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F E D E R A L RESERVE
OF NEW

BANK

YORK

r Circular No. 2 8 9 8 T
L February 3. 1945 J

AMENDED SUPPLEMENT TO REGULATION

U

OF T H E BOARD OF GOVERNORS OF T H E F E D E R A L RESERVE

To All Banks, Members of National Securities
and Other Interested Persons, in the
Second Federal Reserve
District:

SYSTEM

Exchanges,

The Board of Governors of the Federal Reserve System has
amended the Supplement to Regulation U, effective F e b r u a r y 5, 1945.
F o r your information a copy of the amended supplement is sent to
you herewith.




Additional copies will be furnished upon request.
A L L A N SPROUL,

President.

AMENDED S U P P L E M E N T T O R E G U L A T I O N U
ISSUED BY T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE S Y S T E M

The supplement to Regulation IJ is hereby amended effective Febr u a r y 5, 1945, by changing the maximum loan value figure " 6 0 per
c e n t " in the first paragraph to " 5 0 per cent", and by changing the
maximum loan value figure " 7 5 per c e n t " in the second paragraph
to " 6 5 per cent", so that as thus amended the supplement will read
as follows:
" S U P P L E M E N T TO R E G U L A T I O N U
ISSUED BY T H E BOARD OF GOVERNORS O F T H E FEDERAL RESERVE S Y S T E M

Effective February 5, 1945.
F o r the purpose of section 1 of Regulation U, the maximum loan
value of any stock, whether or not registered on a national securities
exchange, shall be 50 per cent of its current market value, as determined by any reasonable method.
Loans to brokers and dealers.—Notwithstanding the foregoing,
a stock, if registered on a national securities exchange, shall have a
special maximum loan value of 65 per cent of its current market value,
as determined by any reasonable method, in the case of a loan to a
broker or dealer from whom the bank (1) accepts in good faith a signed
statement to the effect that he is subject to the provisions of Regulation T (or that he does not extend or maintain credit to or for customers except in accordance therewith as if he were subject thereto),
and (2) receives written notice, pursuant to a rule of the Securities
and Exchange Commission concerning the hypothecation of customers'
securities by brokers or dealers (Rule X-8C-1 or Rule X-15C2-1), to
the effect that the stock is a security carried for the account of a
customer."




FEDERAL RESERVE BANK
OF N E W Y O R K

February 3, 1945

AMENDED SUPPLEMENT TO REGULATION T
OF T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE SYSTEM

To Members of National Securities
Exchanges
and Brokers and Dealers in Securities in the
Second Federal Reserve
District:

The Board of Governors of the Federal Reserve System has
amended the Supplement to Regulation T, effective February 5, 1945.
F o r your information a copy of the amended supplement is sent to
you herewith. Additional copies will be furnished upon request.




A L L A N SPROUL,

President.

\

AMENDED S U P P L E M E N T T O R E G U L A T I O N T
ISSUED BY T H E BOARD O F GOVERNORS O F T H E F E D E R A L RESERVE

SYSTEM

The supplement to Regulation T is hereby amended effective February 5, 1945, by changing the maximum loan value figure " 6 0 per
c e n t " in the first paragraph to " 5 0 per c e n t " , and by changing the
maximum loan value figure " 7 5 per c e n t " in the second paragraph
to " 6 5 per cent", so that as thus amended the supplement will read
as follows:
" S U P P L E M E N T TO R E G U L A T I O N T
ISSUED BY T H E BOARD O F GOVERNORS O F T H E F E D E R A L RESERVE

SYSTEM

Effective F e b r u a r y 5, 1945.
Maximum loan value for general accounts.—The maximum loan
value of a registered security (other than an exempted security) in a
general account, subject to section 3 of Regulation T, shall be 50 per
cent of its current market value.
Maximum loan value for special omnibus accounts.—The maximum loan value of a registered security (other than an exempted
security) in a special omnibus account, subject to section 4 of Regulation T, shall be 65 per cent of its current market value.
Margin required for short sales.—The amount to be included in
the adjusted debit balance of a general account pursuant to section
3 ( d ) (3) of Regulation T, as margin required for short sales of securities (other than exempted securities) shall be 50 per cent of the current
market value of each such security, and in the case of a special omnibus account with another member, broker or dealer, such amount shall
be 35 per cent of such current market v a l u e . "




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