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Dallas, Texas, A ugust 21, 1934


To the Member Bank A ddressed:

W e have received inquiries fro m member banks as to the effect o f non-disturbance
agreem ents, required by th e Farm Credit Adm inistration in connection with loans in the
drouth area, upon the eligibility o f notes offered to us fo r rediscount or as collateral. W e
are advised that the Farm Credit A dm inistration has authorized these agreements to be
amended as follow s:
“ I f any note o f the above named borrow er is rediscounted with or pledged
to the Federal Reserve Bank o f Dallas, this agreem ent shall not affect any right
o f said Federal Reserve Bank or the Federal Reserve A gent at Dallas with re­
spect to such note.”
W e are also advised that where non-disturbance agreements have already been exe­
cuted by banks, such banks will be permitted to substitute th erefor agreem ents amended
as indicated above.
Please be advised that, if otherwise eligible, any note in connection with which a non­
disturbance agreem ent has been executed in the form amended as indicated above, is
eligible fo r rediscount or fo r use as collateral at this bank.
I f a non-disturbance agreem ent as amended has been executed in connection with any
note offered to us a copy o f the agreem ent should be attached to such note.

Y ours very truly,
B. A. M cK IN N E Y ,

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