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FE D E RA L R E SE R V E BANK
OF NEW YORK
r C ircu la r N o . 3 8 0 9 1
U
J a n u a ry 9 , 1952
J

REAL ESTATE CREDIT

Amendment No. 9 to Regulation X of the Board of Governors
of the Federal Reserve System, Effective January 9, 1952

To all Persons Engaged in the Business o f Extending Seal Estate Credit
in the Second Federal Reserve D istrict:

The Board o f Governors o f the Federal Reserve System has approved Amend­
ment No. 9 to Regulation X , effective January 9, 1952. Following is the text o f a
statement announcing the amendment, released by the Board fo r publication tod a y :
The Board of Governors of the Federal Reserve System announced today an amendment
to Regulation X — Real Estate Credit— designed to clarify the position of veterans and
other persons financing the purchase of a home in cases where secondary loans are combined
with loans made, insured, or guaranteed by a department or agency of the United States
Government.

A copy o f Amendment No. 9 to Regulation X is enclosed; additional copies will
be furnished upon request.




A

llan

S

pboul,

President.

REAL ESTATE CREDIT
AMENDMENT NO. 9 TO REGULATION X
IS S U E D

BY

THE

BOARD

OF GOVERNORS

OF T H E

FE D E R A L RESERVE SY STE M

W I T H T H E C O N C U R R E N C E O F T H E H O U S IN G A N D H O M E
F IN A N C E A D M IN IS T R A T O R

Regulation X is hereby amended as follows, effective January 9,
1952:
1. Add the following new subsection (p) to section 5 :
(p ) Certain Government-Aided Loans.— The prohibitions of
subsections (a-) and (6) of section 4 of this regulation shall not
apply to a secondary loan to a borrower when the primary loan is
made, insured, or guaranteed, in whole or in part, by any
department or agency of the United States, if (1) the total amount
of the primary and secondary loans does not exceed the maximum
loan which legally could have been made, insured, or guaranteed
by the department or agency for the borrower, and (2) the
department or agency approves the making of the secondary loan.




P R IN T E D

IN

NEW

YORK

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