
Indicate your own estimate of the net worth by placing the letters "N. W." before your figures. Insert the name of the agency if ratings are given.
Please give careful attention to regulation regarding borrower's statements, on other side.
LIST NOTES IN THE ORDER OF THEIR MATURITY.
LEAVE DOUBLE SPACE AFTER EACH NOTE
0
01 W
PLACE
PAYABLE
MAKER
ADDRESS
BUSINESS
ESTIMATED
NET WORTH
OR RATING
Z
lil
I M
9o0
1M
icc?..
DUE
AMOUNT
.0
iii
0 cc >
.<
INDORSERS
x
TOTAL
I certify that, to the best of my knowledge and belief, the original loans which are evidenced by the items listed above were made for agricultural,
industrial, or commercial purposes, and that they are eligible for rediscount under the provisions of the Federal Reserve Act and the regulations of the
Federal Reserve Board.
It is hereby certified that in offering the notes, drafts and bills of exchange scheduled in this application for rediscount to the Federal Reserve
Bank of Philadelphia, the undersigned has complied with the provisions of the Act of Congress approved July 1, 1922, by restricting the amount loaned
to any of the borrowers mentioned herein as therein provided, and that it will continue to restrict the amount loaned to said borrowers in accordance
with the provisions of said act so long as the obligations of said borrowers are under discount with the Federal Reserve Bank of Philadelphia.
On this date, the paid-in capital of this institution amounted to $
total deposits, $
Total amount of money borrowed on Mils payable with you, $
, the surplus, $
Rediscounts with you $
with others, $
with others,
Bank
Company
(Place)
(Signatures and titles of officers designated in authorizing
resolution, Form BD-1.)
(SEE OTHER SIDE)
PL.11 NOTE CAREFULLYO 1
10
AUTHORIZING RESOLUTION
A certified copy of "Authority to Rediscount" (Form BD-1) must be on file with the
Federal Reserve Bank.
ENDORSEMENTS
Notes, drafts and bills of exchange submitted for rediscount should be indorsed in the
FIRST NATIONAL BANK, BLANKVILLE, PA.
following form:
(Written signature and official title)
,
Each indorsement of 6: member bank should. be Signed by an officer whose signature and
authority to endorse have been filed with the Federal Reserve Bank.
STATEMENTS
Member banks must have, in their files copies of financial statements with respect to all notes offered for rediscount which i have been purchased from sources other than a depositor
or a member bank.. .:If statements are not on file, the paper,is not eligible for rediscount. Purchased Paper should; be indicated on the application for rediscounts by the letter "P" placed after
the amount.
With respect to any other note offered for rediscount, member banks should have on file
a financial statement if the aggregate of obligations of the borrower rediscounted and offered for
rediscount at the Federal Reserve Bank is equal to or more than $5,000, or 10 per cent of the
paid-in capital of the member bank, unless it is secured by a warehouse, terminal, or other similar
receipt covering goods in storage.
However, the Federal Reserve Bank may require information as to the assets and liabilities
of any maker or endorser whose paper is presented, and in all cases prompt action on applications
is facilitated by furnishing such information, drawn from signed statements where statements are
on file with the member bank, or otherwise from the bank's own knowledge. Forms for furnishing
such information will be supplied upon request.
MATURITIES
A promissory note of a member bank must have a maturity not exceeding 15 days from
the date of discount. Industrial and commercial paper must have a maturity not exceeding 90
days from the date of rediscount, or from the date of advance if used as collateral. Agricultural
or live stock paper must have a maturity not exceeding 9 months from the date of rediscount, or
from the date of advance if used as collateral.
CHARACTER OF PAPER ELIGIBLE
In order to be available for rediscount, the paper must have been issued or drawn for
current commercial or industrial transactions, or agricultural or live stock operations. A statement showing the borrower to have a reasonable excess of quick assets over current liabilities
may be accepted as evidence that the paper represents a current transaction. The proceeds must
have been or are to be used in producing purchasing, carrying, or marketing goods in one or more
of the steps of the process of production, manufacture, or distribution. A judgment note is
eligible provided it contains a clause authorizing a confession of judgment only if not paid at
maturity. If it authorizes a confession of judgment at any time before maturity, it is not negotiable
and therefore not eligible for rediscount.
PAPER NOT ELIGIBLE
No paper is eligible which has been issued or drawn for carrying or trading in stocks,
bonds, or other investment securities, except bonds and notes of the Government of the United
States, or the proceeds of which have been or are to be used for permanent or fixed investments
of any kind, such as land, buildings, or machinery. A demand note is not eligible, as it does not
have a definite maturity.
For further information regarding rediscounts, communicate with the Federal Reserve Bank.
SPECIMEN FORM OF APPLICATION SHOWING DESIRED ARRANGEMENT OF DETAILS
LIST NOTES IN THE ORDER OF THEIR MATURITY.
LEAVE DOUBLE SPACE BETWEEN EACH NOTE
MAKER
PLACE
PAYABLE
ADDRESS
ESTIMATED
NET WORTH
Blankville
,YeE4tern Packing Co.
Chicago
12
0C
0
Home Furniture Co.
A. S. Cox
Samuel Hood
Blankville
Farmer
Phila.
Feed & Grai
Packers
Mfrs.
Builder
I Hardware
DUE
<DU
AMOUNT
OR RATING
BUSINESS
INDORSERS
C. P . Scudder
A. P. Crawford
MW
CM
0(
New York
Phila.
N.W.10,000
50/75-1 1
,
(Dun's)
W 8S
'<- S21
1
M0
6,000
yes 6
over
P i yes 0/2
1,000,000
N.W.75,000 D yes 5
N.W.25,000
N.W.40,000
10,000
3-23-18
TOTAL
7,500
23,500
•
•
•
•
FEDERALRESERVE BANK
OF CLEVELAN D
SUBJECT:
Collateral note and collateral agreement
forms.
January 20, 1925.
Mr. J. C. Noell, Assistant Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Noeli:
Your wire was received this afternoon
and I am glad to send you herewith in compliance
with your request two specimen copies each of
the collateral note from used by our member banks
in obtainaing direct advances from us and the
general agreement for deposit of collateral.
The latter form is accompanied in each case by
the Resolution authorizing the pledge of general
collateral.
I might add that the agreement for deposit of general collateral is very seldom used
in this district - in fact, we have only one of
these agreements in effect at this time.
Very truly yours,
Z.C.
Enc.
Fe4e;rsif 04ftrve
narrt
'N?
14 ,--2
4
\
CI')
4
10M
•
8-24
•
•
•
•
, 19
days after date, for value received, the undersigned bank promises
(NOT TO EXCEED
15
DAYS)
to pay to the order of
FEDERAL RESERVE BANK OF CLEVELAND,
AT THE OFFICE THEREOF IN CLEVELAND, OHIO
DOLLARS,
with interest from and after maturity at the rate of six per cent. per annum; having deposited
with and pledged to said Federal Reserve Bank, hereinafter called the reserve bank, as collateral security for the payment of this and/or any other liability or liabilities, direct or contingent, of the undersigned bank to the reserve bank, due or to become due or that may be hereafter contracted,
notes, drafts, bills of exchange and/or bankers' acceptances and/or obligations of the United
States as described in the schedule of collateral hereto attached and made a part hereof.
The reserve bank is also given a lien, for the payment of this note and/or any other of the
said liabilities, upon all the property pledged by the undersigned to the reserve bank and also
upon any balance of the deposit account of the undersigned with the reserve bank; and is
hereby authorized at any time to apply said balance to the payment of any obligations or part
thereof of the undersigned to the reserve bank. It is further agreed by the undersigned bank that
the reserve bank has the right at any time to require such additional security as it may deem
proper, and on failure to respond forthwith to such requirement, or on the non-payment of this
note or any other liability or liabilities of the undersigned as above set forth, the reserve bank or
any holder hereof is hereby given full authority to sell, assign, deliver or collect the whole or
any part of the above named collaterals or any substitutes therefor or any additions thereto, at
any public or private sale or on any brokers' board or stock exchange, at any time or times
hereafter, without demand, advertisement or notice; and upon such sale the reserve bank or the
holder hereof may become the purchaser of the whole or any part of such collaterals, free from any
right of redemption, and, after deducting all legal and/or other costs and expenses for collection,
sale and delivery, may apply the residue of the proceeds of such collections, sale or sales to the
payment of any, either or all of the said liabilities, as the reserve bank, or its assigns, shall
deem proper, returning the overplus to the undersigned bank.
It is hereby agreed by the undersigned that in the event of its insolvency or bankruptcy
or the appointment of a receiver for it, this note and all the said liabilities and each of them shall,
at the option of the reserve bank, become immediately due and payable without demand or notice.
TO BE FILLED IN BY FEDERAL RESERVE BANK
DAYS
RATE
DUE DATE
NEW
•
RENEWAL
COLLATERAL VERIFIED
DISCOUNT
SIGNATURE VERIFIED
PROCEEDS
of
By
NUMBER
APPROVED
I
State of
SCHEDULE OF COLLATERAL
•
PLEDGED TO
FEDERAL RESERVE BANK OF CLEVELAND
AMOUNT
MATURITY
PAYER
LOCATION
NATUR4 OF BUSINESS
ENDORSERS (OR
COLLATERAL, IF ANY)
RENEWAL? CUSTOMER'S OR
PURCHASED
YES OR
PAPER?
NO
SIGNED
STATEMENT ON
FILE? - IF SO,
(DATE)
_
•
•
•
The undersigned member bank hereby certifies that to the best of its knowledge and belief, the loans
which are evidenced by the above notes, drafts, and bills of exchange were made and are in conformity
with the provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board defining the character of notes, drafts, and bills of exchange eligible for rediscount with or purchase by a
Federal Reserve Bank.
It is hereby certified that in offering to the Federal Reserve Bank of Cleveland. as collateral, the
notes, drafts, and bills of exchange listed in this schedule, the undersigned has complied with the provisions
of the Act of Congress approved July 1, 1922, by restricting as provided in said Act, the amount loaned
to any of the borrowers whose names appear on said notes, drafts, and bills of exchange, and will continue to restrict the amount loaned to said borrowers in accordance with the provisions of said Act so
long as the obligations of said borrowers are under discount or pledged as collateral with the Federal
Reserve Bank of Cleveland.
