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FE D E R A L R E S E R V E BANK
O F NEW YORK
r C ircu lar N o . 3 1 0 7 "I
U
J u ly 3, 1946.
J

REGULATION W
CONSUMER CREDIT
RULINGS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM RESPECTING AMENDMENT NO. 20 TO REGULATION W
To Registrants under Regulation W , and
Others Concerned, in the Second Federal Reserve District:

Since the issuance of our Circular No. 3102 dated June 21, 1946, setting forth
Amendment No. 20 to Regulation W of the Board of Governors of the Federal Reserve
System, effective July 5, 1946, the Board of Governors has issued the following rulings
with respect to the amended regulation.
Section 2(e)
1. The term “ principal amount” as used in section 2(e), as
amended, has the same meaning as the term “ deferred balance” as
used in clause (4) of section 4 (d) which, for instalment selling, is the
counterpart of the term “ principal amount lent” as used in clause (1)
of section 6(a).

2. Under section 2(e), as amended, when an instalment sale credit
arising from an “ add-on sale” is combined with the unpaid deferred
balance [as used in clause (4) of section 4 (d )] of a prior instalment
sale credit resulting in a consolidated unpaid deferred balance in
excess of $1,500, the consolidated credit is exempt from the Regulation
regardless of whether or not the original instalment sale or the
“ add-on sale” included listed or unlisted articles.
For example, an obligation of $700 evidencing a prior instal­
ment sale is to be consolidated, in consequence of an “ add-on sale”
of one or more listed articles having a cash price of $900, with an
additional instalment obligation arising from that sale . If the
latter sale were standing alone, the down payment required by the
Regulation would not permit the deferred balance arising from
that sale to be as large as $800. In the case presented, however,
the deferred balance arising from the “ add-on sale” is permitted
to exceed $800 with the consequence that the consolidated credit
could amount to more than $1,500 and thus become exempt from
the Regulation.
Section 8(a)
3. The proviso added to section 8(a) does not make section 12 (b)
inapplicable. Consequently, a credit to repair a house and, in addition,
to install a listed article cannot exceed the cost of repairs plus an
amount equal to the cost of the listed article minus the down payment
required under the Regulation. The instalments in which the credit
is payable must be sufficiently large to repay the balance of the cost
of the listed article within twelve months. The cost of the listed
article would include installation charges, if any.

Additional copies of this circular will he forwarded upon request.




A lla n S prou l,

President.

F E D E R A L R E SE R V E BANK
O F NEW YORK
Fiscal Agent of the United States

July 15, 1946

REDEMPTION OF UNITED STATES SAVINGS BONDS
Important Changes in Procedure for Handling Bonds
Paid by Banks and Other Financial Institutions

To Incorporated Banks and Trust Companies and
Other Financial Institutions in the Buffalo
Branch Territory o f the Second' Federal Reserve
District which are Qualified to Make Payments
in Connection with the Redemption of United
States Savings Bonds:

The present procedure relating to payment of United States Savings Bonds of Series
A, B, C, D, and E by qualified paying agents in the Buffalo Branch Territory of the Second
Federal Reserve District will be modified effective August 1, 1946. The changes in procedure,
which should be observed carefully by each paying agent, are summarized below:

New Form of Transmittal Letter
A new form of transmittal letter (Form Sav. B, 37) should be used in connection with all ship­
ments of paid Savings Bonds made to us on or after August 1, 1946. Supplies of the present
transmittal letter (Form Sav. B. 28.1) in your possession on that date should be destroyed.
A completed specimen copy of the new form of transmittal letter is enclosed. A supply of blank
forms for your use is being forwarded under separate cover. The following important features of
the new form should be carefully observed:
1. Not more than 200 pieces should be listed on a single letter. It is permissible, however,
to include more than one letter in a single shipment when more than 200 paid bonds are on hand.
When a shipment contains more than one letter, each letter should be totaled separately.
2. Bonds paid by you in one month should not be intermingled, or scheduled on the same
letter, with the bonds paid in a different month. We reserve the right to return to the paying
agent for correction any transmittal letter on which bonds paid in different months are scheduled.
3. Paid bonds should be listed on the transmittal letter in the order of the redemption
value paid by you, in the manner indicated on the enclosed specimen form.
4.

