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FEDERAL RESERVE BANK
OF NEW YORK
r Circular No. 1 653 "I
L March 26,1936 J

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
SUPPLEMENT TO REGULATION T, EFFECTIVE APRIL 1, 1936
To Members of National Securities Exchanges,
Brokers and Dealers in Securities, and Banking
Institutions, in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has approved and adopted in the form set forth below a new supplement to Regulation T. This supplement is
effective April 1,1936 and supersedes on that date the supplement which was effective
February 1, 1936.
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
SUPPLEMENT TO REGULATION T
Effective April 1, 1936
Maximum loan values of registered securities (other than exempted securities)
for purposes of Regulation T
Pursuant to the provisions of section 7 of the Securities Exchange Act of 1934 and
section 3 of its Regulation T, as amended, the Board of Governors of the Federal Reserve
System hereby prescribes the following maximum loan values of registered securities
(other than exempted securities) for the purposes of Regulation T:
(1) General rule.— Except as provided in paragraphs (2) and (3) of this
supplement, the maximum loan value of a registered security (other than an
exempted security) shall be 45 percent of the current market value of the
security.
(2) Extension of credit to other members, brokers, and dealers.—The
maximum loan value of a registered security (other than an exempted security)
in a special account with another member, broker, or dealer, which special
account complies with subsection (6) of section 3 of Regulation T, as amended,
shall be 60 percent of the current market value of the security.
(3) Extension of credit to distributors, syndicates, etc.—The maximum
loan value of a registered security (other than an exempted security) in a
special account with a distributor, syndicate, etc., which special account complies
with subsection (c) of section 3 of Regulation T, as amended, shall be 80 percent of the current market value of the security.

Additional copies of this circular will be furnished upon request.




J. H. CASE,

Federal Reserve Agent.

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