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FEDERAL RESERVE BANK OF NEW YORK [•Circular No. 2 4 0 1 T L March 19, 1942 J REGULATION A, DISCOUNTS FOR AND ADVANCES TO MEMBER BANKS BY FEDERAL RESERVE BANKS Amendment of Section 2(6) Advances on Government Obligations, Effective March 20, 1942 To all Member Banks in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System has released the following statement for publication on March 20, 1942: The Board of Governors of the Federal Reserve System has adopted an amendment to its Regulation A, Discounts for and Advances to Member Banks by Federal Reserve Banks, effective March 20, 1942. This amendment makes no change of substance in the Regulation. Its sole purpose is to rephrase one paragraph of the Regulation in order to make it clear that under the law the Federal Reserve Banks are authorized to make advances to their member banks for periods not exceeding 90 days on the promissory notes of such member banks secured by direct obligations of the United States. The Board of Governors has amended its Regulation A, effective March 20, 1942, by changing subsection (b) of section 2 of Regulation A to read as follows: (&) Advances on Government obligations.—Any Federal Reserve Bank may make advances, under authority of section 13 of the Federal Reserve Act, to any of its member banks for periods not exceeding ninety days6 on the promissory note of such member bank secured by direct obligations of the United States, and for periods not exceeding fifteen days on the promissory note of such member bank secured (1) by the deposit or pledge of debentures or other such obligations of Federal Intermediate Credit banks having maturities of not exceeding six months from the date of the advance, or (2) by the deposit or pledge of Federal Farm Mortgage Corporation bonds issued under the Federal Farm Mortgage Corporation Act and guaranteed both as to principal and interest by the United States, or (3) by the deposit or pledge of Home Owners' Loan Corporation bonds issued under the provisions of subsection (c) of section 4 of the Home Owners' Loan Act of 1933, as amended, and guaranteed both as to principal and interest by the United States. 8 The eighth paragraph of section 13 of the Federal Reserve Act authorizes advances to member banks for periods not exceeding fifteen days secured by bonds, authorizes any Federal on the promissory note. _ "corporation" includes an incorporated bank. It will be noted that the above amendment to Regulation A becomes effective March 20,1942. AT.T.AS SPROUL, President. ^ FEDERAL RESERVE BANK OF NEW YORK March 21,1942. To all Banking Institutions in the Second Federal Reserve District: We are pleased to announce that Bank of Southold, Southold, New York, has become a member of the Federal Reserve System effective March 21, 1942. ALLAN SPBOTTL, President.