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FEDERAL RESERVE BANK
OF DALLAS
Dallas, Texas, February 26, 1940
IN D E X TO R E G U LA T IO N S
To the Member Banks o f the
Eleventh Federal Reserve District:
There is enclosed for the convenience of your bank a detailed index to
the current regulations o f the Board of Governors of the Federal Reserve
System. It is suggested that it be inserted in the ring binder containing a
complete set of the regulations which was sent your bank last year.
The binder already contains a condensed index, showing the general
subject covered in each regulation. It is believed, however, that the enclosed
detailed index will be helpful in locating promptly the regulatory rules
applicable to specific transactions, as it lists in alphabetical order the more
important subdivisions of all of the various subjects covered by the Board’s
regulations and indicates the particular regulation in which the desired
information may be found.
Yours very truly,
R. R. GILBERT,
President
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
IN D E X TO REGU LATIO N S
F e b r u a r y 1 , 1940
FOREWORD
There is published herewith a single consolidated index to all
of the regulations of the Board of Governors of the Federal Reserve
System which are now in effect. References in the index in each case
are to the letter by which the regulation is designated and the section
number of the regulation.
To facilitate the use of the index, it has been printed in a form
similar to that of the regulations in order that it may conveniently
be placed in a loose-leaf binder, if desired, along with the current
prints of the Board’s regulations.
A list of the latest reprints or revisions of the regulations of the
Board of Governors is printed on the pages immediately following.
It should be noted that Regulations K and L have been amended
since the date of the last reprint or revision and that these amend
ments, although covered by this index, are not incorporated in the
latest prints of those regulations. For this reason, wherever reference
is made to amendments not contained in the current print of a regula
tion, this fact has been indicated in the index by an appropriate
footnote.
February 1, 1940.
3
CURRENTLY EFFECTIVE REGULATIONS OF THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM
R
egulation A :
Discounts for and Advances to M em ber Banks by Federal Reserve
Banks (as revised effective October 1, 1937).
R
eg ulation
B:
Open M arket Purchases of Bills of Exchange, Trade Acceptances
and Bankers’ Acceptances under Section 14 (as reprinted M a y
15, 1930).
R
egulation C :
Acceptance by M em ber Banks of Drafts and Bills of Exchange
(as reprinted M a y 15, 1930).
R
eg ulation D :
S upplem ent
to
Reserves of M em ber Banks (as revised effective January 1, 1936).
R egu lation D (as effective April 16, 1938).
R
eg ulation E :
Purchase of Warrants (as reprinted M a y 15, 1930).
R
egulation F :
Trust Powers of National Banks (as amended effective November
20, 1939).
R
egulation G :
Collection of Noncash Items (effective February 1, 1940).
R
eg ulation H :
Membership of State Banking Institutions in the Federal Reserve
System (as amended effective Novem ber 20, 1939).
R
egulation
I:
Increase or Decrease of Capital Stock of Federal Reserve Banks
and Cancelation of Old and Issue of New Stock Certificates (as
revised effective January 1, 1936).
R
egulation J :
Check Clearing and Collection (as amended effective September
I, 1939).
R
egulation K :
Banking Corporations Authorized to do Foreign Banking Busi
ness under Section 25(a) of the Federal Reserve A ct (as amended
M a y 29, 1930*).
R
egulation L :
Interlocking Bank Directorates under the Clayton A ct (as revised
effective January 4, 1936**).
R
egulation M : Foreign Branches of National Banks and of Corporations Organ
ized under the Provisions of Section 25(a) of the Federal Reserve
A ct (as effective August 14, 1937).
R
egulation
N : Relations with Foreign Banks and Bankers (as effective August
R
egulation
O:
Loans to Executive Officers of M ember Banks (as amended effec
tive July 1, 1939).
R
egu lation P :
Holding Com pany Affiliates— Voting Permits (as revised effective
January 1, 1936).
R
egulation
Q:
Paym ent of Interest on Deposits (as amended effective February
I I , 1937).
S upplem ent
to
10, 1933).
R egu lation Q (as effective January 1, 1936).
R egulation R : Relationships with Dealers in Securities under Section 32 of the
Banking A ct of 1933 (as revised effective January 4, 1936).
R
egulation S :
Discounts, Purchases, Loans and Commitm ents by Federal R e
serve Banks to Provide W orking Capital for Established Industrial
or Commercial Businesses (as effective June 26, 1934).
R
e g u latio n
T:
Extension and Maintenance of Credit by Brokers, Dealers and
Members of National Securities Exchanges (as amended to M a y
22, 1939).
__________
* Subsequently amended September 1, 1937.
** Subsequently amended November 7, 1938, August 1, 1939, January 2, 1940,
o,nd February 1, 1940.
5
6
S upplem ent
INDEX TO REGULATIONS
to
R eg ulation T (as effective January 1, 1938).
R egulation U : Loans by Banks for the Purpose of Purchasing or Carrying Stocks
Registered on a National Securities Exchange (as amended to
September 1, 1937).
S upplem ent
to
R egulation U (as effective November 1, 1937).
INDEX TO THE REGULATIONS OF THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
A
Acceptances (See Bankers’ acceptances).
Adjusted debit balance (See Margin requirements
for brokers and dealers, Adjusted debit balance.)
Advances by Federal Reserve banks to m em ber
banks {see also Discounts by Federal Reserve
banks):
Applications for advances...........................................
Assets eligible for rediscount as security f o r . .. .
Bonds of United States as security fo r .................
Certificate showing extent of borrower’s liabil
ity to member b a n k ..................................................
Certificate that paper offered as security was
not acquired from nonmember b a n k .................
Collateral security:
Additional or marginal, right of Federal R e
serve banks to require....................................
Assets satisfactory to Federal Reserve
banks......................................................................
Bonds of United S tates.............................
Certificates of indebtedness of United
S tates.....................................................................
Eligible paper..........................................................
Excess of, explanation o f ...................................
Federal Farm Loan A ct, obligations issued
under......................................................................
Federal Farm Mortgage Corporation, bonds
o f ........................................................................... .
Federal Hom e Loan banks, debentures,
bonds or other obligations o f ........................
Federal Intermediate Credit banks, deben
tures or obligations o f ....................................
Federal Intermediate Credit banks, paper
or assets indorsed or acquired fro m .........
Financial statements regarding, required to
accompany applications................................
Government obligations.....................................
Hom e Owners’ Loan Corporation, bonds o f .
Ineligible p ap er......................................................
Installment paper, recommendations of
Board of Governors as to minimum stand
ards fo r ..................................................................
Installment sales, obligations drawn for
purpose of financing........................................
Investment securities................ .........................
Marginal or additional:
Government obligations, on, explana
tion o f ...........................................................
Right of Federal Reserve banks to re
quire ..............................................................
National Housing A ct, obligations insured
under......................................................................
Nonmember banks, assets acquired from, or
indorsed b y ..........................................................
Notes of United S tates.......................................
Obligations evidencing loans on stocks un
der Regulation U ..............................................
Real estate loans, recommendations of Board
of Governors as to minimum standards for
Regu
lation
Section
A
A
A
3(a)
2(a), 2(d)(1)
2(b), 2(d)(1)
A
3(a)
A
3(a)
A
3(d)
A
A
2(d)
2(b), 2(d)(1)
A
A
A
2(b), 2(d)(1)
2(a), 2(d)
3(e)
A
2(d)(6)
A
2(b), 2(d)(1)
A
2(d)(6)
A
2 (b ), 2(d)(1)
A
4(c)
A
A
A
A
3(b)
2(b), 2 (d )(1 ), 3(e)
2(b), 2(d)(1)
1(g)
A
Appendix
A
A
2(d)(9)
2(d)(3)
A
3(e)
A
3(d)
A
2(d)(5)
A
A
4
2(b), 2(d)(1)
A
2(d )(4)
A
Appendix
7
8
INDEX TO REGULATIONS
Regu
lation
Advances by Federal Reserve banks to m em ber
banks (continued):
Collateral security (continued):
Real estate, obligations drawn for financing
or carrying...........................................................
Regulation U loans...............................................
Revenue bonds of political subdivisions. . .
Satisfactory to Federal Reserve b a n k ..........
Section 10(b) of Federal Reserve A ct, under
States or political subdivisions, general ob
ligations o f ...........................................................
Treasury bills..........................................................
United States, obligations o f ............................
Warrants of political subdivisions.................
Eligible paper, advances o n ........................................
Excess over amount of obligations of United
States offered as security........................................
Federal Farm Mortgage Corporation bonds as
security fo r....................................................................
Federal Intermediate Credit banks:
Obligations of, as security for..........................
Paper indorsed by or acquired from, as col
lateral fo r.............................................................
Financial statem ents.....................................................
Government obligations, advances o n ...................
Home Owners’ Loan Corporation bonds as se
curity fo r .......................................................................
Industrial loans (See Industrial loans.)
Installment paper, recommendations of Board
of Governors as to minimum standards for. . . .
Installment sales, obligations drawn for financing
Maturities:
Fifteen-day promissory n otes..........................
Four-month promissory notes..........................
Ninety-day promissory n otes.................
Permission to obtain advances on paper acquired
from nonmember banks..........................................
Promissory notes, o n .....................................................
Rates applicable under section 10(b) of Federal
Reserve A c t ..................................................................
Real estate loans, recommendations of Board of
Governors as to minimum standards fo r.........
Real estate obligations as security fo r...................
Regulation A as applicable t o ...................................
Section 10(b) advances................................................
Speculative use of credit by member banks to be
considered in granting.............................................
Statement of borrower as to financial wort h. . .
United States, obligations of, as security f o r . . . .
Advertisement of obligations of foreign banking cor
porations..................................................................................
Affiliates:
“ Affiliated” , meaning o f ..............................................
Definition...........................................................................
Holding company affiliates (See Holding com
pany affiliates.)
National banks:
Investment of trust funds in stock, obliga
tions, or property o f ........................................
Sale of trust assets b y national bank t o .........
Publication of reports o f .............................................
Section
A
A
A
A
A
2(d)(8)
2(d)(4)
2(d )(7)
2(c), 2(d)
2(c), 2(d)
A
A
A
A
A
2(d )(7)
2 (b ), 2(d )(1)
2 (b ), 2 (d )(1 ), 3(<
2(d )(7)
2(a), 2(d )(1)
A
3(e)
A
2(b), 2(d )(1)
A
2(b)
A
A
A
4(c)
3(b)
2 (b ), 2(d )(1)
A
2 (b ), 2(d )(1)
A
A
Appendix
2(d)(9)
A
A
A
2(b)
2(c)
2(a), 2(b)
A
A
2
A
2(c)
A
A
A
A
Appendix
2(d )(8)
Intro.
2(c), 2(d)
A
A
A
3(c)
3(a)
2(b)
K
X I (c)
P
P
1(d)
K b)
F
F
H
11(a)
11(b)
9(b)
3(a), 4
9
INDEX TO REGULATION
Regu
lation
Affiliates (continued):
R eports:
Extension of time for publication o f .............
Publication...............................................................
F o r m ...........................................................................
State member banks, publication of reports o f . . .
Agencies of foreign banking corporations:
Establishm ent..................................................................
Suspension.........................................................................
Agency of Federal Reserve banks for forwarding
banks in making collections...........................................
Agricultural paper, discount of (See Discounts by
Federal Reserve banks, Agricultural paper.)
Alaska, membership of banks i n ......................................
American Bankers Association, statement of, re
garding principles of trust institutions.......................
Applications:
Bankers’ acceptances up to 1 0 0 % of capital and
surplus.............................................. ..............................
Branches of State member banks in United
States, establishment o f ..........................................
Cancellation of Federal Reserve bank stock .........
Dollar exchange acceptances, right to make . . . .
Federal Reserve bank stock (See Stock, Federal
Reserve banks.)
Fiduciary powers of national banks (See Trust
powers of national banks, Applications for.)
Financing institutions, by, for industrial loans..
Foreign banking corporations, approval by
Board of Governors of title o f ..............................
Foreign branches of State member banks, estab
lishment o f ....................................................................
Industrial loans to commercial or industrial busi
nesses ...............................................................................
Membership in Federal Reserve System (See
State member banks, Applications for m em
bership.)
Rediscount by member banks of paper acquired
from nonmember ban ks...........................................
Title of foreign banking corporations, approval
by Board of Governors............................................
Trust powers of national banks (See Trust pow
ers of national banks, Applications for.)
Voting permits of holding company affiliates of
member banks.............................................................
Arbitrage transactions:
Exemption from Regulation U .................................
Special account for, under Regulation T .............
Arranging by broker or dealer for another person to
lend to custom ers...............................................................
Articles of association of foreign banking corporation
Availability of credit for items collected by Federal
Reserve ban ks......................................................................
Section
H
H
H
H
9(b)
9(b)
9(b)
9(b)
K
VIII
M
/G
\J
....
3(2)
5
H
1(a)
F
6(f), Appendix
C
II
H
I
C
8(c)
3 -8
IV
S
11(b)
K
IV
H
8(e)
S
III(c)
A
4(b)
K
IV
P
5, 6
U
T
2(j)
4(d)
T
K
7(a)
II
J
4
C
I
C
C
II
I
B
Bankers’ acceptances:
Actual security, what constitutes............................
Aggregate am ount:
Application for permission to accept up to
100 per cent of capital and surplus..........
Domestic transactions........................................
10
INDEX TO REGULATIONS
Regu
lation
Bankers’ acceptances (continued)
Aggregate amount (continued):
One-half of capital and surplus.......................
Permission to accept up to 100 per cent of
capital and surplus..........................................
Am ount, limitations on:
Aggregate.................................................................
One borrower, acceptances fo r ........................
Collection of (See Collections by Federal R e
serve banks, Noncash items.)
Definition...........................................................................
Discount by Federal Reserve banks {See Bank
ers’ acceptances, Rediscount by Federal Re
serve banks.)
Dollar exchange (See Dollar exchange accept
ances.)
Domestic shipments, acceptances against:
Authority of member banks to m ake...........
M ember banks, authority of, to accept. . . .
Rediscount by Federal Reserve banks........
Shipping documents:
A tta ch m en t....................................................
N ecessity.........................................................
Time of attachm ent...................................
Importation or exportation of goods, acceptances
against:
Authority of member banks to m a k e . . . . .
M em ber banks, authority of, to accept.........
Open market purchase by Federal Reserve
Banks {See Open market operations of
Federal Reserve banks, Bankers’ accept
ances, purchase of.)
Purchase by Federal Reserve ba n k s.............
Rediscount by Federal Reserve banks........
M aturity necessary for rediscount by Federal
Reserve ban ks.............................................................
M aturity of bills or drafts which may be accepted
Noncash items, as constituting................................
One borrower, limitations on amount for:
Actual security:
Bill of lading draft a s .................................
Trust receipts a s ..........................................
Aggregate amount o f ...........................................
Bill of lading draft as “ actual security” . . .
Excess of 10 per cent of capital and surplus
prohibited............................................................
Trust receipts as “ actual security” ...............
W h en limitations do not ap p ly.......................
Open market purchase by Federal Reserve
banks {See Open market operations of Fed
eral Reserve banks, Bankers’ acceptances,
purchase of.)
Readily marketable staples, definition o f ............
Rediscount b y Federal Reserve banks:
Agricultural purposes, maturity of accept
ances drawn f or.. .............................................
Customary period of credit as governing
m atu rity...............................................................
Definition of bankers’ acceptances for pur
poses o f .................................................................
Documentary drafts as security fo r..............
Section
C
I
C
I, II
C
C
I, I I
I
A
6(a)
C
C
A
I
I
6(b)(2)
C
A
A
I
6(b)(2)
6(b)(2)
C
C
I
I
B
A
II
6(b)(1)
A
C
G
6(c)
I
I
C
C
C
C
I
I
I
I
C
C
C
I
I
I
/A
\C
6(b)(3) (note)
I (note)
A
6(c)
A
6(c)
A
A
6(a)
6(b)
11
INDEX TO REGULATIONS
Bankers’ acceptances (continued):
Rediscount b y Federal Reserve banks (con
tinued) :
Domestic shipment of goods, acceptances
based o n ...............................................................
Eligibility:
Domestic shipments of goods, accept
ances based o n ..........................................
Evidence o f ....................................................
Importation or exportation of goods,
acceptances based o n ........................
Indorsement b y member banks as ne
cessity for...................................................
M aturity as affecting.................................
Storage of staples, acceptances based
upon..............................................................
Underlying transaction.............................
Evidence of eligibility.........................................
Grain elevator receipts as security for.........
Importation or exportation of goods, eligi
bility of acceptances based o n ....................
Independent warehousemen, necessity f o r . .
Indorsement............................................................
Limitation on acceptances for one customer
M aturity required.................................................
One customer, limitation on acceptances for
Regulation A as applicable t o .........................
Security for acceptances, sufficiency o f . . . .
Shipment of goods, eligibility of acceptances
based o n ...............................................................
Shipping documents as security fo r ..............
Storage of staples, eligibility of acceptances
based u p on..........................................................
Substitution of collateral, when permitted. .
Terminal receipts as security f o r ...................
Trade acceptances as security for..................
Trust receipts as security fo r ...........................
Warehouse receipts as security fo r................
Rescission of permission to member banks to
accept up to 100 per cent of capital and sur
plus...................................................................................
Storage of staples, acceptances against:
Authority of member banks to m ake...........
Independent warehousemen, necessity f o r . .
Inspection of elevator or warehouse by Fed
eral or State authority...................................
M ember banks, authority to accept bills of
exchange growing out o f ................................
Purchase by Federal Reserve banks in open
m arket...................................................................
Rediscount by Federal Reserve banks.........
Security for:
Continuation of security...........................
Substitution of collateral..........................
Regu
lation
Section
A
6(b)(2)
A
A
6(b)(2)
A
6(b)(1)
A
A
6(b)
6 (b ), 6(c)
A
A
A
A
6(b)(3)
6(b)
6(e)
6(b)(3)
A
A
A
A
A
A
A
A
6(b)(1)
6(b)(3)
6(b)
6(b)(3)
6 (b ), 6(c)
6(b)(3)
Intro.
6(b)
A
A
6(b)
6(b)
A
A
A
A
A
A
6(b)(3)
6(b)(3)
6(b)
6(b)
6(b)
6(b)
C
II
C
A
I
A
6(b)(3)
C
I
B
A
11(c)
6(b)(3)
6(e)
6(b)(3)
6(b)(3)
6(b)(3)
6(b)(3)
Transfer of title, necessity for................
I
6(b)(3)
Warehouse receipts a s ...............................
I
Withdrawal of goods held as security. .
6(b)(3)
6(b)(3)
Transfer of title, necessity fo r.........................
Surplus required to permit member banks to ac
cept up to 100 per cent of capital and surplus
I
C
II
12
INDEX TO REGULATIONS
Regu
lation
Bills of exchange:
Acceptance by member bank (see also Bankers’
acceptances).................................................................
Collection of (See Collections by Federal R e
serve banks, Noncash items.)
Discount by Federal Reserve banks (See D is
counts by Federal Reserve banks.)
Dollar exchange, acceptance of (see also Dollar
exchange acceptances)............................................
Noncash items, as constituting................................
Open market purchase by Federal Reserve banks
(See Open market operations of Federal R e
serve banks, Bills of exchange, purchase of.)
Purchase by Federal Reserve ban ks......................
Bills of lading:
“ Actual security” , as constituting..........................
Sight drafts discounted by Federal Reserve
banks, secured b y ......................................................
Board of Governors of the Federal Reserve System :
Applications to, for—
Bankers’ acceptances up to 100 per cent of
capital and surplus, permission to m ake.
Branches of State member banks in United
S tates.....................................................................
Dollar exchange acceptances, permission to
m a k e......................................................................
Fiduciary powers of national banks (See
Trust powers of national banks, Applica
tions for.)
Foreign branches of State member banks. . .
Membership in Federal Reserve System
(See State member banks, Applications
for membership.)
Rediscount of nonmember bank paper. . . .
Title of foreign banking corporations, ap
proval o f ...............................................................
Trust powers of national banks (See Trust
powers of national banks, Applications
for.)
Voting permits of holding company affili
ates of member banks.....................................
Bankers’ acceptances, powers with respect to
limitations on aggregate amount o f .....................
Dollar exchange acceptances by member banks,
approval of applications fo r..................................
Federal Reserve banks:
Clearing house functions, exercise o f ..............
Foreign banks, information concerning re
lations w ith .........................................................
Reports of industrial loan s...............................
Foreign banks:
Information regarding relations of Federal
Reserve banks w ith.........................................
Reports of negotiations b y Federal Reserve
banks w ith ...........................................................
Forms (See Forms.)
Hearings before:
Forfeiture of membership of State member
banks......................................................................
Voting permits of holding company affili
ates, revocation o f ............................................
Section
c
I -I V
c
G
I I I , IV
I
B
II
C
I
A
1(b)
C
II
H
8(c)
C
IV
H
8(e)
A
4(b)
K
IV
P
5, 6
C
II
c
IV
J
1,2
N
s
II
V II
N
II
N
III
I
9
P
8
13
INDEX TO REGULATIONS
Board of Governors of the Federal Reserve System
(continued):
Holding company affiliates:
Determination of status a s ...............................
Voting permits of, granting and revocation of
Industrial loans by Federal Reserve banks:
Direct loans, granting of authority f o r ..........
Industrial advisory committees, approval
of membership o f .............................................
Interest and discount rates, approval o f . . . .
Reports o f .................................................................
Installment paper, recommendations as to mini
mum standards fo r ....................................................
Interest on deposits, rates prescribed b y .............
Permits, issuance of, for—
Clayton A ct, no longer issued under............
Discount of paper acquired from nonmem
ber ba n k s.............................................................
Foreign banking corporations..........................
Foreign banks, negotiations and agreements
by Federal Reserve banks w ith .................
Reduction of capital of State member banks
Trust powers, exercise by national ban ks. . .
Voting of stock of member banks by hold
ing company affiliates......................... ..
Real estate loans by member banks, recommen
dations as to minimum standards fo r .................
Reserves of member banks:
Action in event of deficiencies in ...................
Amount prescribed b y ........................................
Change of requirements fo r..............................
Revocation of voting permits of holding com
pany affiliates..............................................................
State member banks:
Applications for membership (See State
m em ber banks, Applications for mem
bership.)
Branches, approval o f .........................................
Corporate powers, permission for change of
Forfeiture of membership (See State m em
ber banks, Forfeiture of membership.)
Reduction of capital, permission fo r ............
Surrender of trust powers of national banks, ac
tion with respect t o ...................................................
Voting permits of holding company affiliates of
member banks, right to grant and revoke.........
Warrants of small municipalities, approval of
purchase o f ...................................................................
Bonds:
Federal Farm M ortgage Corporation, advances
by Federal Reserve banks o n ...............................
Foreign banking corporations...................................
Home Owners’ Loan Corporation, advances by
Federal Reserve banks o n .....................................
Open market purchase by Federal Reserve banks
(See Open market operations of Federal R e
serve banks.)
United States:
Advances b y Federal Reserve banks to
member banks, as security fo r ...................
Discount of paper drawn for trading i n . . . .
Trust funds used b y national bank in own
business, as collateral for..............................
Regu
lation
Section
P
P
2
5, 8
S
111(b)
S
IV
VI
V II
s
s
A
Q
Appendix
3(a), Supp.