Signature
By
•
•
•
• •
RESOLUTION
WHEREAS,this bank has from time to time obtained advances from ana rediscounted its commercial paper and bills receivable with the Federal Reserve Bank of
Cleveland, and contemplates continuing such practice, and
WHEREAS, the said Federal Reserve Bank of Cleveland has required further security for the payment of such advances and rediscounts and of such other advances and
rediscounts and other forms of indebtedness as may hereafter be made by or incurred to
the said Federal Reserve Bank to, for and by this bank, and
WHEREAS, it is desirable that this bank should comply with said request of the
Federal Reserve Bank of Cleveland in this regard,
NOW, THEREFORE, be it resolved that the president, any vice president, and
cashier of this bank, or any of them, is hereby authorized to execute and deliver in behalf
of this bank a general loan and collateral agreement in favor of the Federal Reserve Bank
of Cleveland in such form as may be required by the said Federal Reserve Bank of Cleveland, and to deposit with said the Federal Re3erve Bank of Cleveland such collateral as
may from time to time be required by said Federal Reserve Bank of Cleveland.
I, the undersigned, do hereby certify that the foregoing is a true and complete copy of a resolution duly adopted by the board of directors of
the
held at a duly called meeting thereof at which a quorum was present, at the office of the
day of
said bank on the
19____.
IN WITNESS WHEREOF,I have hereunto subscribed my name and affixed the
corporate seal of said bank at
this
(SEAL)
day of
19____.
Cashier
(or)
Secretary of Board of Directors.
111
O
•
•
•
Agreement for Deposit of Collateral.
WHEREAS, the undersigned bank is a member of the Federal Reserve Bank of Cleveland,
and
WHEREAS,the undersigned bank is or may be liable to said Federal Reserve Bank of Cleveland by way of endorsement of notes, drafts, bills of exchange and other commercial paper, and is
or may become otherwise indebted to said Federal Reserve Bank of Cleveland, and
WHEREAS, it is to the interest of the undersigned bank, as well as of the Federal Reserve
Bank of Cleveland, that said Federal Reserve Bank of Cleveland should be fully secured and indemnified for each and every obligation of the undersigned bank, due or to become due to said Federal
Reserve Bank of Cleveland:
NOW, THEREFORE, THIS INSTRUMENT WITNESSETH: That the undersigned bank
deposited with said Federal Reserve Bank of Cleveland, as collateral security for the payment of
has
every liability, or liabilities, either direct or contingent, now owing or which may hereafter be owing,
whether now or hereafter contracted, of the undersigned to said Federal Reserve Bank of Cleveland,
the following described property, to-wit:
with the right on the part of said Federal Reserve Bank of Cleveland to call for additional security
of such kind and value as will be satisfactory to said bank, and, on failure to respond, or, if in the
judgment of said bank, said security or any additions thereto or substitutes therefor, or any part
thereof, shall have depreciated in value, then the whole of every obligation of the undersigned to
.said bank shall be deemed immediately payable, at the election of said bank, with full power in said
bank, on the maturity of said indebtedness, either by its terms or by election as aforesaid, to at any
time sell, and from time to time sell, assign and deliver the whole of said property and all additions
thereto, and substitutes therefor, or any part of said property, additions and substitutes, at any
public or private sale, at the option of said bank, and without advertising the same, and without notice to the undersigned, and with the right of said bank to be a purchaser at any such sale, or sales,
and in the event of any sale or purchase hereunder, no matter by or to whom made, all notice thereof
and any and all equity or right or redemption, whether before or after the sale hereunder, is hereby
expressly waived; and, after deducting all legal and other costs and expenses, including reasonable
attorneys' fees, from the proceeds of such sale or sales, to apply the remainder on any one or more
of the liabilities of the undersigned, whether due or not, as said bank shall deem proper (making rebate of interest on any demands not matured) and return the surplus, if any, to the undersigned.
Said bank may, at its discretion, enforce the collection of said security, additions thereto and substitutes therefor, by suit or otherwise, and may surrender, compromise, release, renew, extend or exchange all or any of the same. Said bank is hereby authorized and empowered at any time to apply
to the payment of any liability, or liabilities, whether the same be due or not, of the undersigned
bank, to said bank, all property, real, personal or mixed, of every kind or description, including
balances, credits, collections, moneys, drafts, checks, notes, bills or accounts (whether on hand or in
transit) of the undersigned.
Dated at
, 19____.
By
(SEAL)
President
Vice-President
Cashier
•
•
FEDERAL RESERVE BANK
OF RICHMOND
January 20, l925.
The Federal Reserve Board,
Washington, D. C.
Gentlemen:
Attention - Mr„ J, C,_ Noell
.
In accordance with Governor Seay'S telegram
and complying with the request contained in your wire
( Trans. No. 525), we enclose two copies of our form
BD-35 for a member bankin collaters1 note, which contains the pledge agreement.
Very truly yours,
kdeili
,
Nom itstiolt
(‘'
,
A ....4 1
GSSATII.
,
George . om
As sis tan t Cashier.
1
;t, N.,. v
,) ....,
a
/44/ l
GOV. M. B. C.
•
•
•
•
BD-35
MEMBER BANKS COLLATERAL NOTE
NOT TO EXCEED 15 DAYS.
(Place)
(Date)
192
days after date, for value received, the undersigned bank promises to pay to the order of the
FEDERAL RESERVE BANK OF RICHMOND, at its OFFICE in the CITY OF RICHMOND, VA.
DOLLARS,
having deposited with and pledged to the said Federal Reserve Bank, as collateral security for the
payment of this and any other liability or liabilities, whether direct or contingent, of the undersigned bank to the said Federal Reserve Bank, due or to become due, or that may be hereafter
contracted, the following securities:
(State both AMOUNT and ISSUE)
Customers' notes for $
as per application for loan dated
The said Federal Reserve Bank is also given a lien for the payment of this note and any other of the said
liabilities upon all the property or securities now or hereafter left in the possession of the said Federal Reserve
Bank by the undersigned Bank, and also upon any balance of the deposit account of the undersigned bank
with the said Federal Reserve Bank, and it is hereby agreed by the undersigned bank that the said Federal Reserve
Bank has the right to require such additional security as it may deem proper, and, on failure to respond forthwith to such requirement or on the non-payment of this note or on the non-payment of any other liability or
liabilities of the undersigned bank, as above set forth, the said Federal Reserve Bank, or any holder hereof, is
hereby given full authority to sell, assign and deliver, or collect, the whole or any part of the above-named collaterals, or any substitute therefor, or any addition thereto, at any public or private sale, or on any broker's
board or stock exchange, at any time or times hereafter, without demand, advertisement or notice; and upon
such sale, the said Federal Reserve Bank or the holder hereof may become the purchaser of the whole or
any part of such collaterals, free from any right of redemption, and after deducting all legal or other costs
and expenses for collection, sale and delivery, may apply the residue of the proceeds of such collection, sale or
sales to the payment of any, either or all of the said liabilities, as the said Federal Reserve Bank, or its assigns,
shall deem proper, returning the overplus to the undersigned bank.
(Name of Bank)
Address
By
[Do not detach]
ONLY WHEN OFFERING A MEMBER BANK'S NOTE
SECURED BY GOVERNMENT OBLIGATIONS
THIS LETTER FORM TO BE USED
.41
Date
a)
4
:4 cn
o
4-.4
FEDERAL RESERVE BANK OF RICHMOND, RICHMOND, VA.
Gentlemen:
day note for $
, maturing*
We offer for discount, our
0. and secured by the following collateral.
t)
<
(to AVOID CORRESPONDENCE and to PREVENT DELAY in placing note to your credit,
t
c
it will be necessary for you to inciicate on form below (1) the amount of collateral,(2) the issue
• o of Bonds pledged—if certificates give series or date and maturity, and (3) where the collateral
ca • may be located.)
"CS u
a)
"5 6
.c)
▪ ttO
Pi 0
.r.)
(State both AMOUNT and ISSUE)
a)
E
E5
0 )
• a)
a)
o
•g
a).0
g
"en
&.
COLLATERAL ABOVE CAN BE LOCATED BY YOUR DISCOUNT DEPT. AS FOLLOWS:
(Use X mark to indicate where held, OR STATE IN BLANK SPACE BELOW.)
Enclosed herewith.
0
E
o
V)
•„
Sent under separate cover.
Released from War Loan Account by separate letter.
, due
Previously pledged on note $
Held by Federal Reserve Bank for safe keeping, but not pledged.
z
o
.• .o
a)
,
f)
pv
"5
0
0x
v
,
to 0
z
0
$.
•0
O
>14.
WC),
•54
•u •
eeCi
41
.
(Name of Bank)
o
O
g
(1.) „,g
4.:pci
iv
g
o
CO .g
Address
By
*Unless otherwise and especially instructed Member Banks Collateral Notes maturing on
Saturday will be charged to the Member Banks' account on Monday.
•
tritienof Restrre rapid
FEDERAL RESERVE BANK
CVF
1
-4A- rrA.
1\T
OFFICE OP
wary
GO-WEB:NOR
Mr.
J. 3. Noon, Assistant Secretary,
Federal Reserve Board,
jashington, D. C.
Dear Mr. IToell:_
As requested in your
wire of even date, 'we are enclosing two conies
d'ach of'aur mffiber' bank collateral note form,
application covering pledge of additional
collateral, and application covering discount
or rediscount.
If there is any other
information we can give you regarding these, or
other of our forms, please feel free to call on
us •
Yours very truly,
ITP:E
M. B. 7ellborn,
Governor.
".1
S.
•
19
after date, for value received
,se to pay to the order of the
FEDERAL RESERVE BANK OF ATLANTA
at the office of the
EDERAL RESERVE BANK, in the City of Atlanta, Ga., the sum of
DOLLARS
with interest from maturity until paid at the rate of
per cent. per annum, together with all costs of collection,
including
per cent, of the principle and interest hereof as attorney's fees; having deposited herewith
as
general collateral security for the payment of this note and any and all other liability direct
undersigned to the payee of holder hereof, already existing or which may hereafter arise, andor indirect, joint or several, of the
whether due or not due the following property, viz:
and do hereby give the holder hereof a lien for this note and all said demands upon all property left
account of the undersigned with said holder, with authority to at any time change any or all of said with said holder and upon any balance of deposit
of the holder hereof if there be such an account, but a failure to apply any balance of said deposit demands against the deposit account on the books
account on this note or a surrender or release of
any of said property on which a lien is created hereby, except that specifically described above,
surety, or other party to this note or release or relieve them or any of them from liability toshall not affect the liability of any endorser, guarantor,
pay the full amount of this note; and do hereby authorize and empower the holder hereof, or any officer, agent or attorney of the holder, on the non-payment
of this note or any other such liability, to
sell and transfer said property and collaterals, or any property added to or substituted for the same,
or
public or private sale, and without notice of intention to sell, or of the time or place of sale, and without any part thereof at any broker's board, or at
demand of payment of this note or of any such
other liabilities. Should the market value of the collaterals hereby or hereafter pledged depreciate in the judgment
hereby agree
to deposit on demand a furthr amount of collateral security satisfactory to the holder hereof,of the holder of this note, the undersigned
so that the market value shall always
per cent, more than the amount of this note; and upon failure to comply with any
be at least
such demand, this note shall, at the option
of the holder, become due and payable forthwith, without notice, and the whole or any part or parts of said collateral
securities or substitutes therefor
and additions thereto may be sold as herein provided, at the option of the holder hereof. After deducting the
cost and expenses of collection and sale,
including attorney's fees, the residue of the proceeds of any sale, collection or other disposition of any
of the securities or property aforesaid may be
applied to the payment in whole or in part of any then existing liability of the undersigned
deducting unearned interest upon demands not due; and in case of deficiency the undersigned to the holder hereof, due or not due, including this note,
agrees to pay to the holder hereof the amount thereof
forthwith, after such sale or other disposition, with legal interest.
