The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Federal reserve Bank of Dallas DALLAS, TEXAS 75222 Circular Wo. 71-159 July 1 ) , 1971 1. REVISED PROPOSED AMENDMENTS TO REGULATIONS G, T, AND U (Provision of credit for broker-dealer capital) AMENDMENT TO REGULATION U (Exemption for broker-dealer credit by banks) To All Banks, Broker/Dealers, Nonbank Lenders and Others Concerned in the Eleventh Federal Reserve District: On July 9, 1971? the Board of Governors of the Federal Reserve System announced revisions to the proposed amendments to Regulations G, T, and U which were initially announced on April 16, 1971- The proposals set out conditions under which credit to provide capital to broker-dealer firms may be obtained without regard to initial margin requirements. Copies of the Board's press release and the proposed amendments are enclosed. Comments by interested parties should be submitted in order to reach the Board by August 20. The Board also amended, effective July 10, 1971? §221.2(m) of Regulation U, clarifying that exempt credit is not available for public purchases of publicly traded stock in broker-dealer firms. A copy of the amendment is enclosed for filing in the binder of Federal Reserve Regulations furnished to all member banks. A current version of Regulation U consists of the pamphlet, revised effective July 8, 19&9? the supplement, effective May 6, 1970, amendments effective August 13? 1969? May 1, 1970? and March 30, 1971? and the enclosed amendment. 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 OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCKS A M E N D M E N T TO REGULATION U E f c i e J l 1 , 1 7 , § 221.2 i amended fetv u y 0 9 1 s by r v s n paragraph (m) a f l o s eiig s olw: SECTION 221.2— EXCEPTIONS TO GENERAL RULE Notwithstanding t e p o i i n o § 2 1 1 a h rvsos f 2., bank may extend and may maintain any c e i f r rdt o t e purpose s e i i d i § 2 2 1 . ,without re a d t h pcfe n 1 gr o t e l m t t o sp e c i e t e e n o i § 2 2 1 . () h i i ai n r s r b d hri, r n 3 t, i t e c e i comes w t i any o t e f l o i g f h rdt ihn f h olwn dsrpin. ecitos * * * * * (m) Any c e i extended t or maintained f r a rdt o o customer f r t epurpose o making a loan or con o h f t i u i n o c p t l t a broker or d a e s b e t rbto f aia o elr ujc t P r 220 (Regulation T) i t e loan o con o at f h r t i u i n i i conformity with t e requirements rbto s n h r a d n s t s a t r s b d n t o agreements eg r i g a i f c o y u or i a i n or e u t e i t e accounts o p r n r o a r l o qiis n h f at e s f ue f t e S c r t e and Exchange Commission (Rule h euiis 15c3-l(c)(2) (A), (c) 4 , and (c)(7)) (17 CFR () 240.15c3-l(c)(2)(A), (c)(4), and (c)(7)) o r t e c p t l r l s o an exchange of which t e h aia ue f h broker or d a e i a member i t e members elr s f h t e e f a e exempt therefrom by Rule 1 c hro r 53l (b)(2) o t e Commission (17 CFR 240 1 c l f h .5( )( ) or t purchase s o k i a broker or d a e b 2 ) o tc n elr which i ac r o a i nwhen such s o ki purchased s oprto tc s d r c l from t e i s e and not a p r o a p b i iety h sur s at f ulc d s r b t o : Provided, That any such c e i ex itiuin rdt tended a t r Apr l 1 , 1 7 , s a l become s b e t fe i 6 9 1 hl ujc upon renewal t such a d t o a r s r c i n a t e o d i i n l etitos s h Board o Governors may impose by r g l t o con f euain cer i g t e c n i i n upon which c e i may be nn h odtos rdt extended f r t e purpose o making such loan o o h f r c n r b t o : A n d provided further, That () alo otiuin i l f t e proceeds o such e t n i n o c e i a e s h f x e s o f rdt r o loaned or c n r b t d t t e c p t l o t e broker o t i u e o h aia f h or d a e and (i t a al o t e proceeds o any elr i) h t l f h f withdrawal o such loan or c n r b t o o c p t l f o t i u i n f aia from t e broker or d a e by t e customer o h elr h r redemption o such s o k s a l be used t reduce f t c hl o or r t r s i e t n i n o c e i . eie a d x e s o f rdt F E D E R A L R E S E R V E r e l e a s e For immediate r e l e a s e J u ly 9 , 1971 The Board o f Governors o f the F ederal Reserve System today is s u e d r e v is e d proposed amendments to i t s R eg u la tio n s G, T, and U s e t t i n g fo r th c o n d it io n s under which c r e d i t may be o b tain ed w ith o u t regard to i n i t i a l margin requirem ents fo r the purpose o f p rov id in g c a p i t a l to b r o k e r -d e a le r fir m s . The amendments were i n i t i a l l y proposed on A p r il 16, 1971, and would have become e f f e c t i v e on J u ly 16. Under th e r e - is s u e d pro p o s a l s , the amendments would become e f f e c t i v e October 1. Comments on the r e v is e d p rop o sa ls should be subm itted to the Board by August 20. The Board a ls o r e v is e d i t s exemption - - o r i g i n a l l y issu e d A p r il 16 as an in te r im measure w h ile i t c o n s id e r s th e s e p ro p o sa ls - from i n i t i a l margin requirem ents fo r c r e d i t by banks for the