The section entitled ‘ ‘ Recapitulation ’ ’ should be completed and totaled.

5. The manner in which you wish to receive payment from us should be indicated under
the caption “ Payment Instructions” .
6. For the purpose o f identification, you should impress your payment stamp in the two
spaces provided.
7. Although the new form of transmittal letter makes no provision for listing the serial
numbers of paid bonds forwarded for redemption, you should continue to maintain a microfilm
or other record of the serial numbers of bonds included in each letter for use in event of loss or
destruction of the shipment.

Paid bonds may be shipped by ordinary first class mail or by express, or in any other
manner substantially similar to that used by banks in sending checks for collection; and
should be addressed to the Savings Bond Redemption Division, Buffalo Branch of the Federal
Reserve Bank of New York, Buffalo 5, New York.



A l l a n S proul,

President.

Sav B37—75 M —6-46

Savings Bond Redemption Division

BU FFALO BRAN CH OF TH E
FE D E R A L RESERVE BAN K
OF NEW YO R K

TRANSMITTAL LETTER
PAID SAVINGS BONDS OF SERIES A, B, C, D AND E

IN S T R U C T IO N S T O P A Y IN G A G E N T S
D o n o t s ch e d u le o n th is fo r m b o n d s p a id in d iffe re n t m o n th s . Use a sepa ra te fo r m fo r ea ch m o n th . D o n o t s ch ed u le m o re
th a n 200 b o n d s o n o n e tr a n s m itta l letter.
I t is e x tre m e ly im p o r t a n t t h a t p a y in g a g en ts m a in ta in in th e ir files a record o f th e serial n u m b e r s o f th e savings b o n d s
in c lu d e d in e a ch s h ip m e n t.
F orw ard th e b o n d s to g e th e r w ith th e o rig in a l c o p y o f th is tr a n s m itta l le tte r t o th e B u ffa lo B ra n ch o f th e Federal Reserve
B a n k o f N ew Y o rk , Savin gs B o n d R e d e m p tio n D ivision , B u ffa lo 5, New Y o rk . N o o th e r m a tte r s h o u ld be in clu d e d in su ch s h ip m e n t.
B uffalo B ranch of th e
F ederal R eserve B an k

of

N

ew

Y

Date..._..........

ork,

Savings Bond Redemption Division,
Buffalo 5, New York.
We are forwarding herewith for settlement............... 144.................United States Savings Bonds paid by us during the
(N um ber of Pieces)

month of......... Aug.ua.t...19.46............... in the amount of $.......... 9.r.42a..4a......... as scheduled below.
(T o ta l A m ount Paid)

SCHEDULE OF PAID BONDS FORWARDED HEREWITH
K
ST" (Do N ot Schedule m ore than 200 Bonds on One Transm ittal L etter )
$10 Bonds