It is also agreed and understood that upon any sale of any of said collaterals the holder hereof, or any one in
its or his behalf, may become the
purchaser thereof, and hold the same thereafter in his or its own right absolutely free from any claim of
the undersigned, and no other purchaser shall
be answerable for the application of the proceeds of any sale.
Upon the transfer of this note the payee may deliver the collaterals or any part thereof to the transferee, who
shall become vested with all powers
and rights of the payee in respect thereto.
The undersigned, as well as all sureties, endorsers, guarantors or other parties to this note, severally waive, each
for
all homestead and exemption rights which any of them or the family of any of them, may have under or by virtue of thehimself and family, any and
United States, or of any state as against this debt or any of said liabilities or any renewal thereof; and each further waives Constitution or laws of the
demand, protest and notice
non-payment.
of demand, protest and
Given under the hand and seal of each party.
(SEAL)
DUE
NO.
(SEAL)
(SEAL)
oM 6-24
(Make applicate
/
Aiplicate sending original and dOcatvith notes pledged)
PLEDGE OF ADDITIONAL COLLATERAL
TO FEDERAL RESERVE BANK OF ATLANTA:
....................................................................
of ......
From
Listed below aggregating $
........
The undersigned bank transmits herewith the notes, bills and other securities listed below, and pledges the same to Federal Reserve Bank
of Atlanta as collateral security, upon the terms and conditions, and for the purposes, fully set forth upon the back hereof, said terms and conditions being incorporated in this instrument to the same extent as if fully copied herein above the signature of the undersigned.
Payer
Maturity
Endorser or Collateral
Address
-
,
NAME OF BANK
LOCATION
192
PRES.-CASHIER
Amount
'41
C:14 g
•
•
•
r=1
The written and printed matter appearing on the other side hereof, and the following terms, con- .1
ditions, provisions and stipulations, constitute the agreement between the parties touching the deposit
as collateral of the securities listed on the other side, and any other securities which may be deposited
hereunder, as more fully set out below.
The term "member bank," whenever herein used, designates the bank signing this agreement on
the other side hereof, and the term "Reserve Bank"designates Federal Reserve Bank of Atlanta.
In consideration of loans and advances heretofore made by the Reserve Bank to the member bank,
and of one dollar ($1.00) in hand paid by the Reserve Bank at and before the sealing and delivery of
these presents, and for other valuable considerations hereunto moving the said member bank, the receipt of which is hereby acknowledged, and in order to secure said Reserve Bank as hereinafter more
particularly stated, the member bank has transferred, conveyed, hypothecated, and pledged, and does
hereby transfer, convey, hypothecate, and pledge, to said Reserve Bank, as additional collateral, certain notes, bills receivable, and other securities and things of value, as more particularly mentioned
and described in the list shown on the other side hereof.
Said securities have been duly endorsed by th2 said member bank, and are pledged and hypothecated for the purpose of securing the Reserve Bank as against any loss on account of, or arising from,
any indebtedness or liability in favor of the Reserve Bank, heretofore made or incurred, or which may
hereafter be made or incurred by said member bank upon the rediscount of bills and notes, upon the
direct obligations of said member bank, or otherwise arising.
Upon the incurring of any future liability or indebtedness the security of said collateral shall
forthwith attach thereto without any further or other writing or agreement in the premises, and said
collateral shall stand for the security of the Reserve Bank until released in whole or in part by the
Reserve Bank, or until the member bank shall satisfy and discharge all of its obligations, direct or
contingent, to the Reserve Bank.
Any securities taken in renewal of, or in substitution for, any of said collaterals, and other securities or collateral which the member bank may place with the Reserve Bank, as additional collateral,
shall forthwith and without further or other writing, be and become collateral security in the hands
of the Reserve Bank to the same extent and in the same manner as if mentioned and listed particularly and specifically herein.
Upon any default on the part of the member bank in the carrying out of any promise, agreement,
contract or undertaking for the performance of which the said collateral, or any part thereof, shall at
any time stand pledged, the Reserve Bank may sell said collateral, or any part thereof, or any collateral substituted for, or added to, the securities set out on the said list, or mentioned or referred to
.herein, with or • without notice and at either public or private sale or otherwise, at the option of the
Reserve Bank or any successor in interest. From the gross proceeds of any such sale or sales the
Reserve Bank may pay and discharge all expenses arising from or connected therewith, including attorney's fees. The net proceeds of any such sale or sales shall be applied by the Reserve Bank in or
toward the payment and satisfaction of the indebtedness of the member bank, and the Reserve Bank
shall have the right to select the item or items of indebtedness, direct or contingent, which are to be
satisfied therefrom, the member bank remaining liable for any indebtedness or liability not so discharged and the Reserve Bank accounting to the member bank for the surplus, if any.
At any such sale or sales the Reserve Bank, or any agent or attorney in its behalf, may bid on
said collateral, or any part thereof, and purchase the same for its own account and without any acmuntability to the member bank except for the application of the net proceeds as hereinbefore set out.
Any right or remedy herein granted or given shall be cumulative to any other right or remedy
which may be availed of at law or in equity.
Application # Acount or Rediscount•
192
ZEDERAL RESERVE BANK OF ATLANTA:
of
/rom
Rediscount of paper listed below aggregating $
OR
Discount of our note $
by collateral listed below.
NAME
, maturing
Separate applications,
in duplicate should
accompany
ADDRESS
secured
Rediscount offerings.
Member bank direct notes secured by U. S. Security, War
Finance Corporation securities, or eligible bills receivable.
Bills offered to us for purchase.
Bill of Lading Drafts.
Retain third copy of application for your files.
I. Occupation of Maker.
2. Purpose for
which Rate
Proceeds were used by Chd.
Maker. (See Code No. M'k'r
1 below.)
For whom Have
Discounted
you
(See Code StateNo. 2
ment
below)
an File
To avoid delay in consideration of offerings.
lull information should be given as called
for by the column headings and printed matter above each line.
Bills offered for rediscount or as collateral
to direct notes of member banks, otherwise
eligible, should have a maturity not exceedqig ninety days if commercial or industrial
oaper, and not more than nine months it
igricultural or live stock paper.
Estimate Present indebt.,
of
including paper
Present
offered. (See Maturity
Net
Schedule No.3
below)
Worth
AMOUNT
1
Payer
Endorser or Collateral
Drawer
2
Payer
Endorser or Collateral
Drawer
Payer
3
Endorser or Collateral
Drawer
4
Payer
Endorser or Collateral
Drawer
5
Payer
Endorser or Collateral
Drawer
6
Payer
Endorser or Collateral
Drawer
7
Payer
Endorser or Collateral
Drawer
Payer
8
Endorser or Collateral
Drawer
CODE No. 1 —Purpose for which proceeds. were used by Maker:
(Use one of the following letters in Column 3
to designate).
A. Agricultural—other than fixed investment.
B. Industrial—other than fixed investment.
C. Commercial—other than fixed investment.
D. Carrying investment in United States Bonds.
CODE Ne. 2
E. Discounted for depositor other
than a bank,
F. Discounted for non-depositor
other than a bank.
G. Discounted for a member bank.
H. Discounted for a non-member
bank.
CODE No. 3—Present Indebtedness of Payer, Endorser or
Maker (Show amount after proper letter in
Column 7 as per following code).
J. Unsecured or secured other than by readily marketable
staples or U. S. Government Obligations.
K. Secured by readily marketable staples in accordance with
section 5200 U. S. R. S. as amended.
L. Secured by U. S. Government War Obligations.
TO BE FILLED IN BY STATE BANK MEMBERS
TO BE FILLED IN BY NATIONAL BANKS
Bills payable and rediscounts' with banks other than the
Bills payable and rediscounts with banks other than the
Federal Reserve Bank of Atlanta
.$.
Due to War Finance Corporation
Federal Reserve Bank of Atlanta
$—•
Due to War Finance Corporation
Certificates of Deposit representing money borrowed
Certificates of Deposit representing money borrowed
Borrowed United States Bonds.........
....._....
..................
I hereby certify that, to the best of my knowledge and belief, the proceeds
of the above listed items are to be, or have been, used for agricultural, industrial or commercial purposes, or were made for the purpose of carrying the
maker's investment in the United States Bonds pledged as collateral.
I hereby also certify that the amounts shown opposite the name of each
borrower listed on this application as being loaned to him at this time are correct, and that no one or more of said borrowers will, while his or their bills
in any amount are under rediscount with the Federal Reserve Bank of Atlanta,
be permitted to become liable to this bank for money borrowed in an aggregate
amount exceeding that which could be loaned by this bank if it were operating
as a national bank.
Borrowed United States Bonds
$
I hereby certify that, to the best of my knowledge and belief, the proceeds
of the above listed items are to be, or have been, used for agricultural, indus•
trial or commercial purposes, or were made for the purpose of carrying the
maker's investment in the United States Bonds pledged as collateral.
President
Cashier.
Cr. 227-50M-10-24
—
President
Cashier.
•
•
•
Atlanta, Ga.,
TO THE MEMBER BANK ADDRESSED:
In accordance with the Regulations of Federal Reserve Board, Series of 1924, a copy of which
was mailed to each member bank, the Federal Reserve Bank of Atlanta will require for its files
current financial statements or certified copies of current financial statements, (not more than one
year old) of all borrowers whose bills amounting to $5,000, or more, are offered for rediscount, or
are already under rediscount, and the discounting bank is required to furnish such statements.
Whenever the borrower has closely affiliated or subsidiary corporations or firms, the borrower's financial statement shall be accompanied by separate financial statements of such affiliated
or subsidiary corporations or firms, unless the statement of the borrower clearly indicates that such
note is both eligible from a legal standpoint and acceptable from a credit standpoint.
This applies to all paper with the following exceptions:
1st. If it is secured by a warehouse, terminal, or other similar receipt covering goods in
storage, no statement is required.
