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FEDERAL RESERVE BANK
OF NEW YORK
'Circular No. 2 3 3 7 1
. December 18, 1941 J

CONSUMER CREDIT
REGULATION W
OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

PLEASE GIVE THIS YOUR IMMEDIATE ATTENTION
Kegulation W relating to Consumer Credit, issued pursuant to Executive Order
No. 8843 of the President of the United States, and concerning which we have kept you
currently informed since the issuance of the regulation in August, 1941, provides that
the general license granted to all persons engaged on or before December 31, 1941 in the
types of business subject to the regulation terminates at the close of business December
31,1941. The regulation requires that every person who is so engaged must file a Registration Statement (Form F.R. 563) on or before December 31, 1941 in order to be licensed to
continue in any of such types of business after December 31. If you are engaged in the
business of financing instalment credit and you have not already registered, please do so
promptly by filing a Registration Statement with this bank.
Who Must Register
A registration statement should be filed by any person or organization which is:
(1) engaged in the business of making instalment sales of any of the articles listed in
the Supplement to Regulation W, or
(2) engaged in the business of making instalment loans in amounts of $1,500 or less,
or instalment loans in any amount secured by articles listed in the Supplement, or
(3) engaged in the business of discounting or purchasing (or lending on the security
of) instalment obligations arising from transactions described in (1) or (2).
Many banks throughout the District have obtained a supply of the forms of Registration Statement in order to have them available for interested persons in their respective
communities. Additional copies may be obtained directly from us.
Statement of Borrower Required to
Be Used on and after January 1,1942.
Regulation "W provides that on and after January 1, 1942 no Registrant shall make
any extension of instalment loan credit (with certain exceptions) unless, at or before the




execution of the loan contract, he obtains and accepts in good faith a signed Statement
of the Borrower as to the purposes of the loan in form prescribed by the Board.
A specimen of the prescribed form of Statement of the Borrower (Form F.R. 564) is
enclosed.
Statement of Necessity to Prevent Undue Hardship
Required to Be Used on and after January 15,1942.
It would tend to defeat the purposes of Regulation W if, after an instalment credit
subject thereto had been granted, the terms could ordinarily be changed at a later time
or the credit refinanced to provide a rate of payment not regularly permitted by the
regulation. However, in order to prevent undue hardship, provision has been made for
flexibility in exceptional circumstances.
The regulation provides that in such circumstances a creditor may, within certain
limits, renew, revise, consolidate, or refinance an instalment credit already outstanding
so as to provide a rate of payment below that regularly permitted by the regulation.
Section 8(d) of the regulation provides that a creditor may take such action upon acceptance in good faith of a "Statement of Necessity to Prevent Undue Hardship" signed by
the obligor. Until January 15, 1942, such a statement may be in any form which meets the
requirements set forth in section 8(d) of the regulation, but a statement received on or
after January 15, in order to be acceptable under the regulation, must follow the form
prescribed by the Board of Governors of the Federal Reserve System.
A specimen of the prescribed form of Statement of Necessity (Form F.R. 565) is
enclosed.
Reproduction of Prescribed Forms
Forms F.R. 564 and F.R. 565 will not be supplied by this bank but should be printed or
otherwise reproduced by the Registrant or obtained by him from stationery or supply
houses. Please note that the forms should be reproduced only in accordance with the
instructions at the top of the specimen forms. Form F.R. 564 is only required to be used by
cash lenders whereas Form F.R. 565 is to be used by all persons subject to the regulation.
Your attention is also called to the fact that Registrants are instructed to keep all such
statements on file.
We shall be pleased to be of assistance in connection with questions regarding these
forms or arising under Regulation W. Additional copies of this circular will be furnished
upon request.




ALLAN SPKOUL,

President.

F o r m F R 564
S P E C I M E N FORM
- FOR INFORMATION OF REGISTRANT OR PRINTER ONLY—NOT TO BE PRINTED AS PART OF FORM: In reproducing this form,
the Registrant or printer shall follow exactly the wording and arrangement of the front and back of the form, but may vary the spacing as desired.
Additions to the form, such as an acknowledgment by the borrower that he has received a copy, are permitted provided they do not call for the obtaining
of any additional information from the borrower.
Since the form may be changed from time to time, it is suggested that Registrants do not stock large supplies of the form.

