View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK
OF DALLAS

June 17, 1935

LAW GOVERNING RENEWALS OR EXTENSIONS OF LOANS TO
EXECUTIVE OFFICERS OF MEMBER BANKS

To the Member Bank Addressed:
Supplementing my circular letter dated June 14, 1935, I quote below
the text of the Act of Congress, approved by the President June 14, 1935,
concerning renewals or extensions of loans carried by member banks for
their executive officers:
“ Resolved . . . that subsection (g) of Section 22 of the Fed­
eral Reserve Act is hereby amended by striking out ‘provided that
loans heretofore made to any such officer may be renewed or
extended not more than two years from the date this paragraph
takes effect, if in accord with sound banking practice’, and insert­
ing in lieu thereof: ‘Provided that loans made to any such officer
prior to June 16, 1933, may be renewed or extended for periods
expiring not more than five years from such date where the board
of directors of the member bank shall have satisfied themselves
that such extension or renev/al is in the best interest of the bank
and that the officer indebted has made reasonable effort to reduce
his obligation, these findings to be evidenced by resolution of the
board of directors spread upon the minute book of the bank.’ ”
Yours very truly,

Federal Reserve Agent

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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