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AMENDMENT N O . 11 TO REGULATION T Issued by the Board of Governors of the Federal Reserve System. Regulation T is hereby amended in the follow ing respects, the amendments to Section 3 (g) and U( f ) ( 2) to become e ffe c tiv e September 3, 1951, and the amendment to Section 6 (g ) to be come e ffe c tiv e September 17, 1951: 1. By adding the follow in g sentence at the end of Section 3 ( g) : In any case in which an excess so created, or increase so caused, by transactions on a given day does not exceed §100, the creditor need not obtain the deposit sp ecified th erefor in the f i r s t paragraph o f Section 3 (b) . 2. By changing Section h ( f ) ( 2 ) to read as fo llo w s: (2) Make loans, and may maintain loans, to or fo r any partner of a firm which is a member of a national secu ri t ie s exchange to enable such partner to make a contribu tion of ca p ita l to such firm, or may make and maintain subordinated loans to such a member firm for capital pur poses, provided ( a ) the lender as well as the borrower is a partner in such firm , or (B) the borrower is a member of such exchange, the lender is a corporation a ll of the com mon stock o f which is owned d ire c tly or in d ire ctly by the firm or by general partners and employees o f the firm , and, in addition to the fa ct that an appropriate committee o f the exchange has approved the firm 's a f fili a t io n with the corporation and is s a tis fie d that the loan is not in con travention of any rule of the exchange, the loan has the approval of such committee, or (C) the lender as w ell as the borrower is a member of such exchange, the loan has the approval of an appropriate committee of the exchange, and the committee, in addition to being s a tis fie d that the loan is not in contravention of any rule of the ex change, is s a tis fie d that the loan is outside the o rd i nary course of the len d er's business, and that, i f the borrower's firm does any dealing in se cu ritie s fo r it s own account, the loan is not fo r the purpose of enabling the firm to increase the amount o f such dealing; 3. By changing the second paragraph of Section 6(g) to read as follow s: A cred itor may permit in te re st, dividends or other This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) -2 - distribu tion s received by the cred itor with respect to secu rities in a general account to be withdrawn from the account only on condition that the adjusted debit balance of the account does not exceed the maximum loan value o f the secu rities in the account a fte r such withdrawal, or on condition that ( l ) such withdrawal is made within 3!? days after the day on which, in accordance with the c r e d ito r 's usual practice such in terest, dividends or other distribu tion s are entered in the account, (2) such entry in the account has not served in the meantime to permit in the account any transaction which could not otherwise have been e f fected in accordance with this regulation, and (3) any cash withdrawn does not represent any arrearage on the security with respect to which i t was distribu ted, and the current market value of any se cu ritie s withdrawn does not exceed 10 per cent of the current market value of the security with respect to which they were distribu ted . Failure by a cred itor to obtain in a general account any cash or secu rities that are d is tributed with respect to any security in the account sh all, except to the extent that withdrawal would be permitted under the preceding sentence, be deemed to be a transaction in the account which occurs on the day on which the d istrib u tion is payable and which requires the cred itor to obtain in accordance with Section 3(b) a deposit of cash or maximum loan value o f secu rities at lea st as great as that of the d is tribution,, R E A L E S T A T E C R E D IT A M E N D M E N T N O. 6 TO R E G U L A T IO N X Issued b y th e B oard o f G overn ors o f th e F ed era l R eserv e S ystem w ith th e con cu rren ce o f th e H ousing- and H om e F in an ce A d m in istra to r R egu la tion X is h ereb y am ended in th e fo llo w in g resp ects, e ffe ctiv e S ep tem b er 1, 1951: 1. In su bsection ( p) o f S ection 6, add a t th e end th e r e o f the fo llo w in g n ew s e n te n ce : N o a ction w ill be taken under th is su bsection w ith resp ect to a n y area design a ted as p rovid ed h erein a fte r S ep tem ber 1, 1951. 2. B y a d d in g th e fo llo w in g su b section ( q ) to S ection 6 : ( q ) C ritical D efen se H ou sin g A re a s.— W h en ev er an area h as been certified, under a u th o r ity o f a n y applicable F ed era l statu te, to be a critica l d efen se h o u sin g area, th e term s p rescrib ed b y th is reg u la tion and th e supple m en t th ereto w ill be suspended o r rela xed to th e e x te n t deem ed n ecessa ry to en cou ra ge con stru ctio n o f h o u sin g needed f o r d efen se w ork ers and m ilita ry person nel, th e ex te n t o f su ch suspen sion or rela x a tion t o be p rescrib ed b y p u blic announcem ent. 3. In th e m a xim u m loan va lu e p rov ision o f Schedule I o f th e su pp lem en t delete th e table and in sert th e r e fo r th e f o llo w in g : If the “ value per family unit” is The “maximum loan value per family unit” is Not more than $7,000 90% of “value per family unit” More than $7,000 but not more than $ 10,000 85% of “ value per family unit” More than $10,000 but not more than $12,000 80% of “ value per family unit” More than $12,000 but not more than $15,000 $9,600 plus 40% of excess of “ value per family unit” over $12,000 More than $15,000 but not more than $20,000 $10,800 plus 20% of excess of “ value per family unit” over $15,000 More than $20,000 but not more than $24,500 $11,800 plus 10% of excess of “ value per family unit” over $20,000 Over $24,500 50% of “ value per family unit” 4. In th e m a tu rity p rov ision o f Schedule I o f th e supplem en t in sert “ per fa m ily u n it” a fte r th e w ord “ va lu e” in th e six th lin e ; d elete th e p a ren th etica l clause “ (determ in ed as p rovid ed in S ec tion 2 ( 0 o f th e reg u la tion ) ” in th e seven th lin e ; delete “ $7,000” in th e seven th line and in sert th e r e fo r “ $12,000” ; in sert a p eriod a fte r “ 25 y e a rs ” in th e eigh th line and d elete th e rem ain der o f th a t sen ten ce, b eg in n in g w ith “ i f it is to be fu lly repaid . . 5. B y a d d in g th e fo llo w in g su bsection (m ) to S ection 5 : (m) E ssen tial N on resid en tial D e fe n se C on stru ction . — I f in excep tion a l circu m stan ces p rop osed n on residen tial con stru ction is certified b y th e head o r a ssista n t h ead o f an ap p rop riate a g e n cy or d ep a rtm en t o f th e U n ited S tates G overn m en t to b e essen tial to th e nation al d efen se, a pp lica tion m a y be m ade to th e F ed eral R eserve B an k o f th e d is trict in w h ich such co n stru ctio n is p r o p osed f o r an exem p tion fr o m th is reg u la tion f o r su ch con stru ction , and such F ederal R ese rv e B an k w ill issu e a certifica te o f exem p tion th e re fo r . A n y exten sion o f cre d it w ith re s p e ct to n on resid en tial co n stru ctio n spe cified in su ch a certifica te o f exem p tion shall b e ex em p t fr o m th e p roh ib ition s o f su bsection s (a ) and ( b ) o f S ec tion 4 o f th is regu lation .
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