2nd. If it is secured by bonds or notes issued by the United States Government, no
statement is required.
3rd. If the aggregate of the obligations of the borrower, rediscounted and offered for rediscount at the Federal Reserve Bank is less than a sum equal to 10 per cent of the
paid in capital of the member bank, and does not exceed $5,000, the Federal Reserve
Bank may waive a statement.
4th. If the bills bear the signature of the purchaser and the seller of goods, and present
prima facie evidence that they were issued for goods actually purchased or sold, the
Federal Reserve Bank has the right to waive a statement if it so desires. This, of
course, is on the presumption that either the drawer or the acceptor is someone well
known in the trade.
If sufficient time is not available to the member bank to make and send with the offering
certified copies of statements that have not been filed previously, the original statements should
be forwarded, which will, on request, be copied by the Federal Reserve Bank and returned.
The Federal Reserve Bank of Atlanta reserves the right to call for the current financial statement of any borrower whose unsecured paper or paper secured otherwise than as above indicated
is offered for, or is under rediscount, regardless of amount, and to .charge back to the rediscounting bank any paper with respect to which a current statement has been requested and not furnished.
The unsecured paper of any borrower, regardless of amount, whose current financial statement
has been requested and not furnished, will not be considered until said statement is in the hands
of the Federal Reserve Bank of Atlanta.
Respectfully,
M. B. WELLBORN,
Governor.
o•
•
•
,
Ifrs.Niti Ira*
e,,,v
FEDERAL RESERVE BANK OF CH I C.:GO
I
s
.4(
230 SOUTH LA SALLE STREET
ortots..1„,
4
/
1
4
4
. \
14N gliki
OFFICE OF THE GOVERNOR
January 20, 1925.
Mr. J. C. Noell, Assistant Secretary,
Federal Reserve Board,
Ilb,shington, D. C.
Dear La". Noell:
In compliance with your telegraphic
request of this date, I am sending you herewith the
following forms used by this bank:
Two copies of Member Bank Collateral Note.
Two copies of Agreement for Deposit of
Collateral.
Very truly yours,
-74
—==Z;
Governor.
HS.
Enclosures.
-
• Disc. No.
192
days after date, for value received, the undersigned
omises to pay to the order of FEDERAL RESERVE BANK OF CHICAGO at its office,
(Not over fifteen days)
DOLLARS,
with interest at the rate of seven per cent per annum after maturity until paid.
The undersigned has deposited with said Bank, as collateral security for the payment of this note, and of every other liability or liabilities, either
direct or contingent, now owing or which may hereafter be owing, whether now or hereafter contracted, of the undersigned to said payee, or to the
legal holder hereof, the following property, viz.:
r's
°
0
°
iiinACQUIMMITAW .......XLeVUONti[A\Y
With the right on the part of the said Bank or the legal holder hereof from time to time to call for additional security of such kind and value as will be satisfactory to said Bank
or the legal holder hereof, and on failure to respond, or if in the judgment of said Bank, or the legal holder hereof, said security, or any additions thereto or substitutes therefor
or any part thereof, shall have depreciated in value, then the whole of this note shall be deemed immediately payable at the election of the said Bank or the legal holder hereof,
with full power in said Bank, or the legal holder hereof on maturity hereof, either by its terms or by election as aforesaid, or on the non-payment of any of the other liabilities above
mentioned, to at any time, and from time to time, sell, assign and deliver the whole of said property and all additions thereto and substitutes therefor,or any part of said property,
additions and substitutes, at any public or private sale, at the option of said Bank, or the legal holder hereof, and without advertising the same and without notice to the undersigned, and with the right of said Bank or the legal holder hereof, to be a purchaser at any public sale or sales; and in the event of any sale or purchase hereunder no matter by
or to whom made, all notice thereof, and any and all equity or right of redemption, whether before or after sale hereunder is hereby expressly waived; and, after deducting all legal
and other costs and expenses, including reasonable attorney's fees, from the proceeds of such sale or sales, to apply the remainder on any one or more of said liabilities, whether due
or not, as said Bank or the legal holder hereof shall deem proper (making rebate of interest on any demands not matured),and return the surplus, if any, to the undersigned. Said
Bank or the legal holder hereof, may at its, his or their discretion enforce the collection of said security, additions thereto and substitutes therefor by suit or otherwise, and may
surrender, compromise, release, renew, extend or exchange all or any of the same. Said Bank or the legal holder hereof is hereby authorized and empowered at any time to apply
to the payment of any liability or liabilities, whether the same be due or not, of the undersigned, to said Bank, or to the legal holder hereof, whether the same be due or not, all
property, real and personal, of every kind and description, including balances, credits, collections, moneys, drafts, checks, note3, bills, or accounts (whether on hand or in transit)
of the undersigned.
{
Sign here:
ADDRESS
FORM 7-54
UM 1241-23
AV•
-
•
•
isc. No.
192
(Not over fifteen days)
days after date, for value received, the undersigned
promises to pay to the order of FEDERAL RESERVE RANK OF CHICAGO at its office,
DOLLARS,
with interest at the rate of seven per cent per annum after maturity until paid.
The undersigned has deposited with said Bank, as collateral security for the payment of this note, and of every other liability or liabilities,
either
direct or contingent, now owing or which may hereafter be owing, whether now or hereafter contracted, of the undersigned to said payee, or to the
legal holder hereof, the following property, viz.:
t
1)
1 75
.
1-1
irSj
()AD
i..)1°1
1
With the right on the part of the said Bank or the legal holder hereof from time to time to call for additional security of such kind and value as will be satisfactory to said Bank
or the legal holder hereof, and on failure to respond, or if in the judgment of said Bank, or the legal holder hereof, said security, or any additions thereto or substitutes therefor
or any part thereof, shall have depreciated in value, then the whole of this note shall be deemed immediately payable at the election of the said Bank or the legal holder hereof,
with full power in said Bank, or the legal holder hereof on maturity hereof, either by its terms or by election as aforesaid, or on the non-payment of any of the
liabilities above
mentioned, to at any time, and from time to time, sell, assign and deliver the whole of said property and all additions thereto and substitutes therefor, or any otherof said property,
part
additions and substitutes, at any public or private sale, at the option of said Bank, or the legal holder hereof, and without advertising the same and without notice to the undersigned, and with the right of said Bank or the legal holder hereof, to be a purchaser at any public sale or sales; and in the event of any sale or purchase hereunder no matter by
or to whom made, all notice thereof, and any and all equity or right of redemption, whether before or after sale hereunder is hereby expressly waived; and, after deducting all legal
and other costs and expenses, including reasonable attorney's fees, from the proceeds of such sale or sales, to apply the remainder on any one or more of said liabilities, whether due
or not, as said Bank or the legal holder hereof shall deem proper (making rebate of interest on any demands not matured),and return the surplus, if
undersigned. Said
Bank or the legal holder hereof, may at its, his or their discretion enforce the collection of said security, additions thereto and substitutes therefor any, to the otherwise, and may
by suit or
surrender, compromise, release, renew, extend or exchange all or any of the same. Said Bank or the legal holder hereof is hereby authorized and empowered at any time to apply
to the payment of any liability or liabilities, whether the same be due or not, of the undersigned, to said Bank, or to the legal holder hereof, whether the same be due or not, all
property, real and personal, of every kind and description, including balances, credits, collections, moneys, drafts, checks, notes, bills, or accounts (whether
on hand or in transit)
of the undersigned.
Sign here:
ADDRESS
FORM FRASER
Digitized for 7-54
MI 12-21-23 13-21013
•
•
Agreement for Deposit of Collateral
Whereas, the undersigned bank is a member of the Federal Reserve Bank of Chicago, and
Whereas, the undersigned bank is or may be liable to said Federal Reserve Bank of Chicago by
way of endorsement of notes, drafts, bills of exchange and other commercial paper, and is or may become
otherwise indebted to said Federal Reserve Bank of Chicago, and
Whereas, it is to the interest of the undersigned bank, as well as of the'Federal Reserve Bank of
Chicago, that said Federal Reserve Bank of Chicago, should be fully secured and indemnified for each
and every obligation of the undersigned bank, due or to become due to said Federal Reserve Bank of
Chicago;
NOW,THEREFORE,THIS INSTRUMENT WITNESSETH: That the undersigned bank has
deposited with said Federal Reserve Bank of Chicago, as collateral security for the payment of every
liability, or liabilities, either direct or contingent, now owing or which may hereafter be owing, whether
now or hereafter contracted, of the undersigned to said Federal Reserve Bank of Chicago, the following
described property, to-wit:
with the right on the part of said Federal Reserve Bank of Chicago to call for additional security of such
kind and value as will be satisfactory to said bank, and, on failure to respond, or, if in the judgment of
said bank, said security or any additions thereto or substitutes therefor, or any part thereof, shall have
depreciated in value, then the whole of every obligation of the undersigned to said bank shall be deemed
immediately payable, at the election of said bank, with full power in said bank, on the maturity of said
indebtedness either by its terms or by election as aforesaid, to at any time sell, and from time to time
sell, assign and deliver the whole of said property and all additions thereto, and substitute therefor, or
any part of said property, additions and substitutes, at any public or private sale, at the option of said
bank, and without advertising the same, and without notice to the undersigned, and with the right of
said bank to be a purchaser at any such sale, or sales, and in the event of any sale of purchase hereunder,•
no matter by or to whom made, all notice thereof and any and all equity or right of redemption, whether
before or after the sale hereunder, is hereby expressly waived; and, after deducting all legal and other
costs and expenses, including reasonable attorneys' fees, from the proceeds of such sale or sales, to apply
the remainder on any one or more of the liabilities of the undersigned, whether due or not, as said bank
shall deem proper (making rebate of interest on any demands not matured) and return the surplus, if
any, to the undersigned. Said bank may, at its discretion, enforce the collection of said security, additions thereto and substitutes therefor, by suit or otherwise, and may surrender, compromise, release,
renew, extend or exchange all or any of the same. Said bank is hereby authorized and empowered at any
time to apply to the payment of any liability, or liabilities, whether the same be due or not, of the undersigned bank, to said bank, all property, real, personal, or mixed of every kind or description, including balances, credits, collections, moneys, drafts, checks, notes, bills or accounts (whether on hand or in
transit) of the undersigned.