$25 Bonds

Unit
Payment

Total
Payment

2

7 .5 0

1 5 .0 0

2

Totals

1 5 .0 0

Units

Unit
Payment

Units
2

Total
Payment

25
15
18
14

1 8 .7 5
1 8 .8 7
1 9 .0 0
1 9 .1 2

72

Totals

Units

Bonds

$200

1 5 0 .0 0

$500

Total
Payment
3 0 0 .0 0

$50 Bonds

Unit
Payment

Units
2

$100 Bonds
Units

Unit
Payment

Total
Payment

8 2 5 .0 0
6 7 9 .5 0
4 5 6 .0 0

4
3

7 5 .0 0
7 5 .5 0

3 0 0 .0 0
2 2 6 .5 0

1 9 6 0 .5 0

7

Totals

5 2 6 .5 0

Units

Unit
Payment

Total
Payment

4 6 8 .7 5
2 8 3 .0 5
3 4 2 .0 0
2 6 7 .6 8

22
18
12

3 7 .5 0
3 7 .7 5
3 8 .0 0

1 3 6 1 .4 8

52

Totals

Bonds

$1 ,000

Unit
Payment

Total
Payment

3 7 5 .0 0
3 7 7 .5 0

7 5 0 .0 0
7 5 5 .0 0

Units

3

Bonds

Unit
Payment

Total
Payment

7 5 0 .0 0
7 5 5 .0 0

2 2 5 0 .0 0
1 5 1 0 .0 0

R

e c a p it u l a t io n

Denominations Only
Pieces
2

Mat. Value
20

72

25

1800

50

2600

7

100

700

2

2

10

52

2

200

400

500

2000

1,000

5000

4
5
2

Totals

3 0 0 .0 0

4

Totals

1 5 0 5 .0 0

5

Totals

144

Totals

12520

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

These Spaces for the Use of the Federal Reserve Bank
Sequence Total (x)...........................
U/C Charge D ate...........................
Amount Paid....................................
Sequence Code.................................
Total Pieces............................... (x)
Sequence Range

3 7 6 0 .0 0

$

PAID $ ............................
1125
F i r s t N at. Bank
U .S .A .
69
Aug.
5
1946

Batch Number.....
Code Number.......
Payment Month...
Date of Letter._.....
County Number.-.

BY.......................................
Th e above impression is m ade for the purpose
of identification only. I t does not constitute
an acknow ledgm ent of paym ent for bonds.

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

PAYM ENT INSTRUCTIONS
Issue check to our order in the amount of

Credit our Reserve Account in the amount of

-

<
j£

Credit:

9 , 4 2 8 .4 8

PAID $ ............................
1125
P i r s t N at. Bank
U. S. A.
69
Aug.
5
1946
BY.....................................

......................................for our account the amount of $.
N am e of Bank




The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgm ent of paym ent for bonds.

Sav B37—75M—6-46

Savings Bond Redemption Division

BUFFALO BRANCH OF THE
FEDERAL RESERVE BANK
OF NEW YORK

TRANSMITTAL LETTER
PAID SAVINGS BONDS OF SERIES A, B, C, D AND E

IN S T R U C T IO N S T O P A Y IN G A G E N T S
D o n o t s ch e d u le o n th is fo r m b o n d s p a id in d iffe re n t m o n th s . Use a sepa ra te fo r m for ea ch m o n th . Do n o t sch e d u le m o re
th a n 200 b o n d s o n o n e tr a n s m itta l letter.
I t is e x tre m e ly im p o r t a n t t h a t p a y in g a g e n ts m a in ta in in th e ir files a re co rd o f th e serial n u m b e r s o f th e savings b o n d s
in c lu d e d in e a ch s h ip m e n t.
F orw ard th e b o n d s to g e th e r w ith th e o rig in a l c o p y o f th is tr a n s m itta l le tte r t o th e B u ffa lo B ra n ch o f th e Federal Reserve
B a n k o f N ew Y o rk , Savin gs B on d R e d e m p tio n D ivision , B u ffa lo 5, N ew Y o rk . N o o th e r m a tte r s h o u ld b e in clu d e d in su ch s h ip m e n t.
B

B ranch of th e
F ederal R eserve B an k

uffalo

of

N

ew

Y

Date.............................................................

ork,

Savings Bond Redemption Division,
Buffalo 5, New York.
We are forwarding herewith for settlement...................................... United States Savings Bonds paid by us during the
(Number of Pieces)

month of.................................................. in the amount of $.......................................as scheduled below.
(Total Amount Paid)

SCHEDULE O F PAID BONDS FORW ARDED HEREWITH
(Do N ot Schedule m ore than 200 Bonds on One Transm ittal L etter)
$25 Bonds
$50 Bonds

