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FE D E R A L R E S E R V E BANK
O F NEW YORK

r Circular No. 3 4 5 3 ~
l
L
May 24, 1949
J

TRUST POWERS OF NATIONAL BANKS
AMENDMENT TO REGULATION F

Effective May 20, 1949

To all Member Banks in the
Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has amended footnote
numbered 19 in its Regulation F, effective May 20, 1949, to provide specifically that, for
the purposes of section 17 of the Regulation, the term “ readily marketable security” shall
include any security which is a direct obligation of the United States. A printed copy of
the amendment is enclosed herewith.
The amendment clarifies the status of Series G United States Savings Bonds, which
are redeemable but not salable, as readily marketable securities for common trust fund
purposes. While the classification of such bonds as readily marketable securities was con­
sistent with the purposes of the pertinent provisions of Regulation F, the bonds did not
appear to comply technically with the definition of the term “ readily marketable security”
contained in the Regulation.
Additional copies of this circular and of the enclosed amendment will be furnished
upon request.




A

llan

S

proul,

President.

TRUST PO W ERS OF N A TIO N AL BANK S
AMENDM ENT TO REGULATION F
ISSUED B Y T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE SYSTEM

Effective May 20, 1949, footnote numbered 19 in Regulation F is
amended to read as follows:
“ A readily marketable security within the meaning o f this section
means a security which is a direct obligation o f the United States or
which is the subject o f frequent dealings in ready markets with such
frequent quotations o f price as to make (a) the price easily and definitely
ascertainable and (b ) the security itself easy to realize upon by sale at
any time.”




PRINTED IN N EW YO RK , N . Y .

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