Dated at
_, 192
By
FORM 2-3 tm 10-12-20 A1333
President
Vice-President
Cashier
Agreement for Deposit of Collateral
Whereas, the undersigned bank is a member of the Federal Reserve Bank of Chicago, and
Whereas, the undersigned bank is or may be liable to said Federal Reserve Bank of Chicago by
way of endorsement of notes, drafts, bills of exchange and other commercial paper, and is or may become
otherwise indebted to said Federal Reserve Bank of Chicago, and
Whereas, it is to the interest of the undersigned bank, as well as of the Federal Reserve Bank of
Chicago, that said Federal Reserve Bank of Chicago, should be fully secured and indemnified for each
and every obligation of the undersigned bank, due or to become due to said Federal Reserve Bank of
Chicago;
NOW,THEREFORE,THIS INSTRUMENT WITNESSETH: That the undersigned bank has
deposited with said Federal Reserve Bank of Chicago, as collateral security for the payment of every
liability, or liabilities, either direct or contingent, now owing or which may hereafter be owing, whether
now or hereafter contracted, of the undersigned to said Federal Reserve Bank of Chicago, the following
described property, to-wit:
with the right on the part of said Federal Reserve Bank of Chicago to call for additional security of such
kind and value as will be satisfactory to said bank, and, on failure to respond, or, if in the judgment of
said bank, said security or any additions thereto or substitutes therefor, or any part thereof, shall have
depreciated in value, then the whole of every obligation of the undersigned to said bank shall be deemed
immediately payable, at the election of said bank, with full power in said bank, on the maturity of said
indebtedness either by its terms or by election as aforesaid, to at any time sell, and from time to time
sell, assign and deliver the whole of said property and all additions thereto, and substitute therefor, or
any part of said property, additions and substitutes, at any public or private sale, at the option of said
bank, and without advertising the same, and without notice to the undersigned, and with the right of
said bank to be a purchaser at any such sale, or sales, and in the event of any sale of purchase hereunder,
no matter by or to whom made, all notice thereof and any and all equity or right of redemption, whether
before or after the sale hereunder, is hereby expressly waived; and, after deducting all legal and other
costs and expenses, including reasonable attorneys' fees, from the proceeds of such sale or sales, to apply
the remainder on any one or more of the liabilities of the undersigned, whether due or not, as said bank
shall deem proper (making rebate of interest on any demands not matured) and return the surplus, if
any, to the undersigned. Said bank may, at its discretion, enforce the collection of said security, additions thereto and substitutes therefor, by suit or otherwise, and may surrender, compromise, release,
renew, extend or exchange all or any of the same. Said bank is hereby authorized and empowered at any
time to apply to the payment of any liability, or liabilities, whether the same be due or not, of the undersigned bank, to said bank, all property, real, personal, or mixed of every kind or description, including balances, credits, collections, moneys, drafts, checks, notes, bills or accounts (whether on hand or in
transit) of the undersigned.
Dated at
, 192
By
FORM 2-3
2M 10-12-20
A1303
President
Vice-President
Cashier
•
FEDERAL RESERVE BANK
OF
ST_ Louis
January 20, 1925.
Federal Reserve bocird,
Washington,
C.
Gentle:nen:
1 am to-day in receipt of a
telegra. from Ur. Noell, requesting us
tt'Sena' two copies of the form of collateral note and two copies of our
General Loan and Collateral Agreement.
The forms requested are inclosed herewith.
,
Very resuectfull
D. C. Iiiggs,
Governor.
MATU
*HIS FORM OF NOTE LIMITE 'WEN DAYS.
I
I
No.
192_
after date, without grace,the undersigned bank
(Maturity must be fifteen days or less)
promises to pay to the order of the
FEDERAL RESERVE BANK OF ST. LOUIS
_DOLLARS
for value received.
Payab le
at the office of Federal Reserve Bank of St. Louis, Missouri.
Due
Addres
The maker of the above note has deposited and pledged with the Federal Reserve Bank of St. Louis, as collateral security for the
payment of said note, the following notes, drafts, bills of exchange, bankers' acceptances, bonds or notes of the United States:
Now, in the event of the non-payment of said note at maturity, the holders hereof are hereby invested with full authority to use,
trans er, hypothecate, sell or convey the said property, or any part thereof, or to cause the same to be done, at public or private sale, with
or without notice or demand of any sort, at such place and on such terms as the said holders hereof may deem best; and the holders of this
note are authorized to purchase said collaterals when sold for their own protection; and the proceeds of such sale, transfer or hypothecation
shall be applied to the payment of this note, together with all protests, damages, interest, costs and charges due upon the note, or incurred by
reason of its non-payment when due, or in the execution of this power. Also a commission of two and one-half per cent on the gross amount
of said collateral sold. The surplus, if any, after payment of this note, together with all charges above stated, shall be paid to the maker of
this note, or, at the election of the holders hereof, be paid on any other obligation of the maker hereof, whether as principal debtor or otherwise, held by the holders hereof, and if the proceeds of the above sale shall not be sufficient to pay this note, the maker hereof agrees to
inake good on demand any deficit. And it is understood and agreed should there be any depreciation in the valuation of said security prior
to the maturity of this note, such an amount of additional security shall be furnished as will be satisfactory to the holders of said note; and
should such additional security not be furnished within twenty-four hours after demand so to do, then and in that event said holders may
declare this note due and payable and proceed at once to sell as above specified the security herein named. These conditions of hypothccation to apply with equal force to any extension or renewal of this note, and to any additions to or substitutions for the securities above
re cited.
In the event default is made in the payment of this note at maturity and it is placed in the hands of an attorney for collection, or suit
s brought on the same, then an additional amount of ten per cent on the principal and interest of this note shall be added to the same as
ollection fees.
The maker hereby certifies that, to the best of its knowledge and belief, the loans represented by the bills receivable or commercial
paper, if any, pledged herein as collateral security for the above obligation, were made for agricultural, industrial or commercial purposes, or
are based on live stock; and that the provisions of the Federal Reserve Act and the regulations issued by the Federal Reserve Board have
been complied with.
The maker further certifies that none of the borrowers whose paper is herewith offered as collateral is liable to it for borrowed money,
other than secured by obligations of the United States Government issued since April 24, 1917, in an amount in excess of 10% of its capital
and surplus; and it hereby guarantees that no such borrower shall be permitted to become liable in excess of such amount while its notes,
drafts or bills of exchange are under rediscount by, or are held as collateral to obligations of, the maker to the Federal Reserve Bank of
St. Louis.
It is further certified that all securities herewith pledged are either the property of this bank, or are being pledged with the written
consent of the owner.
(Seal of Bank)
MATU
HIS FORM OF NOTE LIMITE
EEN DAYS.
No.
192_
after date, without grace,the undersigned bank
(Maturity must be fifteen clays or less)
promises to pay to the order of the
FEDERAL RESERVE BANK OF ST. LOUIS
DOLLARS
for value received.
Payable at the office of Federal Reserve Bank of St. Louis, Missouri.
Due
Address
The maker of the above note has deposited and pledged with the Federal Reserve Bank of St. Louis, as collateral security for the
payment of s id note, the following notes, drafts, bills of exchange, bankers' acceptances, bonds or notes of the United States:
Now, in the event of the non-payment of said note at maturity, the holders hereof are hereby invested with full authority to use.
transfer, hypothecate, sell or convey the said property, or any part thereof, or to cause the same to be done, at public or private sale, with
or without notice or demand of any sort, at such place and on such terms as the said holders hereof may deem best; and the holders of this
note are authorized to purchase said collaterals when sold for their own protection; and the proceeds of such sale, transfer or hypothecation
shall be applied to the payment of this note, together with all protests, damages, interest, costs and charges due upon the note, or incurred by
reason of its non-payment when due, or in the execution of this power. Also a commission of two and one-half per cent on the gross amount
of said collateral sold. The surplus, if any, after payment of this note, together with all charges above stated, shall be paid to the maker of
this note, or, at the election of the holders hereof, be paid on any other obligation of the maker hereof, whether as principal debtor or otherwise held by the holders hereof, and if the proceeds of the above sale shall not be sufficient to pay this note, the maker hereof agrees to
make good on demand any deficit. And it is understood and agreed should there be any depreciation in the valuation of said security prior
to the maturity of this note, such an amount of additional security shall be furnished as will be satisfactory to the holders of said note; and
should such additional security not be furnished within twenty-four hours after demand so to do, then and in that event said holders may
declare this note due and payable and proceed at once to sell as above specified the security herein named. These conditions of hypothecation to apply with equal force to any extension or renewal of this note, and to any additions to or substitutions for the securities above
recited.
In the event default is made in the payment of this note at maturity and it is placed in the hands of an attorney for collection, or suit
is brought on the same, then an additional amount of ten per cent on the principal and interest of this note shall be added to the same as
llection fees.
The maker hereby certifies that, to the best of its knowledge and belief, the loans represented by the bills receivable or commercial
aper, if any, pledged herein as collateral security for the above obligation, were made for agricultural, industrial or commercial purposes, or
re based on live stock; and that the provisions of the Federal Reserve Act and the regulations issued by the Federal Reserve Board have
)een complied with.
The maker further certifies that none of the borrowers whose paper is herewith offered as collateral is liable to it for borrowed money,
other than secured by obligations of the United States Government issued since April 24, 1917, in an amount in excess of 10% of its capital
and surplus; and it hereby guarantees that no such borrower shall be permitted to become liable in excess of such amount while its notes,
drafts or bills of exchange are under rediscount by, or are held as collateral to obligations of, the maker to the Federal Reserve Bank of
St. Louis.
It is further certified that all securities herewith pledged are either the property of this bank, or are being pledged with the written
consent of the owner.
(Seal of Bank)
•
GENERAL LOAN AND COLLATERAL AGREEMENT.
