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F ederal R eserve b a n k OF DALLAS Dallas, T e x a s, F e b ru a ry 27, 1951 R E G U L A T IO N X R E A L E S T A T E C R E D IT STA TEM E N T OF BORROW ER To All Persons Engaged in the Business of Extending Real Estate Credit in the Eleventh Federal Reserve District: In a circu la r dated O ctob er 17, 1950, sam ple cop ies o f S ta tem en t o f B orrow er fo rm s , d esign ed to m eet th e req u irem en ts o f R egu la tion X , w ere enclosed. Su bsequ ently, th e B oard o f G overn ors o f th e F ed era l R ese rv e S ystem am ended R egu la tion X to include cre d it exten d ed in con n ection w ith m u lti unit and n on resid en tial con stru ction . T h ese am en dm en ts becam e effectiv e J an u ary 12 and F e b ru a ry 15, 1951, resp ectiv ely . E n closed a re revised sam ple copies o f fo r m s X - l and X -2 , “ Statem en ts o f B orro w e rs,” design ed f o r use u n der R egu la tion X as am ended. T h e sh ort fo rm , X - l , m a y be used in con n ection w ith loans n o t in v olv in g real estate con stru ction cred it. F o rm X -2 m a y be used to m eet th e req u irem en ts o f S ection 4 (d ) w h ich m akes it n ecessary th a t a S tatem en t o f B o rro w e r be obtain ed w h ere real estate con stru ctio n cred it is involved. T h ese fo rm s are fu rn ish ed fo r y o u r con ven ien ce and m a y be re p ro duced to m eet y o u r needs. T h is bank does n ot m aintain a su pply o f the fo rm s f o r reg u la r use. Y ou rs v e r y truly, R. R. G IL B E R T P resid en t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) (This is merely a sample fotm which may be used if yon deiire to reproduce a supply for your own use.) STATEMENT OP BORROWER WITH RESPECT TO CREDIT WHICH IS NOT “REAL ESTATE CONSTRUCTION CREDIT” (This form may be used where the Registrant does not have other records which reasonably demonstrate on their face that the credit is not “ real estate construction credit” under Regulation X of the Board of Governors of the Federal Reserve System.1 Credit extended, insured or guaranteed by the United States or any agency thereof is not "real estate construction credit” under Regulation X.) respect to the credit in the amount o f $______________for which I am applying to_______________________________________________ . (Name of Registrant) 1 certify under the penalties of Regulation X of the Board of Governors of the Federal Reserve System that the credit is not and will not be either wholly or partly secured by, or for the purpose of purchasing or carrying, or for the purpose of financing, or one which involves the right to acquire or use, new construction2 on real property or real property on which there is new construction (or that such new construction, if any, is not a residence, multi-unit residence, or nonresidential structure,8 or a major addition or major improvement to a residence, multi-unit residence, or nonresidential structure8). (Date) (Borrower’s Signature) (Borrower’s Address) Use of this form or maintenance of other records is not necessary in connection with “ (1) . . . any extension of credit which is made by a bank, savings and loan association, or similar institution and which is to be repaid within six months and is fully secured by withdrawable shares issued by or savings accounts held with tne lender, or (2) to any extension of credit in the ordinary course of business for a commercial, agricultural, or business purpose where the'Registrant, because^ of a previous course of dealings or correspondence between himself and the borrower, has no reason to believe that the credit is or will be real estate construction credit.” U i « . .re* new construction” means any structure, or major addition or major improvement to a structure, which is or has been begun after August 3, I960, j the definition of nonresidential structure generally includes all structures other than residences, multi-unit residences, schools,, hospitals, churches, public utility or “government buildings, or structures in which more than 80 per cent of the floor space is used in manufacturing, mining, or farming. See section 2(r) of Regulation X Form Approved Budget Bureau No. 55-R181.2 Regulation X-2— Rev. 2-51 (This is merely a sam ple form w hich m ay b e used i f yon desire to reproduce a supply f o r you r ow n use.) S T A T E M E N T O F B O R R O W E R W IT H R E S P E C T TO “ R E A L E S T A T E C O N S T R U C T IO N C R E D IT ” (To be filed by the Borrower with the Registrant in connection with credits subject to Regulation X of the Board o f Governors of the Federal Reserve System) (1 ) T h e cred it in th e a m ou nt o f $ ............................................................ ...... , f o r w h ich th e b o rro w e r is a p p ly in g to (Name of Registrant) is w ith re s p e ct to n ew con stru ction ,1/ o r p rop erty on w h ich th e re is n ew co n stru ctio n ,2/ in v o lv in g : ...........................(a ) A m a jo r add ition o r m a jo r im p rovem en t to a (ch e ck o n e ) ........ re sid e n ce ; ...... ....... m u lti u n it re sid e n ce ; ...........n on -resid en tia l3/ stru ctu re. ...........................(b ) R esid ential p ro p e rty ( 1 - to 4 -fa m ily u n its ). _____ ................. (c ) M u lti-u n it residen tial p ro p e rty (m ore than 4 -fam ily u n its ). .......................... (d ) N on resid en tia l p rop erty . ........................ _.(e) A residen ce on fa r m p rop erty . VA s used here, “ new construction” means any structure, or major addition or major improvement to a structure, which is or has been begun after August 3, 1950. ^/“ Property on which there is new construction” includes a structure built before August 3, 1950, to which a major addition or major improvement has been made after August 3, 1950. 3/The definition of nonresidential structures generally includes all structures other than residences, multi-unit residences, schools, hospitals, churches, public utility or government buildings, or structures in which more than 80 per cent of the floor space is used in manufacturing, mining or farming. See section 2(r) of Regulation X for definition.2 8 7 6 5 4 3 (2 ) I f the cre d it rela tes to residen tial p ro p e rty o r m u lti-u n it residen tial p ro p e rty con ta in in g m o re th an one fa m ily unit, th e tota l n u m ber o f fa m ily u n its i s : .................... ................................................................................................................. (3 ) I f th e R e g istra n t, rely in g on in form a tio n fu rn ish e d b y th e b o rro w e r, claim s th a t th is cre d it is exem p t fro m R egu la tion X , th e reason f o r su ch exem p tion i s : ................................. ...................................................................................... N O T E : I f th e cre d it is e x em p t fr o m R egu la tion X , th e in fo rm a tio n called f o r in th e rem ain der o f th is statem en t need n o t b e fu rn ish ed . (4 ) I f th e cre d it is in con n ection w ith a sale, w h at is th e bona fide sale p r ic e ? $ ............................. ............ (5 ) I f th e cred it is n ot in con n ection w ith a sale, w h a t is th e bona fide co s t o r estim ated co st to th e b or ro w e r? | . ( I f, under section 2 ( i ) o f R egu la tion X , “ valu e” is determ in ed b y an appraisal, this question should n o t be a n sw ered.) (6 ) I f th e cred it is in con n ection w ith a sale, w as a n y p ro p e rty accep ted in p a rt p a y m e n t? ................. ( “ Y e s ” or “ N o ” ) . I f so, a tta ch a statem en t as to value and a d escription o f such p ro p e rty . (7 ) I f th e cre d it is in con n ection w ith a sale, is th e ve n d o r o f th e p ro p e rty to h ave any financial in terest in the p ro p e rty a fte r th e sale o r in th e p roceeds o f any su bsequ en t d isposition t h e r e o f ? ....................( “ Y e s ” o r “ N o ” ) . I f th e a n sw er is “ Y e s ,” state am ou nt and n atu re o f such in te re s t....................... ......................................................................... (8 ) A p a r t fr o m th e cred it n ow applied f o r w ith resp ect to th e p ro p e rty , w h a t is th e tota l a m ou nt o f any credit p re v iou sly exten d ed and n ow ou tstan d in g, and a n y cre d it exp ected at th is tim e to be exten ded, w ith resp ect to th e sam e p r o p e r ty ? $ ...................................... . I c e r t ify u n der th e penalties o f R egu la tion X o f the B oard o f G overn ors o f th e F ederal R eserve S ystem th at to th e b e st o f m y k n ow led ge and b e lie f th e fa c ts stated above, and th ose in a n y statem en t supplied b y m e and attached h ereto a re correct. (Date) (Borrower’s Signature) (Borrower’s Address) NOTE TO REGISTRANT: Where the borrower’s statement shows other credit to be outstanding or to be contemplated in connec tion with the property, the Registrant must obtain further information with respect to such credit in order to determine whether the applicable loan value, maturity, and amortization requirements of Regulation X and the Supplement thereto are met. A copy of this statement should be retained by the Registrant. A copy may be attached to the credit instrument so that if an other Registrant should subsequently purchase, discount or lend on the credit instrument, he will have evidence that the Registrant who first extended the credit obtained a borrower’s statement in accordance with section 4(d) of Regulation X.