purpose o f p rov id in g c a p i t a l to b r o k e r -d e a le r fir m s . The r e v i s i o n makes i t c l e a r th a t t h i s exemption i s not a v a il a b le to fin a n c e p u b lic tra d in g in sto c k o f such fir m s. f t R eg u la tio n U a p p lie s to c r e d i t extended by banks fo r the purpose o f purchasing or c a r r y in g margin s t o c k s ; R eg u la tio n T a p p lie s to such c r e d i t extended by brokers and d e a le r s , w h ile R eg u la tio n G a p p lie s to such c r e d i t extended by persons o th er than banks and brokers and d e a le r s . The B oard's proposed r e v i s i o n s o f the amendment to i t s r e g u la t io n s in clu ded the fo llo w in g : -2 - (1) E lim in a tio n o f the requirem ent th a t le n d er s hold c o l l a t e r a l s u f f i c i e n t to secu re a loan b e fo r e they could extend c r e d it fo r the purpose o f p ro v id in g c a p i t a l to a b r o k e r -d e a le r . I n s t e a d , a requirem ent would be s u b s t it u t e d th a t a committee o f a s to c k exchange or n a t io n a l s e c u r i t i e s a s s o c i a t i o n o f which the b r o k e r -d e a le r i s a member approve the lo a n , on the b a s i s o f a fin d in g th a t the c r e d i t w i l l not in c r e a s e the amount o f the b r o k e r - d e a le r 's tra d in g in s e c u r i t i e s fo r i t s own a cco u n t. (2) Provide th a t c r e d i t extended by banks d i r e c t l y to b r o k e r -d e a le r s would be s u b j e c t to th e same c o n d it io n s as lo an s made to th ir d persons for the purpose o f p ro v id in g c a p i t a l to the brokerd e a le r s . Copies o f the r e v is e d p ro p o sa ls are a tta c h e d , to g e th e r w ith the amendment to R eg u la tio n U, e f f e c t i v e J u ly 10, c l a r i f y i n g th a t exempt c r e d i t i s not a v a i l a b l e for p u b lic purchases o f p u b lic ly traded sto c k in b r o k e r -d e a le r fir m s . -0- FEDERAL RESERVE SYSTEM [12 CFR FARTS 207, 220, and 221] [R egs. G, T, and U] SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS CREDIT BY BROKERS A ND DEALERS CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCK Credit to Contribute Capital to Brokers and Dealers Pursuant to the authority contained in the Securities Exchange Act of 1934 (15 U.S.C. 7 8 g ) , the Board of Governors proposes to revise its proposals to amend Parts 207, 220, and 221 (36 Federal Register 7754-7756, April 24, 1971) in the following respects: 1. Paragraph (f) of section 207.1 would be amended as set forth below: § 207.1 General Rule * * * * * (f) lation T . (1) Credit extended to broker or dealer subject to Regu No lender shall extend or maintain any credit for the purpose of purchasing or carrying any margin security to any broker or dealer who is subject to Part 220 of this Chapter (Regulation T ) , and after October 1, 1971, no lender shall extend any credit to any customer to enable the customer to contribute capital to any broker or dealer who is subject to such Part, whether such contribution is in the form of a loan to such broker or dealer (whether subordinated or not) or of equities in the account of partners, or to purchase stock, in, any broker or dealer who is subject to such Part, whether with or - 2 without collateral (other than exempted securities). Where the credit or the proceeds of the loan or other contribution or purchase of stock is to be used in the ordinary course of business of such customer or such broker or dealer, such credit is presumed to be for the purpose of purchasing or carrying margin securities unless the lender has in his records a statement to the contrary obtained and executed in c on formity with the requirements of paragraph (e) of this section. (2) The prohibition of this paragraph (f) shall not apply to credit which is unsecured or secured by collateral other than registered securities which is (i) made to a dealer"^ to aid in the distribution of securities to customers not through the medium of a national securities exchange, or (ii) extended to a customer who is a broker or dealer subject to Part 220 or to a customer for the p ur pose of making a loan or contribution of capital to such broker or dealer or to purchase stock in a broker or dealer when such stock is purchased directly from the issuer and not as part of a public di s tribution if the extension of credit, loan or other contribution is in conformity with the requirements regarding satisfactory subordination agreements or equities in the account of partners of a rule of the Securities and Exchange Commission (Rule 15c-l(c)(2)( A ), (c)(4), and (c)(7) (17 CFR 240.15c3-l (c)(2)(A), (c)(4), and (c)(7)) or of the capital rules of an exchange of which the broker or dealer is a member if the members thereof are exempt \f As defined in 15 U.S.C. 78c(a)(5). - 3 - therefrom by Rule 15c3-l(b)(2) of the Commission (17 CFR 240.15c3-l (b)(2)) or to purchase stock in a broker or dealer which is a corporation: Provided, That