L
3 (note)
A
K
4
V
N
H
F
I I I , IV
6(a)(2)
1, 2
P
5
A
Appendix
D
D
D
3(d)
2(a), Supp.
2(a)
P
8
H
H
8 (b )-(e )
6(a)
H
6(a)(2)
F
16(c), 16(d)
P
5, 8
E
VI
A
K
2 (b ), 2(d)(1)
XI
A
2 (b ), 2(d)(1)
A
A
2(b), 2(d)(1)
1(a)(1), 1(a)(3)
F
9(b)(1)
14
INDEX TO REGULATIONS
Borrowings by brokers and dealers.................................
Branches:
Capital requirements fo r .............................................
Foreign:
Foreign banking corporations:
E stablishm ent...............................................
Suspension.................................................
National banks, suspension o f .........................
State member banks............................................
Suspension because of disturbed conditions.
Foreign banking corporations...................................
National banks, foreign, suspension o f .................
Removal as constituting establishment................
Seasonal agencies............................................................
State member banks:
Aggregate capital required................................
Application for approval o f ..............................
Beyond corporate limits of city in which
parent bank is situated, when permitted.
Branches operated prior to February 25,
1927, retention o f .............................................
Capital requirements f o r ...................................
Establishment and maintenance....................
Foreign......................................................................
Relinquishment of branches established after
February 25, 1927............................................
Removal to another town as constituting
establishment.....................................................
Retention upon becoming member bank,
approval of Board of Governors fo r.........
Seasonal agencies..................................................
State law authorizing, necessity fo r ..............
W ithin corporate limits of city, approval of
Board of Governors unnecessary...............
Brokers and dealers:
Borrowings b y .................................................................
Margin requirements for (See M argin require
ments for brokers and dealers.)
Business conduct committee of national securities
exchange.................................................................................
Regu
lation
T
Section
5
H
8(b)
K
M
M
H
M
X
—
—
8(d ), 8(e)
—
K
,M
X
M
H
H
—
H
H
8(b)
8(c), 8(e)
H
8(b)
H
H
H
H
8(b)
8(b)
8
8(d ), 8(e)
H
8(b)
H
8(b)
H
H
H
8(a), 8(b)
8(b)
8(b)
H
8(b)
T
5
T
3(c), 4(c),
H
H
1(f)
1(f)
H
H
1(f)
1(f)
K
VI
—
8(b)
8(b)
c
Cancellation of Federal Reserve bank stock (See
Stock, Federal Reserve banks.)
Capital:
Capital notes and debentures as constituting. . . .
Definition within meaning of Regulation H .. . .
Capital notes and debentures:
“ Capital” , as constituting..........................................
“ Capital stock” , as constituting..............................
Capital requirements:
Foreign banking corporation.....................................
National banks (See National banks, Capital re
quirements.)
State member banks (See State member banks,
Capital requirements.)
Capital stock:
Definition...........................................................................
Federal Reserve banks (See Stock, Federal Re
serve banks.)
H
1(f)
15
INDEX TO REGULATIONS
Regu
lation
Section
Capital stock (continued):
Foreign banking corporations...................................
National banks (See National banks, Capital re
quirements.)
State member banks (See State member banks,
Capital requirements.)
Carrying securities, credit by brokers or dealers for
(See Margin requirements for brokers and dealers.)
Carrying stocks registered on national securities ex
change, loans by banks for purpose of (See Margin
requirements for banks.)
Cash transactions (See Margin requirements for
banks; Margin requirements for brokers and
dealers.)
Central Bank for Cooperatives, inapplicability of
Clayton Antitrust Act to ...................................................
Certificate:
Authority to commence business:
Foreign banking corporation............................
National b a n k ........................................................
Citizenship of directors of foreign banking cor
porations........................................................................
Conservator of national bank, authority to ap
ply for cancellation of sto c k .................................
Federal Reserve bank s to c k ......................................
Foreign banking corporation, organization cer
tificate o f .......................................................................
Trust powers of national banks, covering exer
cise and surrender of (See Trust powers of na
K
VI
L
2(b) (note)
K
I
V
K
V
I
8
fH
<j
1
5(b)
2 - 5 ,1 1
K
3
A
A
2(b), 2(d )(1)
1(a)(1), 1(a)(3)
F
9(b)(1)
L
2(d )(5) (note)
L
L
2(b) (note)
2(d)(4)
L
L
3(b)
2(d)(5) (note)
L
3(a)
L
3(a)
L
3(c)**
L
L
K b)
4
L
2(d)(4)
tional banks.)
Certificates of indebtedness of United States:
Advances by Federal Reserve banks to member
banks, as security fo r ...............................................
Discount of paper drawn for trading i n ...............
Trust funds used by national bank in business,
as security f o r .............................................................
Check clearing and collection (See Collections by
Federal Reserve banks, Cash items.)
Clayton Act:
“ Adjacent” , definition within meaning of Regu
lation L ...........................................................................
Central Bank for Cooperatives, inapplicability
to service o f ..................................................................
Common control, banks un der.................................
Consolidation, permission of service of bank with
which contem plated..................................................
“ Contiguous” , meaning o f ...........................................
Cooperative banks, service of not more than one
perm itted..........................................................
Credit unions, service of not more than one per
mitted ..............................................................................
Deposits, applicability to trust company not re
ceiving .............................................................................
District of Columbia, applicability to banks or
ganized under laws o f ...............................................
Enforcem ent......................................................................
Exceptions from prohibitions:
Banks controlled b y majority of common
stockholders of member b a n k .....................
** Last print of Regulation L does not include provision referred to, which was incorporated in the
regulation Dy an amendment of January 2, 1940.
16
INDEX TO REGULATIONS
Regu
lation
Clayton Act (continued):
Exceptions from prohibitions (continued):
Banks controlled by United S ta tes...............
Banks in liquidation or conservatorship. . .
Banks in other cities............................................
Banks not engaged in same classes of busi
n e ss.........................................................................
Banks not organized under National Bank
A ct or laws of State or District of Colum
b ia ...........................................................................
Banks organized under laws of territories,
dependencies or insular possessions of the
United S tates.....................................................
Central Bank for Cooperatives.......................
Federal credit unions..........................................
Federal Hom e Loan ban ks...............................
Federal Intermediate Credit b a n k s..............
Federal land ban ks...............................................
Federal Reserve banks........................................
Federal savings and loan associations.........
Foreign banking corporations..........................
Foreign b a n k s.........................................................
Interlocking relationships lawfully existing
on August 23, 1 93 5 ..........................................
Joint stock land banks........................................
Liquidation, banks in ..........................................
M utual savings ban ks.........................................
Person not private banker, or director, offi
cer or employee of member b a n k ..............
Private bankers in certain relationships. . .
Relationships permitted by Board of G ov
ernors in addition to relationships ex
cepted....................................................................
Existing relationships, continuance o f ...................
Federal credit unions, inapplicability t o ..............
Federal Hom e Loan banks, inapplicability to . .
Federal Intermediate Credit banks, inapplica
bility t o ..........................................................................
Federal land banks, inapplicability t o ..................
Federal savings and loan associations, inappli
cability t o ......................................................................
Federal Reserve Agents, enforcement of Regu
lation b y ........................................................................
Federal Reserve banks, inapplicability to service
o f .......................................................................................
Foreign banking corporations, inapplicability to
service o f ........................................................................
Foreign banks, inapplicability to service o f ..........
Joint stock land banks, inapplicability to service
o f ..........................................
M ember banks, applicability t o . .............................
Morris Plan banks, service of not more than one
perm itted.......................................................................
National banks, applicability t o ..............................
Nonmember banks, private bankers se rv in g .. . .
Permission by Board of Governors for relation
ships not covered by exceptions..........................
Private bankers:
Applicability t o ......................................................
Bank controlled by private banker, service of
Section
L
L
L
2(d )(1)
2(d )(2)
2(d )(5)
L
2(d)(6)
L
2(b)
L
L
L
L
L
L
L
L
L
L
2(b) (note)
2(b) (note)
2(b) (note)
2(b) (note)
2(b) (note)
2(b) (note)
2(b) (note)
2(b) (note)
2(d )(3)
2(b) (note)
L
L
L
L
2(c), 3(e)*
2(b)
(note)
2(d )(2)
2(d )(7)
L
L
2(a)
2(e), 3(d)
L
L
L
L
3*
2(c), 3(e)*
2(b) (note)
2(b) (note)
L
L
2(b) (note)
2(b) (note)
L
2(b) (note)
L
4(a)
L
2(b) (note)
L
L
2(b)
2(b) (note)
L
L
2(b) (note)
1
L
L
L
3(a)*
1
3(d )(1)
L
3*
L
L
1, 2(e), 3(d)
3 (d) (2)
* Last print of Regulation L does not include provision referred to, which was incorporated in the regu
lation by an amendment of November 7, 1938, and further amended August 1, 1939, and February j
1940.
17
INDEX TO REGULATIONS
Regu
lation
Clayton Act (continued):
Private bankers (continued):
Banks in other cities, service o f ......................
Banks not engaged in same class of business,
service o f ............. .................................................
Definition..................................................................
Nonmember banks, service o f ...........................
Relationships with, permitted by Board of
Governors............................................................
Prohibitions o f .................................................................
Relationships lawfully existing on August 23,
1935, continuance o f .................................................
State laws, applicability to banks organized un
d er....................................................................................
Territories, dependencies, or insular possessions
of United States, inapplicability to service o f
banks i n .........................................................................
Trust company not accepting deposits, applica
bility t o ..........................................................................
Trust powers, applicability to member bank not
exercising.......................................................................
Violations:
Analysis of reports of examination of mem
ber banks as revealing...................................
Federal Reserve agents to report facts to
Board of Governors.........................................
Clearing H ouse, Federal Reserve banks acting a s . . .
Collections by Federal Reserve banks:
Cash items:
Agency of Federal Reserve bank for for
warding ban ks...................................................
Agreement of bank forwarding checks for
collection.........................................................
Attorneys’ fees, indemnification of Federal
Reserve bank fo r..............................................
Authority of forwarding bank to authorize
Federal Reserve bank to handle checks. .
Availability of credits..........................................
Bank drafts received in payment for items
collected...........................................................
Charging uncollected items against reserve
balance.............................................................
“ Check” , meaning o f ......................................
Checks or drafts:
Forwarded by banks in other districts.
Forwarded by banks in own distri ct. . .
Payable in other districts....................
Payable in own district........................
Clearing house functions, exercise o f .......
Closing of paying or collecting b a n k .......
Cooperation between member and nonmem
ber clearing banks........................................
Credit for items collected:
Deferred credit, time schedule for. . . .
Immediate credit, when to be g iv e n .. .
Item s for which payments have not
been received........................................
Deferred credit for item s..............................
Section
L
3(d )(3)
L
L
L
3(d )(4)
1(b) (note)
3(d )(1)
L
L
3(d)
1
L
3(e)*
L
1, 2(b),
L
2(b) (note)
L
3(c)**
L
3(c)**
L
4(a)
L
J
4(b)
1, 2
J
5
J
3(d)(1)
5
J
5
J
J
5
4
J
5(7)
J
J
5(8)
3(1) (note)
J
J
J
J
J
J
3(1)
3(2)
5(5)
5(4)
1 ,2
5(8)
J
2
J
J
J
J
4(3)
4(2)
4(2),
4 (2 ),
4(3)
4(3)
* Last print of Regulation L does not include provision referred to, which was incorporated in the
regulation by an amendment of November 7, 1938, and further amended August 1, 1939, and Feb
ruary 1, 1940.
** Last print of Regulation L does not include provision referred to, which was incorporated in the
regulation by an amendment of January 2, 1940.
18
INDEX TO REGULATIONS
Regu
lation
Collections by Federal Reserve banks (continued):
Cash items (continued):
Direct forwarding of checks to drawee bank
“ Direct sending” between districts...............
Drawee bank, sending check to for collec
tion .........................................................................
Exchange drafts received in p ay m en t.........
Expenses of Federal Reserve bank, indem
nification for.......................................................
General requirements..........................................
Guaranty of prior indorsements.....................
Indemnification of Federal Reserve banks
for lo ss.................................... -............................
Instructions binding on member and non
member ban ks...................................................
Letters of instruction. ........................................
Liability of Federal Reserve b a n k .................
M ember banks outside Federal Reserve dis
trict, collections fo r..........................................
M ember banks within Federal Reserve dis
trict, receipt of checks for collection from
Negligence in collection, liability for:
Direct forwarding to drawee bank per
missible ........................................................
Exchange drafts in payment, right to
accept...........................................................
L iability...........................................................
Nonmember banks:
Balance to be maintained by, with Fed
eral Reserve ba n k s.................................
Receipt of checks for collection from . . .
Nonpayment of draft accepted in payment
of checks collected............................................
Other Federal Reserve banks, collections for
Par collection..........................................................
Payment, what m ay be accepted in .............
Presentation for collection.................................
Prior indorsements, guaranty o f .....................
Reserve balance, charging uncollected items
against:
Authorization to charge accoun t............
Recourse of forwarding bank or others
against reserve balance.........................
Return of checks, necessity fo r..............
Right of Federal Reserve bank to charge
back uncollected checks.......................
Suspension or closing of drawee............
Reserve, time when proceeds counted a s . . .
Rules and regulations by Reserve banks
with respect t o ...................................................
Sending to drawee bank or another agent.. .
Sorting and packaging of ite m s......................
Statutory provisions relating t o .....................
Suspension of paying or collecting b a n k . . . .
Terms o f ....................................................................
Time schedule:
Deferred credit, checks received fo r___
Immediate credit, checks received for..
Publication......................................................
Uncollected item s..................................................
Noncash item s:
Acceptances a s .......................................................
Section
J
J
5(2), 5(6)
3(1), 5(6)
J
J
5(2)
5(3)
J
J
J
5
2
5
J
5
J
J
J
6
6
5
J
3(1)
J
3(2)
J
5(2)
J
J
5(3)
5(1)
J
J
2
1, 2, 3
J
J
J
J
J
5(3)
3(1)
3
5(3)
5(2)
5
J
5(8)
J
J
5(8)
5(8)
J
J
J
5(8)
5(8)
4(3), 5(2)
J
J
J
J
J
J
6
5(2)
6
1
5(8)
5
J
J
4(3)
4(2)
4(1)
5(8)
G
1
J
J
J
19
INDEX TO REGULATIONS
Collections by Federal Reserve banks (continued):
Noncash items (continued):
Agency of Federal Reserve bank for sending
b a n k .......................................................................
Agreement of sending ban k ..............................
Attorneys’ fees, indemnification of Federal
Reserve bank for..............................................
Authority of Federal Reserve banks ,to re
ceive .......................................................................
Authorization of sending ban k ........................
Bills of exchange a s ..............................................
Bonds and coupons a s ........................................
Circulars binding upon member and non
member clearing ban ks..................................
Collection of remittances fo r............................
Definition.................................................................
Direct presentation of ite m s............................
Direct routing.........................................................
Failure to collect, liability of Federal R e
serve bank fo r ....................................................
Forms of payment f o r .........................................
Guaranty of prior endorsements....................
Indemnification of Federal Reserve bank by
sending b a n k ......................................................
Liability of Federal Reserve bank.................
Loss or expense, indemnification of Federal
Reserve bank fo r...............................................
Maturing notes a s ............................: ..................
Municipal warrants a s ........................................
Negligence, liability of Federal Reserve
bank fo r ................................................................
Nonmember clearing banks, receipt f r o m ..
Other Federal Reserve districts, items pay
able in ....................................................................
Presentation of items by Federal Reserve
b a n k .......................................................................
Remittance for, forms o f ...................................
Rights and liabilities existing upon direct
routing of items to another Federal R e
serve b a n k ...........................................................
Rules of Federal Reserve banks regarding. .
Savings deposits, drafts on, as constituting.
Suspension of paying or remitting bank, ef
fect o f ....................................................................
Terms of collection...............................................
Commercial paper, discount of (See Discounts by
Federal Reserve banks, Commercial paper.)
Commodity transactions with brokers or d ealers. . . .
Common trust funds (See Trust powers of national
banks, Common trust funds.)
Comptroller of the Currency:
Reports of examination of trust departments of
national banks.............................................................
Surrender of trust powers of national banks,
duties u pon...................................................................
Computation of reserves of m em ber banks (see also
Reserves of m em ber ba n k s)..........................................
Conservator, appointment for national ban k ...............
Consolidation of banks:
Executive officers, acquisition of obligations of,
as result o f ........... ........................................................
Federal reserve bank stock, effect upon holdings
o f .......................................................................................
Regu
lation
Section
G
G
3(2)
3(1)
G
3(1)
G
G
G
G
2
3(1)
1
1
G
G
G
G
G
4
3(6)
1
3(3)
2, 3(4),,3 (8 )
G
G
G
3(5)
3(5)
3(1)
G
G
3(1)
3(2)
G
G
G
3(1)
1
1
G
G
3(2)
2
G
3(4)
G
G
3(3)
3(5)
G
G
G
3(8)
4
1
G
G
3(7)
3
T
3(a), 4(e)
F
8
F
16(c)
D
I
2
8
0
1(c)
I
5
20
INDEX TO REGULATIONS
Regu
lation
Section
Consolidation of banks (continued):
Trust powers of national banks, as affecting
(S e e Trust powers of national banks, Con
solidation of banks.)
Construction paper, discount by Federal Reserve
banks.............................................................................
Conversion of State banks into national banks, appli
cation for trust powers upon.....................................
Cooperative banks, service of, by directors and offi
cers of member banks...............................................
Cooperative marketing associations, discount of
paper of, by Federal Reserve banks.......................
Credit unions, service of, by directors and officers of
member banks.............................................................
A
1(c)
F
1
L
3(a)
A
Ke)
L
3(a)
K
XI
D
2(b)
D
3
L
2(d )(5) (note)
P
P
1(b)
1(d)
A
T
1(d)
4(d)
2(a)
3(k)
6(a)
1(d)
1(d)
2(a)
2(a)
1(f)
1(f)
D
Dealers and brokers, margin requirements for (See
Margin requirements for brokers and dealers.)
Dealers in securities (See Securities dealers.)
Debentures of foreign banking corporations...............
Debit balance (See M argin requirements for brokers
and dealers.)
Deductions in computing reserves (see also Reserves
of member b a n k s)..............................................................
Deficiencies in reserves of m em ber banks (see also
Reserves of m em ber b an ks)..........................................
Definitions:
A djacen t.............................................................................
Affiliate................................................................................
Affiliated.............................................................................
Agricultural paper..........................................................
Arbitrage............................................................................
B a n k .....................................................................................
Bankers’ acceptances....................................................
“ Become indebted” .......................................................
Borrow.................................................................................
Broker..................................................................................
B u y .......................................................................................
C a p ital................................................................................
Capital sto ck ....................................................................
“ Cash items in process of collection” ....................
C h eck ...................................................................................
Common trust funds.....................................................
Contiguous.........................................................................
Creditor..............................................................................
Custom er............................................................................
D ealer..................................................................................
Demand deposit..............................................................
Executive officer.............................................................
Exempted security.........................................................
“ Extension of credit” ...................................................
Federal Reserve bank stock .......................................
General voting perm it..................................................
G o od s...................................................................................
Gross demand deposits.................................................
Guardian.................................. .........................................
Holding company affiliate...........................................
Interest...............................................................................
Limited voting perm it..................................................
T
JJ
A
0
O
T
T
H
H
D
J
F
L
T
T
T
D
1(g)
3(1) (note)
17(a)
2(d )(5) (note)
2(b)
2(c)
2(a)
1(a)
.Q
Ka)
O
T
0
H
1(b)
2(e)
1(c)
1(e)
P
Kg)
A
D
F
1(a)(1)
1(f)
17(a) (note)
P
Ka)
Q
2(a)
P
Kh)
21
INDEX TO REGULATIONS
Regu
lation
Definitions (continued):
L o a n .....................................................................................
M em b er...............................................................................
0
T
M em ber b a n k ..................................................................
r°
\p
M unicipality.....................................................................
M utual savings b a n k ....................................................
N et demand deposits...................................... ..........
N e t funded indebtedness.......................................... ..
Noncash item s.................................................................
Nonmember b a n k ...........................................................
Nonmember clearing b a n k .........................................
Person..................................................................................
Private banker.................................................................
Readily marketable staples........................................
Readily marketable securities...................................
Registered security........................................................
S ale .......................................................................................
Savings deposits..............................................................
Securities Exchange A ct of 1934, terms defined
i n ................................. .....................................................
Security...............................................................................
Sell.........................................................................................
State b a n k .........................................................................
S tock ....................................................................................
Subsidiary..........................................................................
Tim e certificates of deposit........................................
Tim e deposits...................................................................
Tim e deposits, open account.....................................
T ru st....................................................................................
W a rra n t..............................................................................
Dependencies of U. S .:
Clayton Antitrust Act, inapplicability to banks
i n .......................................................................................
Dollar exchange acceptances for banks in ...........
Foreign banking corporations, organization o f . .
Membership in Federal Reserve System of banks
located i n .......................................................................
Deposits:
Certificates of deposit, collection o f ........................
Christmas Club accounts as “ time deposits, open
account” .........................................................................
E
H
D
E
G
P
J
T
L
A
F
T
T
[D
IQ
u
Section
1(c)
2(a)
1(a)
1(e)
II
1(b)
1(h)
II
1
1(f)
2
2(a)
1(b) (note)
1(b), 6(b)(3)
17(c)(5)
2(d)
2(a)
K e)
1(e)
F
E
3(k)
2(a)
2(a)
1(a)
3(1)
1(c)
1(c)
1(c)
K b)
1(b)
1(d)
K d)
10(c) (note)
II
L
C
K
2(b)
I I I , IV
I
H
1(a) (note)
G
/D
1
1(d) (note)
1(d) (note)
3(e) (note)
T
T
H
U
P
/D
IQ
;d
IQ
jD
IQ
\Q
Dem and deposits:
Definition..................................................................
/D
IQ
1(a)
1(a)
Interest on (See Interest on deposits, D e
mand deposits.)
Tim e deposit becomes, at m aturity..............
Foreign banking corporations...................................
Interest on (See Interest on deposits.)
Paym ent before m atu rity...........................................
Postal savings deposits, maximum rate of inter
est o n ...............................................................................
K
2(e)
3(f)
X IV *
Q
4
Q
Supp.
/D
\Q
* Last print of Regulation K does not include provision referred to, which was incorporated in the
regulation by an amendment of September 1, 1937.
22
INDEX TO REGULATIONS
Deposits (continued):
Savings deposits:
Continuance of status as, after notice of
withdrawal...........................................................
Regu
lation
Section
3(e)
1(e)
1(e)
Definition..................................................................
Interest on (See Interest on deposits, Sav
ings deposits.)
Joint account a s.....................................................
1(e) (note)
1(e) (note)
Loans upon security of, when perm itted. . .
5(e)
Notice of withdrawal, provisions regarding.
1(e)
1(e), 5
1(e)
1(e)
Partnership operating for profit, deposit of,
as not constituting...........................................
Pass book:
Evidence of deposit, as constituting. .
M anner of presenting.................................
Necessity for presentation upon with
drawal ...........................................................