Attokv 5111fien bp Zbefse i3rezento
that in consideration of advances or rediscounts at
this time or heretofore granted to it by the Federal Reserve Bank of St. Louis and / or in consideration of
obtaining such further advances, rediscounts, loans or credits as may hereafter be granted to it by the Federal
Reserve Bank of St. Louis, the undersigned bank hereby agrees that as collateral security for any and all
loans, advances, rediscounts, indebtedness, obligation and liability of the undersigned bank to the said
Federal reserve bank, now or hereafter existing, matured or not matured, absolute or contingent, and wherever
payable, including such as may arise from indorsements of notes, acceptances or any other items, or paper
discounted by said Federal reserve bank or held by said Federal reserve bank as security for any loans or
advances of any sort whatever, and including overdrafts and indebtedness by the undersigned bank to said
Federal reserve bank on account of collections or paper received for collection, said Federal reserve bank
shall hold, retain and have a lien upon all moneys, negotiable instruments, bonds, stocks, commercial paper,
credits, choses in action, claims and demands of every kind at any time in possession or control of said Federal
reserve bank or any of its agents or correspondents, or in transit to it by mail or carrier, belonging to, for
account of or subject to the order of the undersigned bank; and said Federal reserve bank shall have the
following rights and powers in respect to such collaterals and every part thereof (in addition to any other
rights which it may have): Said Federal reserve bank may at any time or times collect any of such collaterals, and it may indorse any thereof in behalf and in the name of the undersigned; and in case of failure
of the undersigned to pay or discharge when due any such loan, indebtedness, obligation or liability, or in
case of failure of the undersigned bank to furnish additional collateral as hereinafter provided, or in case of
the insolvency, general assignment, receivership, bankruptcy or failure in business of the undersigned bank,
said Federal reserve bank may sell without notice any of said collaterals at private or public sale or at broker's
board (being at liberty to become the purchaser if the sale is public or at broker's board) and may apply
any and all money or credits, including the proceeds of any such sale, and any debts, liabilities or balances,
due or not due, in favor of the undersigned bank, arising from deposits, discounts, collections, items in
transit, or otherwise, at any time owing or due from or chargeable against said Federal reserve bank, or
any of its agents or correspondents, to the payment of expenses of any such sale or sales, or of the realization
or collection of any of said collaterals, or of any of said loans, advances, rediscounts, indebtedness, obligation
or liability of the undersigned bank, and to the payment of any and all loans, indebtedness, obligation or
liability of the undersigned bank, whether due or not due; and any or all loans, indebtedness, obligation
or liability of the undersigned bank shall in any of the cases above stated become due at the option of said
Federal reserve bank. If the collaterals securing any loans, indebtedness, obligation or liability of the undersigned bank to said Federal reserve bank shall at any time be unsatisfactory in amount or otherwise to said
Federal reserve bank, or to any of its officers, the undersigned bank will immediately furnish such further
security as will be satisfactory to said Federal reserve bank. Said Federal reserve bank may assign or transfer
the whole or any part of any indebtedness, obligation or liability of the undersigned bank, and may transfer
therewith as collateral security therefor, the whole or any part of the collaterals above referred to, and the
transferee shall have the same rights and powers with reference to the indebtedness, obligation or liability
transferred, and the collaterals transferred therewith, as are hereby given to said Federal reserve bank.
It is also agreed that this instrument constitutes a continuing agreement between the undersigned bank
and the said Federal reserve bank applying to all future, as well as existing, transactions between the said
parties and also that the force and effect hereof shall not be terminated by the closing at any time of all
transactions between the said parties, but that the same shall apply thereafter to any new transactions and
shall continue in full force until notice is received in writing by either party from the other of the intention
to terminate it, whereupon, it shall be of no effect for any indebtedness subsequently created.
itneas
bend,the
has caused its corporate seal to be hereto affixed and these presents to be signed by one of its officers thereunto duly authorized at
day of
this
19
(Name of bank)
By
(Title)
ESEAL1
C. D. 22.
_
•
•
•
FEDERAL RESERVE BANK
OF MINNEAPOLIS
January 20, 1925.
Federal Reserve Board,
Washington, D.C.
Attention, Mr. J. C. Noell,
Assistant Secretary.
Dear Mr. Noell:
Pursuant to the reque , contained
telegram of January 20, i .ns 525, I am $endin
in your
herewith tuu—biank form o3:"Erik collateral note,
ent that we us with
together with general pledge ag
member banks.
our
Yours v-
Gover
RAy-C
•
•
•
•
192
after date, without grace, the undersigned bank promises to pay to the order of the
Federal eserve Bank of Minneapolis
DOLLARS
with interest at the rate of
per cent per annum until paid. Value received.
Payable at the Federal Reserve Bank of Minneapolis.
Presentment for payment, protest and notice of dishonor waived by each maker, indorser and
guarantor hereof.
INTEREST PAID TO MATURITY
No.
Due
Bank
State
Town
By
President
Cashier
In consideration of the loan for which the foregoing note is given, the undersigned bank assigns and transfers to the Federal Reserve Bank of Minneapolis
as collateral security for the payment of said note and all other debts and liabilities to said bank, actual or contingent, now or hereafter contracted or incurred
per cent.
by the undersigned bank, and said bank agrees that whenever said property shall be insufficient to furnish a margin of security of at least
above the amount of said note and such other debts and liabilities, the Federal Reserve Bank of Minneapolis may call for additional security sufficient to furnish
such margin, and that upon failure to comply with such demand, or in case said note or any such other debt or liability is not paid at maturity, said Federal
Reserve Bank of Minneapolis may sell said property and any property pledged in substitution therefor or in addition thereto, at public or private sale, without
flemanding payment or giving notice, with the right to be purchaser if the sale is made at any brokers' board or public sale. From the proceeds of the sale
shall be deducted the costs and expenses of the sale and of protecting the property, including a reasonable attorney's fee, and the proceeds remaining shall be
applied, first towards the payment of said note, whether due or not, and secondly, towards the payment of all such other debts and liabilities whether due or not.
The surplus remaining, if any, shall be returned to the undersigned bank. The undersigned bank also authorizes said Federal Reserve Bank of Minneapolis, at
any time, in its discretion, to apply any money or other property of any kind, which it may have or hold on deposit or otherwise for said bank, towards the
payment of said note and such other debts and liabilities, whether due or not. All the provisions and powers herein contained shall enure to the benefit of any
assign of the Federal Reserve Bank of Minneapolis.
The undersigned bank agrees that the Federal Reserve Bank of Minneapolis and its assigns may use its or their best judgment in granting extension,
or securing or forcing the collection of said collaterals, and that said undersigned bank will pay all reasonable charges and expenses incurred in renewing,
securing or collecting said collaterals, that the Federal Reserve Bank of Minneapolis and its assigns shall not be under any obligation to notify the makers or
indorsers of any of said collaterals, or to institute any proceeding to collect said securities, but may do so at its or their option.
And said undersigned bank does hereby release the Federal Reserve Bank of Minneapolis and its assigns, from all liability on account of the insolvency
of the makers, or indorsers, or sureties, of any of said collaterals, or on account of any omission on the part of said Federal Reserve Bank of Minneapolis,
or its assigns, to notify, or to proceed against, such makers, indorsers or sureties.
Town
Bank
State
By
President
Cashier
•
•
•
11(num all mub I1L
lirrBrvith,
That the undersigned in consideration of
financial accommodations given or to be given or continued to the undersigned by The Federal Reserve
Bank of Minneapolis, hereby agrees with the said Bank that whenever the undersigned shall become or
remain directly or contingently indebted to the said Bank for money lent or for money paid for the
use or account of the undersigned or for any overdraft or upon any endorsement, draft, guarantee or
in any other manner whatsoever or upon any other claim, the said Bank shall then and thereafter have
the following rights, in, addition, to those created by the circumstances from which such indebtedness
may arise, against the undersigned, namely:
1. till' securities deposited by the undersigned with said Bank, as collateral to any such loan
or indebtedness of the undersigned to said Bank, shall also be held by said Bank as security for any
other liability of the undersigned to said Bank, whether then existing or thereafter contracted; and said
bank shall also have a lien upon any balance of the deposit account of the undersigned with said Bank
existing from time to time, and upon all property of the undersigned of every description left with said
Bank for safe keeping or otherwise, or coming to the hands of said Bank in any way as security for
any liability of the undersigned to said Bank now existing or hereafter contracted.
2. Said Bank shall at all times have the right to require from the undersigned that there shall
be lodged with said Bank as security for all existing liabilities of the undersigned to said Bank, approved
collateral securities to an amount satisfactory to said Bank, and may call for additional collateral
security, whenever the said collaterals, or such other property as shall be deposited in substitution therefor,
shall depreciate in value, and upon the failure of the undersigned at all times to keep a margin of
securities with said Bank for such liabilities of the undersigned, satisfactory to said Bank, or upon any
failure in business or making of an insolvent assignment by the undersigned, then and in either event
all liabilities of the undersigned to said Bank shall, at the option of said Bank, become im,mediately
due and payable notwithstanding any credit or time allowed to the undersigned by any instrument
evidencing any of the said liabilities.
3. Upon failure of the undersigned either to pay any indebtedness to said Bank when becoming
or made due, or to keep up the margin of collateral securities above provided for, then and in either event
said Bank may immediately without advertisement and without notice to the undersigned or demanding
payment, sell any of the securities held by it as against any or all of the liabilities of the undersigned,
at private sale or Broker's Board or otherwise, and apply the proceeds of such sale as far as needed toward
the payment of any or all of such liabilities, together with interest and expenses of sale, holding the
undersigned responsible for any deficiency remaining unpaid after such application. If any such sale
be at Broker's Board or at public auction said Bank may itself be a purchaser at such sale, free from,
any right or equity of redemption of the undersigned, such right and equity being hereby expressly
waived and released. Upon default as aforesaid, said Bank may also apply toward the payment of the
said liabilities all balances of any deposit account of the undersigned with said Bank then existing.
4. It is further agreed that said Bank may use its best judgment in granting extension or
securing or forcing the collection of said collaterals, and that the undersigned will pay all reasonable
charges and expenses incurred in, renewing, securing or collecting said collaterals; that said Bank shall
not be under any obligation to notify the makers or endorsers of any of said collaterals, or to institute
any proceeding to collect said security, but may do so at its option.
eln,d the undersigned does hereby release the said Bank, from all liability on account of the
insolvency of the makers, or endorsers, or sureties of any of said collaterals, or on account of any omission
on the part of said Bank to notify, or to proceed against said makers, endorsers or sureties.
It is further agreed that these presents shall constitute a continuing agreement, applying
to any
and all future as well as to existing transactions between the undersigned and said Bank.
Dated
192
(Bank)
(Place)
(State)
By
Cashier
.•
•
•
• •
FEDERAL RESERVE BANK
W. J. BAILEY,GOVERNOR
C.A.WORTHINGTON,DEPUTY
GOVERNOR
M.L. McCLUR E
CHAIRMAN BOARDJ OF DIRECTORS
AND FEDERAL RESERVE AGENT
••:.; ItiggtErt, HO R
OEPLFTY CHAiRMAN
U'OARD OF DIRECTORS
fr C. K ;BOARDMAN
,.• ASST. FEDERAL RESERVE AGENT
AND SECRF.TARY
F
J. W. HELM,CASHIER
KANSAS CITY
JOHN PHI LLIPS,JFL,AssT.CAsHIER
E.P.TYN ER. ASST.CASHIER
G E. BARLEY, ASST.CASHIER
M.W.E.PARK, ASST.CASHIER
A. G. FROST, Ass-r.CAsmee
A.M.MCADAMS,AssT.CASHIER
G_ H. P1PK IN, ASST.CASHIER
January 20th, 1925.
Federal Reserve Board,
Washington, D.C.
Attention;
rr. J. C. Noell.
Gentlemen:
As requested in your telegram of even date, we are
enclosing two copies each of our member bank collateral note
form and general pledge agreement.
