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 F IS C A L . A G E N T O F T H E U N IT E D STATES Dallas, Texas, September 15, 1960 ADVANCE REFUNDING Exchange of Bonds Pledged by Insurance Companies With Supervisory Authorities To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: In connection with the current refunding, the Treasury Department has been informed that some State supervisory authorities are not willing to release to insurance companies, without the prior receipt of substitute securities, the eligible 2 V2 percent bonds which the supervisory authorities hold in custody under statutory pledges. In order to enable insurance companies to enter subscriptions for the new 3 V 2 percent bonds in exchange for eligible 2 V 2 percent bonds held by the State supervisory authorities, the Treasury has authorized Federal Reserve banks to deliver new registered securities to the supervisory authorities, subject to the return to the Federal Reserve bank of the 2 V 2 percent registered bonds being exchanged. In the case of coupon bonds, the exchange is to be effected through a commercial bank located in the city of the supervisory authority. In the event any such transaction is contemplated, full information should be furnished this bank or the appropriate branch in order that the details may be worked out. Banks are requested to notify their insurance company customers of this arrangement. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
@FedFRASER