Officer or employee of bank, presenta
tion b y .........................................................
Paym ent without presentation o f .........
Presentation of, when necessary...........
Retention by bank, effect o f ...................
(D
IQ
JD
IQ
JD
IQ
(D
IQ
ID
IQ
JD
IQ
ID
IQ
1(e)
1(e)
1(e)
1(e)
Ke)
Ke)
Ke)
1(e)
1(e)
1(e)
1(e)
Ke)
Ke)
1(e)
W ithdrawals:
Cancellation of notice, effect o f .............
Change of practice as to requirement
of notice o f .................................................
Continuance of savings deposit status
after notice o f ...........................................
Entering in pass book at time o f ..........
Manner of presentation of pass b o o k ..
D
Q
Q
/D
IQ
JD
IQ
/D
IQ
Notice of, requirements regarding. . . .
JD
Presentation of pass book, when neces
sary ...............................................................
Retention of pass book by bank, insuf
ficiency o f ...................................................
W aiver of notice..........................................
JD
IQ
JD
iQ
W hen permitted...........................................
JD
IQ
IQ
Q
2(e)
3(f)
5(b), 5(c)
2(e)
3(e)
1(e)
Ke)
1(e)
1(e)
Ke)
1(e), 5
1(e)
1(e)
1(e)
1(e)
5
1(e)
H e), 5
Time certificates of deposit:
Definition..................................................................
Deposits as to which bank reserves right to
require notice of withdrawal........................
Emergencies, payment before m aturity in . .
Notice in writing before withdrawal............
Payment before m aturity..................................
Presentation and surrender of instrument. .
Tim e deposits, as constituting.........................
1(c)
1(c)
1(c) (note)
1(c) (note)
4(d)
1(c)(3)
1(c)(3)
1(c)(4)
1(c)(4)
1(b)
K b)
23
INDEX TO REGULATIONS
Regu
lation
Deposits (continued):
Tim e deposits:
Continuance of time deposit status although
payable within 30 d ay s..................................
Definition..................................................................
Emergencies, payment before maturity i n . .
Interest on (See Interest on deposits, Time
deposits.)
Loans on security o f ............................................
M aturity as converting deposit into demand
deposit...................................................................
Payment before m aturity..................................
Tim e certificates of deposits as constituting.
Tim e deposits, open account, as consti
tu tin g.....................................................................
T im e deposits, open account:
Christmas Club accounts as constituting. .
Definition..................................................................
Deposits as to which bank reserves right to
require notice of withdrawal........................
Emergencies, payment before maturity in .
Paym ent before m aturity..................................
Tim e deposits, as constituting.........................
Vacation club accounts as constituting.. . .
Vacation club accounts as “ time deposits, open
account” ........................................................................
Withdrawal (See Deposits, Savings deposits.)
Directors:
Federal Reserve banks, voting by subsidiaries of
holding company affiliates in election o f .........
Interlocking (See Clayton Act.)
M em ber banks:
Chairman of board as “ executive officer” . .
Deficiencies in reserves, notice o f ...................
Executive officers, approval of loans t o . . . .
Indebtedness of executive officers to be re
ported t o ...............................................................
National banks:
Acceptance and closing of trusts, approval
o f ..................... ........................................................
Co-fiduciaries, approval of compensation of
officers or employees acting a s ....................
Common trust fund, approval of plan for
operation o f .........................................................
Custody of trust securities and investments,
appointment of officers or employees to
h av e........................................................................
Examinations and audits of trust depart
ment b y ................................................................
Executive officer in charge of trust depart
ment, duties o f ...................................................
Obligations or property of, investment of
trust funds in ............................; .......................
Sale or transfer of trust assets t o ...................
Security for trust funds used by bank in own
business, delivery o f ........................................
/D
IQ
JD
IQ
Q
Q
/d
IQ
Q
/D
IQ
/D
\Q
/D
IQ
ID
IQ
JD
\Q
Q
Q
D
IQ
JD
IQ
JD
\Q
Section
2(e)
3(e)
K b)
1(b)
4(d)
4(e)
2(e)
3(f)
4
1(b)
Kb)
Kb)
1(b)
1(d) (note)
1(d) (note), 3(e)
K d)
K d)
Kd)
1(d)
4(d)
4
1(b)
K b)
1(d) (note)
1(d) (note)
1(d) (note).
1(d) (note)
P
9
0
D
0
Kb)
3(c)
3 (b ), 4(a)
0
5
F
6(b)
F
14(b)
F
17(c)(1)
F
12
F
8
F
6(d)
F
F
11(a)
11(b)
F
9(b)
24
INDEX TO REGULATIONS
Regu
lation
Section
Directors (continued):
National banks (continued):
Supervision of trust department b y ..............
Surrender of trust powers, resolution signi
fying desire fo r...................................................
Trust investment committee, appointment
o f .............................................................................
Securities dealers, service with (See Securities
F
6 (b ), 8
F
16(a)
F
6(c)
H
6(b)
A
2(c)
S
VI
A
A
Foreword
3(d)
A
l(i)
A
1(d)
A
1(d)
A
A
A
A
A
1(e)
1(d)
5(a)
1 (a )(1), 5(b)
1(d)
A
A
A
1(d)
1(a)(4)
1(a)(1), 1(d)
A
1(d)
A
A
A
1(d)
Intro.
1
A
4(b)
A
1(a)(1)
A
A
1(a)(3)
1(a) (2)
A
1(a )(1), 1(a)(3)
dealers).
State member banks, investment of trust funds
in obligations o f ..........................................................
Discount rates:
Advances on ineligible paper.....................................
Industrial loans by Federal Reserve banks to
provide working capital..........................................
Discounts by Federal Reserve banks (see also Ad
vances by Federal Reserve banks to member
banks):
Acceptances (See Bankers’ acceptances, Redis
count b y Federal Reserve banks).
Accommodation of commerce, industry, and
agriculture, consideration o f .................................
Additional collateral, right to require...................
Aggregate amount for one borrower, limitations
o n ......................................................................................
Agricultural paper:
Agricultural purpose, must be drawn for,
or proceeds used fo r ........................................
Carrying of agricultural products pending
marketing as agricultural purpose............
Cooperative marketing associations, paper
‘ drawn by, as constituting.............................
Definition.................................................................
Federal Intermediate Credit banks, fo r. . . .
Indorsement by member b a n k ........................
Livestock paper.....................................................
Marketing of agricultural products as agri
cultural purpose................................................
M atu rity...................................................................
N egotiability...........................................................
Production of agricultural products as agri
cultural purpose................................................
Raising, breeding, fattening, or marketing
livestock as agricultural purpose................
Regulation A as applicable to discounts o f . .
Requirements for discount o f ..........................
Applications for permission to discount non
member bank paper.................................................
Bills of exchange payable at sight (See Discounts
by Federal Reserve banks, Sight drafts.)
Bonds and notes of United States, paper drawn
for trading in ...............................................................
Bonds, ineligibility of paper drawn for trading
in .............. . . . . .........................................................
Buildings, ineligibility of paper drawn fo r ..........
Certificates of indebtedness of United States,
paper drawn for trading i n ....................................
Certificate that paper was not acquired from
nonmember ban k .......................................................
Collateral security:
Additional or marginal, right to acquire. . .
A
3(a)
A
3(d)
25
INDEX TO REGULATIONS
Regu
lation
Discounts by Federal Reserve banks (continued):
Collateral security (continued):
Am ount of, limit u p o n ........................................
Construction paper...............................................
Eligibility of paper, effect u p on......................
Excess over 25 per cent of paper discounted,
explanation o f ....................................................
Financial statements regarding.......................
Financial worth of party primarily liable on
paper offered a s .................................................
Ineligible paper as constituting.......................
Marginal or additional, right to require. . .
Commercial paper:
Indorsement b y member banks......................
M atu rity........... ........................................................
N egotiability...........................................................
Regulation A as applicable to discounts o f . .
Requirements for discount o f ..........................
Construction paper:
Agreement required to accompany n otes. .
Authority to discount.........................................
Indorsement b y member banks. ....................
M atu rity................................................................ .
N egotiability......................................................
Residential or farm buildings, as represent
ing loans to finance construction o f .........
Security fo r..............................................................
Cooperative marketing associations, paper o f . .
Current operating expenses, paper drawn for
m eeting...........................................................................
Dem and drafts (See Discounts by Federal R e
serve banks, Sight drafts.)
Determination of eligibility.......................................
Dollar exchange acceptances.....................................
Eligibility of paper:
Collateral security as affecting........................
Determination by Federal Rerseve bank . .
Evidence o f ..............................................................
Indorsement of member banks as necessary
t o ......................................................................... . .
Negotiability as affecting..................................
Purpose of issuance as affecting eligibility. .
Statement of borrower’s financial worth as
evidencing............................................................
Use of proceeds as affecting.............................
Factors’ paper:
E ligibility..................................................................
M a tu rity ...................................................................
Federal Intermediate Credit banks:
Agricultural paper o f ...........................................
Applicability of Regulation A to discounts
f o r ............................................................................
Indorsement............................................................
Limitations upon discount of paper o f .........
M aturity of paper o f ...........................................
Nonmember banks eligible for membership,
paper indorsed b y .............................................
Notes payable to, covering loans made pur
suant to Farm Loan A c t ...............................
Paper indorsed by, or acquired fro m ............
Section
A
A
A
3(d)
1(c)
K g)
A
A
3(d)
3(b)
A
A
A
3(b)
K g)
3(d)
A
A
A
A
A
1(a)(1)
1(a)(4)
1(a)(1)
Intro.
1
A
A
A
A
A
K c)
1(c)
1(c)
1(c)
1(c)
A
A
A
1(c)
1(c)
Ke)
A
1(a)(1)
A
A
Kh)
6(d)
A
A
A
K g)
1(h)
1(h)
A
A
A
1(a)(1)
1(a)(1)
1 (a )(1), 1(d)
A
A
1(h)
1(a)(1)
A
A
1(f)
1(f)
A
5(a)
A
A
A
A
Intro.
5
5(b)
5(a)
A
5(b)
A
A
5(a)
4(c)
26
INDEX TO REGULATIONS
Regu
lation
Discounts by Federal Reserve banks (continued):
Federal Intermediate Credit banks (continued):
Preference to be given to demands of mem
ber ban ks.............................................................
Reserves of Federal Reserve banks as limi
tation upon discount of paper o f ...............
Financial statements required to accompany
applications f o r ...........................................................
Fixed investment paper:
Cooperative marketing associations, ineli
gibility of paper of, drawn for fixed in
vestm ent...............................................................
Evidence that paper is n o t ...............................
Fixed capital purpose, ineligibility of paper
drawn f o r .............................................................
Ineligibility o f ........................................................
Land, buildings or machinery, ineligibility
of paper drawn fo r ...........................................
Forms of borrowing to which Regulation A is
applicable......................................................................
General principles underlying discount policy. .
Indorsement by member ba n k s...............................
Industrial loans (See Industrial loans.)
Industrial paper:
Applicability of Regulation A to discounts
o f .............................................................................
Indorsement by member b a n k ........................
N egotiability...........................................................
Requirement for discount o f . . . .....................
Installment paper, recommendations of Board of
Governors as to minimum standards for.........
Investment paper:
Direct obligations of United States, paper
drawn for carrying or trading in ................
Investment securities, ineligibility of paper
drawn for trading in ........................................
Speculative purposes, paperdrawn fo r . . . .
Land, ineligibility of paper drawn fo r ...................
Limitations on, of paper of one borrower............
Machinery, ineligibility of paper drawn f o r . . . .
Manufacturing, paper drawn fo r .............................
M atu rity.............................................................................
Negotiability of paper..................................................
Nonmember banks, rediscount of paper acquired
from .................................................................................
Notation by member banks as to filing of finan
cial statem ents............................................................
Notes, drafts and bills, requirements for dis
count o f ..........................................................................
Obligations of United States, paper drawn for
purpose of carrying or trading in .......................
One borrower, limitations on discounts for:
Aggregate limitations..........................................
Certificate showing extent of borrower’s
liability to member ba n k s............................
Permission to discount paper acquired from non
member ban ks.............................................................
Producers of agricultural products, advances by
factors t o .......................................................................
Section
A
5(b)
A
5(b)
A
3(b)
A
A
1(e)
1(h)
A
A
1(a)(2)
1(a )(2), 1(e)
A
1(a)(2)
A
A
A
Intro.
Foreword
1(a)(1)
A
A
A
A
Intro.
1(a)(1)
1(a)(1)
1
A
Appendix
A
1(a)(1), 1(a)(3)
A
A
A
A
A
A
A
A
1(a)(3)
1(a)(3)
1(a)(2)
1 (i)
1(a)(2)
1(a)(1)
1(a )(4), 1(c), 1(f),
1(a)(1)
A
3(a ), 4
A
3(a)
A
1
A
1(a)(1)
A
l(i)
A
3(a)
A
4
A
1(f)
27
INDEX TO REGULATIONS
Regu
lation
Discounts by Federal Reserve banks (continued):
Producing, purchasing, carrying or marketing of
goods, paper drawn fo r............................................
Public interest, advancement of, as guiding prin
ciple........................................ ........................................
Requirements for discount {S e e Discounts by
Federal Reserve banks, Eligibility of paper.)
Securities, investment, ineligibility of paper
drawn for trading in .................................................
Sight drafts:
Bills of lading as security for.........................
Collection o f ...............................................................
Demand for p aym en t..........................................
Domestic shipment or exportation of nonperishable readily marketable staples,
necessity fo r........................................................
Indorsement by member b a n k .......................
Limitation on period to be held by Federal
Reserve ba n k s....................................................
M atu rity...................................................................
N egotiability...........................................................
Readily marketable staples, meaning o f . . .
Security......................................................................
Shipping documents as security fo r ..............
Speculative purposes,ineligibility of paper drawn
f o r .....................................................................................
Speculative use of credit by member banks,
Federal Reserve banks to consider....................
Statement of borrower as to financial worth. . .
Stocks, ineligibility of paper drawn for trading
i n .......................................................................................
Treasury bills, paper drawn for trading in .........
Undue use of bank credit b y member banks to be
considered.....................................................................
United States obligations, paper drawn for
trading in ......................................................................
W orking capital, discounts to provide {S e e In
dustrial loans.)
Distribution or underwriting of securities:
Financing by ban ks.......................................................
Financing by brokers and dealers...........................
Dividends, deficiency in reserves as precluding pay
ment o f ....................................................................................
Dollar exchange acceptances:
Amount of, limitations u p on .....................................
Aggregate limitations upon am ount.......................
Application to Board of Governors for permis
sion to m ake................................................................
Approval of applications to make, b y Board of
Governors......................................................................
Authority of member banks to m ake....................
Countries in which banks m ay draw on member
banks to furnish dollar exchange........................
Discount by Federal Reserve banks......................
Foreign banking corporations, acceptances b y . .
M aturity for purpose of discount by Federal
Reserve ban ks.............................................................
Modification of approval of Board of Governors
of permission to m ake..............................................
Section
A
1(a)(1)
A
Foreword
A
1(a)(3)
A
A
A
1(b)
1(b)
1(b)
A
A
1(b)
1 (b)
A
A
A
A
A
A
1(b)
1(a)(4), 1(b)
1(b)
1 (b) (note)
1(b)
1(b)
A
1(a)(3)
A
A
3(c)
1(h), 3(a)
A
A
1(a)(3)
1(a)(1)
A
3(c)
A
1(a)(1), 1(a)(3)
U
U
2(c)
4 (f)(3)
D
4
C
C
III
I II
C
IV
C
C
IV
III
C
A
K
IV
6(d)
X III
A
6(d)
C
IV
28
INDEX TO REGULATIONS
Section
Regu
lation
Dollar exchange acceptances (continued):
One bank, limitations upon amount accepted fo r .
Revocation of permission to make, by Board of
Governors......................................................................
Security fo r.......................................................................
Statutory provisions regarding.................................
Usages of trade as affecting.......................................
C
III
C
c
c
c
IV
I II
I II
IV
c
I -I V
J
5(3)
U
T
2(d)
4 (f)(1 ), 5 (a )(3), 5 (c )
F
K
F
8, 16(c)
XVI
8, 16(c)
J
5
O
O
O
1(c)(4)
1(c)(2)
1(d)
Drafts:
Acceptance b y member banks (see also Bankers’
acceptances).........................................................
Discount by Federal Reserve banks (See Dis
counts by Federal Reserve banks.)
Dollar exchange, acceptance of (See Dollar ex
change acceptances.)
Receipt by Reserve banks in payment for checks.
E
Edge corporations (See Foreign banking corpora
tions.)
Emergency loans to brokers and dealers:
B y ban ks............................................................................
B y other brokers and dealers....................................
Employees (See Officers and employees.)
Examinations:
Comptroller of Currency, of national b a n k s .. . .
Foreign banking corporations...................................
Trust departments of national ban ks....................
Exchange drafts, acceptance by Federal Reserve
banks in payment of ch eck s...........................................
Executive officers of m em ber banks, loans to:
Advance of unearned salary or compensation. .
Acquisition of evidence of indebtedness of officer.
"B ecom e indebted” , meaning o f ..............................
Board of directors:
Excepted transactions, approval o f ...............
Renewals of loans made prior to June 16,
1933, approval o f ..............................................
"B o rrow ” , meaning o f ..................................................
Checks acquired by bank in usual course of
business..........................................................................
Exceptions from prohibitions:
Advances against accrued salary for travel
ing expenses........................................................
Approval by directors of excepted transac
tions ........................................................................
Indorsement for protection of member bank
Loans not in excess of $ 2 5 0 0 ............................
Renewals or extensions of loans made prior
to June 16, 1 93 3 ................................................
“ Executive officers,” definition:
Cashier a s .................................................................
Chairman of board of directors.......................
Director as not constituting.............................
M anagem ent of banks, persons partici
pating in ...............................................................
President a s .............................................................
Salary, effect of receipt o f .................................
Secretary a s .............................................................
Title as affecting...................................................
Treasurer a s .............................................................
O
3(b), 4(a)
O
O
4(a)
1(d)
O
1(c)
O
1(c)
O
O
O
3 (b ), 4(a)
3(a)(2)
3(a)(1)
O
4
O
O
O
1(b)
1(b)
1(b)
O
O
O
O
O
O
1(b)
1(b)
1(b)
1(b)
1(b)
1(b)
29
INDEX TO REGULATIONS
Regu
lation
Section
Executive officers of member banks, loans to (con
tinued) :
“ Executive officers,” definition (continued):
Trust officer a s.......................................................
Vice president a s...................................................
Extension of credit, meaning o f ...............................
Forfeiture of membership of member bank as
penalty for violation................................................
Increase of existing indebtedness as constituting.
“ Loan” , meaning o f ......................................................
“ M ember bank” , definition for purposes of Reg
ulation O ........................................................................
Merger or consolidation of banks, exception of
obligations of officers acquired as result of. .
Notes of executive officer, acquisition by mem
ber ba n k s......................................................................
Obligations acquired through merger or consoli
dation of ba n k s...........................................................
Overdrafts..........................................................................
Partnerships in which executive officers have
majority interest, loans t o ......................................
Penalties for violation of law or regulations. . . .
Prohibitions, general statement o f ..........................
Protection of member bank against loss, loans
f o r .....................................................................................
Removal of officer as penalty for violation.........
Renewal of loan made prior to June 16, 1933,
exception o f ...................................................
Reports of indebtedness to other banks:
C ontents....................................................................
Record of receipt of, b y board of directors.
Requirement for report to board of direc
to rs.................................................................................
Salary advances...............................................................
Traveling expenses, advances for payment o f . .
Violation of law or regulation, penalties fo r . . . .
O
O
O
1(b)
Kb)
1(c)
O
O
O
6(b)
1(c)(3)
K c)
O
K a)
O
K c)
0
1(c)(2)
O
O
1(c)
1(c)(1)
0
0
O
2(a)
O
O
3(a)(3)
6(a)
O
4
O
O
5
5
O
0
0
O
5
1(c)(4)
1(c)
O
1(c)
6
2
6
Extension of credit:
Definition within meaning of Regulation 0 . . . .
Executive officers of member banks, to (See
Executive officers of member banks, loans to.)
F
Factors’ paper, discount o f ...................................................
Federal credit unions, inapplicability of Clayton Anti
trust Act to .............................................................................
Federal Farm Loan Act, obligations issued under, as
security for advances by Federal Reserve banks
to member banks........................................................
Federal Farm Mortgage Corporation, bonds of, as
security for advances by Federal Reserve banks
to member banks........................................................
Federal Home Loan Banks:
Clayton Antitrust A ct, inapplicability o f ............
Obligations of, as security for advances b y Fed
eral Reserve banks to member ban ks...............
A
1(f)
L
2(b) (note)
A
2(d )(6)
A
2 (b ), 2(d)(1)
L
2(b) (note)
A
2(d )(6)
A
L
5
2(b) (note)
Federal Intermediate Credit banks:
Advances by Federal Reserve banks to member
banks on paper o f ......................................................
Clayton Antitrust A ct, inapplicability o f ............
Discount b y Federal Reserve banks of paper of
(See Discounts by Federal Reserve banks,
Federal Intermediate Credit banks.)
30
INDEX TO REGULATIONS
Regu
lation
Section
Federal Intermediate Credit banks (continued):
Obligations of, as security for advances by Fed
eral Reserve banks to member ban ks...............
Rediscount for member banks of paper indorsed
by, or acquired from .................................................
Federal Land banks, inapplicability of Clayton Anti
trust Act to .............................................................................
Federal Reserve agents:
Clayton Antitrust A ct, enforcement of regula
tions.................................................................................
Holding company affiliates, duties with respect
t o ......................................................................................
A
2 (b ), 2(d )(1)
A
4(c)
L
2(b) (note)
L
4(a)
P
2 ,3 ,6
J
A
5(1)
3(c)
Federal Reserve banks:
Advances to member banks (See Advances by
Federal Reserve banks to member banks.)
Agency for forwarding banks in making collec
tions.................................................................................
Bank credit, information as to undue use o f . . .
Bankers’ acceptances:
Purchase in open market (See Open market
operations of Federal Reserve banks,
Bankers’ acceptances, purchase of.)
Rediscount of (See Bankers’ acceptances,
Rediscount b y Federal Reserve banks.)
Bills of exchange, purchase of (See Open market
operations of Federal Reserve banks, Bills of
exchange, purchase of.)
Capital stock (See Stock, Federal Reserve banks.)
Clayton Antitrust A ct, inapplicability to direc
tors o f ..................................................................................
Clearing house functions, exercise o f ..........................
Collections by (See Collections by Federal Re
L 2(b) (note)
J 1, 2
serve banks.)
Deposit of securities with, b y national bank
exercising trust powers.................................................
Directors, voting by subsidiaries of holding
company affiliates in election o f ...............................
Discounts by (See Discounts by Federal Reserve
F 13
P 9
banks.)
Foreign banks, relations with:
Agreements between, information regard
ing, to be furnished Board of Governors.
Agreement or understanding with, permis
sion of Board of Governors fo r........................
Conferences, permission of Board of G ov
ernors f o r ...................................................................
Information concerning, to be furnished
Board of Governors..............................................
Negotiations, permission of Board of G ov
ernors f o r ...................................................................
Participation by other Federal Reserve
banks in agreements w ith ..................................
