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Federal reserve bank OF DALLAS Dallas, Texas, February 3,1945 A M E N D E D S U P P L E M E N T T O R E G U L A T IO N U T o A ll Banking Institutions in the Eleventh Federal Reserve D istr ic t: There is enclosed a revised supplement to Regulation U, issued by the Board of Governors of the Federal Reserve System. The supplement to Regulation U has been amended by the Board, effective February 5, 1945, by changing the maximum loan value figure “ 60 per cent” in the first para graph to “ 50 per cent,” and by changing the maximum loan value figure “75 per cent” in the second paragraph to “ 65 per cent.” Member banks of the Federal Reserve System are requested to insert the revised supplement to Regulation U in their ring binders in lieu of the February 24,1941, supplement to Regulation U. Yours very truly, R. R. GILBERT President VICTORY BUY WAR This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) SUPPLEMENT TO REGULATION U ISSU ED B Y T H E B O A R D O F G O V E R N O R S OF T H E FEDERAL RESERVE SYSTEM Effective February 5, 1945 F o r the purpose o f section 1 o f Regulation U , the maximum loan value o f any stock, whether or not registered on a national securities exchange, shall be 50 per cent o f its current market value, as determined by any reasonable method. Loans to B rokers and Dealers.— Notwithstanding the foregoing, a stock, if registered on a national securities exchange, shall have a special maximum loan value o f 65 per cent o f 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 o f Regulation T (o r 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 o f customers’ securities by brokers or dealers (R ule X -8 C -1 or Rule X -1 5 C 2 -1 ) , to the effect that the stock is a security carried for the account o f a customer.
@FedFRASER