View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ERAL RESERVE BANK
OF D ALLA S

Dallas, Texas, April 17, 1936

PAYMENT OF INTEREST ON TIME DEPOSITS AFTER MATURITY

To the Member Bank Addressed:

Section 3 (f) of Regulation Q, which became effective January 1, 1936,
prohibits the payment by a member bank of interest on any time deposit
after the maturity of such deposit.
I have just received a ruling from the Board of Governors of the FedĀ­
eral Reserve System to the effect that, notwithstanding the provisions of
Regulation Q referred to above, the Board will offer no objection to the
payment by a member bank of interest on a time deposit (at a rate not
exceeding the applicable maximum rate prescribed in Regulation Q) for
the period between the maturity date of the certificate representing such
deposit and the date of renewal thereof, provided such certificate is renewed
within ten days after maturity and the renewal certificate is dated back to
the date of maturity of the original certificate.
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)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102