Reports of conferences and negotiations.. .
Representation of Board of Governors at
negotiations between............................................
Industrial loans by (See Industrial loans.)
Letters of instruction regarding collections of
checks, issuance o f .....................................................
Loan schedule, explanation in, regarding excess
of collateral over amount of advance or dis
count...............................................................................
N
II
N IV
N I II
N II
N I II
N
N IV
I II
N I II
J
6
A
3(d ), 3(e)
INDEX TO REGULATIONS
Regu
lation
Section
Federal Reserve banks (continued):
Losses on industrial loans by (See Industrial
loans, Losses sustained by Federal Reserve
banks.)
Noncash items, collection of (See Collections by
Federal Reserve banks, Noncash items.)
Nonmember banks, collections for..........................
Open market operations (See Open market oper
J
1, 2, 3, 5, 6
A
5(b)
D
3(d)
A
3(c)
L
2(b) (note)
A
2(b)
A
A
3(b)
1(a) (2), 1(e)
K
K
X III
X III
K
K
K
K
K
X III
X III
X III
X III
X III
K
K
K
K
III
X I (c)
V III
IV
K
K
K
K
II
II
II
V
K
M
X
—
K
K
K
K
VI
VI
V II
I II
ations of Federal Reserve banks.)
Rediscounts (See Discounts by Federal Reserve
banks.)
Reserves as limiting discount of paper of Federal
Intermediate Credit ban ks....................................
Reserves of member banks, report to Board of
Governors of continued deficiencies in .............
Speculative use of bank credit, information as
t o .......................................................................................
Stock (See Stock, Federal Reserve banks.)
Warrants, purchase of (See Open market opera
tions of Federal Reserve banks, Bonds and
warrants, purchase of.)
Federal savings and loan associations, inapplica
bility of Clayton Antitrust A ct..................................
Fiduciary powers:
National banks (See Trust powers of national
banks.)
State member banks (See State member banks,
Trust business.)
Fifteen-day notes of member banks, Advances by
Federal Reserve banks on (see also Advances by
Federal Reserve banks to m em ber b a n k s).............
Financial statements to accompany applications for
discounts and advances...................................................
Fixed investment paper, discount o f ...............................
Foreign banking corporations:
Acceptances b y :
Dollar exchange acceptances............................
Aggregate amount of, limitations o n ............
Importation or exportation of goods, drafts
and bills growing out o f ..................................
Limitations o n ........................................................
M atu rity...................................................................
One borrower, limitations on amount fo r . .
Reserves against....................................................
Acknowledgment of execution of organization
certificate...................................
Advertisement of obligations....................................
Agencies in United States, establishment o f ___
Application for approval of title..............................
Articles of association:
Contents....................................................................
F orm ...........................................................................
Signing o f .................................................................
Authority to commence business............................
Branches:
Establishment o f ...................................................
Suspension o f ...........................................................
Capital stock:
Amount required...................................................
Classes of shares....................................................
Limitations on ownership and tran sfer.. . .
Organization certificate to specify.................
32
INDEX TO REGULATIONS
Regu
lation
Foreign banking corporations (continued):
Capital stock (continued):
Ownership by citizens of United States___
Par value of shares...............................................
Paym ent of 25 per cent of, certification as
t o .............................................................................
Registration of shares..........................................
Transfers of stock.................................................
Certificate of organization..........................................
Citizenship of directors, certification as t o ..........
Clayton Antitrust Act, inapplicability t o ............
Controlling interest in, ownership by citizens of
United States...............................................................
Debentures, bonds, notes, or other obligations:
Advertisements with respect to, limitations
o n .............................................................................
Aggregate amount of, statement as t o .........
Certificate of trustees under trust inden
ture, contents o f ...............................................
Collateral fo r. . , ...................................................
Financial condition of corporation, state
ment as t o ............................................................
General conditions................................................
M arket value of collateral security f o r . . . .
M atu rity...................................................................
M edium of paym en t......... ..................................
Opinion of counsel for trustee under trust
indenture..............................................................
Publication b y Board of Governors of docu
ments relating t o ......................................... . .
Requirements after issuance............................
Statements to be filed with Board of G o v
ernors regarding................................................
Substitution of securities under trust inden
ture, report o f ....................................................
Trust indenture with member bank, execu
tion o f ....................................................................
Deposits:
Outside United States, limitations upon
receipt o f ........... ...................................................
Reserves against....................................................
W ithin United States, limitations upon
receipt o f ..............................................................
Discounts by, limitations o n ......................................
Examinations o f ..............................................................
Foreign branches, suspension o f ...............................
Hom e office, location o f ...............................................
Investments b y :
Amount to be invested in stock of other
corporations, limitations o n ..........................
Corporation in substantial competition
with, stock o f ......................................................
Other foreign banking corporations, stock
o f .............................................................................
Liabilities of, limitation on aggregate amount o f .
Limitations, general......................................................
N a m e ...................................................................................
Names and residences of persons executing or
ganization certificate................................................
Section
K
K
V, V II
VI
K
K
K
K
K
L
V
V II
V II
I II
V
2(b) (note)
K
V , V II
K
K
X I (c)
X I (b)(1)
K
K
X I (b)(3)
X I (a) (3)
K
K
K
K
K
X I (b )(l)
X I (a)
X I (b )(1 )
X I (a) (2)
X I (a)(1)
K
X I (b)(5)
K
K
X I (b)
X I (b)
K
X I (b)
K
X I (b)
K
X I (a) (3)
K
K
X IV
X IV *
K
K
K
M
K
X IV
X II, X V
XVI
—
I II
K
IX
K
IX
K
K
K
K
IX
XV
XV
I II , IV
K
I II
* Last print of Regulation K does not include provision referred to, which was incorporated in
regulation by an amendment of September 1, 1937.
33
INDEX TO REGULATIONS
Regu
lation
Foreign banking corporations (continued):
One borrower, limitation on total liabilities to
corporation....................................................................
Organization:
Authority fo r ...........................................................
Certificate o f ...........................................................
Ownership of stock by citizens of United States,
certification as t o .......................................................
Permit to be issued by Board of Governors. . . .
Places where operations are to be carried o n . . .
Powers:
Before approval of final permits.....................
Foreign countries, exercise i n ..........................
Incidental..................................................................
Purpose for which to be organized..........................
Regulations of Board of Governors regarding
right to transfer sto ck .............................................
R eports...............................................................................
Reserves:
Acceptances, against............................................
Deposits, against...............................................
Sale of securities with guaranty or indorsement,
restrictions o n .............................................................
Securities, notes, drafts, bills of exchange, or
acceptances, sale o f ...................................................
Suspension of branches because of disturbed
conditions......................................................................
T itle ......................................................................................
Transfer of stock, limitations o n .............................
United States, limitations on operations in .........
Foreign b a n k s:
Amounts due from, as not constituting “ due
from” balances.............................................. ..............
Clayton Antitrust A ct, inapplicability t o ............
Relations of Federal Reserve banks with (See
Federal Reserve banks, Foreign banks, rela
tions with.)
Foreign branch es:
Foreign banking corporations, suspension o f . . .
National banks, suspension o f ..................................
State member banks......................................................
Suspension because of disturbed conditions. . . .
Foreign countries, suspension of branches in ............
Foreign exchange transactions, margin requirements
fo r ...............................................................................................
Form s:
Affiliates, reports o f .......................................................
Agreements to be executed by holding company
affiliates..........................................................................
Federal Reserve bank stock, applications f o r ...
Membership in Federal Reserve System, appli
cations fo r .....................................................................
Reports of member ba n k s..........................................
Trust powers of national banks, applications for.
Voting permits of holding company affiliates,
applications for. . ......................................................
Four-month promissory notes of m em ber banks,
advances by Federal Reserve banks o n ...................
Section
K
XV
K
K
I
I II
K
K
K
V
V
III
K
K
K
K
V
XV
V, X V
I
K
K
V II
XVI
K
K
X III
X IV *
K
X II
K
X II
M
K
K
K
—
IV
V II
V III
D
L
2(b)
2(b) (note)
M
M
H
M
M
—
—
8(d ), 8(e)
—
—
T
4(f)(5)
H
9(b)
P
I
3, 5, 6
1 -5
H
H
F
4
9(a)
1
P
5, 6
A
2(c)
* Last print of Regulation K does not include provision referred to, which was incorporated in the
regulation by an amendment of September 1, 1937.
34
INDEX TO REGULATIONS
G
Regu
lation
General account (S e e Margin requirements for brok
ers and dealers.)
Goods, meaning o f ..........................................................
Gross demand deposits, meaning o f .......... ................
Guaranteed accounts......................................................
Guardian, meaning o f .....................................................
Section
A
D
T
F
1(a)(1) (note)
1(f)
3(d ), 6(c)
17(a) (note)
I
9
p
8
p
K d)
p
3
p
p
p
3 ,4
1(c)
1(a)
p
2
p
9
p
p
10
1(d)(5)
p
p
p
1(c), 1(d)
K e)
1(f)
p
2
p
9
p
p
7
7
p
3
p
3 ,4
p
p
3
K c)
p
8
p
4
p
p
6
5
p
p
p
p
5
6
1(g)
1(h), 6
H
H earings:
Forfeiture of membership of State member b a n k .
Revocation of voting permits of holding company
affiliates..........................................................................
Holding company affiliates (see also Affiliates):
“ Affiliated” , meaning o f ..............................................
Agreements to be obtained from, by State
member banks.............................................................
Banks applying for membership, requirements
concerning organizations which will become
holding company affiliates.....................................
Control, manner of existence o f ...............................
Definition...........................................................................
Determination of status as, b y Board of G ov
ernors..............................................................................
Directors of Federal Reserve banks, participa
tion of subsidiary member banks in election of.
Forms referred to in Regulation P as part of
R egulation....................................................................
Interlocking directorates, control through..........
M ajority of shares of member bank, control
through ownership o f ...............................................
“ Member bank” , meaning o f ....................................
“ Nonmember bank” , meaning o f ............................
Organizations not engaged as a business in hold
ing bank stock, exception o f .................................
Participation b y subsidiary member banks in
election of Federal Reserve bank directors. .
Replacement of capital in affiliated banks, use
of reserves f o r .............................................................
Reserves required o f ......................................................
State member banks:
Agreements to be obtained by, from holding
company affiliates.............................................
Applications for membership, requirements
as to organizations which will become
holding company affiliates............................
Forfeiture of membership for failure to
obtain agreements............................................
“ Subsidiary” , meaning o f ............................................
Violations of law or agreements by, revocation
of voting permit u pon............................. ................
Voluntary liquidation of member bank, voting
permit unnecessary...................................................
Voting permits:
Application for.......................................................
Conditions upon which granted......................
Discretion of Board of Governors in grant
ing ...........................................................................
Forms to be used in making application fo r.
General voting permit, meaning o f ................
Limited perm its.....................................................
35
INDEX TO REGULATIONS
Regu
lation
Holding company affiliates (continued):
Voting permits (continued):
M atters to be considered by Board of G ov
ernors in acting upon applications............
Necessity fo r ...........................................................
Procedure relating to applications fo r.........
R evocation...............................................................
Voluntary liquidation, unnecessary for pur
pose of placing member bank in ................
Section
P
P
P
P
5
4
P
4
A
6(b)
A
1(a)(1)
B
11(a), I I I
A
6(b)
B
11(a), I I I
A
1(a)(1)
A
1(c)
O
3(a)(2)
A
5(a)
J
5
A
1(a)(1)
A
E
V(d)
S
V
S
S
S
V II I
V
11(b)
S
S
V
11(a), 111(a)
S
111(c), 111(d)
S
111(b)
S
111(b)
S
S
S
S
S
S
III(a)
III
111(a)
111(a)
III(a)
6
8
I
Independent warehousemen, necessity fo r ..................
Indorsem ent:
Agricultural paper..........................................................
Bankers’ acceptances:
Purchase by Federal Reserve banks.............
Rediscount by Federal Reserve bank,
necessity...............................................................
Bills of exchange purchased by Federal Reserve
ban ks...............................................................................
Commercial paper discounted by Federal R e
serve banks....................................................................
Construction paper discounted by Federal R e
serve banks...................................................................
Executive officer of member bank for bank’s
protection......................................................................
Federal intermediate credit banks, paper redis
counted fo r....................................................................
Guaranty of prior indorsement by Federal R e
serve banks...................................................................
Industrial paper discounted by Federal Reserve
ban ks...............................................................................
Sight drafts discounted b y Federal Reserve
banks...............................................................................
Warrants purchased by Federal Reserve banks.
Industrial advisory committees (See Industrial loans,
Industrial advisory committees.)
Industrial loans:
Aggregate amount of accom m odations.................
Amendment or modification of regulations gov
erning ..............................................................................
Amount, limitations o n ................................................
Applications by financing institutions fo r...........
Commitments by Federal Reserve banks:
Aggregate amount of, limitations o n ............
Authority to m a k e...............................................
Direct transactions with industrial or commer
cial businesses:
Applications fo r......................................................
Authority of Federal Reserve banks to enter
in to .................................
Board of Governors, authority to be given
b y ............................................................................
M atters to be considered by Federal Reserve
banks......................................................................
M aturity of obligations......................................
Power of Federal Reserve ban ks....................
Purpose......................................................................
Requirements..........................................................
W hen permitted.....................................................
K b)
H I (d )
36
INDEX TO REGULATIONS
Regu
lation
Industrial loans (continued):
Discounts by Federal Reserve banks for finan
cing institutions:
Advance of 20 percent of working capital by
financing institutions...........................................
Applications for...........................................................
Commitm ents b y Federal Reserve banks,
requirements f o r ....................................................
Legal requirements. . . .............................................
Losses by Federal Reserve bank upon obli
gations discounted.................................................
M atters to be considered in acting upon
applications fo r .......................................................
M aturity of obligation.............................................
Purpose of obligation................................................
Financing institutions:
Applications for discounts, purchases, loans,
or advances...............................................................
Discounts for, and advances to, by Federal
Reserve ban ks.........................................................
Industrial advisory committees:
Applications for loans, consideration o f . . . .
Approval of members b y Board of Govern
ors .................................................................................
M em bership..................................................................
Qualifications of m em bers.................................
Recommendations b y ...............................................
Selection.........................................................................
Terms of m em bers.....................................................
Vacancies, appointments to fill.............................
Losses sustained by Federal Reserve banks:
Am ount of, how determined..................................
Determination b y directors of Federal R e
serve banks..........................................................
Recovery of, right of Federal Reserve bank
to share in .................................................................
Reimbursement by financing institutions. .
Rates of interest and discount..................................
Reports of, by Federal Reserve banks to Board
of Governors......................................................................
Industrial paper, discount by Federal Reserve b a n k s.
Insolvency:
Cancellation of Federal Reserve bank stock of
member banks u p on .................................................
M ember banks.................................................................
National banks, action to be taken concerning
trusts upon.........................................................................
Installment paper, recommendations of Board of
Governors as to minimum standards for..................
Insular possessions of the United States:
Clayton Antitrust A ct, inapplicability to banks
organized i n ...................................................... ...........
Dollar exchange acceptances for banks in ...........
Foreign banking corporations in, organization o f .
Membership in Federal Reserve System of banks
located in .......................................................................
Insurance of deposits:
Eligibility of State banks for, as affecting eligi
bility for membership in Federal Reserve
S yste m ............................................................................
Insured banks, State member banks a s ................
Section
S 11(a)
S 11(b), 11(c)
S 11(a)
S 11(a)
S 11(a)
S 11(c)
S 11(a)
S 11(a)
S II (b)
S II
S
11(b), I II (c ), IV (b )
S IV (a)
S IV (a)
S
IV (a)
S IV (b )
S IV (a)
S I V (a)
S I V (a)
S 11(d)
S
11(d)
S
S
S 11(d)
11(d)
VI
A
S V II
1 (a) (1)
I
I
6
6
F 15(a)
A
Appendix
L
C
K
2(b) (note)
I I I , IV
I
H
1(a) (note)
H
H
2(a)(1)
3
37
INDEX TO REGULATIONS
Regu
lation
Insurance of deposits (continued):
Membership of State banks in Federal Reserve
System, effect upon eligibility for.......................
State member banks as entitled t o ............. ...........
Interest (see also Discount ra te s):
Deposits (See Interest on deposits.)
Industrial loans, rate o f ...............................................
Interest on deposits (see also D ep osits):
Contract for modification to conform to regu
lation...............................................................................
Definition of interest.....................................................
Definitions of demand, time, and savings de
p osits...............................................................................
Demand deposits:
Certificate or contract entered into before
June 16, 1933, or date of membership. . .
Definition..................................................................
Exceptions from prohibition against pay
ment of interest o n ..........................................
Interest prohibited...............................................
Modification of existing contracts to elimi
nate provisions for interest o n ....................
M utual savings banks, deposits o f .................
Prohibition against interest o n .......................
Public funds..............•............................................
Savings banks, deposits o f ................................
Tim e deposit becomes, after m atu rity. . . .
Deposits payable outside States of United States
and District of Colum bia.......................................
“ Interest” , what constitutes......................................
M axim um rates:
Board of Governors to prescribe....................
Certificates or contracts entered into before
December 1 8 ,1 9 3 4 ...........................................
Certificates or contracts entered into before
December 1 ,1 9 3 5 .............................................
Deposits payable outside States of United
States and District of Colum bia................
Postal savings deposits.......................................
Savings deposits....................................................
Savings deposits received during first five
days of m o n th ....................................................
State banks, not to exceed rate fo r...............
Tim e deposit with maturity less than 90
d ays........................................................................
Tim e deposit with maturity less than 6
months and not less than 90 d a y s ............
Tim e deposit with maturity of 6 months or
m ore........................................................................
Modification of contracts to conform to regula
tions regarding............................................................
M utual savings banks, deposits o f ..........................
Public funds:
Interest accruing before August 24, 1937,
perm itted.............................................................
M oneys paid into State courts pending out
come of litigation..............................................
Prohibited after August 23, 1 9 3 7 ...................
State, county, school districts or other sub
divisions, deposits o f .......................................
State laws as affecting........................................
Section
H
H
2(a)(1)
3
S
VI
Q
Q
2(b )(3), 3(b)
2(a)
Q
1
Q
Q
2(b)(3)
1 (a)
Q
Q
2(b)(3)
2(a)
Q
Q
Q
Q
Q
Q
2(b)(3)
2(b)(1)
2(a)
2(b)(2)
2(b)(1)
3(f)
Q
Q
Intro., Supp.
2(a)
Q
3(a)
Q
Supp. (1)
Q
Supp. (2), (3)
Q
Q
Q
Intro., Supp.
Supp. (1)
Supp. (1)
Q
Q
3(d)
3(c)
Q
Supp. (3)
Q
Supp. (2)
Q
Supp. (1)
Q
Q
3(b)
2(b)(1)
Q
2 (b )(1), 2(b)(2)
Q
Q
2(b)(2) (note)
2(b)(2)
Q
Q
2(b)(2)
2(b)(2)
38
INDEX TO REGULATIONS
Regu
lation
Interest on deposits (see also Deposits) (continued):
Rate of (See Interest on deposits, M axim um
rates.)
Renewal or extension of contract, conformity to
Regulation Q ...............................................................
Savings deposits:
Definition and requisites....................................
Depositors who m ay h av e.................................
Deposits received during first five days of
m o n th ....................................................................
Loans on security o f ............................................
M axim um rate........................................................
Notice of withdrawal, waiver o f .....................
Passbooks, presentation o f ................................
Withdrawals:
Change of practice as to waiver of
notice o f .......................................... ...........
Interest prohibited after expiration of
period of notice........................................
M ethod of m aking.......................................
Notice required fo r .....................................
Requirements for (See Deposits, Sav
ings deposits.)
W aiver of notice o f .....................................
State maximum rate, payment of, if higher. . . .
Time certificates of deposit:
Definition..................................................................
Emergencies, payment before maturity i n . .
M aturity or period of notice required.........
M axim um rates......................................................
Notice in writing before repaym ent..............
Presentation and surrender of instrument
upon repaym ent................................................
Reservation of right to require notice of
withdrawal, effect o f ........................................
Time deposits:
Continuance of status as, although payable
within 30 d ay s.............................. .....................
Definition..................................................................
Emergencies, payment before maturity in.
Forfeiture of interest on, upon payment
before m atu rity.................................................
Interest to be paid until m a tu rity.................
Loans on security o f ............................................
M aturity, prohibition of interest after........
M axim um rates......................................................
Paym ent before maturity (see also Depos
its, Tim e deposits)............................................
Prohibition of interest after m a tu rity .........
Tim e certificates of deposit, as including. .
Time deposits, open accounts:
Definition..................................................................
Emergencies, payment before maturity in .
M aturity or period of notice required.........
M axim um rates......................................................
Tim e deposits, as constituting.........................
W ithdraw al..............................................................
Trust funds payable on dem and..............................
Interest rates (See Discount rates; Interest; Interest
on deposits.)
Interlocking bank directorates (See Clayton Act.)
Section
Q
2(b)(3),
Q
Q
Ke)
Ke)
Q
‘ Q
Q
Q
Q
3(d)
5(e)
Supp. (
5
1(e)
Q
5(b), 5(
Q
Q
Q
3(f)
Ke)
1(e), 5
Q
Q
5
3(c)
Q
Q,
Q
Q
Q
1(c)
4(d)
1(c)
Supp.
1(c)(3)
Q
1(c)(4)
Q
1(c)(3)
Q
Q
Q
3(e)
K b)
4(d)
Q
,
Q
Q
Q
Q
4(d)
3(e)
4(e)
3(f)
Supp.
Q
Q
Q
4
3(f)
K b)
Q
Q
Q
,
Q
Q
Q
Q
1(d)
4(d)
Kd)
Supp.
K b)
1(d)
2(b)(2)
39
INDEX TO REGULATIONS
Regu
lation
Investment paper, discount by Federal Reserve
banks.............................................................................
Investments:
Foreign banking corporations, b y ............................
State member banks:
Mortgage participations.....................................
Trust funds held b y .............................................
Trust funds held b y national banks (See Trust
powers of national banks, Investment of trust
funds.)
Section
A
1(a)(2), 1(a)(3)
K
IX
H
H
6(b)
6(b)
Investment securities:
Advances by Federal Reserve banks to member
banks under section 10(b) of Federal Reserve
A ct, as security fo r .........................................................
Discount of paper drawn for trading in, prohib
ite d ...............................................................
Trust funds used by national bank in own
business, as collateral security for...........................
A
2(d)(3)
A 1(a)(3)
F
9(b)(3)
J
Joint stock land banks, inapplicability of Clayton
Antitrust A ct ...............................................................................
L 2(b)
L
Lawful money of the United States as security for
obligations of foreign banking corporations ............
Liquidation of member banks, cancellation of Fed
eral Reserve bank stock upon..................................
Liquidation of securities transactions (See Margin
requirements for brokers and dealers.)
Litigation regarding administration of trusts by
national banks, record o f .................................................
Loan values for margin purposes (See Margin require
ments for banks; Margin requirements for brokers
and dealers.)
Loans:
K
X I (a) (3)
I
7
F
7(b)
0
1(c)
D
4
A
Q
Q
Appendix
5(e)
4(e)
u
2(j)
u
3(k)
Advances by Federal Reserve banks to member
banks (See Advances by Federal Reserve
banks to member banks.)