in the case of credit described inthis paragraph that is extended after October 1, 1971, and in the case of any renewal of such credit extended between April 17, 1971 and October 1, 1971, such extension of credit is subject to the following further conditions: (i) such credit has the approval of an appropriate committee of a national securities exchange or a national securities association, and the committee, in addition to being satisfied that the credit is not in contravention of any rule of the exchange or association, is satisfied that, if the broker or dealer or an affiliated corporation of such broker or dealer does any dealing in securities for its own account, the credit is not for the purpose of increasing the amount of such dealing, (ii) in no event can the sub ordinated loan or contribution be repaid or the stock be redeemed except (a) with the approval of an appropriate committee of a national securities exchange or national securities association in the case of the death, disability, or (in the case of a partner, officer, or employee of the broker dealer) involuntary retirement (or if the amount of such repayment or redemption is $10,000 or less, any retirement, whether voluntary or involuntary) of the customer, or (b) until one year after the subordinated extension of credit, loan, or contribution was first made or stock first purchased and until six months after the giving of written notice by the customer to such broker or dealer, the - 4 - Commission, the Securities Investor Protection Corporation, and any national securities exchange or national securities association of which such broker or dealer is a member of intent to demand repayment of the extension of credit, loan, or contribution or redemption of the stock, (iii) in no event may such credit, loan or contribution be repaid or the stock be redeemed if the effect of such payment or redemption would reduce the net capital of such broker or dealer below the amount required by the net capital rule or capital rule to which such broker or dealer is subject, or would otherwise be inconsistent with such rule, (iv) all of the proceeds of such extension of credit are so loaned or contributed to the capital of such broker or dealer or used to purchase such stock, and (v) the proceeds of any withdrawals of such loan or contribution of capital from such broker or dealer by the customer or redemption of such stock shall be used to reduce or retire said extension of credit. (3) The Board of Governors of the Federal Reserve System may by Order exempt from the prohibitions of this paragraph (f) and the requirements of this Part, either unconditionally or upon specified terms and conditions or for stated periods, any loan for the purpose of making a loan or providing capital to a person who is subject to Part 220 of this Chapter (Regulation T ) , upon a finding that the granting of such an exemption is necessary or appropriate in the public interest or for the protection of investors; Provided, That the Securities Investor Protection Corporation shall have certified to the Board that such action is appropriate under the circumstances. - 5 - 2. Section 220.4 would be amended by revising paragraph (f)(2) as set forth below: § 220.4 Special Accounts * * * * * (f) Special miscellaneous account. (2)(i) * * * Subject to the provisions of subdivisions (iii) and (iv) of this subparagraph extend and maintain credit, (a) to or for any partner of a firm which is a member of a national securities exchange to enable such partner to make a contribution of capital to such firm, or to purchase stock in an affiliated corporation of such firm, or (b) to or for any person who is or will become the holder of stock of a corporation which is a member of a national securities exchange to enable such person to purchase stock in such corporation, or to purchase stock in an affiliated corporation of such corporation; provided the lender as well as the borrower is a partner in such member firm or a stock holder in such member corporation, or the lender is a firm or a stockholder in such member corporation, or the lender is a firm or corporation which is a member of a national securities exchange and the borrower is a partner in such firm or a stockholder in such cor poration; (ii) Subject to the provisions of subdivision (iii) and with respect to credit described in subdivision (ii) (b) subject to subdivision (iv) of this subparagraph extend and maintain subordinated credit to another creditor for capital purposes: Provided, That: - (a) 6 - Either the lender or the borrower is a firm or corpora tion which is a member of a national securities exchange, the other party to the credit is an affiliated corporation of such member firm or corporation, and, in addition to the fact that an appropriate committee of the exchange is satisfied that the credit is not in contravention of any rule of the exchange, the credit has the approval of such committee, or (b) The lender as well as the borrower