STATEMENT OF BORROWER
Prescribed by the Board of Governors of the Federal Reserve System under its Regulation W, issued
pursuant to Executive Order No. 8843 of the President of the United States.
TO BE FILLED IN BY REGISTRANT
(Name of Registrant)
(Date of Loan)

(Amount of Loan)

(Answer "Yes" or "No")

1. Is any of the money from this loan to be used to buy a Listed Article?
(See statement on back of this sheet)
(Answer)

2. Is any part of this loan to be secured by any Listed Article which you
have bought within the last 45 days or which you intend to buy?
&

J

J

J

(Answer)

3. Is any of the money from this loan to be used to pay all or part of any
instalment debt?
4. Is any of the money from this loan to be used as a down payment on
the purchase of a Listed Article?

—
—

(Answer)

(Answer)

In determining whether any article involved in this loan is a Listed Article, I have been guided by information furnished by the lender. I certify that, to the best of my knowledge, the information given
by me on this sheet is true and complete.
(Date)

(Borrower's Signature)

5. IF EITHER QUESTION 1 OR 2 HAS BEEN ANSWERED "YES", the following information must be

obtained from borrower:
Listed Article Bought or To Be Bought

Purchase

or Used as Security

Price
.

Date Purchased

Trade-in

W before loan)

Amount

Allowance

To Be Borrowed

$

$

$

$

$

$

Have you borrowed any money elsewhere, or do you intend to'borrow any, to be used in buying any of
the Listed Articles specified above ?
If "Yes", how much ? $
(Answer "Yes" or "No")

6. IF QUESTION 3 HAS BEEN ANSWERED "YES", the following information must be obtained from
borrower:
Total
Amount
Name of Person Holding Debt
Unpaid Balance
Instalment Terms
To Be Paid Off
JL

$

$.

NOTICE TO LENDER.—The lender, acting in good faith, may rely upon the above statements of the
borrower. However, this form does not provide all of the information that it may be necessary for the
lender to have if he intends to avail himself of certain provisions of Regulation \V. In any case as to
which the lender must obtain additional information in order to be protected in making the particular
loan under consideration, the facts themselves will govern. This, however, does not affect the right of
the lender to rely upon statements of fact obtained from the borrower pursuant to applicable provisions of the Regulation.
THE REGISTRANT RECEIVING THIS STATEMENT MUST KEEP IT ON FILE


http://fraser.stlouisfed.org/
Cr. 124-25M-12-41
Federal Reserve Bank of St. Louis

LISTED ARTICLES
The instalment purchase of classes of consumers' durable goods using materials, labor, and equipment
needed for national defense is regulated under the President's Executive Order No. 8843. Regulation
W covers the extension of credit to buy these articles, whether bought directly on instalment payments or with money borrowed on an instalment basis. The following are the classes of "Listed
Articles" based upon the Supplement of Regulation W in effect December 1, 1941, but articles may be
added to or taken from the list at any time. IN DETERMINING WHETHER AN ARTICLE INVOLVED IN A LOAN IS A "LISTED ARTICLE" A BORROWER MAY BE GUIDED BY INFORMATION FURNISHED BY THE LENDER, AND REGISTRANTS MUST KEEP THEMSELVES INFORMED AS TO CHANGES IN THESE "LISTED ARTICLES".
PASSENGER AUTOMOBILES
AIRCRAFT
MOTOR BOATS AND BOAT MOTORS
MOTORCYCLES AND MOTOR BICYCLES
REFRIGERATORS AND ICEBOXES
WASHING OR IRONING MACHINES
VACUUM CLEANERS
COOKING STOVES
HEATING STOVES AND HEATERS
ELECTRIC DISHWASHERS
AIR CONDITIONING EQUIPMENT
SEWING MACHINES

RADIOS AND PHONOGRAPHS
METAL MUSICAL INSTRUMENTS
FURNACES, OIL OR GAS BURNERS, AND STOKERS
WATER HEATERS AND PUMPS
PLUMBING AND SANITARY FIXTURES
ATTIC VENTILATING FANS
NEW HOUSEHOLD FURNITURE, BED SPRINGS AND
MATTRESSES
PIANOS AND ELECTRIC ORGANS
MATERIALS AND SERVICES USED IN CONNECTION
WITH REPAIRS, ALTERATIONS, OR IMPROVEMENTS OF BUILDINGS

WARNING
Regulation W provides that no borrower shall willfully make any material misstatement or
omission in his Statement. The law under which the President's Executive Order was issued
reads in part: "Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than
$10,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any
officer, director, or agent of any corporation who knowingly participates in such violation may be
punished by a like fine, imprisonment, or both."