Definition, within meaning of Regulation 0 . . . .
Executive officers, to (See Executive officers of
member banks, loans to.)
Industrial (See Industrial loans.)
M ember banks, deficiency in reserves as pre
cluding n ew ..................................................................
One borrower, limitations on amount for (See
Bankers’ acceptances, One borrower, limita
tions on amount for; Discounts by Federal
Reserve banks, One borrower, limitations on
discounts for.)
Real estate paper, recommendations of Board of
Governors as to minimum standards fo r.........
Savings deposits, upon security o f ..........................
Tim e deposits, upon security o f ...............................
M
Margin requirements for banks:
Arbitrage transactions, exemption o f .....................
“ Bank” as not including bank member of
national securities exchange..................................
40
INDEX TO REGULATIONS
Regu
lation
Margin requirements for banks (continued):
Banks, exemption of loans t o ....................................
“ Carrying” registered stock, what to be deemed
loan for purpose o f ....................................................
Cash transactions...........................................................
Collateral not to include “ safe-keeping” securi
ties ....................................................................................
“ Day-loans” ......................................................................
Distribution of securities.............................................
Emergency needs, exemption of loans to m e et. .
Entire indebtedness of borrower to be regarded
as single lo a n ...............................................................
Exem ptions:
Arbitrage transactions, loans to finance. . .
Banks, loans t o ......................................................
Cash transactions.................................................
“ Day-loans” ............................................................
Distribution of securities not through secur
ities exchange, loans for financing............
Emergency needs, loans to m e et.....................
Foreign banking institutions, loans t o .........
Indebtedness not exceeding $ 1 ,0 0 0 ................
Loans made outside States of United States
and District of Colum bia..............................
Loan to be repaid on calendar day on which
m a d e......................................................................
Odd-lot transactions by member of national
securities exchange, loans fo r.......................
Purchase of stock from person not member
of exchange and not broker or dealer,
loans fo r ................................................................
Securities in transit or transfer, loans fo r . .
Temporary advances...........................................
Extension of m aturity..................................................
Financing of distribution of securities, exemp
tion of loans fo r..........................................................
Foreign banking institutions, exception of
loans t o ...........................................................................
General rule regarding.................................................
Increase in amount of loan while collateral defi
cient .................................................................................
Indebtedness not exceeding $1,000, exemption o f .
M axim um loan value:
Amount fixed b y Board of Governors.........
Collateral other than stocks.............................
Deficiency in, withdrawals or substitutions
of collateral not to increase..........................
Loans for purchase or carrying of registered
stock in excess o f ..............................................
Loans to brokers and dealers subject to
Regulation T , special maximum loan
value fo r ...............................................................
Withdrawals or substitutions of collateral
causing reduction o f ........................................
M istake in good faith not violation of regula
tion ...................................................................................
Obligations evidencing loans on stock as security
for advances b y Federal Reserve b a n k s..........
Odd-lot transactions, exemption of loans for. .
Protection of banks, action taken fo r....................
Purpose of loans, statement of borrower or bank
officer regarding..........................................................
Section
U
2(a)
u
u
3(b)
2(f)
u
u
u
u
3(f)
2(h)
2(c)
2(d)
u
1
u
u
u
u
2(j)
2(a)
2(f)
2(h)
u
u
u
u
2(c)
2(d)
2(a)
2(b)
u
2(i)
u
2(h)
u
2(k)
u
u
u
u
2(e)
2(g)
2(f)
3(d)
u
2(c)
u
u
2(a)
u
u
1
1
2(b)
u
u
1, Supp.
u
1
u
1
u
Supp.
u
1
u
3(h)
A
2(d )(4)
u
u
2(k)
3(i)
u
3(a)
1
41
INDEX TO REGULATIONS
Regu
lation
Margin requirements for banks (continued):
Registered on national securities exchange, de
termination of whether stock i s ..........................
Renewal or extension of maturity of loans.........
Reorganizations, withdrawal or substitution of
securities to enable borrower to participate i n .
Reports required by Board of Governors............
“ Safe-keeping” securities not treated as collat
eral ...................................................................................
Securities held as custodian, depositary or trus
tee, loan not to be treated as collateralled b y .
Securities in transit or transfer, exemption of
loans against................................................................
Special maximum loan valu e.....................................
Statement of borrower or bank officer as to pur
pose of loans.................................................................
“ Stock” , meaning o f ......................................................
“ Stock registered on a national security ex
change” , determination that a security con
stitutes ...........................................................................
Stocks, maximum loan value o f ...............................
Substitution of collateral, when permitted.........
Temporary advances for cash transactions as
not subject to regulation........................................
Terms used in Regulation U , meaning o f ............
Transfer of loans from another bank or between
borrowers, when perm itted....................................
Withdrawals of collateral, when permitted.........
Margin requirements for brokers and dealers:
Additional collateral, acceptance or retention by
creditor maintaining credit initially extended.
Additional requirements by exchanges and cred
itors .................................................................................
Adjusted debit balance:
Current market value of securities sold short
as affecting..........................................................
General accounts, calculation o f .....................
Guaranteed accounts.......... .................... ..
Joint adventure, consideration of creditors’
contribution t o ...................................................
N et credit balance as affecting........................
N et debit balance as affecting.........................
Partners’ accounts.................................................
Purchase of securities as affecting.................
Put, call, or other option as affecting...........
Sale of securities, deduction of net proceeds of
Securities bought for account as affecting. .
Short sales as affecting.......................................
Special omnibus accounts..................................
Unissued securities, commitments as affect
ing ...........................................................................
Agreements b y :
Customer for cash transactions.......................
Nonmember ba n k s...............................................
Arbitrage accounts.........................................................
Arrangement of loans by other persons to custo
mers .................................................................................
Borrowings b y brokers, dealers and members:
Agreement of nonmember banks:
F o rm .................................................................
Term ination....................................................
Emergency needs, loans to m eet....................
Sectic
U
u
3(c)
3(d)
u
u
3(g)
3(j)
u
3(f)
u
3(f)
u
u
2(g)
Supp.
u
u
3(a)
3(1)
u
u
u
3(c)
1, Supp.
1, 3(e), (g)
u
u
2(f)
3(k)
u
u
3(e)
1, 3(e), (g)
T
7(b), (e)
T
7(e)
T
T
T
3(d )(3)
3(d)
3(d ), 6(c)
T
T
T
T
T
T
T
T
T
T
3(d ), 6(b)
3(d)(6)
3(d)(1)
3(d ), 6(a)
3(d)(2)
3(d)(5)
3(d)(7)
3(d)(2)
3(d)(3)
4(b)
T
3(d ), 3(h)
T
T
T
4(c)(1) (2)
5 (a )(2), 5(b)
4(d)
T
7(a)
T
T
T
5(b)
5(b)
5(a)(3)
42
INDEX TO REGULATIONS
Regu
lation
Margin requirements for brokers and dealers (con
tinued) :
Borrowings by brokers, dealers and members
(continued):
Limitations o n ........................................................
M ember banks, through.....................................
Nonmember banks, through..................... ..
Other creditors, borrowing from .....................
Borrowings of securities:
Deposit of cash by creditors in order to
e ffec t......................................................................
Premiums and dividends o n .............................
Business conduct committee:
Emergency needs of creditors, approval of
loans to m e e t......................................................
Extension of time in general accounts b y . .
Cash accounts (See M argin requirements for
brokers and dealers, Special cash account.)
Cash dividends collected for account, payment
o f .......................................................................................
Charges imposed by creditor for interest, ship
ping, or communications, debiting o f .................
Clearance of securities, disregarding certain
credit for........................................................................
Collection or exchange of securities.......................
Com m odities....................................................................
Credit not for purpose of purchasing, carrying
. or trading in securities.............................................
“ Creditor” , definition o f ..............................................
Current market value:
General accounts, securities i n ........................
Securities sold short in general account. . . .
“ Customer” , meaning o f .............................................
Declaration as to purpose of loa n ...........................
Definitions of terms used in regulations..............
Deposit of cash in connection with borrowing or
lending of securities..................................................
Deposit of cash or securities:
W hen not counted as transaction on given
d a y ........ .................................................................
W hen not required...............................................
W hen required........................................................
Distribution or underwriting of securities, special
account fo r....................................................................
Emergency loan s.............................................................
Exchange of securities involved in reorganiza
tio n ...................................................................................
Exchange or collection of securities........................
Exchanges:
Business conduct committees o f .....................
Rules or regulations of........................................
Secretary o f .............................................................
Securities registered on (S e e Margin re
Section
T
T
T
T
5(a)
5(a)(1)
5(a)(2)
5 (a )(3), 5(c)
T
T
6(h)
6(g)
T
T
4(f)(1)
3(f)
T
6(g)
T
6(g)
T
T
T
6(i)
4(f)(6)
3(a), 4(e)
T
T
4 (f)(8 ), 7(c)
2(b)
T
T •
T
T
T
3(c)
3(d)(3)
2(c)
7(c)
2
T
6(h)
T
T
T
3(g)
7(b)
3(b), 4(c)
T
T
4(f)(5)
4 (f)(1 ), 5 (a )(3), 5 (c )
T
6(e)
4(f)(6)
T
T
T
T
7(e)
T
2(e)
T
T
6(e)
3(c), 4(b)
T
7(b)
3 (f), 4(c), 4(f)(1 )
4 (b ), 6(c)
quirements for brokers and dealers,
Registered securities.)
Exempted securities:
Definition..................................................................
Exchange of, when involved in reorganiza
tion ..........................................................................
M axim um loan valu e..........................................
Securities ceasing to be, maintenance of
credit o n ...............................................................
INDEX TO REGULATIONS
43
Regu
lation
Margin requirements for brokers and dealers (con
tinued) :
Exempted securities (continued):
Withdrawals from general accounts..............
Withdrawal from special omnibus account.
Extension of credit without collateral...................
Financial relations, how divided between general
and special accounts.................................................
Foreign currency, when to be regarded as credit
to account.....................................................................
Foreign exchange transactions.................................
“ Free-riding” not countenanced..............................
General accounts:
Adjusted debit balance:
Calculation o f ................................................
Creation or increase of excess of, over
maximum loan valu e.............................
Cash dividends collected for account, pay
ment o f ..................................................................
Combination of transactions............................
Contents................ ...................................................
Current market value of securities in ..........
Deposits of cash or securities in:
Extensions of time fo r ...............................
Liquidation in lieu o f .................................
Necessity fo r ..................................................
Tim e within which to be m ade..............
W hen not counted as part of transac
tions on given d a y ..................................
W hen required..............................................
Excess of adjusted debit balance over max
imum loan value in ..........................................
Extension of time by business conduct com
mittee ....................................................................
Financial relations between creditors and
customers to be included in .........................
Interest collected for account, payment of.
Interest on credit maintained in, debiting
o f .............................................................................
Joint adventure, consideration of creditors’
contribution t o ...................................................
Liquidation in lieu of deposit in .....................
Margin requirements for transactions in,
general ride regarding.....................................
Margin, time to be deposited..........................
Maxim um loan va lu e ..........................................
Partners’ accounts..............................! ................
Payment for unissued securities as transac
tion in ....................................................................
Reorganization, exchange of securities in
volved in ...............................................................
Service charges by creditor, debiting of. . .
Shipping charges, debiting o f ...........................
Short sales, margin required f o r .....................
Time within which margin must be depos
ited ..........................................................................
Transaction, payment for unissued securi
ties a s .....................................................................
Transactions creating or increasing excess
of adjusted debit balance over maximum
loan value............................................................
Transactions on given d a y ................................
Section
T
T
T
3(b)
4(b)(4)
4(f)(8)
T
3(a)
T
T
T
6(j)
4(f)(7)
3(e) (note)
T
3(d)
T
3(b)
T
T
T
T
6(g)
3(g)
3(a)
3(c)
T
T
T
T
3(f)
3(e)
3(b)
3(b)
T
T
3(g)
3(b)
T
3(b), 3(g)
T
3(f)
T
T
3(a)
6(g)
T
6(g)
T
T
6(b)
3(e) (g)
T
T
T
T
3(b)
3(b) (e)
3(c), Supp.
6(a)
T
3(h)
T
T
T
T
6(e)
6(g)
6(g)
3(d )(3), Su;
T
3(b)
T
3(h)
T
T
3(b)
6(d)
44
INDEX TO REGULATIONS
Regu
lation
Margin requirements for brokers and dealers (con
tinued) :
General accounts (continued):
Transfer of customer’s account.......................
Unissued securities in, margin required for.
W arrant or certificate evidencing right to
subscribe to securities, loan value o f . . . .
Withdrawal of cash or securities from, when
perm itted.............................................................
Guaranteed account......................................................
Guarantor’s account......................................................
Innocent mistakes, effect o f .......................................
Interest collected for customer’s account, pay
ment o f ...........................................................................
Interest or credit in account, debiting o f .............
Joint adventure, calculation of adjusted debit
balance in account o f ...............................................
Lending securities b y creditor against deposit
of cash.............................................................................
Liquidation in lieu of deposit of m argin..............
Loans by other persons to customers, right of
creditor to arrange fo r .............................................
Maintenance of credit initially extended without
violation of regulation.............................................
M arket prices, effect of changes in, upon cus
tomer’s eq u ity.............................................................
Maxim um loan value:
Collateral other than registered exempted
securities...............................................................
Change in, maintenance of credit a fter. . .
Exempted securities.............................................
General accounts...................................................
Registered securities............................................
Securities not registered or exem pted..........
Special omnibus accounts..................................
W arrant or certificate evidencing right to
subscribe to security.......................................
Mistakes, effect of, when innocent..........................
N et debit balance, effect of, in determining ad
justed debit balance.................................................
Nonmember banks, agreements to be filed b y . .
Odd-lot dealers, special miscellaneous accounts
for transactions b y ....................................................
Omnibus accounts (See M argin requirements for
brokers and dealers, Special omnibus ac
counts.)
Partners, calculation of adjusted debit balance
in account o f ................................................................
Payment of checks or orders on savings accounts,
determination of time o f ........................................
Purpose of loans, declaration of customer re
garding ...........................................................................
Receipt of funds or securities, time o f ...................
Registered securities:
Definition.................................................................
Exchange of, when involved in reorganiza
tion .........................................................................
M axim um loan valu e..........................................
Purpose of extension of credit on, declara
tion of customer regarding...........................
Securities ceasing to be, maintenance of
credit o n ...............................................................
Section
T
T
3 (d )(4 ), 6(d)
3(h)
T
3(c)
T
T
T
T
3 (b ), 6(e)
3(d ), 6(c)
3(d ), 6(c)
6(k)
T
T
T
6(g)
6(g)
3(d ), 6(b)
T
T
6(h)
3(e)
T
7(a)
T
7(b)
T
7(b)
T
T
T
T
T
T
T
3(c)
7(b)
3(c)
3(c), Supp.
3(c)
3(c)
4(b), Supp.
T
T
3(c)
6(k)
T
T
3(d)
5(b)
T
4(f)(4)
T
3(d ), 6(a)
T
6(f)
T
T
7(c)
6(f)
T
2(d)
T
T
6(e)
3(c), Supp.
T
7(c)
T
7(b)
45
INDEX TO KEGULATIONS
Regu
lation
M argin requirements for brokers and dealers (con
tinued) :
Registered securities (continued):
Withdrawal from general accounts................
Withdrawal from special omnibus account.
Reorganization or recapitalization, exchange of
securities involved i n ...............................................
Reports of creditors, requirement o f . . .................
Rules and regulations of exchanges and creditors.
Sale of securities, creditor’s right to m a k e ..........
Scope of Regulation T .................................................
Securities, credit not for purpose of purchasing,
carrying, or trading i n .......................■....................
Shipment of securities with sight draft attached
as receipt of p aym en t..............................................
Shipment of securities, extension of time of cash
transaction involving...............................................
Short sales:
Current market value of securities................
Margin required f o r .............................................
Premiums on securities borrowed in connec
tion with, debiting o f ......................................
Special omnibus accounts, in ............................
Special accounts:
Arbitrage accounts...............................................
Authority to establish.........................................
Cash accounts (See Margin requirements
for brokers and dealers, Special cash
accounts.)
Com m odity accounts..........................................
Conditions to which subject.............................
Evasion of regulations, use fo r ........................
Limitation upon transactions and relations
in .............................................................................
Miscellaneous accounts (See Margin re
quirements for . brokers and dealers,
Special miscellaneous accounts.)
Separate record o f .................................................
Special arbitrage accounts.................................
Special commodity accounts....................... ....
Special miscellaneous accounts (See Margin
requirements for brokers and dealers,
Special miscellaneous accounts.)
Special omnibus accounts (See Margin
requirements for brokers and dealers,
Special omnibus accounts.)
Treatment when customer also has general
account..................................................................
Special arbitrage accounts:
“ Arbitrage” , meaning o f ....................................
Authority for transactions in ...........................
Special cash accounts:
Agreement for prompt settlem ent.......... ..
Application b y creditor for extension of
tim e.........................................................................
Cancellation or liquidation of transactions.
Cash payment for security, agreement of
customer to m a k e .............................................
Cash transactions, types perm itted................
Deposit of security in account, agreement
of customer to m ake.......................................
Section
T
T
3 (b ), 6(e)
4(b)(4)
T
T
T
T
T
6(e)
7(d)
7(e)
7(e)
1
T
4 (f)(8 ), 7(c)
T
6(f)
T
4(c)
T
T
3(d)(3)
3 (d )(3 ), Supp.
T
T
6(g)
4(b)
T
T
4(d)'
3(a), 4(a)
T
T
T
4(e)
4(a)
4(a)
T
4(a)
T
T
T
4(a)
4(d)
3(a ), 4(e)
4(a)
4(d)
4(d)
4(c)
4(c)
4(c)
4(c)
4(c)
4(c)
46
INDEX TO REGULATIONS
Regu
lation
M argin requirements for brokers and dealers (con
tinued) :
Special cash accounts (continued):
Extension of time by business conduct com
mittee of national securities exchange. . .
Extension of time for transaction involving
shipment of securities.....................................
F ifty dollars, disregard of sums not exceed
ing ...........................................................................
Holiday, when period ends o n .........................
Liquidation in lieu of payment of deposit. .
Prompt settlement to be agreed.....................
Purchase or sale of securities i n .....................
Requirements for transactions in ...................
Shipments of securities, extension of time
of transaction involving.................................
Tim e within which payment for, or deposit
of security must be m ade..............................
Transactions in, when perm itted....................
Transfer of transactions to general or special
omnibus account...............................................
Unissued securities in ..........................................
Special commodity accounts:
Authority fo r...........................................................
Commodities transactions to be included in .
Special miscellaneous accounts:
Approval of loans by committee of securi
tie s exchange.................. ...................................
Broker or dealer, purchase of securities
from ........................................................................
Capital contributions, loans f o r ......................
Collection or exchange of securities depos
ited by customers, transaction to effect..
Distribution of securities...................................
Emergency needs of creditors, right to make
loans to m e et......................................................
Extension and maintenance of credit for
purpose other than purchase or carrying
of securities.........................................................
Foreign exchange transactions........................
Joint adventure between creditor and mem
bers of exchange registered as odd-lot
dealers...................................................................
Odd-lot dealers, transactions b y ....................
Partner of member firm, loans t o ................
Purchase of security from broker or dealer.
Underwriting or distributing of securities
b y joint adventure between dealers.. . .
Special omnibus accounts:
Adjusted debit balance in .................................
Cash, withdrawal o f .............................................
Conditions to which su bject............................
Liquidation in lieu of deposit..........................
M axim um loan value of securities in ...........
Notice of dispatch of security, check or
draft, as receipt o f............................................
Short sales in ..........................................................
Statements of customers....................................
Withdrawal of cash or registered or exempt
ed securities......................................................
Statements of custom ers............................................
Section
T
4(c)
T
4(c)
T
T
T
T
T
T
4(c)
4(c)
4(c)
4(c)
4(c)
4(c)
T
4(c)
T
T
4(c)
4(c)
T
T
4(c)
4(c)
T
T
4(e)
3(a)
T
4(f)(2)
T
T
4(f)(3)
4(f)(2)
T
T
4(f)(6)
4(f)(5)
T
4(f)(1)
T
T
4(f)(8)
4(f)(7)
T
T
T
T
4(f)(4)
4(f)(4)
4(f)(2)
4(f)(3)
T
4(f)(5)
T
T
T
T *
T
4(b)(2)
4(b)(4)
4(b)
4(b)(3)
4 (b )(1 ),4 (b )(2 ),S u p p .
T
T
T
6(f)
4 (b )(1 ),4 (b )(2 ),S u p p .
4(b)
T
T
4(b)(4)
4 (b ), 7(c)
47
INDEX TO REGULATIONS
Regu
lation
Margin requirements for brokers and dealers (con
tinued) :
Statements of transferor or customer for trans
ferring loan........................................................................
Tim e of receipt of funds or security, manner of
determining.......................................................................
Transfer of accounts:
Another creditor, how account to be treated.
General account from one customer to
another.......................................................................
Statement of transferor or custom er............
Underwriting or distributing of securities,
special accounts for transactions in financing.
Unissued securities:
N et long commitment in, 'margin required
fo r .................................................................................
N et short commitment in, margin required
f o r ...................................................................... .
Payment for issued security as increasing
adjusted debit balance........................................
Warrant or right to subscribe to security............
Withdrawals of cash or securities:
General accounts, fro m ............................................
Reorganization or recapitalization, securi
ties involved in ......................................................
Special omnibus accounts, fro m ..........................
Maturity:
Acceptances of foreign banking corporations. . .
Advances by Federal Reserve banks to memberbanks under section 10(b) of the Federal
Reserve A c t .......................................................................
Agricultural paper discounted by Federal R e
serve banks........................................................................
Bankers’ acceptances:
Discount by Federal Reserve banks, f or.. .
Purchase by Federal Reserve banks in open
m arket........................................................................
Bills, notes and drafts discounted by Federal
Reserve ban ks..................................................................
Bills of exchange accepted by member banks. .
Bonds and warrants purchased by Federal R e
serve banks........................................................................
Commercial paper discounted by Federal R e
serve banks........................................................................
Construction paper discounted by Federal R e
serve banks...................................................................
Direct loans by Federal Reserve banks to indus
trial or commercial businesses..............................
Dollar exchange acceptances discounted by Fed
eral Reserve ban ks....................................................
Drafts accepted by member ban ks..............................
Factors’ paper discounted by Federal Reserve
banks...............................................................................
Federal Intermediate Credit banks, paper redis
counted fo r....................................................................
Foreign banking corporations:
Acceptances b y ......................................................
Obligations o f ..........................................................
Industrial loans...............................................................
Sight drafts discounted by Federal Reserve
banks...............................................................................
Warrants purchased by Federal Reserve ban ks.
Section
T 6(d)
T 6(f)
T
6(d)
T
T 6(d)
6(d)
T
4(f) (5)
T 3(d) (h)
T
T
3(d) (h)
T 3(h)
3(c)
T 3(b)
T 6(e)
T 4(b)(4)
K
X III
A 2(c)
A 1(a)(4)
A
6(c)
B 11(b)
C
A 1 (a) (4)
I
E II
A 1(a)(4)
A
1 (c)
S
I I I (a)
A
6(d)
C I
A
1(f)
A
5(a)
K
K
S
X III
X I (a)
I I I (a)
A
E
1(b)
II
48
INDEX TO REGULATIONS
Regu
lation
Section
Maximum loan values (See Margin requirements for
banks, M axim um loan value; Margin require
ments for brokers and dealers, M axim um loan
value.)