The general pledge agree-
ment has not been used in all cases; consequently, we have not
adopted a printed form.
4
Your
e
truly
Deputy Governor.
CAW*FA
12
AGRRITaNT FJ ,DXPOSIT OF COL4ATMRAL
WHEREAS, the undersigned,
has heretofore borrowed and expects in the future to borrow money
and has heretofore rediscounted and expects in the future to rediscount
from,
its bills receivable with the Federal Reserve Bank of Xanses City, hereinafter
called "the bank", and has pledged and will hereafter pledge with said bank
various kinds of property as collateral security for the payment of its obligations and liabilities to said Federal Reserve Bank.
T1ERT.IF1R1:, the undersigned agrees with said bank that all of
the property thus pledged, and in addition thereto any balance on deposit or
otherwise with said bank, may be held as collateral aecurity for the payment of
any and all such loans of the undersigned and bills receivable so rediscounted,
as well as for the payment of all its other obligations, indebtedness and liabilities, present and future, of every kind ahdleature, direct, incArect or contin
gclit, by endorsement or otherwise, and whether due or to become due, and further
agrees to deliver to said bank additional securities should the market value of
said securities suffer any deCline, or the same or any part thereof become
unsatisfactory *() said bank.
Upon the maturity and non-payment of any of said obligations or
liabilities of the undersigned to said bank, or before the maturity there of
in ease of tha insolvency or closing of the doors of the undersimed, the sale
of all or a substantial nortion of its assets, its withdrawal or application
to withdraw as a member of said bank, or if the bank shall for any reason deem
es,
itself insecure or unsafe, then in any Each case all obligations and liabiliti
the undersigned shall forthwith become due and payable
direct or contingent, of
without demand or notice, at the option of said bank, and the undersigned
hereby gives to said bank, its officers and agents, in addition to all other
rights thiCh it otherwise would have, the following power and vuthority:
there(1) To sell, assign and deliver the whole of said. securities or any part
broker's board at public or private sale at
of, or substitutes therefor, at any
expressly
its option, without demand, alvertisement, or notice, all of which are
purchaser of the whole or any part
waived, and at any such sale it may become the
the
of the property so sold, free from any right of redemption on the part of
released and waived. (2) To collect and
undersigned, which is hereby expressly
securities,
realise upon, by compromise, suit or otherwise, any and all of said
and fr such purposes to employ such agents
and deliver and surrender the same,
such
and attorneys and i)ay to them such charges and fees, and to knout and pay
bank may appear necessary or desirable.
other expenses and charges as to said
on of said property, the
In case of any soll sale, collection or other dispositi
L..edh sale, collection
to the expenses of ,
bank may apply the proceeds thereof,
charges or fees of agents and attorneys, and
or other disposition, including
all of the said obliapply the remainder of the proceeds to any one or more or
proper rebate for
gations or liabilities to it, whether then due or not, making
returning the over-plus,
interest on oblibations or liabilities not ten due, and
if any, to the undersigned.
The bank may eatend or renew any obligation, deposited hereunder
demand, protest and
without notice to the undersigned, and without presentment,
delay on the part of
notice of non-payment, all of which are hereby waived. No
as a waiver of such
said bank in exercising any rights, hereunder shall operate
rights.
Dated at
•
• Disc. No.
•
•
Collateral No.
192
(Date)
(Place)
On
, 192
, for value received, the undersigned promises
to pay to the order of FEDERAL RESERVE BANK OF KANSAS CITY, at its office in Kansas City, Missouri,
DOLLARS
with interest at the rate of eight per cent. per annum after maturity until paid.
The undersigned has deposited with said Bank, as collateral security for the payment of this note, and of every other liability
or liabilities, either direct or contingent, now owing or which may hereafter be owing, whether now or hereafter contracted, of the
undersigned to said payee, or to the legal holder hereof, the following property, viz:
With the right on the part of the said Bank or the legal holder hereof from time to time to call for additional security of such kind and value as will be satisfactory to said Bank or the legal holder hereof, and on failure to respond or if in the judgment of said Bank. or the legal holder hereof, said security, or any
additions thereto or substitutions therefor or any part thereof, shall have depreciated in value, then the whole of this note shall be deemed immediately payable at
the election of said Bank or the legal holder hereof, with full power in said Bank, or the legal holder hereof on maturity hereof, either by its terms or by election as aforesaid, or on the non-payment of any of the other liabilities above mentioned, to at any time, and from time to time, sell, assign and deliver the
whole of said property and all additions thereto and substitutions therefor, or any part of said property, additions and substitutions, at any public or private sale,
at the option of said Bank, or the legal holder hereof, and without advertising the same and without notice to the undersigned, and with the right of said Bank
or the legal holder hereof, to be a purchaser at any public sale or sales: and in the event of any sale or purchase hereunder no matter by or to whom made, all
notice thereof, and any and all equity or right of redemption, whether before or after sale hereunder is hereby expressly waived: and, after deducting all legal
and other costs and expenses, including reasonable attorney's fees, from the proceeds of such sale or sales, to apply the remainder on any one or more of said
liabilities, whether due or not, as said Bank or the legal holder hereof shall deem proper (making rebate of interest on any demands not matured), and return
the surplus, if any, to the undersigned. Said Bank or legal holder hereof, may at its, his or their discretion enforce the collection of said security, additions
thereto and substitutions therefor by suit or otherwise, and may surrender, compromise, release, renew, extend or exchange all or any of the same. The undersigned hereby releases the said Bank or legal holder hereof from liability of every kind pertaining to collection of, or failure to collect, the above mentioned
collateral. Said Bank or the legal holder hereof is hereby authorized and empowered at any time to apply to the payment of any obligation, liability or liabilities,
whether the same be due or not, of the undersigned, to said Bank, or to the legal holder hereof, whether now existing or hereafter contracted, and whether
or not then due, and whether now held or hereafter Required by said Bank, all property, real and personal, of every kind and description, including balances,
credits, collections, moneys, drafts, checks, notes, bills or accounts (whether on hand or in transit) of the undersigned.
The
e
Bank of
By
(Official Title)
•
JilEDERAL RESERVE BANK
OF DALLAS
/fl
12
".i
.
,
R. R. GILBERT
DEPUTY GOVERNOR
,
Vse;;;,
January 20, 1925.
Federal Reserve Board,
Washington, D. C.
Gentlemen:
Attention Mr, J, C. Noell
In the absence of Governor McKinney from the City,
I acknowledge receipt of your telegram of today, and as
requested I am enclosing two copies each of our member bank
collateral note form and general pledge agreement.
Yours very truly,
RRG X
Deputy
192
•
•
(Place)
(Date)
after date the undersigned bank promises to pay to the order
(Maturity must be fifteen days or less)
of the FEDERAL RESERVE BANK OF DALLAS
Dollars
for value received.
Payable at the office of THE FEDERAL RESERVE BANK OF DALLAS, Dallas, Texas, with interest at the rate of eight per
cent per annum from maturity.
No.
(Name of Member Bank)
Due.
President Cashier.
The maker of the above note has deposited and pledged with the Federal Reserve Bank of Dallas, as collateral security for the payment of said note, the following notes, drafts, bills of exchange, banker's acceptances, bonds or notes of the United States, all of which are
hereby certified to be eligible for rediscount or for purchase by Federal Reserve Banks under the provisions of the Federal Reserve Act:
Now, in the event of the non-payment of said note at maturity, the holders hereof are hereby invested with full authority to use,
transfer, hypothecate, sell or convey the said property, or any part thereof, or to cause the same to be done, at public or private sale, with
or without notice or demand of any sort, at such place and on such terms as the said holders hereof may deem best; and the holders of
this note are authorized to purchase said collaterals when sold for their own protection; and the proceeds of such sale, transfer or hypothecation shall be applied to the payment of this note, together with all protests, damages, interest, costs and charges due upon the note,
or incurred by reason of its non-payment when due, or in the execution of this power. Also a commission of two and one-half per cent
on the gross amount of said collateral sold. The surplus, if any, after payment of this note, together with all charges above stated, shall
be paid to the maker of this note, or, at the election of the holders hereof, be paid on any other obligation of the maker hereof, whether
as principal debtor or otherwise, held by the holders hereof, and if the proceeds of the above sale shall not be sufficient to pay this note,
the maker hereof agrees to make good on demand any deficit. And it is understood and agreed that should there be any depreciation
in the value of said security prior to the maturity of this note, such an amount of additional security shall be furnished as will be satisfactory to the holders of said note; and should such additional security not be furnished within twenty-four hours after demand so
to do, then and in that event said holders may declare this note due and payable and proceed at once to sell as above specified the
security herein named. These conditions of hypothecation to apply with equal force to any extension or renewal of this note, and to
any additions to or substitutions for the securities above recited.
In the even default is made in the payment of this note at maturity and it is placed in the hands of an attorney for collection, or
suit is brought on the same, then an additional amount of ten per cent on the principal and interest of this note shall be added to the
same as collection fees.
(Seal of Bank)
(Name of Bank)
*0
Cr. 20 2146B
1Ktunn all Hint tig
Prtsrtits,
That the undersigned, by the authority of its
Board of Directors, in consideration of financial accommodations given or to be given or continued to the
undersigned by The Federal Reserve Bank of Dallas, hereby agrees with the said Bank that whenever the undersigned shall become or remain directly or contingently indebted to the said Bank for money lent or for money
paid for the use or account of the undersigned or for any overdraft or upon any endorsement, draft, guarantee or in any other manner whatsoever or upon any other claim, the said Bank shall then and thereafter have
the following rights, in addition to those created by the circumstances from which such indebtedness may
arise, against the undersigned, namely;
1. All securities deposited by the undersigned with said Bank, as collateral to any such loan or indebtedness of the undersigned to said Bank, shall also be held by said Bank as security for any other liability
of the undersigned to said Bank, whether then existing or thereafter contracted; and said Bank shall also have
a lien upon any balance of the deposit account of the undersigned with said Bank existing from time to time,
and upon all property of the undersigned of every description left with said Bank for safe keeping or otherwise,
or coining to the hands of said Bank in any way as security for any liability of the undersigned to said Bank
now existing or hereafter contracted.
2. Said Bank shall at all times have the right to require from the undersigned that there shall be lodged
with said Bank as security for all existing liabilities of the undersigned to said Bank, approved collateral securities to an amount satisfactory to said Bank, and may call for additional collateral security, whenever the
said collaterals, or such other property as shall be deposited in substitution therefor, shall depreciate in value,
and upon the failure of the undersigned at all times to keep a margin of securities with said Bank for such liabilities of the undersigned, satisfactory to said Bank, or upon any failure in business or making of an insolvent assignment by the undersigned, then and in either event all liabilities of the undersigned to said Bank shall, at the
option of said Bank, become immediately due and payable notwithstanding any credit or time allowed to the
undersigned by any instrument evidencing any of the said liabilities.