is a member of such exchange, the credit has the approval of an appropriate committee of the exchange, and the committee, in addition to being satisfied that the credit is not in contravention of any rule of the exchange, is satisfied that the credit is outside the ordinary course of the lender's business, and that, if the borrower's firm or corporation or an affiliated corporation of such firm or corporation does any dealing in securities for its own account, the credit is not for the purpose of increasing the amount of such dealing. (iii) Fcr the purpose of subdivisions (i), (ii) and (iv) of this subparagraph, the term "affiliated corporation" means a corporation all the common stock of which is owned directly or indirectly by the member firm or general partners and employees of the firm, or by the member corporation or holders of voting stock and employees of the corporation and an appropriate committee of the exchange has approved the member firm's or member corporation's affiliation with such affiliated corporation. - 7 - (iv) No credit shall be extended pursuant to this sub paragraph after October 1, 1971, and no such credit extended between April 16, 1971, and October 1, 1971, shall be renewed unless (a) in no event can the subordinated loan or contribution be repaid or the stock be redeemed except (A) with the approval of an appropriate committee of a national securities exchange or national securities association in the case of the death, disability, or (in the case of a partner, officer, or employee of the broker or dealer) involuntary retirement (or if the amount of such repayment or redemption is $10,000 or less, any retirement, whether voluntary or involuntary) of the borrower, or (B) until one year after such loan or contribution was first made or such stock first purchased and until six months after the giving of written notice by the borrower to the firm, the Securities and Exchange Commission, the Securities Investor Protection Corporation, and any national securities exchange or national securities association of which such broker or dealer is a member of intent to demand repayment of such loan or contribution or redemption of such stock, (b) in no event may such loan or other contribution of capital be repaid or the stock be redeemed by a creditor to whom the loan or contribution was made or whose stock was the subject of purchase, if the effect of such payment or redemption would reduce the net capital of such creditor below the amount required by the net capital rule or capital rule to which such creditor is subject, or would otherwise be inconsistent with such rule; (< all of the proceeds of such extension of credit are so - 8 - loaned or contributed to the capital of such firm or affiliated corporation or used to purchase such stock and (d) the proceeds of any withdrawal of such loan or contribution of capital from such creditor or redemption of such stock shall be used to reduce or retire said extension of credit. 3. Section 221.2 would be amended by revising paragraph (m) and section 221.3 would be amended by adding subparagraph (b) (4) and revising paragraph ( q) as set forth below: § 221.2 Exceptions to General Rule. * * * * * (m) Any credit extended to a broker or dealer subject to Part 220 (Regulation T) or to a customer for the purpose of making a loan or contribution of capital to such broker or dealer if the loan or contribution is in conformity with the requirements regarding satisfactory subordination agreements or equities in the accounts of partners of a rule of the Securities and Exchange Commission (Rule 15c3-l(c)(2)(a), (c)(4), and (c)(7) (17 CFR 240.15c3-l(c)(2)(a), (c)(4), and (c)(7)) or the capital rules of an exchange of which the broker or dealer is a member if the members thereof are exempt therefrom by Rule 15c3-l(b)(2) of the Commission (17 CFR 240.15c3-l (b)(2)) or to purchase stock in a broker or dealer which is a corporation wben such stock is purchased directly from the issuer and not as part of a public distribution: Provided. That in the case of - 9 - credit described in this paragraph that is extended after October 1, 1971, and any renewal of such credit extended to a broker or dealer between July 9, 1971, and October 1, 1971, or extended to a customer to make such a loan or contribution of capital to, or to purchase such stock in a broker or dealer between April 16, 1971 and October 1, 1971, such sub ordinated loan, contribution, or purchase of stock is subject to the following further conditions: (1) such credit has the approval of an appropriate committee of a national securities exchange or a national securities association and the committee, in addition to being satisfied that the credit is not in contravention of any rules of the exchange or association, is satisfied that, if the broker or dealer or an affiliated corporation of such broker or dealer does any dealing in securities for its own account, the credit is not for the purpose of increasing the amount