Member banks (see also National banks; State mem
ber banks):
Acceptances by (see also Bankers’ acceptances).
C
I -I V
T
5(a)(1)
H
9(a)
Advances to, by Federal Reserve banks (See
Advances by Federal Reserve banks to mem
ber banks.)
Affiliates (See Affiliates.)
Applications for membership (See State mem
ber banks, Applications for membership.)
Borrowings from, by brokers or dealers...............
Branches (See Branches, State member banks.)
Capital (See National banks, Capital require
ments; State member banks, Capital require
ments.)
Clayton Antitrust A ct, applicability of (See
Clayton Act.)
Collections for, by Federal Reserve banks (See
Collections by Federal Reserve banks.)
Condition reports o f ......................................................
Definition...........................................................................
Deposits (See Deposits; Interest on deposits;
JO
1(a)
\P
He)
Reserves of member banks.)
Directors:
Interlocking directorates with other banks
(See Clayton Act.)
Securities dealers, relations with (See Se
curities dealers, relations of member
banks with.)
Discounts by Federal Reserve banks for (See
Discounts by Federal Reserve banks.)
Dollar exchange acceptances (See Dollar ex
change acceptances.)
Executive officers, loans to (See Executive offi
cers of member banks, loans to.)
Federal Reserve bank stock, subscription to
(See Stock, Federal Reserve banks.)
Forfeiture of membership (See State member
banks, Forfeiture of membership.)
Holding company affiliates (See Holding com
pany affiliates.)
Insolvency; cancellation of Federal Reserve
bank stock u p o n ........................................................
Interest on deposits (/See Interest on deposits.)
Liquidation of, as requiring surrender of Fed
eral Reserve bank stock..........................................
Loans:
Deficiencies in reserves as precluding new . .
Real estate, recommendations by Board of
Governors as to minimum standards fo r.
Membership in Federal Reserve System (See
State member banks, Membership in Federal
Reserve System.)
Real estate loans by, recommendations of Board
of Governors as to minimum standards f o r . .
Reserves (See Reserves of member banks.)
Securities dealers, relations with (See Securities
dealers, relations of member banks with.)
I
6
I
7
D
4
A
Appendix
A
Appendix
49
INDEX TO REGULATIONS
Regu
lation
Section
M ember banks (continued):
Speculative use of credit by, to be considered by
Federal Reserve bank in making discounts for
Trust powers (See State member banks, Trust
business; Trust powers of national banks.)
Voluntary liquidation of, as requiring cancella
tion of Federal Reserve bank stock...................
W arrants indorsed by, purchase by Federal R e
serve b a n k .....................................................................
A
3(c)
I
7
E
V (d)
L
H
H
3(a)*
1(a)
1(a)
G
E
1
I -V II I
H
4(b)
H
L
2(a)
2(d)(7)
I
H
4
K b)
H
4(b)
I
Q
4
2(b)(1)
F
8
H
2(a)(3)
H
H
H
F
F
D
L
2(a)(3)
2(a)(3)
2(a)(3)
2(a)
5
3(d )(1)
1
I
8
Minimum capital {See Capital requirements.)
Morris Plan banks:
Clayton Antitrust Act, applicability o f ................
Membership in Federal Reserve S ystem ..............
State banks, as constituting.......................................
Municipalities, purchase of warrants of, by Federal
Reserve banks {See Open market operations of
Federal Reserve banks, Bonds and warrants, pur
chase of.)
Municipal warrants:
Collection by Federal Reserve ban ks....................
Purchase by Federal Reserve banks......................
Mutual savings banks:
Applications for stock in Federal Reserve ban ks.
Capital requirements for membership in Federal
Reserve S ystem ...........................................................
Clayton Antitrust Act, excepted from ......... ...... .
Decrease of deposits, cancellation of Federal
Reserve bank stock u p o n .......................................
Definition, within meaning of Regulation H . . . .
Deposits with Federal Reserve bank in lieu of
subscription to stock ................................................
Increase of deposits, application for additional
Federal Reserve bank stock u p o n ......................
Interest on deposits o f .................................................
N
National banks:
Acceptances {See Bankers’ acceptances.)
Affiliates {See Affiliates.)
Audit of trust departm ent..........................................
Branches {See Branches.)
Capital requirements:
Banks in cities between 6,000 and 50,000
population. . . : .....................................................
Banks in cities o f more than 50,000 popula
tion .........................................................................
M inim um for organization................................
Population as affecting.......................................
Trust pow ers...........................................................
Change of name, effect on trust pow ers...............
Charter, forfeiture of, for deficiencies in reserves.
Clayton A ct, applicability o f .....................................
Collection for, b y Federal Reserve banks {See
Collections by Federal Reserve banks.)
Common trust funds {See Trust powers of na
tional banks, Com m on trust funds.)
Conservator, cancellation of Federal Reserve
bank stock upon appointment o f ........................
* Last print of Regulation L does not include provision referred to, which was incorporated in the
regulation by an amendment of November 7, 1938, and further amended August 1, 1939, and Feb
ruary 1, 1940.
50
INDEX TO REGULATIONS
National banks (continued):
Consolidation:
Federal Reserve bank stock, effect upon
holdings o f ...........................................................
Trust powers, effect upon (See Trust powers
of national banks, Consolidation of
banks.)
Conversion, State bank into, application for
trust powers u pon ......................................................
Directors (See Directors,, National banks.)
Discontinuance of banking operations, appoint
ment of receiver u p on.........................................
Examination of trust department, reports o f . . .
Federal Reserve bank stock; subscription t o . . .
Fiduciary powers (See Trust powers of national
Regulation
Section
I
5
F
1
I
F
I
8
8
D
3(d )(1)
O
6(b)
O
6(b)
F
15(a)
F
15(b)
I
8
I
1
F
15(b)
A
2(d)(5)
A
A
1 (a )(1 ), 1(d)
1(a)(1), 1(d)
A
1(a)(1)
A
1(c)
A
1(a)(1)
A
1(b)
A
4
T
5(a )(2), 5(b)
1
banks.)
Forfeiture of charter for deficiencies in reserves.
Forfeiture of franchise for violation of provisions
relating to loans to executive officers..............
Franchise, forfeiture of, for unlawful loans to
executive officers........................................................
Holding company affiliates (See Holding com
pany affiliates.)
Insolvency, action to be taken concerning trusts
u p on .................................................................................
Investment of trust funds (See Trust powers of
national banks, Investment of trust funds.)
Liquidation, action to be taken concerning
trusts u p on ..........................................................
M inimum capital (See National banks, Capital
requirements.)
Officers and employees (See Officers and em
ployees, National banks.)
Receiver, appointment of, upon discontinuance
of banking operations...............................................
Reserves (See Reserves of member banks.)
Subscription to Federal Reserve bank stock
upon organization......................................................
Surrender of trust powers (See Trust powers of
national banks, Surrender of.)
Trust powers (See Trust powers of national
banks.)
Voluntary liquidation, action to be taken con
cerning trusts u p on ...................................................
National Housing Act, obligations insured under, as
security for advances by Federal Reserve banks.
Negotiability:
Agricultural paper discounted by Federal R e
serve banks...................................................................
Eligibility of paper for discount, as affecting. .
Commercial paper discounted by Federal R e
serve banks...................................................................
Construction paper discounted by Federal R e
serve banks...................................................................
Industrial paper discounted by Federal Reserve
banks.....................................................................
Sight drafts discounted by Federal Reserve
banks...............................................................................
Nonmember banks:
Advances by Federal Reserve banks to member
•banks on security of assets acquired f r o m . . . .
Agreement by, to qualify as bank from which
broker or dealer may borrow................................
INDEX TO REGULATIONS
Regu
lation
Section
Nonmember banks (continued):
Application for Federal Reserve bank stock. . . .
Application for membership......................................
Balance to be maintained with Federal Reserve
banks to offset items in transit............................
Borrowings by brokers or dealers fro m .................
Clayton A ct, applicability of, to private bankers
serving..........................................................................
Collection of checks by Federal Reserve banks
f o r .....................................................................................
Definition, within meaning of Regulation P . . . .
Discount for Federal Intermediate Credit banks
of paper indorsed b y .............................., ................
Federal Reserve bank stock, application for,
upon conversion into national bank..................
Federal Reserve bank stock, application for,
upon conversion into member bank...................
Rediscount for member banks of paper acquired
from .......................................................................................
1, 2
I
H
4
J
T
5(a )(2), 5(b)
L
3(d )(1)
J
P
1 -3
1(f)
A
5(b)
I
1
I
2
1, 2
I
4
A
5(a)
Notes:
Discount by Federal Reserve bank (See Dis
counts by Federal Reserve bank.)
Federal Intermediate Credit banks, discount of
notes payable t o ...............................................................
Fifteen-day promissory notes of member banks,
advances by Federal Reserve banks o n .........
Foreign banking corporations........................................
Four-month promissory notes of member banks,
advances by Federal Reserve banks o n .........
N inety-day notes of member banks, advances by
Federal Reserve banks o n ...........................................
United States:
Advances b y Federal Reserve banks o n . . .
Discount of paper drawn for trading in. . . .
Trust funds used by national bank in
business, as collateral fo r....................................
A
2(b)
K XI
A
2(c)
A
2(a)
2(b), 2(d)(1)
1(a)(1), 1(a)(3)
A
A
F
9 (b ) 0
o
Odd-lot transaction:
Exemption from Regulation U .................................
Special miscellaneous accounts for..........................
U
T
2(k)
4(f)(2)
N
III
O
O
1(b)
Officers and employees:
Federal Reserve banks, negotiations by, with
foreign ban ks...............................................................
Interlocking (See Clayton Act.)
M em ber banks:
Cashier as “ executive officer” ..........................
President as “ executive officer” .....................
Removal from office............................................
Salary, advances against....................................
Secretary as “ executive officer” ......................
Treasurer as “ executive officer” .....................
Trust officer as “ executive officer” ................
Vice President as “ executive officer” ...........
National banks:
Bonds of trust department officers and em
ployees...................................................................
Co-fiduciaries, compensation for acting a s .
Custody of trust securities and investm ents.
Obligations and property of, investment of
trust funds in .....................................................
o
o
o
o
o
o
1(b)
6(a)
1(c)(4)
1(b)
1(b)
1(b)
K b)
F
F
F
6(d ), 12
14(b)
F
11(a)
12
52
INDEX TO REGULATIONS
Regu
Officers and employees (continued):
lation
National banks (continued):
Qualifications of trust department officers.
F
Sale or transfer of trust assets t o ...................
F
Trust department, executive officers in
charge o f ...............................................................
F
F
Trust officers, bonds o f .......................................
Securities dealers, service with (See Securities
dealers, relations of m em ber banks with.)
State member banks (See Officers and em
ployees, M ember banks.)
Omnibus accounts (See Margin requirements for
brokers and dealers, Special omnibus accounts.)
One borrower:
Acceptances of, limitations upon rediscounts by
A
Federal Reserve banks o f .......................................
Discounts for, limitations o n .....................................
A
Foreign banking corporations:
K
Acceptances by, for..............................................
K
Limitations on total liabilities t o ...................
Open market operations of Federal Reserve banks:
Bankers’ acceptances, purchase o f :
Acceptance by drawee prior to purchase,
B
necessity fo r........................................................
Eligibility:
Financial statement as necessary t o . .
B
Requirements for.........................................
B
Financial statement to accom pany...............
B
Importation or exportation of goods, m a
B
turity of acceptance growing out o f .........
B
Indorsem ent............................................................
Information regarding underlying transac
tion .........................................................................
B
B
M aturity required for.........................................
B
Security fo r..............................................................
Shipping documents or warehouse receipts
B
as security fo r ....................................................
Statement of financial condition of acceptor
B
to accom pany.....................................................
Storage of goods, acceptances growing out
B
o f .............................................................................
Bills of exchange, purchase o f :
Acceptance by drawee prior to purchase,
B
necessity fo r........................................................
Eligibility:
B
Financial statement as necessary t o . . .
B
Requirements fo r.........................................
B
Financial statement to be furnished w ith . .
B
Indorsement............................................................
B
Security fo r ..............................................................
Shipping documents or warehouse receipts
B
as security fo r ....................................................
Statement as to financial condition of par
B
ties t o .....................................................................
Bonds and warrants, purchase o f :
Aggregate amount of warrants to be pur
E
chased. limitation o n .......................................
Am ount of warrants to be held by Federal
E
Reserve bank, limitations o n .......................
Assumption of warrants by consolidating
E
municipality as affecting eligibility............
Consolidation of municipalities as affecting
E
requirements for “ existence” .......................
Section
2(f)
11(b)
6(d)
6(d ), 12
6(b)
l(i)
X III
XV
11(a)(1)
I II
II
I II
11(b)
11(a), III
I II
11(b)
11(a)(2)
11(a)(2)
I II
11(c)
11(a)(1)
III
II
III
11(a), III
11(a)(2)
11(a)(2)
III
V (b )
V
IV
IV
53
INDEX TO REGULATIONS
Regu
lation
Open market operations of Federal Reserve banks
(continued):
Bonds and warrants, purchase of (continued):
Counsel’s opinion as to legality of munici
pal issues..............................................................
D ate of payment of taxes as affecting
eligibility..............................................................
Default b y municipality within ten years
prior to purchase as affecting eligibility. .
“ Existence” of municipality for ten year
period as necessity to eligibility.................
General obligations of municipality, re
quirement that warrants b e .........................
Legality of municipal issues, opinion of
counsel as t o .......................................................
Limitations as to holding of warrants by
Federal Reserve banks...................................
“ Local benefit” taxes, warrants payable
from ........................................................................
M ember banks, warrants indorsed b y .........
“ Municipality” , within meaning of pro
visions relating t o .............................................
“ Non-default” of municipality as prerequi
site to eligibility of warrants.......................
“ N et funded indebtedness” , meaning of,
within provisions relating t o ........................
One municipality, limitations upon amount
of warrants to be purchased fro m .............
Population of municipality as affecting
eligibility of warrants.....................................
Requirements fo r ............................. ....................
Revenue, warrants issued in anticipation of
Small municipalities, approval of Board of
Governors necessary for purchase of
warrants o f ..........................................................
“ Special assessment” taxes, warrants pay
able fr o m ..............................................................
T ax warrants, eligibility o f ...............................
“ W arrant” , meaning o f ......................................
Trade acceptances, purchase o f ...............................
Overdrafts by executive officers of m em ber b a n k . . . .
Section
E
V II
E
111(b)
E
III(c)
E
III(c ), IV
E
III(a)
E
V II
E
V
E
E
111(a)
V (d)
E
II
E
III(c ), IV
E
II
E
V (c ,
E
E
E
V(c'), V I
III
111(b)
E
VI
E
E
E
B
O
III(a)
111(b)
II
I -I I I
1(c)(1)
Par collection of checks.................................................
Penalties:
J
3
Executive officers, unlawful loans t o .....................
Reserves of member banks, deficiencies i n ..........
Permits (See Board of Governors, Permits, issuance
of.)
0
D
6
3(b)
Postal savings deposits, rate of interest on ..................
Private bankers:
Q
Supp.
L
L
L
1(b), 2(e), 3(d)
1(b) (note)
3(d)
A
2(b)
A
2(c)
A
H
2(a)
9(b)
P
Clayton Antitrust A ct, application t o ...................
Definition...........................................................................
Service of banking associations, when permitted
Promissory notes:
Fifteen-day notes of member banks, advances on
Four-month notes of member banks, advances
o n ......................................................................................
Ninety-day notes of member banks, advances
o n ......................................................................................
Publication of reports of affiliates................................
54
INDEX TO REGULATIONS
Publication of reports of member banks .......................
Purchasing or carrying securities, loans for, (See
Margin requirements for banks; Margin require
ments for brokers and dealers.)
Regu
lation
H
9(a)
S
A
IV (a)
1(h)
H
6(a)
A
Appendix
H
6(a)
F
10(c)
I
8
Section
Q
Qualifications of industrial advisory committees ........
Quick assets, excess of, over current liabilities...........
R
Real estate loans:
Securities representing, restrictions on issue and
sale o f ..............................................................................
Standards for, recommendations of Board of
Governors regarding.................................................
State member banks, restrictions on issue or
sale of securities representing...............................
Trust funds held by national banks invested in
participations...............................................................
Receivers of national banks, appointment upon dis
continuance of banking operations..........................
Rediscounts (See Discounts by Federal Reserve
banks.)
Regulations of Board of Governors:
Advances by Federal Reserve banks to member
banks (See Advances by Federal Reserve
banks to member banks.)
Bankers’ acceptances by member banks (See
Bankers’ acceptances.)
Branches of State member banks (See Branches,
State member banks.)
Cancellation of old and issuance of new Federal
Reserve bank stock certificates (See Stock,
Federal Reserve banks.)
Clayton Antitrust A ct, under (See Clayton Act.)
Collections by Federal Reserve banks (See Col
lections by Federal Reserve banks.)
Common trust funds (See Trust powers of na
tional banks, Com m on trust funds.)
Discounts by Federal Reserve banks (See Dis
counts by Federal Reserve banks.)
Dollar exchange acceptances (See Dollar ex
change acceptances.)
Executive officers of member banks, loans to
(See Executive officers of member banks,
loans to.)
Fiduciary powers of national banks (See Trust
powers of national banks.)
Foreign banking corporations (See Foreign
banking corporations.)
Foreign banks, relations of Federal Reserve
banks with (See Federal Reserve banks, For
eign banks, relations with.)
Foreign branches of national banks, suspension
o f .................................................................... ..................
Holding company affiliates (See Holding com
pany affiliates.)
Increase or decrease of stock of Federal Reserve
banks (See Stock, Federal Reserve banks.)
Industrial loans to provide working capital (See
Industrial loans.)
M
INDEX TO REGULATIONS
55
Regu
lation
Regulations of Board of Governors (continued):
Interlocking directorates between banks (See
Clayton Act.)
Interlocking directorates between member banks
and dealers in securities (S e e Securities deal
ers, relations of member banks with.)
Margin requirements for banks (S e e Margin re
quirements for banks.)
Margin requirements for brokers and dealers
(S e e Margin requirements for brokers and
dealers.;
Membership of State banks and trust companies
in Federal Reserve System (S ee State member
banks, Membership in Federal Reserve Sys
tem.)
Noncash items, collection of (S ee Collections by
Federal Reserve banks, Noncash items.)
Open market operations of Federal Reserve
banks (S e e Open market operations of Federal
Reserve banks.)
Par clearance (S e e Collections by Federal Re
serve banks.)
Regulation A (See Advances by Federal Reserve
banks to member banks; Discounts by Fed
eral Reserve banks.)
Regulation B (See Open market operations of
Federal Reserve banks.)
Regulation C (See Bankers’ acceptances; Dollar
exchange acceptances.)
Regulation D (See Reserves of member banks.)
Regulation E (See Open market operations of
Federal Reserve banks, Bonds and warrants,
purchase of.)
Regulation F (See Trust powers of national
banks.)
Regulation G (See Collections by Federal Re
serve banks, Noncash items.)
Regulation H (See State member banks, M em
bership in Federal Reserve System; Branches,
State member banks; Reports, State member
banks.)
Regulation I (See Stock, Federal Reserve banks.)
Regulation J (See Collections by Federal R e
serve banks.)
Regulation K
(See Foreign banking corpora
tions.)
Regulation L
Regulation M
Regulation N
eign banks,
Regulation O
(See Clayton Act.)
...................................................................
(See Federal Reserve banks, For
relations with.)
(See Executive officers of member
banks, loans to.)
Regulation P (See Affiliates; Holding company
affiliates.)
Regulation Q (S e e Interest on deposits.)
Regulation R (See Securities dealers, relations
of member banks with.)
Regulation S (See Industrial loans.)
Regulation T (See Margin requirements for
brokers and dealers.)
(See Margin requirements for
banks.)
Regulation U
M
Section
56
INDEX TO REGULATIONS
Regu
lation
Regulations of Board of Governors (continued):
Reports of member banks and affiliates (S e e R e
ports, State member banks.)
Reserves of member banks (S e e Reserves of
member banks.)
Securities companies, interlocking directorates
with member banks (S ee Securities dealers,
relations of m em ber banks with.)
Trust powers of national banks (S e e Trust pow
ers of national banks.)
Voting permits (S e e Holding company affiliates,
Voting permits.)
Warrants, purchase of (S ee Open market opera
tions of Federal Reserve banks, Bonds and
warrants, purchase of.)
W orking capital loans for established industrial
or commercial businesses (S e e Industrial loans.)
Removal of branch of State member ban k ..................
Reports:
Affiliates of State member banks, publication of
Brokers or dealers...........................................................
Clayton Antitrust A ct, violations o f ......................
Condition...........................................................................
“ Creditors” under Regulation T .............................
Executive officers of member banks, indebted
ness to other banks...................................................
Extension of time for reports of affiliates of
State member ban ks.................................................
Federal Reserve banks, of industrial loan s............
Foreign banking corporations...................................
Foreign banks, conferences and negotiations by
Federal Reserve banks w ith .................................
Foreign branches, of national banks suspension of
Indebtedness of executive officers..........................
Industrial loans b y Federal Reserve banks, to
Board of Governors..................................................
National banks, examination of trust depart
ments o f .........................................................................
Negotiations and transactions between Federal
Reserve banks and foreign banks.......................
Publication........................................................................
State member banks:
Affiliates o f ...............................................................
Condition.................................................................
Forms to be used...................................................
“ Newspaper,” meaning of, with respect to
publication...........................................................
Publication................................ ..............................
Trust departments of national banks, examina
tion o f .............................................................................
Violations of Clayton Antitrust A c t ......................
Reserves:
Federal Reserve banks, of, as affecting dis
counts for Federal Intermediate Credit banks.
Foreign banking corporations:
Acceptances, against............................................
Deposits, against...................................................
Holding company affiliates.........................................
M ember banks (S e e Reserves of mem ber banks.)
Section
H
8(b)
H
T
L
H
T
9(b)
7(d)
4(b)
9
7(d)
0
5
H
S
K
9(b)
V II
XVI
N
M
0
III
5
S
V II
F
8
N
H
III
9
H
H
H
9(b)
9(a)
9(a)
H
H
9(a)
9(a)
F
L
8
4(b)
A
5(b)
K
K
P
X III
X IV *
7
* Last print of Regulation K does not include provision referred to, which was incorporated in the.
regulation by an amendment of September 1, 1937,
57
INDEX TO REGULATIONS
Regu
lation
Reserves of m em ber banks:
Am ount to be m aintained..........................................
Board of Governors, amount prescribed b y ..........
Cash items in process of collection (See R eserves
of m em ber banks, Deductions in computing.)
Cash items forwarded to Reserve bank for col
lection and credit, when to be counted as part
o f .......................................................................................
Central reserve cities:
Amounts to be maintained by banks i n . . .
Deficiencies in reserves of banks in outlying
sections o f ............................................................