3. Upon failure of the undersigned either to pay any indebtedness to said Bank when becoming or made
due, or to keep up the margin of collateral securities above provided for, then and in either event said Bank
may immediately without advertisement and without notice to the undersigned or demanding payment, sell any
of the securities held by it as against any or all of the liabilities of the undersigned, at private sale or otherwise,
and apply the proceeds of such sale as far as needed toward the payment of any or all such liabilities, together
with interest and expenses of sale, holding the undersigned responsible for any deficiency remaining unpaid after
such application. If any such sale be at public auction, said Bank may itself be a purchaser at such sale, free
from any right or equity of redemption of the undersigned, such right and equity being hereby expressly waived
and released. Upon default as aforesaid, said Bank may also apply toward the payment of the said liabilities
all balances of any deposit account of the undersigned with said Bank then existing.
4. It is further agreed that said Bank may use its best judgment in granting extension or securing or
forcing the collection of said collaterals, and that the undersigned will pay all reasonable charges and expenses
incurred in renewing, securing or collecting said collaterals; that said Bank shall not be under any obligation
to notify the makers or endorsers of any of said collaterals, or to institute any proceeding to collect said security, but may do so at its option.
And the undersigned does hereby release the said Bank from all liability on account of the insolvency
of the makers, or endorsers, or sureties of any of said collaterals, or on account of any omission on the part of
said Bank to notify, or to proceed against, said makers, endorsers or sureties.
It is further agreed that these presents shall constitute a continuing agreement, applying to any and all
future as well as to existing transactions between the undersigned and said Bank.
5. Where the word "Bank" appears above it is understood to refer to The Federal Reserve Bank of Dallas.
Dated
, 192
(Bank)
(Place)
(State)
By
Cashier
'RV
4kbr
f
,
FEDERAL RESERVE BANK
‘.4
i
/
4
1
OF SAN FRANCISCO
e.)
:741
January 20, 1925.
Federql Reserve Board,
Washington, D. C.
Dear Sirs:
Attention of Mr.J. C. Noell,
Assistant Secretary.
In the absence of Governor Calkins, I an enclosing
two copies each of B D 1, Promissory Note, and B D 114,
General Pledge Agreement, as requested in your telegram of
January 20th.
Until last Summer, we used a combined promissory
note and hypothecation agreement, but were obliged to make
,s
the change because it w=,, not possible to embody some very
essential provisions in the hypothecation without destroying the negotiability of the note of which it was .J part.
I might add that our large banks have for many years used
the system of having their notes supported by a separate
pledge agreement. Our pledge agreezent is similar to theirs
in the character of requirements imposed upon the borroter.
For further information, please refer to our Circular 32, effective March 1, 1924, and the supplements
thereto.
Yours very truly,
Deputy Governor.
r
,192
(City)
(Date)
after date, for value received, we promise to pay to the order of the
FEDERAL RESERVE BANK OF SAN FRANCISCO
at its office in San Francisco, California
DOLLARS,
lawful money of the United States of America, with interest thereon, in like money, at the rate
of six (6) per cent. per annum, from maturity until paid.
President
Cashier
BD 1 (2-24) 2000-6-24 (2940)
I
ENERAL PLEDGE AGREEME0
411111,
(Collateral Security not Described)
to IU Olen bp 7r-bose
or
CO
r E‘entit That in consideration of any financial accommodations given, or to be given,
tinued, to the undersigned by the
(hereinafter called "said Bank") and as collateral security for the payment of any indebtedness, obligation or liability of the
undersigned to said Bank or its assigns, now or hereafter existing, matured, or to mature, absolute or contingent, and wherever
payable, including such as may arise from indorsements, guaranties, acceptances, or paper discounted by said Bank,or its assigns,
or held by said Bank, or its assigns, or taken as security for any loans or advances of any sort whatever, and including overdrafts
and indebtedness by the undersigned to said Bank, or its assigns, on account of collections or paper received for collection, and
the interest and expenses which may be incurred by the said Bank, or its assigns, or which may accrue on any thereof, the undersigned hereby assign, transfer to, and deposit with the said Bank all personal property this day delivered by the undersigned to
said Bank, or which may now be held by said Bank, or which may hereafter be delivered by the undersigned to said Bank during
the existence of this agreement, and of which property the undersigned hereby warrant absolute ownership, free and clear of any
lien or encumbrance or claim whatsoever; the same being stored, deposited and cared for at the risk and expense of the undersigned.
The power of sale and all other powers hereinafter granted by the undersigned shall apply to all collaterals of any kind or
de cription, including all moneys, negotiable instruments, bonds, stocks and commercial paper, credits, choses in action, claims or
de mands of every kind at any time during the existence of this agreement deposited with or in the possession or control of said
Bank, or its assigns, or any of its agents or correspondents.
Authority is hereby given to said Bank, or its assigns, to collect all amounts which may be or become due upon any of said
Sccurities deposited, or which may be deposited, with it, and to apply the amounts so collected to the indebtedness or any part of
the indebtedness of the undersigned, or the interest due thereon, and to indorse on behalf of and in the name of the underSigned any and all collaterals and securities and to give receipts therefor in the name of the undersigned for any amounts which
it may receive thereon; but said Bank shall be under no obligation to collect any such amounts or sums.
Said Bank is hereby authorized to cause to be transferred to its own name, or to the name of any other person or corporaion, as pledgee or trustee, or otherwise, any collaterals and securities which are now or may hereafter be deposited with it by the
ndersigned as security as aforesaid; and said Bank or such transferee may exercise all of the rights and privileges in connection
with said securities to which said transferee may be entitled by virtue of being the record holder thereof, in addition to the
rights and privileges otherwise granted hereunder; but said Bank, or its assigns, shall be under no obligation to exercise any
of said rights or privileges.
If, with the consent of said Bank, or its assigns, the undersigned shall substitute or exchange other securities in place of the
collaterals herein mentioned, then all of the rights and privileges of said Bank, or its assigns, and all obligations on the part of
the undersigned shall be forthwith applicable to said substituted or exchanged securities, the same in all respects as with respect
to the property originally pledged or held as collateral hereunder.
In the event either of the failure in business or insolvency or bankruptcy of the undersigned, or a general assignment by the
undersigned, all the liabilities of the undersigned to said Bank, or its assigns, shall, at the option of said Bank, or its assigns,
become immediately due and payable, notwithstanding any credit or extension of time allowed to the undersigned by any instrument evidencing any of said liabilities; and in any such event, as well as in the event of the non-payment of principal or interest,
when due, on all or any of the liabilities of the undersigned secured and intended to be secured hereby, in accordance with the
terms of the instrument evidencing the same, the undersigned hereby constitute and appoint said Bank, its successors or assigns,
attorney in fact, irrevocable, of the undersigned with full power of substitution and revocation, and hereby authorize, empower
and instruct said attorney in fact, or its assigns, to sell, without any previous demand, or demand of performance, upon the undersigned, and with or without notice to the undersigned, at its option, the whole or any part of said securities, either at public or
private sale, or at broker's board, at its discretion and without any advertisement or notice of sale, and to deliver the same to the
purchaser thereof; said Bank, or its assigns, being at liberty to become the purchaser, if sale is public or private or at broker's
board, and to hold any and all property so purchased, discharged of any right of redemption whatever.
After deducting all legal and other costs, expenses, and charges, including attorney's fee, incurred in the collection, sale,
delivery, or in the preservation of said property, or any part thereof, said Bank, or its assigns, shall apply the residue of the
proceeds of such sale to the payment of all of the aforesaid indebtedness and the interest thereon; and should there be any
surplus of said proceeds after the payment of all the indebtedness of the undersigned to said Bank, or its assigns, together with
expenses, attorney's fee and all charges and other liability incurred by said Bank, or its assigns, in the keeping, delivery and
preservation of said property, such surplus shall be subject to order of the undersigned.
The undersigned agree to pay on demand in lawful money of the United States to said Bank, or its assigns, whatever balance
may be due after the sale of said secur;ties and the application of the proceeds thereof as above provided. In case of deterioration
of any of the above mentioned securities, or fall in the market value of the same, the undersigned hereby agree, upon written
demand by said Bank, or its assigns, left at the last known place of residence or business of the undersigned, or sent thereto by
United States Mail, to reduce the amount of said debt, or to increase the security given hereunder in such manner and amount as
said Bank, or its assigns, may require, in default of which, all notes, overdrafts, indebtedness and all other liabilities of the undersigned secured and intended to be secured hereby shall immediately become due and payable; in which event, the undersigned give
and grant to said Bank, or its assigns, the same rights, privileges and powers, regarding said securities and the sale thereof, as are
hereinabove given by the undersigned in the event of the non-payment of any or all of said promissory notes, overdrafts, indebtedness and other liabilities secured and intended to be secured hereby, or the interest thereon when due, by the terms of the
instrument evidencing the same.
It is further agreed that these presents constitute a continuing agreement applying to any and all future, as well as existing
transactions between the undersigned and said Bank,and that the powers of sale and all other powers, rights and privileges hereinabove given are to apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto.
This agreement shall be for the benefit of said Bank, its successors or assigns; and in the event that said Bank shall assign,
indorse, sell, transfer or hypothecate to any other person, firm, bank, or corporation the notes, overdrafts, indebtedness and other
liabilities of the undersigned, or any notes, evidences of indebtedness, bonds, stocks, or other securities deposited hereunder and/or
secured or intended to be secured hereby, or any part thereof, or any thereof, such assignment or transfer, shall automatically
constitute an assignment and transfer of this agreement and of all rights given hereunder pro tanto, and such assignee, indorsee,
transferee, or successor of said Bank shall be granted and shall have, jointly with said Bank, all of the rights and privileges given
to said Bank in accordance with the terms hereof.
This instrument is executed by the undersigned in duplicate original, both of which instruments shall remain valid and subsisting so long as the undersigned shall in any manner be or remain indebted to said Bank or its assigns, and until the surrender to
the undersigned of this instrument and the duplicate original hereof. The word "undersigned" wherever used herein shall include
the plural as well as the singular.
IN WITNESS WHEREOF, the undersigned ha
day of
BD 114 (8-21) 2500-FR 829-1-B
hereunto set
hand
and seal
this
A. D 192
(SEAL)
(SEAL)
Form 148 A
•
3EOAL. RESERVE4OAD
LEASED WIRE SERVICE
Flikk
WASHINGTON
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egram given below is hereby confirmed.
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Secreta771
2-0454
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