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FE D E R A L R ESER VE B AN K OF DALLAS Dallas, Texas. April 27, 1936 INTERPRETATION OF REGULATION U R E : TRANSFERS OF REGULATED LOANS To Bank Addressed: There has been received in this office the following ruling, issued by the Board of Governors of the Federal Reserve System, relative to certain provisions of Regulation U governing transfers of certain loans: Ruling No. 1, Interpreting Regulation U In response to an inquiry from certain banks in New York City concerning section 3 (e) of Regulation U, the Board of Gov ernors of the Federal Reserve System rules as follows:— A bank may accept the transfer of a loan from another lender, provided the loan is not increased and the collateral for the loan is not changed, even though the “maximum loan value” of the col lateral be less than the amount of the loan, but may not thereafter permit at any time withdrawals or substitutions of collateral that would increase the deficiency at such time. Yours very truly, Federal Reserve Agent This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)