Change of requirements b y Board of Governors
Christmas Club accounts............................................
Computation (see also Reserves of m em ber
banks, Deductions in com puting)........................
Continuance of “ time deposit” status although
payable within 30 d a y s ............................ ..............
Deductions in computing:
Balances due from other banks.......................
“ Banks,” what constitute in determ ining...
Cash items in process of collection:
Checks in process of collection as con
stituting .......................................................
Deduction from gross demand deposits
Government checks and warrants as. .
M eaning o f .....................................................
Non-cash items as not con stitu tin g.. . .
Checks in process of collection........................
“ Due from” balances:
Deduction from gross demand deposits
Federal Reserve banks, amounts due
from, as not constituting.....................
Foreign banks, amounts due from, as
not constituting.......................................
Private banks, amounts due from as
not constituting.......................................
Trust funds deposited with other
banks as not constituting....................
Unincorporated banks, amounts due
from as not constituting.......................
Government checks and warrants as cash
items in process of collection.......................
Gross demand deposits:
Cash items in process of collection to
be deducted fro m ....................................
Definition o f ..................................................
“ Due from ” items to be deducted from
N et demand deposits, meaning o f ...................
Deficiencies in:
Basis of com putation..........................................
Branch cities, balances of member banks, in
Computation o f ......................................................
Continuation, effect o f ........................................
Dividends, payment by member banks pro
hibited during period o f ............................
Forfeiture of charter of national bank for
continued.............................................................
Forfeiture of membership of State member
bank for continued..........................................
Loans during period of, prohibited...............
Notice to directors of banks having.............
D
D
Section
2(a), Supp.
2(a), Supp.
D
2(c)
D
2(a), Supp.
D
D
D
3(a)(1)
2(a)
1(d) (note)
D
2(b)
D
2(e)
D
D
2(b)
2(b)
D
D
D
D
D
D
1(g)(1)
2(b)
1(g)(2)
1(g)
1(g)
l(g)d)
D
2(b)
D
2(b)
D
2(b)
D
2(b)
D
2(b)
D
2(b)
D
1(g)(2)
D
D
D
D
2(b)
1(f)
2(b)
1(h)
D
D
D
D
3(a)
3(a)(1)
3(a)
3(d)
D
4
D
3(d )(1)
D
D
D
3(d )(2)
4
3(c)
58
INDEX TO REGULATIONS
Regu
lation
Reserves of m em ber banks: (continued)
Deficiencies in (continued):
Penalties fo r............................................................
Period used as basis for com putation..........
R ate of assessment of penalties fo r ...............
Reserve bank cities, balances of member
banks i n ................................................................
Reserve cities, balances of member banks
i n .............................................................................
Demand deposits:
Am ount to be maintained against.................
Definition.................................................................
“ Gross demand deposits,” meaning o f .........
“ D ue from” balances (See Reserves of m em ber
banks, Deductions in computing.)
Forfeiture of membership of State member
banks for deficiencies in ..........................................
Gross demand deposits, definition..........................
Injurious credit expansion or contraction, change
of reserve requirements to prevent....................
N et demand deposits, meaning o f ...........................
Notice to member banks of deficiencies i n .............
Outlying districts of reserve and central reserve
cities, banks in ............................................................
Penalties for deficiencies i n ........................................
Reserve cities:
Am ount to be maintained by banks in . . . .
Deficiencies of banks in, computation o f . . . .
Savings deposits:
Definition..................................................................
Depositors who may h av e .................................
Notice of withdrawal..........................................
Presentation of pass book, manner of mak
in g ...........................................................................
Tim e deposits, as constituting........................
Withdrawals of (see also Deposits, Savings
deposits)...............................................................
Time certificates of deposit:
Definition..................................................................
M aturity or period of notice required............
Notice in writing before repaym ent..............
Presentation and surrender of instrument
upon repaym ent................................................
Reservation of right to require notice of
withdrawal, effect o f ........................................
Tim e deposits, as constituting........................
Tim e deposits:
Amount to be maintained against.................
Continuance of “ time deposit” status, al
though payable within 30 d a y s..................
Definition..................................................................
Demand deposit, as becoming, after m a
tu rity......................................................................
Savings deposits as constituting.....................
Tim e certificates of deposit, as including----Time deposits ,open account:
Definition..................................................................
M aturity or period of notice required.........
Tim e deposits, as constituting........................
W ith d raw al..............................................................
Trust funds, when required against.......................
Vacation club accounts................................................
Section
D
D
D
3(b)
3(a)
3 (b )(2)
D
3(a)(1)
D
3(a)(1)
D'
D
D
2(a), Supp.
1(a)
1(f)
D
D
3(d )(2)
1(f)
D
D
D
2(a)
1(h)
3(c)
D
D
2(a), Supp.
3(b)
D
D
2(a), Supp.
3(a)
D
D
D
1 (e)
1(e)
1(e)
D
D
1(e)
1(b)
D
1 (e)
D
D
D
1 (c)
1 (c)
1(c)(3)
D
1 (c) (4)
D
D
1(c)(3)
1(b)
D
2(a), Supp.
D
D
2(e)
1(b)
D
D
D
2(e)
1(b)
1(b)
D
D
D
D
D
D
1(d)
1(d)
1(b)
1(d)
2(d)
1(d) (note)
59
INDEX TO REGULATIONS
Regu
lation
Section
Revenue warrants, purchase by Federal Reserve
bank (See Open market operation of Federal R e
serve banks, Bonds and warrants, purchase of.)
Savings deposits (See Deposits; Interest on de
posits; Reserves of member banks.)
Seasonal agencies of State member banks................
Securities:
Dealers (See Securities dealers, relations of
member banks with.)
Exempted (See Margin requirements for brok
ers and dealers, Exempted securities.)
Investment (See Investment securities.)
H
8(b)
R
R
R
2
1
1
R
1
B
II
B
II
A
C
1(c)
I II
K
X I (a) (3)
C
I
B
11(a)(2)
B
11(a)(2)
A
6(b)
Loans for purpose of purchasing or carrying
(See Margin requirements for banks; Margin
requirements for brokers and dealers.)
Registered on national securities exchange (See
Margin requirements for banks; Margin re
quirements for brokers and dealers, Regis
tered securities.)
Securities dealers, relations of member banks with:
Exception from prohibitions of organizations
dealing only in certain governmental obliga
tions .................................................................................
Persons to whom prohibitions are not applicable
Prohibition against, statement o f ............................
Public sale or distribution of securities, organiza
tions primarily engaged in issue, flotation, or
underwriting o f ...........................................................
Security for:
Advances by Federal Reserve banks to member
banks (See Advances by Federal Reserve
banks to member banks, Collateral security.)
Bankers’ acceptances purchased by Federal R e
serve b a n k .....................................................................
Bills of exchange purchased by Federal Reserve
b a n k .................................................................................
Construction paper discounted by Federal R e
serve banks............................................................ ..
Dollar exchange acceptances.....................................
Foreign banking corporations, obligations is
sued b y ...........................................................................
Shipping documents:
Attachment o f ..................................................................
Bankers’ acceptances purchased by Federal R e
serve banks, as security fo r...................................
Bills of exchange purchased by Federal Reserve
banks, as security fo r ...............................................
Domestic shipments, as security for acceptances
against............................................................................
Short sales of securities (See Margin requirements
for brokers and dealers, Short sales.)
Sight drafts, discount o f ................................................
Speculative use of credit by member banks, effect
upon discount privileges............................................
State member banks (see also M ember banks):
Acceptances b y (see also Bankers’ acceptances)
Affiliates (See Affiliates.)
Agencies, seasonal..........................................................
A
K b)
A
3(c)
C
I -I V
H
8(b)
60
INDEX TO REGULATIONS
Regu
lation
State member banks (continued):
Application for membership:
Am ount of Federal Reserve bank stock to
be applied fo r.....................................................
A pproval...................................................................
Capital structure and future earnings pros
pects to be considered....................................
Corporate powers to be considered...............
Execution and filing.............................................
Financial history and condition to be con
sidered ...................................................................
Forms to be used in m akin g............................
Holding company affiliates, requirements
concerning organizations which will be
come .......................................................................
Managem ent, character of, to be considered
in passing u p o n .'...............................................
M atters to be considered by Board in pass
ing u p o n ...............................................................
M utual savings ban ks.........................................
Needs of community to be served to be con
sidered.............................................. ; ..................
Procedure after approval o f ..............................
State banks other than mutual savings
banks, b y .............................................................
Branches (See Branches, State member banks.)
Capital requirements:
Am ount of unimpaired capital required for
membership........................'...............................
Bank in city of less than 3,000 population
Bank organized prior to June 16, 1933, with
capital of not less than $ 2 5 ,0 0 0 .................
Branches, operation o f ........................................
Capital notes and debentures as “ capital” .
Foreign branches...................................................
Impairment of capital, determination o f . . .
Increase of, when required................................
Institutions required to become member
banks in order to obtain insurance of de
posits ......................................................................
Insurance of deposits, eligibility for, as af
fecting....................................................................
M utual savings banks.........................................
Population of place of location as affecting.
Reduction of capital, when perm itted.........
Change of name as requiring issuance of new
stock certificates.........................................................
Character of business, permission of Board of
Governors for change o f ..........................................
Charter and statutory rights, retention o f ..........
Collections by Federal Reserve banks for (See
Collections by Federal Reserve banks.
Condition reports o f ......................................................
Conditions of membership:
Adequacy of capital and surplus in relation
to assets and deposit liabilities...................
Affiliates, investment of trust funds in ob
ligations or property o f ..................................
Character of business, change o f ....................
Collective investment of trust funds, when
perm itted.............................................................
Section
H
II
4(a ), 4(b)
5
H
H
H
5(a)(2)
5(a)(4)
4(d)
H
H
5(a)(1)
4
P
3, 4
H
5(a)(1)
H
H
5(a)
4 (b ), 4(c)
H
H
5(a)(3)
5(b)
H
4(a)
H
H
2(a)(1)
' 2 ( a) ( 1)
H
H
H
H
H
H
2(a)(1)
8(b)
1(f)
8(d ), 8(e)
2(a)(1)
6(a)(2) (note)
H
2 (a )(1 )(C )
H
H
H
H
2(a)(1)
2 (a ;(2 )
2(a)
6(a)(2)
I
11
H
H
6(a)(1)
7(a)
H
9(a)
H
6(a)(2)
H
H
6(b)(4)
6(a)(1)
H
6(b)(5)
61
INDEX TO REGULATIONS
Regu
lation
Section
State member banks (continued):
Conditions of membership (continued):
Compliance w ith ....................................................
Corporate powers, change of scope o f ..........
General conditions................................................
Investment of trust funds, restrictions upon
Merger or consolidation as causing change
in character of assets or scope of functions
Participations in securities representing real
estate loans..........................................................
Permission of Board of Governors for
change in character of business or scope
of corporate powers.........................................
Real estate loans, restriction against selling
or issuing evidences of indebtedness rep
resenting...............................................................
Reduction of capital without permission of
Board of Governors.........................................
Segregation of trust assets..................................
Safety of depositors, conduct of business
with regard t o ....................................................
Statement o f ............................................................
Trust powers, conditions applicable to in
stitutions exercising (see also State mem
ber banks, Trust business)..........................
Consolidation of, as affecting holdings of Federal
Reserve bank stock...................................................
Corporate powers, change in scope of, permission
of Board of Governors fo r ......................................
Directors:
Interlocking directorates with other banks
H
H
H
H
7(c)
6(a)(1)
6(a)
6(b)
H
6(a)(1)
H
6(a)(3)
H
6(a)(1)
H
6(a)(3)
H
H
6(a)(2)
6(b)(5)
H
H
6(a)(1)
H
6(b)
I
5
H
6(a)(1)
H
2
H
8(d ), 8(e)
P
3
I
D
9
3(d)(2)
O
I
6(b)
9
O
6(b)
I
H
6
6
(See Clayton Act.)
Securities dealers, service of (See Securities
dealers, relations of member banks with.)
Eligibility for membership (see also State mem
ber banks, Membership in Federal Reserve
S y ste m )..........................................................................
Federal Reserve bank stock, holdings of (See
Stock, Federal Reserve banks.)
Foreign branches.............................................................
Forfeiture of membership:
Agreements from holding company affiliates,
failure to obtain, as ground fo r..................
Cessation of banking functions as ground
f o r ............................................................................
Deficiencies in reserves as ground fo r .............
Executive officers, unlawful loans to, as
ground fo r............................................................
Hearings before Board of Governors..............
Violation of provisions relating to loans to
executive officers as grounds fo r................
Holding company affiliates (See Holding com
pany affiliates.)
Insolvency as requiring cancellation of Federal
Reserve bank stock...................................................
Investment of trust funds, restrictions u p o n . . . .
Membership in Federal Reserve System :
Admission to, conditions of (See State mem
ber banks, Conditions of membership.)
Applications for (See State member banks,
Applications for membership.)
6(b)
62
INDEX TO REGULATIONS
Regu
lation
Section
State member banks (continued):
Membership in Federal Reserve System (con
tinued) :
Capital structure, adequacy o f ........................
Charter rights, retention o f ...............................
Conditions of (See State member banks,
Conditions of membership.)
Effective d ate..........................................................
Eligibility:
Morris Plan ban ks......................................
M utual savings ban ks................................
Financial history and condition......................
Forfeiture of (See State member banks,
Forfeiture of membership.)
Insurance of deposits as result o f ...................
M atters to be considered by Board of G ov
ernors in granting.............................................
M utual savings banks, application for
stock b y ................................................................
Privileges of, enjoyment o f ...............................
“ State bank” , definition within meaning of
Regulation H ......................................................
Stock subscription, time of payment o n . . . .
W ithdrawal from (See State member banks,
Withdrawal from Federal Reserve Sys
tem.)
Merger or consolidation as changing character of
assets or scope of function.....................................
“ M utual savings bank” , definition within mean
ing of Regulation H ..................................................
Powers and restrictions................................................
Privileges of membership, enjoyment o f ..............
Publication of condition reports..............................
Real estate loans, restrictions against issuing or
selling evidences o f ....................................................
Report of condition o f ..................................................
Seasonal agencies, operation o f ................................
Securities dealers, relations with (See Securities
dealers, relations of member banks with.). . . .
“ State bank” , definition within meaning of
Regulation H ..........................................................
Stock in Federal Reserve banks, payment of sub
scription t o ...............................................................
Trust business:
Collective investment of trust fu n d s.......
Conditions of membership regarding exer
cise o f .................................................................... *
Deposit of securities with trust department
upon use of trust funds in business.............
Deposit of trust funds in commercial or
savings department.....................................
Investment of trust funds, restrictions upon
Segregation of trust assets...........................
Use of trust funds in business.........................
Withdrawal from Federal Reserve System :
Abandonment of intention to withdraw. . .
Cancellation of Federal Reserve bank stock
u p o n .................................................................. .. .
Cancellation of stock and certificate of
membership...................................................
Certificate of membership, surrender o f . . . .
H
H
5(a)(2)
H
5(b)
H
H
H
1(a)
1(b), 2(a)(2)
5(a)(1)
H
3
H
5(a)
H
H
4(b)
7(b)
H
H
1(a)
5(b)
H
6(a)(1)
H
H
H
H
7
7(b)
9(a)
H
II
H
6(a)(3)
9(a)
8(b)
7(a)
1(b)
II
1(a)
H
5(b)
H
6 (b )(5)
H
H
6(b)
6(b)(6)
H
6(b)(6)
6(b)(4)
6(b)(5)
6(b)(6)
H
10(c)
I
10
H
10(c)
10(c)
H
H
H
H
63
INDEX TO REGULATIONS
ReguState member banks (continued):
lation
Withdrawal from Federal Reserve System (con
tinued) :
Effective d ate........................... ..............................
H
M ethod of effecting..............................................
II
Notice to be filed with Board of Governors.
H
Procedure..................................................................
II
Reasons for, statement o f ......................................
H
Refund of amounts due withdrawing bank.
H
Resolution of board of directors authoriz
H
ing, necessity for certified copy o f ....................
Resolution of board of directors authoriz
ing, necessity for certified copy o f ....................
H
Surrender of Federal Reserve bank stock. . .
H
W aiver of notice of intention to withdraw . .
H
W hen 6-m onths’ period of notice of with
drawal begins to ru n.......................................
H
W ithdrawal of notice of intention to with
d raw .......................................................................
H
Stock:
Capital notes and debentures as constituting.. . .
H
Certificates of (See Stock, Federal Reserve
banks.)
Common stock as included within terms “ cap
ital” and “ capital stock” ........................................
H
Federal Reserve banks:
Am ount to be applied for by State banks
applying for membership..............................
H
Applications for:
Consolidated member banks, b y ...........
I
Forms to be used..............................................
I
Increase of capital or surplus of mem
I
ber bank as requiring............................
Morris Plan ban ks................... ..................
I
M utual savings banks, b y .......................
I
M utual savings banks increasing de
posits, b y .......................... .........................
I
National banks in process of organiza
tion, b y ........................................................
I
New national banks organized by Fed
eral Deposit Insurance Corporation.
I
Nonmember State banks converting
into national banks......................................
I
Cancellation:
Applications by member banks for. . . .
I
Application for, by insolvent member
b a n k ...................................................................
I
Appointment of conservator for na
tional bank a s ................................................
I
Cessation of banking functions of
State member bank as requiring. . . .
I
Decrease of capital and surplus of
member bank, u p on ....................................
I
Discontinuance of banking operations
as requiring.....................................................
I
Insolvency of member banks as re
quiring ...............................................................
I
M utual savings banks decreasing de
posits, b y ........................, ....................... .
I
Old stock certificates.......................................
I
Voluntary liquidation of member bank
as requiring.....................................................
I
Section
10(c) (note)
10(c)
10(b)
10
10(b)
10(c)
10(b)
10(b)
10(c)
10(b)
10(c)
(note)
10(d)
1 (f)
1(f)
4(a), 4(b)
5
1, 12
3
2
2, 4
4
1
1
1
3,6
6
8
9
3
8, 9
6
4
11
7
64
INDEX TO REGULATIONS
Stock (continued):
Federal Reserve banks (continued):
Cancellation (continued):
Voluntary withdrawal from member
ship as requiring......................................
Withdrawal of State member banks
from Federal Reserve System, as re
quired f o r ....................................................
Certificate of stock:
Cancellation o f ..............................................
Change of name of bank as requiring
surrender o f ................................................
Issuance o f ......................................................
Surrender o f ....................................................
Closed banks not in liquidation........................
Conservator, national banks in hands o f . . . .
Consolidation of member banks as requiring
cancellation o f ....................................................
Decrease of capital and surplus of member
banks, cancellation u p o n ...............................
Definition, within meaning of Regulation H
Forms as part of Regulation I ........................
Hearing, closed State member bank not
in liquidation......................................................
Increase of member bank’s capital or sur
plus as requiring subscription t o ................
Insolvency of member banks as requiring
cancellation.........................................................
Liquidation, voluntary, of member bank. .
Morris Plan banks, applications by, f o r . . . .
M utual savings banks, increase or decrease
of deposits b y .....................................................
National bank discontinuing banking op
erations, cancellation of stock held b y . .. .
National banks, subscription b y ....................
Refund of cash-paid subscriptions..................
Nonmember bank converting into national
bank, subscription b y .....................................
Paym ent of subscriptions t o ............................
State banks, subscription b y ............................
Subscriptions to :
Consolidated member ba n k s...................
Increase of member bank’s capital or
surplus as requiring................................
Morris Plan banks, b y ...............................
M utual savings banks, b y .......................
M utual savings banks increasing de
posits, b y ....................................................
National banks in process of organiza
tion ................................................................
Nonmember State banks converting
into national ban ks................................
P aym en t...........................................................
State ba n k s....................................................
Surrender of, by member banks:
Closed banks not in liquidation............
Decrease of capital or surplus as re
quiring................................................ ..
Deficiencies in reserves as ground f o r . .
Regu
lation
I
Section
10
H
10(c)
I
.11
I
I
I
I
I
11
3, 11
11
8, 9
8
I
5
I
H
3
1(e)
I
12
I
9
I
3
I
I
I
6
7
2
I
4
I
I
/H
\I
8
1
10(c)
6, 7, 9, 10
I
/H
\I
I
1
5(b)
1, 3, 4
2
I
5
I
I
I
2
2
I
4
I
1
I
(H
II
JH
II
3
1
5(b)
1, 3, 4
4, 5(b)
2, 3, 4, 5
I
8, 9
I
D
3
3(d )(2)
65
INDEX TO REGULATIONS
Regu
lation
Section
Stock (continued):
Federal Reserve banks (continued):
Surrender of, by member banks (continued):
Discontinuance of banking functions
as requiring................................................
Refund of cash-paid subscriptions.........
Voluntary liquidation as requiring.. . .
W ithdrawal from membership, u p o n ..
Transfer by operation of law upon consolida
tion of member banks.....................................
Foreign banking corporations (See Foreign
banking corporations, Capital stock.)
Preferred, as included in terms “ capital” and
“ capital stock” ............................................................
{?
8, 9
10(c)
6, 7, 9, 10
7
10(c)
{?
10
I
I
5 (note)
H
1(f)
Stocks, loans for purchasing or carrying (See Margin
requirements for banks; Margin requirements for
brokers and dealers.)
Storage of staples, bankers’ acceptances against
(See Bankers’ acceptances, Storage of staples, ac
ceptances against.)
“ Subsidiary” , meaning o f .............................................
Surrender of Federal Reserve bank stock (See
Stock, Federal Reserve Banks.)
Surrender of trust powers of national banks (See
Trust powers of national banks, Surrender of.)
Suspension of foreign branches of national banks
because of disturbed condition.................................
P
1(c)
M
T
Tax warrants, purchase by Federal Reserve banks . . .
Time certificates of deposit (See Deposits; Interest
on deposits; Reserves of member banks.)
Time deposits (See Deposits; Interest on deposits;
Reserves of member banks.)
Time deposits, open account (See Deposits, Tim e de
E
I II
J
4
A
6(b)
B
B
II
II
A
A
2(b), 2(d )(1)
1(a)(1), 1(a)(3)
F
F
Q
11(c)
9
2(b)(2)
D
2(d)
F
F
6(b)
11(c)
posits, open account.)
Time schedules of Federal Reserve banks..................
Trade acceptances:
Bankers’ acceptances rediscounted b y Federal
Reserve banks, security fo r...................................
Open market purchase b y Federal Reserve
banks...............................................................................
Purchase by Federal Reserve ban ks........................
Treasury bills:
Advances by Federal Reserve banks to member
banks, security for.....................................................
Discount of paper drawn for trading i n ...............
Trust funds:
Advance of, to another tru st.....................................
Awaiting investment or distribution......................
Interest on demand deposits o f ................................
Investment (See Trust powers of national banks,
Investment of trust funds.)
Reserves against.............................................................
Trust powers of national banks:
Acceptance of trusts, approval o f ............................
Advance of trust funds to another trust..............
66
INDEX TO REGULATIONS
Regu
lation
Trust powers of national banks (continued):
Affiliates:
Investment of trust funds in stock, obligations, or property o f ........................................
Sale or transfer of trust assets t o ...................
American Bankers Association, statement of,
regarding principles of trust institutions...........
Applications for:
Change of name of b a n k ....................................