S P E C I M E N
F O R
FOR INFORMATION OF REGISTRANT OR PRINTER ONLY—NOT T O BE
the Registrant or printer shall follow exactly the wording and arrangement of the front
k dditi
th f
h
k l d t
b th B
th h h

Form FR
M
- 565.
PRINTED AS PART OF FORM: In reproducing this form,
and back of the form, but may vary the spacing as desired; may
i d
id
h d
ll f
h b i i
f

STATEMENT OF NECESSITY TO PREVENT UNDUE HARDSHIP
Prescribed by the Board of Governors of the Federal Reserve System under its Regulation W, issued
pursuant to Executive Order No. 8843 of the President of the United States.
This form is to be used only in connection with credits subject to Regulation W, in exceptional cases
in accordance with the terms of that Regulation. See other side of this sheet for further explanation.

To:
(Name of Registrant)

I am requesting a change in the terms of payment, or a refinancing, of the following instalment
indebtedness:
Name of Creditor

Unpaid Balance

Present terms of payment

The desired change is necessary in order to avoid undue hardship to me or my dependents resulting from contingencies unforeseen by me at the time of obtaining the above credit or which were
beyond my control. Following is a brief statement of the principal facts and circumstances with
respect to such contingencies:

I make this statement in good faith and certify (a) that the information contained in this
statement is true and correct, and (b) that the requested change is not to be made in connection with
any plan or intention to evade or circumvent the requirements of Regulation W.

(Date)

(Signature of Customer)

Record of action taken: See reverse side for notation to be made by the Registrant if the request is granted.

THE REGISTRANT RECEIVING THIS STATEMENT MUST KEEP IT ON FILE

Or. 125-25M-12-41


(Over)

EXPLANATION
Executive Order No. 8843 issued by the President of the United States relates to consumer
credit. Regulation W, which was issued by the Board of Governors of the Federal Reserve System
pursuant to that Order, limits the terms of payment of certain instalment credits.
It would tend to defeat the purposes of the order if, after an instalment credit subject to
Regulation W had been granted, the terms could later be changed or the credit refinanced to provide terms of payment that would not originally have been permitted by the Regulation. However,
in order to prevent undue hardship, provision has been made for flexibility in exceptional
circumstances.
The Regulation provides that in such circumstances a creditor may, within certain limits, renew,
revise, consolidate, or refinance an instalment credit already outstanding so as to provide a rate of
payment below that which would originally have been permitted by the Regulation. A creditor may
take such action upon acceptance in good faith of a written statement signed by the obligor that the
contemplated action is necessary to avoid undue hardship upon the obligor or his dependents resulting from contingencies that were unforeseen by him at the time of obtaining the original extension of
instalment credit or which were beyond his control. In order to be acceptable such written statement
must set forth, briefly but specifically, the principal facts and circumstances with respect to such contingencies and upon which the request for modification is based. It must also contain the specific statement that the desired renewal, revision, or other action is not pursuant to a preconceived plan or an
intention to evade or circumvent the requirements of the Regulation.

RECORD OF ACTION TAKEN
(To be filled in and signed by the Registrant if a renewal, revision, consolidation, or refinancing is granted on the
basis of this Statement of Necessity.)

This Statement of Necessity has been accepted in good faith by the undersigned.
Terms of credit as renewed, revised, consolidated, or refinanced
Amount

Terms of payment

(Name of Registrant)

(Date)




(Signature of individual signing for Registrant)

FEDERAL RESERVE BANK
OF NEW YORK
FISCAL A G E N T O F T H E U N I T E D S T A T E S

December 19, 1941
UIHTSD STATES DEFENSE SAVINGS BONDS OF SERIES E
Temporary Shortage In $25, $50 and $100 Denominations
To Issuing Agents in the Second Federal Reserve District
Qualified for Sale of Defense Savings Bonds of Series E:
In view of the unprecedented demand for Defense Savings Bonds of Series
E in the denominations of $25, $50 and §100, our supply on hand in these denominations becomes exhausted each day and, for that reason, we are unable for the
present to fill all requisitions received from issuing agents.
Shipments of the bonds in these denominations are received by us from
Washington daily, but the quantities received are not sufficient to meet the demand
Accordingly, during this temporary shortage, wo are making a reduced distribution
of the bonds to issuing agents. The Treasury is endeavoring to have an adequate
supply of the bonds in our hands at the earliest possible moment, and to meet the
demands upon it the Bureau of Engraving and Printing in Washington is working 24.
.hours every day.
Hay we suggest that, while this temporary shortage of bonds of Series S
exists, orders be taken and held until an adequate supply of the bonds has been
received by you for issuance.

As issuing agents you are of course authorized to

issue these bends as of the first of the month in which payment is received and
recorded by you; and, therefore, your subscribers "will experience only a brief delay because of your inability to deliver the bonds to them at the time of payment.
Your cooperation will be appreciated.




Allan Sproul,
President,

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