Full text of District Notices (Federal Reserve Bank of Dallas) : [Amendment to Regulation A]

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

F ederal

r e s e r v e

Bank

OF DALLAS

Dallas, Texas, March 21, 1942

To the Member Banks of the
Eleventh Federal Reserve District:
There is enclosed a copy of an amendment to Regulation
A, “ Discounts for and Advances to Member Banks by Federal
Reserve Banks,” adopted by the Board of Governors of the
Federal Reserve System, effective March 20, 1942. This amend­
ment makes no change of substance in the Regulation. Its sole
purpose is to rephrase one paragraph of the Regulation in order
to make it clear that under the law the Federal Reserve banks
are authorized to make advances to their member banks for
periods not exceeding 90 days on the promissory notes of such
member banks secured by direct obligations of the United
States.
This amendment should be inserted in the ring binder con­
taining the current bulletins of this bank and the regulations
of the Board of Governors of the Federal Reserve System.

Yours very truly,
R. R. GILBERT
President

EFENSE
BUY
UNITED
STATES
SAVINGS
"B O N D S
ANDSTAMPS

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

A M E N D M E N T T O R E G U L A T IO N A

ISSUED BY THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM

Effective March 20, 1942

The Board of Governors has amended its Regulation A, “ Discounts
for and Advances to Member Banks by Federal Reserve Banks,” effective
March 20, 1942, by changing subsection (b) of section 2 of Regulation A
to read as follow s:
(b ) Advances on Government obligations.

Any Federal Reserve Bank may make advances, under authority
of section 13 of the Federal Reserve Act, to any of its member banks
for periods not exceeding ninety days6 on the promissory note of such
member bank secured by direct obligations of the United States, and
for periods not exceeding fifteen days on the promissory note of such
member bank secured (1) by the deposit or pledge of debentures or
other such obligations of Federal Intermediate Credit banks having
maturities of not exceeding six months from the date of the advance,
or (2) by the deposit or pledge of Federal Farm Mortgage Corpora­
tion bonds issued under the Federal Farm Mortgage Corporation Act
and guaranteed both as to principal and interest by the United States,
or (3) by the deposit or pledge of Home Owners’ Loan Corporation
bonds issued under the provisions of subsection (c) of section 4 of
the Home Owners’ Loan Act of 1933, as amended, and guaranteed
both as to principal and interest by the United States.
eThe eighth paragraph of section 13 of the Federal Reserve Act authorizes advances to
member banks for periods not exceeding fifteen days secured by bonds, notes, certificates of
indebtedness, or Treasury bills of the United States. However, the last paragraph of section
13 authorizes any Federal Reserve Bank to make advances for periods not exceeding ninety
days “ to any individual, partnership or corporation” on the promissory notes of such indi­
vidual, partnership or corporation secured by “ direct obligations of the United States” ; and
the term “ corporation” includes an incorporated bank.