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federal
reserve
bank
DALLAS, TEXAS
of
Dallas
7S222
C i r c u l a r No. 7 3 -2 5 3
O c to b e r h 9 1973
AMENDMENT TO REGULATION G
("Single Credit Rule" in Stock Option
and Stock Purcnase Plans)
To All Banks, Brokers/Dealers, Regulation G Registrants
and Others Concerned in the Eleventh Federal Reserve District:
Effective October 29, 1973? the Board of Governors of the
Federal Reserve System has amended its Regulation G, "Securities
Credit by Persons Other Than Banks, Brokers, or Dealers" to delete
the single credit rule in Section 207.^+(a)(2)(i) and substitute
the provision that each extension of credit pursuant to that section
may be treated separately. This clarifies that withdrawal of
collateral may be made after proper repayments have been made for
at least three years and the deficiency as defined in Section
207.^(a)(2 )(ii) has been repaid with respect to each extension of
credit.
Y ours v e r y t r u l y ,
P. E. Coldwell,
P re sid e n t
Enclosure
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
SECURITIES CREDIT BY PERSONS
OTHER THAN BANKS, BROKERS, OR DEALERS
A M E N D M E N T TO REGULATION G t
Effective October 29, 1973, Section 207.4 (a)
(2 ) (i) is amended to read as follows:
connection with the exercise of rights under one
or more plans or with the periodic exercise of
rights under a single plan, when such credits shall
be outstanding at the same time, may be treated
SECTION 207.4 — MISCELLANEOUS
separately from any other credit extended pur
PROVISIONS
suant to this subparagraph (2 ) and shall be treated
separately from any other credit extended pursuant
(a )
Stock option and em ployee stock purchase
to sections 2 0 7 .1 (c ), (d) and (g) of this part:
plans.
Provided, That the collateral with respect to each
individual credit extended pursuant to such plan
*
*
#
*
*
or plans shall be identified with, and shall have
loan value only with respect to, such individual
(2 )
*
*
*
credit.
(i)
Each such credit extended to any officer or
employee pursuant to this subparagarph (2 ) in
t For this Regulation to be complete retain the following:
1) Printed Regulation pamphlet containing Regulations G, T, U, and X
dated November 1971.
2) Amendment effective May 15, 1972.
3) Amendment effective September 18, 1972.
4) Supplement effective May 23, 1973.
5) This slip sheet should be included effective October 29, 1973.
@FedFRASER