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FED ER AL R E SE R V E B AN K OF DALLAS Dallas, Texas, June 27, 1936 AMENDMENTS OF REGULATION U EFFECTIVE JULY 1, 1936 To the Bank Addressed: On June 25, 1936, the Board of Governors of the Federal Reserve System adopted, in the form set forth below, amendments Nos. 1 and 2 of Regulation U. These amendments will become effective July 1, 1936. For your future guidance, please attach this letter to the copy of Regulation U enclosed to you with our circular letter of April 4, 1936. Yours very truly, b. a . M cK i n n e y , President Amendment No. 1 Section 2 of Regulation U is hereby amended by adding at the end thereof two new subsections reading as follows: “ (j) Any loan to a member of a national securities exchange for the purpose of financing his or his customers’ bona fide arbitrage transactions in securities; (k) Any loan to a member of a national securities exchange for the purpose of financing such member’s transactions as an odd-lot dealer in securities with respect to which he is registered on such national securities exchange as an odd-lot dealer.” Amendment No. 2 Subsection (e) of section 3 of Regulation U is hereby amended to read as follows: “ (e) A bank may accept the transfer of a loan from another bank, or permit the transfer of a loan between borrowers, without following the requirements of this Regu lation as to the making of a loan, provided the loan is not increased and the collateral for the loan is not changed; and, after such transfer, a bank may permit such withdrawals and substitutions of collateral as the bank might have permitted if it had, been the original maker of the loan or had originally made the loan to the new borrower.” This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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