Full text of District Notices (Federal Reserve Bank of Dallas) : Purpose Statement (Federal Reserve Form U-1), Circular No. 68-45

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F ed er a l R eser ve Ba n k

DALLAS. TEXAS

of

Dallas

75222

Circular No. 68-45
February 16,1968

PURPOSE STATEMENT (FEDERAL RESERVE FORM U -l)

To All Banks in the
Eleventh Federal Reserve D istrict:

For your initial use in connection with the requirements of
Regulation U, Credit by Banks for the Purpose of Purchasing or
Carrying Registered Stocks, as amended effective March 11,1968,
we are enclosing a supply of Form U -l, “Statem ent of Purpose
of the Proceeds of a Stock-Secured Extension o f Credit by a
Bank”.
It is expected that for your future use you will reproduce
or obtain from private printers copies of the form in exact
duplicate.
If you have any questions concerning the form, we shall be
glad to answer them.
Yours very truly,
P. E. Coldwell
President
Enclosures

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

BOARD O F GOVERNORS OF T H E F E D E R A L R E S E R V E SY STEM

ST A T E M E N T OF PU R PO SE OF T H E PR O C E E D S O F A STO CK -SECURED
E X T E N S IO N OF C R E D IT BY A BANK. (F E D E R A L R E S E R V E FORM U - l )
A FALSE OR DISHONEST STATEMENT BY THE CUSTOMER OR THE OFFICER OF THE BANK ON
THIS FORM MAY BE PUNISHABLE BY FINE OR IMPRISONMENT (U.S. CODE, TITLE 15, SECTION
78ff, AND TITLE 18, SECTION 1001).
Please p rin t or type (if space is inadequate a tta c h se p arate sh eet).

I (w e ) , __________________________________________________, have applied fo r an extension of credit from
(n a m e (s))

______ _ __________ __________ ___ __________ in the am ount of $____ ______ _____secured in whole
(n a m e of b a n k )

or in p a rt by stock as follow s:
P a r t I.

Stock Collateral

Stock
(list s e p a ra te ly by issue)

P a r t II.

N um ber of
shares

Source of valuation

10

TO B E C O M P L E T E D BY T H E B A N K
M ark et value
Source o f v a luatio n
(in $)

Rocrnlnt.inTi TT

M arket value
(in $)

S ource o f valuatio n

T o ta l :

$

*

s

Form U-l

Good fa ith
loan value
(in $)

M ark et value
(in $)

Source of v a lu a tio n

T otal:

T o tal:

$

$

Total am ount of credit g ran te d $

Exam 27 2-68

T o ta l :

M axim um loan value u n d e r

O ther Collateral

L is t c o llateral (Item ize w here
p e r c en t o r m ore)

M ark et value
(in $)

---------------------- ,

P a r t III.
1. The proceeds of th is credit a re to be used fo r _
(describe in detail)

2. I (we) have owned the stock collateral securing th is credit continuously fo r (check one)
□ six m onths or m ore
□ less th an six months.
I (W E ) H A V E REA D T H IS FORM AND H E R E B Y C E R T IF Y AND A F F IR M TH A T TO T H E B EST
OF MY (OUR) KN OW LED GE AND B E L IE F T H E S T A T E M E N T S R E Q U IR E D OF ME (U S) ARE
TR U E, A CCU RATE, AND CO M PLETE.
M anual sig n atu re of custom er ( s ) :
D A T E _________ ___________ __ ___________

(SIG N E D ) _______________________________________
( P r i n t n a m e u n d e r each sig n atu re)

(S tre et address)
(C ity, state)

P a r t IV.
TO BE COMPLETED BY BANK

1.

S tate am ount of any other credit extended to th e custom er (s) (a) secured in whole or in p a rt, di­
rectly or indirectly, by any portion of collateral listed in P a rts I and II: $___________________
and (b) unsecured credit in excess of $5,000 in the aggregate $____ _______________ ____

2.

Is the collateral listed in P a r t I to be delivered or
has the collateral been delivered from a bank,
broker, dealer, or a person other th a n the custom er ?______ _ ______A gainst paym ent ? __________

I H A V E S U P P L IE D T H E IN FO R M A TIO N R E Q U IR E D OF T H E BANK AND A C C EPT T H E
CU STO M ER’S ST A T E M E N T ON T H IS FORM IN GOOD F A IT H AS D E F IN E D BELOW .* I AM
FA M IL IA R W IT H T H E PR O V ISIO N S OF R E G U L A TIO N U.
D A T E _________________________________

(SIG N E D )

_____ ._._________ . _ ___
( P r i n t na m e and title of signing: officer u n d e r sig n atu re )

(N a m e of b ank)

* Regulation U requires th a t the custom er’s statem ent on this form be accepted by an officer of the bank acting in good faith.
Good faith requires th a t such officer (1) m ust be alert to the circumstances surrounding the credit, and (2) if he has any
inform ation which would cause a pru d en t man not to accept the statem ent w ithout inquiry, has investigated and is
satisfied th a t the statem ent is tru th fu l.

This form m ust be retained by the bank fo r a t least six years a fte r the term ination of the credit.