Full text of District Notices (Federal Reserve Bank of Dallas) : [Continuing Lending Agreement Form], Circular No. 71-52

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F ederal Reserve Bank o f D allas

DALLAS. TEXAS

75222
Circular No. 71-52
March 3? 1971

To the Chief Executive Officer of
the Member Bank addressed in the
Eleventh Federal Reserve District:
In our Circular No. 70-305> dated December 31? 1970,
you were advised that we no longer require the execution of a
promissory note or written application in connection with an
advance from us. In lieu of the promissory note, advances
are generally made under a Continuing Lending Agreement (Form
LD-I7 6 ). Copies of the agreement were enclosed with our
circular for execution by an officer authorized to borrow and
a request that one copy be returned to us.
To date, we have not
form from your bank. In order
ment, it will be necessary for
copy of the enclosed agreement

received a copy of the agreement
to borrow under the new arrange­
you to complete and return one
form.

Yours very truly,
P. E. Coldwell
President
Enclosures

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CONTINUING LENDING AGREEMENT
REGARDING ADVANCES BY FEDERAL RESERVE BANK OF DALLAS
1. T he u n d e rsig n e d member bank (h ereafter c a lle d “ the member b a n k ” ) prom ises to pay to the F e d e ra l R eserve
B ank of D a lla s (hereafter c a lle d “ the R e se rv e B ank” ) the amount of ea c h advance made pursuant to th is Agreement by the
R ese rv e B ank to the member bank a t th e maturity d ate thereof, a s such amount and maturity date are sp e c ifie d in an advice
of credit prepared and tra n sm itte d by the R eserv e Bank to the member bank a t the time of su c h advance, su b je c t to all provi­
s io n s of th is Agreement and to all a p p lic a b le terms and conditions s e t forth in the R ese rv e B an k ’s O perating B ulletins,
R egulation A o f the Board of Governors of the F e d e ra l R eserv e System, and the F e d e ra l R ese rv e Act. The member bank
further prom ises to pay in te re s t on eac h such adv ance at the rate and in the manner provided in the R ese rv e B ank’s
O perating B u lletin s an d Supplem ents thereto.
2. T he member bank au th o rize s the R eserv e Bank to charge the member b ank’s reserve acco u n t with the amount
of each ad v an ce and in te re s t thereon a t or a fter it s maturity.
3. As security for the paym ent of each adv ance when due, the member bank p le d g es to the R e se rv e Bank the col­
la te ra l ag reed upon by the member bank and the R eserve Bank. Such c o lla te ra l i s a lso pledged by the member bank as
secu rity for all o the r li a b il it ie s of such bank due or to become due to the R eserve Bank or which may be acquired by the
R eserv e Bank.
4. As further sec u rity for the payment o f each advance, the R ese rv e Bank sh a ll have a lien upon, or security in­
te r e s t in, all property (tangible and in tangible) of the member bank in the p o s s e s s io n or under the control of the R eserve
Bank, in c lu d in g but not limited to item s in p ro c e s s of collection and the pro ceed s thereof and any b a la n c e to the credit
of the member bank with th e R e se rv e Bank.
5. Upon th e re q u e st o f the R e se rv e Bank, the member bank will s u b stitu te collateral or pledge such additional
co llateral a s the R ese rv e Bank may deem n e c e s s a ry for its protection.
6. In the ev e n t of nonpaym ent of any ad vance when due or upon failure of the member bank to comply with a re­
q u e st by the R eserv e Bank for su b s titu te or additional collateral, the R e s e rv e Bank s h a ll have all the rights of a secured
creditor, in clu d in g the right to s e ll all or any part of the co lla te ra l a t public or private s a le w ithout demand upon or no­
tic e to the member bank (ex c e p t such n o tice as may be required by ap p lic a b le sta tu te and may not be waived) and to
become the p u rch a se r of th e whole or any p art of such collateral, free from any equity of redemption and from all other
claim s to the ex ten t perm itted by a p p lic ab le sta tu te . After deduction of all ex p en ses, the pro ceed s of such co llateral
may be ap p lied by the R e se rv e Bank to the payment of such advance and of all other lia b ilitie s of the member bank to
the R ese rv e Bank, and any surplus then remaining sh all be paid to the member bank.
7. Any adv an ce made p u rsu a n t to th is Agreement sh a ll become im mediately due and payable, w ithout demand or
notice, upon (a) the failure of the member bank to perform any agreem ent hereunder or to pay any liab ility of the member
bank to the R eserv e Bank when due; or (b) the insolvency of, or the appointment of a receiver for, the member bank;
or (c) the su sp e n sio n or c lo sin g of th e member bank, or the taking p o s s e s s io n of it s b u s in e s s , by any governmental
authority.
8. Upon the happen in g of any e v e n t d e sc rib e d in paragraph 7 of th is Agreement, the R ese rv e Bank sh all h av e the
right to s e t off a g a in s t the amount of any adv an ce any in d e b te d n e ss of the R eserv e Bank to the member bank, w hether or
n o t due.

(N a m e o f m em b er b a n k )

(A d d r e s s )

B y ----------------------------------------------------------(A u tho rize d officer)

D ate:________________________________
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