$10 Bonds
Units

Unit
Payment

Total
Payment

Units

Units

Total
Payment

Units

Unit
Payment

Unit
Payment

Total
Payment

Unit
Payment

Units

$1,000 Bonds

Total
Payment

Units

Unit
Payment

Total
Payment

Totals

Totals

$500 Bonds

$200 Bonds
Unit
Payment

Total
Payment

Totals

Totals

Units

Unit
Payment

$100 Bonds

Total
Payment

R

e c a p it u l a t io n

Denominations Only
Mat. Value

Pieces

$

10
25
50
100
200
500
1,000

Totals

Totals

Totals

These Spaces for the Use of the Federal Reserve Bank
Sequence Total (x)...........................
U/C Charge D ate...........................
Amount Paid....................................
Sequence Code.................................
Total Pieces........................ ...... (x)
Sequence Range

Totals

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

Batch Number.....
Code Number.......
Payment Month...
Date of Letter___
County Number.-.
The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

PAYM ENT INSTRUCTIONS
Issue check to our order in the amount of
Credit our Reserve Account in the amount of

-

-

- $-

Credit:
...................................................for our account the amount of $.
Name of Bank




The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

Sav B37—75M—6-46

Savings Bond Redemption Division

BUFFALO BRANCH OF THE
FEDERAL RESERVE BANK
OF NEW YORK

TRANSMITTAL LETTER
PAID SAVINGS BONDS OF SERIES A, B, C, D AND E

IN S T R U C T IO N S T O P A Y IN G A G E N T S
D o n o t s ch e d u le o n th is fo r m b o n d s p a id in d iffe re n t m o n th s . Use a sepa ra te fo r m fo r ea ch m o n t h . D o n o t sch ed u le m o re
th a n 200 b o n d s o n o n e tr a n s m it ta l le tte r.
I t is e x tre m e ly im p o r t a n t t h a t p a y in g a g en ts m a in ta in in th e ir files a record o f th e serial n u m b e r s o f th e savings b o n d s
in clu d e d in ea ch s h ip m e n t.
,
F orw ard th e b o n d s to g e th e r w ith th e o rig in a l co p y o f th is tr a n s m itta l le tte r t o th e B u ffa lo B ra n ch o f th e Federal Reserve
B a n k o f N ew Y o rk , Savin gs B o n d R e d e m p tio n D ivision , B u ffa lo 5, N ew Y o rk . N o o th e r m a tte r s h o u ld b e in clu d e d in su ch sh ip m e n t.
B u ffalo B ranch of the
F ed e r a l R eserve B a n k

of

N

ew

Y

•

ork,

Date._..........................................................

Savings Bond Redemption Division,
Buffalo 5, New York.
We are forwarding herewith for settlement.......................................United States Savings Bonds paid by us during the
(Number of Pieces)

month of.................................................. in the amount of $.......................................as scheduled below.
(Total Amount Paid)

SCHEDULE OF PAID BONDS FORWARDED HEREWITH

________________ (Do N ot Schedule m ore than 200 Bonds on One Transm ittal L etter )
$10 Bonds
Units

Unit
Payment

$25 Bonds
Total
Payment

Units

$50 Bonds
Total
Payment

Units

Unit
Payment

Total
Payment

Units

Unit
Payment

$100 Bonds
Total
Payment

Unit
Payment

Units

Total
Payment

Units

Unit
Payment

Total
Payment

Totals

$1,000 Bonds

$500 Bonds

$200 Bonds

Unit
Payment

Totals

Totals

Totals

Units

Unit
Payment

Total
Payment

R

e c a p it u l a t io n

Denominations Only
Pieces

Mat. Value

$

10
25
50
100
200
500
1,000

Totals

Totals

Totals

These Spaces for the Use of the Federal Reserve Bank
Sequence Total (x)...........................
U/C Charge D ate...........................
Amount Paid....................................
Sequence Code.................................
Total Pieces................................(x)
Sequence Range

Totals

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

Batch Number.....
Code Number.......
Payment Month...
Date of Letter......
County Number.-.

1

The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.

PAYM EN T INSTRUCTIONS

IM P R E S S P A Y M E N T S T A M P
IN T H IS SPACE

Issue check to our order in the amount of
Credit our Reserve Account in the amount of

-

Credit:
...............................for our account the amount of
Name of Bank




The above impression is made for the purpose
of identification only. It does not constitute
an acknowledgment of payment for bonds.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102