Consolidation of national banks.....................
Consolidation of State and national banks. .
Conversion of State bank into national
bank, u p on ..........................................................
Execution, manner o f ..........................................
Forms to be used in m aking............................
M atters considered in acting u p on ................
Necessity f o r ...........................................................
New national bank, b y .......................................
Audits of common trust fu n ds.................................
Audits of trust departments......................................
Bonds of officers and employees..............................
Books and records to be k e p t...................................
Capital requirements for exercise............................
Certificates issued by Board of Governors:
Change of name of bank, u pon .......................
Consolidation of national banks.....................
Surrender of trust powers.................................
Change of name of b a n k .............................................
Closing of trusts:
Approval o f .............................................................
Insolvency or liquidation of bank, upon.. .
Co-fiduciary, compensation of officer of bank
acting a s ........................................................................
Collective investments (see also Trust powers
of national banks, Common trust f unds) . . . .
Committees:
Acceptance and closing of trusts ,to approve.
Examinations and audits b y .........................
Review of actions by directors of bank. . . .
Trust investment committee (See Trust
powers of national banks, Trust invest
ment committee.)
Common trust funds:
Admission of trusts to participation i n . . . .
Allocation of income, profits, and losses,
plan of operation to cover............................
Amount of funds of individual trusts
invested in, limitations o n ............................
Approval by trust investment committee
of participation in .............................................
Assets in, as assets held by bank as fiduciary.
Assignable documents not to be issued in
connection w ith .................................................
Auditing and settlement of accounts............
Bank’s interest in ..................................................
Bank’s own funds not to be invested in . . .
Cash and readily marketable securities to
be m aintained....................................................
Cash distribution upon withdrawal of
participations.....................................................
Section
F
F
11(a)
11(b)
F
6(f), Appendix
F
F
F
5
1, 3
1 ,4
F
F
F
F
F
F
F
F
F
F
F
1
1
1
2
1, 3, 4, 5
1
17(c)(3)
8
6(d ), 12
6 (b ), 6(c), 7, 8
2(a)
F
F
F
F
5
3
16(d)
5, 16(b)
F
F
6(b)
15
F
14(b)
F
10(c), 17
F
F
F
6(b)
8
6(b)
F
17(a), 17(b), 1 7 ( c ) (1 ) ,
17(c)(4)
F
17(b), 17(c)(1)
F
17(c)(5)
F
F
17(c)(2)
17(a)
F
F
F
F
17(a)
17(c)(1), 17(c)(3 )
17(a)
17(a)
F
17(c)(5)
F
17(c)(6)
67
INDEX TO REGULATIONS
Regu
lation
Trust powers of national banks (continued):
Common trust funds (continued):
Collective investment of trust funds in,
when perm itted..........................................
F
Corporate stock, limitations upon invest
ments in ........................................................
F
Definition..........................................................
F
Directors, approval of plan of operation b y .
F
Distribution upon withdrawal of partici
pations ...................................................................
F
Expenses in connection with, reimburse
ment of bank f o r ...............................................
F
Fees for management o f .....................................
F
General investments, fo r....................................
F
Inspection of plan governing operation,
right t o ..................................................................
F
Interest of bank i n ...............................................
F
Investment powers of bank with respect to,
plan of operation to cover............................
F
Investment trusts for nonfiduciary pur
poses, Joperation a s ...........................................
F
Legal counsel, approval of plan of opera
tion b y ..................................................................
F
Limitations on amount of investments i n ..
F
Management exclusively by b a n k .................
F
M istakes in connection with administration
o f .............................................................................
F
Negotiable documents not to be issued in
connection w ith .................................................
F
Non-fiduciary purposes, operation fo r.........
F
Notice of intention to participate or with
F
draw from participation in ...........................
Notice of investment of funds in, to be sent
to person interested.........................................
F
One corporation or person, limitations upon
investment in obligations o f ........................
F
Plan for operation o f ...........................................
F
Proportionate interests of participations in
assets o f ................................................................
F
Provisions to be included in plan of opera
tio n ..........................................................................
F
Readily marketable securities and cash to
be maintained.....................................................
F
Record of contemplated participation or
withdrawal...........................................................
F
Regulations of Board of Governors, plan to
provide for operation in accordance w ith .
F
Reimbursement of bank for expenses..........
F
Report of au d it......................................................
F
Requirements to which subject.................
F
Reserve of cash and readily marketable
securities...............................................................
F
Segregation of investments withdrawn in
kind.........................................................................
F
Shares of corporate stock, limitation upon
investment in ......................................................
F
Small amounts, for investment o f ..................
F
State laws authorizing or p erm ittin g..........
F
Termination of, provisions of plan of oper
ation relating t o ................................................
F
Trust investment committee, duties in con
nection w ith ........................................................
F
Section
17(a)
17(c)(5)
17(a)
17(c)(1)
17(c)(6)
17(c)(3), 17(c)(8)
17(c)(8)
17(c)
17(c)(1)
17(a)
17(c)(1)
17(a)
17(c)(1)
17(c)(5)
17(c)(8)
17(c)(9)
17(a)
17(a)
17(c)(4)
17(c)(2)
17(c)(5)
17(c)(1)
17(c)
17(c)(1)
17(c)(5)
17(c)(4)
17(c)(1)
17(c)(8)
17(c)(3)
17
17(c)(5)
17(c)(6), 17(c)(7)
17(c)(5)
17(b)
17(a)
17(c)(1)
17(a), 17(b), 17(c)
68
INDEX TO REGULATIONS
Regu
lation
Trust powers of national banks (continued):
Common trust funds (continued):
Unlawful investment, elimination of, prior
to cash distribution.........................................
Use for other than bona fide fiduciary pur
poses ......................................................................
Valuation of assets in ..........................................
Withdrawal of participations...........................
Compensation of b a n k . . ............................................
Compensation of officer or employee of bank
acting as co-fiduciary...............................................
Condition of bank, consideration given t o ..........
Consolidation of banks:
Application for trust powers u p on .................
Certificate issued by Board of Governors
u p on .........................................................
New application to Board of Governors. . .
State bank consolidating with national
ban k .......................................................................
Succession to fiduciary powers........................
Two or more national banks............................
Conversion of State bank into national bank,
application for, u pon................................................
Correction of unsatisfactory condition..................
Court trusts, investment of funds o f .....................
Custody of trust securities and investm ents. . . .
Dealing between trusts................................................
Deposit of securities with Federal Reserve ban k .
Deposit of securities with State authorities. . . .
Directors (See Directors, National banks.)
Examinations of trust departments........................
Executive officers:
Qualifications to be considered........................
Trust department, to be in charge o f ..........
Federal Reserve banks, deposit of securities
w ith..................................................................................
Fees for acting in fiduciary capacity.....................
Fees of co-fiduciaries.....................................................
Forms of Board of Governors as part of regula
tion ...................................................................................
“ Guardian” , meaning o f ..............................................
Income from investment of trust funds, payment
to account of trusts...................................................
Insolvency of bank, action to be taken upon. . .
Investment of trust funds:
Advances to other trusts...................................
Affiliates of bank, in stock, obligations, or
property o f ..........................................................
Approval b y trust investment com m ittee..
Bank, in stock, obligations, or property of.
Collective investment (see also Trust pow
ers of national banks, Common trust
fu n d s)....................................................................
Common trust funds (See Trust powers of
national banks, Common trust funds.)
Court trusts, funds o f .........................
Directors, officers, or employees, in obliga
tions or property o f .........................................
Directors responsible fo r ....................................
Income from, payment to trust account. . .
Private trusts, funds o f ............., .......................
Prompt investment required............................
Section
F
17(c)(6)
F
F
F
F
17(a)
17(c)(1), 17(c)(3)
17(c)(1), 1 7 ( c ) (4 ) -(6 )
14(a), 17(c)(8)
F
F
14(b)
2(c)
F
1.3.4
F
F
3
3
F
F
F
1.4
3.4
1,3
F
F
F
F
F
F
F
1
8
10(b)
12
11(c)
13
13
F
8, 16(c)
F
F
2(f)
6(d)
F
F
F
13
14(a)
14(b)
F
F
18
17(a) (note)
F
F
14(a)
15(a)
F
11(c)
F
F
F
11(a)
10(a)
11(a)
F
10(c), 17
F
10(b)
F
F
F
F
F
11(a)
6(b)
14(a)
10(a)
9(a), 10(a)
69
INDEX TO REGULATIONS
Regu
lation
Trust powers of national banks (continued):
Investment of trust funds (continued):
Real estate loans, collective investment i n .
Trust investment committee, duties with
respect to (See Trust powers of national
banks, Trust investment committee.)
Joint custody of trust securities and investments.
Legal counsel...................................................... .............
Liquidation of bank, action to be taken upon. .
Litigation, record to be kept o f ...........................
M anagem ent of bank, consideration given char
acter and ability o f ...............................................
N am e of bank:
Change of, effect o f ..........................................
Surrender of trust powers, change upon. . .
Needs of community, consideration given......
Officers and employees (See Officers and em
ployees, National banks.)
Permits of Board of Governors:
Applications for (See Trust powers of na
tional banks, Applications for.)
Change of name, effect of, u p on ...........
F
Consolidation as affecting validity o f .
F
M atters to be considered in granting......
State banks consolidating with national
bank, when required u pon............................
Surrender..................................................................
Policies of trust department, directors to de
term ine...........................................................................
Practice of law, banks not to engage in ...............
Principles of trust institutions, statement re
garding...............' ...........................................................
Principles to govern operation of trust depart
m e n t................................................................................
Private trusts, investment of funds o f ...................
“ Readily marketable securities” , meaning o f. .
Records to be k e p t........................................................
Report of examinations of trust departments. .
Review of assets in fiduciary accounts..................
Sale or transfer of trust assets to bank or its
directors, officers, employees, or affiliates. . . .
Securities deposited with State authorities. . . .
Securities set aside in trust department to se
cure uninvested trust funds...................................
Segregation of trust assets..........................................
Separate trust department, necessity fo r.............
State authorities:
Deposit of securities w ith ..................................
Examination of trust department b y ...........
Statement of principles of trust institution. . . .
Substitute fiduciaries....................................................
Supervision to be given trust activities, consid
eration given................................................................
Surrender o f :
Certificate of Board of Governors certifying.
Comptroller of the Currency, duties upon .
Discharge of fiduciary duties...........................
Documents to be filed by bank.......................
Examination of trust department..................
Procedure.................................................................
Resolution of directors signifying desire f or.
Section
F
10(c) (note)
F
F
F
F
12
2(g), 6(e)
15(b)
7(b)
F
2(d)
F
F
5
16(b)
2(b)
F
5
3, 4
2
F
F
F
4
16(a)
F
F
6(b)
6(e)
F
6 (f), Appendix
F
F
F
F
F
F
6(f)
10(a)
17(c)(5) (note)
6(b)(c), 7, 8
8
6(c), 8
F
F
11 (b)
13
F
F
F
9(b)
12
6(a)
F
F
F
F
13
8
6 (f), Appendix
15
F
2(e)
F
F
F
F
F
F
F
16(d)
16(c)
16(c)
16(a)
16(c)
16
16(a)
70
INDEX TO REGULATIONS
Regu
lation
Trust powers of national banks (continued):
Surrender of (continued):
“ Trust company” , elimination of words
from title ..............................................................
Termination o f .................................................................
“ Trust” , definition o f ...................................................
Trust department:
Acceptance and closing of trusts, approval
o f .............................................................................
Audits o f ...................................................................
Books and records o f ...........................................
Committees (See Trust powers of national
banks, Committees; Trust powers of
national banks, Trust investment com
mittee.)
Directors, supervision b y ...................................
Exam inations..........................................................
Executive officers in charge o f ........................
Legal counsel required........................................
Liquidation upon voluntary liquidation of
bank.......................................................................
Policies of, determination by directors........
Principles to govern operation o f ...................
Separate from other departments, must be.
Supervision by directors....................................
Surrender of fiduciary powers, examination
u pon .......................................................................
Trust funds (See Trust funds; Trust powers of
national banks, Investment of trust funds.)
Trust investment committee:
Alternates.................................................................
A ppointm ent...........................................................
Approval of investment b y ...............................
Common trust fund, approval of participa
tions in ..................................................................
Com positions..........................................................
Court trusts, supervision o f ..............................
Minutes of meetings............................................
Qualifications of, consideration given...........
Uninvested trust funds................................................
Use of trust funds in bank’s business:
Reserves required..................................................
Securities to be deposited in trust depart
m en t.......................................................................
W hen perm itted.....................................................
Volume of trust business, consideration given. .
Voluntary liquidation of bank, actionu p on ...........
Trust receipts as security for bankers’ acceptances
rediscounted by Federal Reserve b a n k s..................
Section
F
F
F
10(b)
16
10(c)
F
F
F
6(b)
8
7(a)
F
F
F
F
6(b), 8
8, 16(c)
6(d)
6(e)
F
F
F
F
F
15(b)
6(b)
6(f)
6(a)
6(b)
F
16(c)
F
F
F
6(c) (note)
6(c)
6(c), 10(a)
F
F
F
F
F
F
17(c)(2)
6(c)
10(b)
6(c)
2(e)
9
D
2(d)
F
F
F
F
9(b)
9(b)
2(b)
15(b)
A
6(b)
U
T
2(c)
4(f)(3)
U
Underwriting or distribution of securities:
Banks, financing b y .......................................................
Brokers or dealers, financing b y ...............................
United States:
Bonds (See Bonds, United States.)
Certificates of indebtedness (See Certificates of
indebtedness of United States.)
N otes:
Advances by Federal Reserve banks to
member banks, as security fo r....................
A
2(b), 2(d )(1)
INDEX TO REGULATIONS
71
Regu
lation
Section
United States (continued):
Notes (continued):
Discount of paper drawn for trading i n . . . .
Trust funds used by national bank in own
business, as collateral fo r...............................
Obligations:
Advances by Federal Reserve banks on
security o f ............................................................
Discount of paper drawn for trading in . . .
Trust funds used by national bank in own
business, as collateral fo r ...............................
A
1(a)(1), (a)(3)
F
9(b)
A
A
2(b), 2(d)(1), 3(e)
1(a)(1), 1(a)(3)
F
9(b)
I
7
F
15(b)
V
Voluntary liquidation:
Member banks, cancellation of Federal Reserve
bank stock u p o n .........................................................
National banks, action to be taken concerning
trusts u pon....................................................................
Voting permits for holding company affiliates
Holding company affiliates, Voting permits.)
(S ee
W
Warehouse receipts:
6(b)
I
Bankers’ acceptances, as security fo r.....................
Bankers’ acceptances purchased by Federal
Reserve banks, security fo r ...................................
Bills of exchange purchased by Federal Reserve
banks, security fo r.....................................................
Warrants, purchase by Federal Reserve banks (S e e
Open market operations of Federal Reserve banks,
Bonds and warrants, purchase of.)
Working capital, loans by Federal Reserve banks to
provide (S ee Industrial loans.)
B
11(a)
B
11(a)
BOARD OF GOVERNORS
of the
FEDERAL RESERVE SYSTEM
PURCHASE OF WARRANTS
REGULATION E
This Regulation has, since July 10, 1923, been continuously
in effect in substantially the form printed herewith and is still
in effect in such form on the date o f this reprint, March 1, 1940
INQUIRIES REGARDING THIS REGULATION
Any inquiry relating to this regulation should be ad
dressed to the Federal Reserve bank of the district in
which the inquiry arises.
REGULATION E, SERIES OF 1928
(Superseding Regulation E of 1924)
PURCHASE OF W ARRAN TS
SECTION I. STATUTORY REQUIREMENTS
Section 14 of the Federal Reserve act reads in part as follow s:
E very Federal reserve bank shall have pow er—
(6 ) T o buy and sell, at home or abroad, bonds and notes o f the United
States, and bills, notes, revenue bonds, and w arrants with a m aturity from
date o f purchase o f not exceeding six m onths, issued in anticipation o f the
collection o f taxes or in anticipation o f the receipt o f assured revenues by
any State, county, district, political subdivision, or m unicipality in the con
tinental U nited States, including irriga tion , drainage and reclam ation dis
tricts, such purchases to be made in accordance with rules and regulations
prescribed by the Board o f G overnors o f the Federal Reserve System.
SECTION II. DEFINITIONS
Within the meaning of this regulation—
The term “ warrant” shall be construed to mean “ bills, notes,
revenue bonds, and warrants with a maturity from date of pur
chase o f not exceeding six months.”
The term “ municipality” shall be construed to mean “ State,
county, district, political subdivision, or municipality in the con
tinental United States, including irrigation, drainage, and re
clamation districts.”
The term “ net funded indebtedness” shall be construed to mean
the legal gross indebtedness of the municipality (including the
amount of any school district or other bonds which depend for
their redemption upon taxes levied upon property within the
municipality) less the aggregate of the following item s:
(1 ) The amount of outstanding bonds or other debt obli
gations made payable from current revenues;
(2 ) The amount o f outstanding bonds issued for the pur
pose o f providing the inhabitants of a municipality with
public utilities, such as waterworks, docks, electric plants,
transportation facilities, e tc.: Provided, That evidence is
submitted showing that the income from such utilities is
sufficient fo r maintenance, for payment of interest on such
bonds, and fo r the accumulation of a sinking fund sufficient
fo r their redemption at maturity;
(3 ) The amount of outstanding improvement bonds, is
sued under laws which provide fo r the levying o f special
3
4
R E G U L A T IO N
E
assessments against abutting property in amounts sufficient
to insure the payment of interest on the bonds and the re
demption thereof at m aturity: Provided, That such bonds
are direct obligations of the municipality and included in
the gross indebtedness of the municipality; and
(4)
The total o f ’ all sinking funds accumulated for the
redemption o f the gross indebtedness o f the municipality,
except sinking funds applicable to bonds described in (1 ),
(2 ), and (3 ) above.
SECTION III. CLASS OF WARRANTS ELIGIBLE FOR PURCHASE
Any Federal Reserve bank may purchase warrants issued by a
municipality in anticipation of the collection o f taxes or in anti
cipation o f the receipt o f assured revenues, provided—
(a) They are the general obligations of the entire munici
pality ; it being intended to exclude as ineligible for purchase
all such obligations as are payable from “ local benefit” and
“ special assessment” taxes when the municipality at large
is not directly or ultimately liable;
( b) They are issued in anticipation o f taxes or revenues
which are due and payable on or before the date of maturity
o f such w arrants; but the Board o f Governors o f the Federal
Reserve System may waive this condition in specific cases.
For the purposes o f this regulation, taxes shall be considered
as due and payable on the last day on which they may be
paid without penalty;
( c) They are issued by a municipality—
(1) Which has been in existence fo r a period of 10
years;
(2) Which fo r a period o f 10 years previous to the
purchase has not defaulted fo r longer than 15 days in
the payment o f any part of either principal or interest
o f any funded debt authorized to be contracted by it;
(3) Whose net funded indebtedness does not exceed
10 per centum of the valuation o f its taxable property,
to be ascertained by the last preceding valuation o f
property fo r the assessment o f taxes.
SECTION
IV. “ EXISTENCE” AND “ NONDEFAULT”
Warrants will be construed to comply with that part of Section
III (c) relative to term o f existence and nondefault, under the
follow ing conditions:
R E G U L A T IO N
E
5
(1 ) Warrants issued by or in behalf o f any municipality which
was, subsequent to the issuance of such warrants, consolidated
with or merged into an existing political division which meets
the requirements of these regulations, will be deemed to be the
warrants of such political division: Provided, That such war
rants were assumed by such political division under statutes and
appropriate proceedings the effect o f which is to make such war
rants general obligations o f such assuming political division and
payable, either directly or ultimately, without limitation to a
special fund from the proceeds o f taxes levied upon all the tax
able real and personal property within its territorial limits.
(2) Warrants issued by or in behalf o f any municipality which
was, subsequent to the issuance of such warrants, wholly suc
ceeded by a newly organized political division whose term o f
existence, added to that o f such original political division or of
any other political division so succeeded, is equal to a period o f 10
years will be deemed to be warrants of such succeeding political
division : Provided, That during such period none of such political
divisions shall have defaulted fo r a period exceeding 15 days in
the payment or any part o f either principal or interest of any
funded debt authorized to be contracted by it: And provided
further. That such warrants were assumed by such new political
division under statutes and appropriate proceedings the effect of
which is to make such warrants general obligations of such
assuming political division and payable, either directly or ulti
mately, without limitation to a special fund from the proceeds of
taxes levied upon all the taxable real and personal property with
in its territorial limits.
(3) Warrants issued by or in behalf o f any municipality
which, prior to such issuance, became the successor of one or
more, or was formed by the consolidation or merger of two or
more, preexisting political divisions, the term o f existence of one
or more of which, added to that of such succeeding or consoli
dated political division, is equal to a period o f 10 years, will be
deemed to be warrants of a political division which has been in
existence fo r a period of 10 years: Provided, That during such
period none o f such original, succeeding, or consolidated political
divisions shall have defaulted fo r a period exceeding 15 days in
the payment o f any part o f either principal or interest of any
funded debt authorized to be contracted by it.
SECTION V. LIM ITITIONS
(a.) Except with the approval o f the Board of Governors of
the Federal Reserve System, no Federal Reserve bank shall pur
6
R E G U L A T IO N
E
chase and hold an amount in excess of 25 per cent o f the total
amount of warrants outstanding at any time and issued in con
form ity with provisions of section 1 4 (b ), above quoted, and
actually sold by a municipality.
(b ) Except with the approval o f the Board of Governors of
the Federal Reserve System, the aggregate amount invested by
any Federal Reserve bank in warrants of all kinds shall not
exceed at the time of purchase a sum equal to 10 per cent of the
deposits kept by its member banks with such Federal Reserve
bank.
(c) Except with the approval of the Board o f Governors of
the Federal Reserve System, the maximum amount which may
be invested at the time of purchase by any Federal Reserve bank
in warrants of any single municipality shall be limited to the fo l
lowing percentages of the deposits kept in such Federal Reserve
bank by its member banks:
Five per cent of such deposits in warrants of a munici
pality of 50,000 population or o v e r;
Three per cent of such deposits in warrants of a munici
pality of over 30,000 population, but less than 50,000;
One per cent o f such deposits in warrants of a munici
pality of over 10,000 population, but less than 30,000.
( d) Any Federal Reserve bank may purchase from any of its
member banks warrants of any municipality, indorsed by such
member bank, with waiver of demand, notice, and protest if such
warrants comply with Sections III and V (b ) of these regula
tions, except that where a period of 10 years is mentioned in III
(c) hereof a period o f 5 years shall be substituted for the pur
poses o f this clause.
SECTION VI. WARRANTS OF SM ALL MUNICIPALITIES
Warrants of a municipality of 10,000 population or less shall
be purchased only with the special approval o f the Board of
Governors of the Federal Reserve System.
The population o f a municipality shall be determined by the
last Federal or State census. Where it can not be exactly de
termined the Board of Governors o f the Federal Reserve System
will make special rulings.
SECTION VII. OPINION OF COUNSEL
Opinion o f recognized counsel on municipal issues or o f the
regularly appointed counsel of the municipality as to the legality
o f the issue shall be secured and approved in each case by counsel
for the Federal Reserve bank.
@FedFRASER