of such dealing; (2) in no event can the subordinated loan or contribution be repaid or the stock be redeemed except (i) with the approval of an appropriate committee of a national securities exchange or national securities association in the case of the death, disability, or (in the case of a partner, officer, or employee of the broker or dealer) involuntary retirement (or if the amount of such repayment or redemption is $10,000 or less, any retirement, whether voluntary or involuntary) of the customer, or (ii) until one year after the sub ordinated loan or contribution was first made or stock first purchased and until six months after the giving of written notice by the customer to the broker or dealer, the Commission, the Securities Investor Protection - 10 Corporation, and any national securities exchange or national securities association of which such broker or dealer is a member of intent to demand repayment of the loan or contribution or redemption of the stock, (3) in no event may such loan or contribution be repaid or the stock be redeemed if the effect of such payment or redemption would reduce the net capital of the broker or dealer below the amount required by any net capital or capital rule to which the broker or dealer is subject, or would otherwise be inconsistent with such rule, (4) all of the proceeds of such extension of credit are so loaned or contributed to the capital of such firm or affiliated corporation, or used to purchase such stock and (5) the proceeds of any withdrawal of such loan or contribution of capital from such broker or dealer or redemption of such stock shall be used to reduce or retire said extension of credit. § 221.3 Miscellaneous provisions * * * * * (b) Purpose of a c r e d i t . (4) Credit extended (Regulation T ) , or to enable a * * * to a broker or dealer subject to Part 220 customer to contribute capital to such a broker or dealer, whether such contribution is in the form of a loan to the broker or dealer (whether subordinated or n o t ) , or of equities in the accounts of partners, or a purchase of stock in an incorporated broker or dealer when such stock is purchased directly from the issuer and not as part of a public d i s t r i b u t i o n ^ is "purpose" credit. 2/ When credit is extended to purchase stock in a broker or dealer other than directly from the issuer or other than in a public distribution such credit of course is "purpose" credit if the stock is "margin stock" as described in § 221.3(b). - 11 * * * * * (q) Credit required to be secured. Any credit extended for a purpose described in. subparagraph (b)(4) of (1) this section or (2) to a customer not subject to this part or to Part 220 of this Chapter (Regulation T) who is engaged principally, or as one of the customer's important activities, in the business of extending credit for the pur pose of purchasing or carrying margin stocks, is a credit for the purpose of purchasing or carrying such stocks unless the credit and its purposes are effectively and unmistakably separated and d is associated from any financing or refinancing of any purchasing or carrying of or trading in such stocks. Any such credit described in subparagraph (b)(4) of this section or extended to any such customer unless the credit is so separated and disassociated or is excepted by § 221.2, is a credit "subject to § 221.1" regardless of whether or not the credit is secured by any stock; and no bank shall extend any such credit subject to § 221.1 without collateral or without the credit being secured as would be required by this part if it were secured by any stock. Any such credit subject to § 221.1 shall be subject to the other provisions of this part applicable to credit subject to § 221.1, including provisions regarding withdrawal and substitution of collateral. 4. The proposed revision of paragraph (f) in § 207.1 would delay the effective date of the amendment to October 1, 1971; clarify that the prohibition of this paragraph does not apply to credit on exempted securities; clarify that the exemption provided by subparagraph - 12 (f)(2) is not available for publicly traded stock in an incorporated broker or dealer; remove the requirement that credit of the kind described therein be actually secured and substitute a requirement that an appropriate committee of the exchange or national securities association of which the broker or dealer is a member be satisfied that the proceeds of the credit will not be used to increase the amount of dealing in securities by the broker or dealer for its own account; provide that credit is eligible for the exemption even though an amount up to $10,000 is withdrawable with the permission of an appropriate committee of an exchange or national securities association upon the retirement of a partner, officer, or employee of the broker or dealer before expiration of the one year waiting period; provide that notice of withdrawal of the contribution may be given after six months of the initial one-year waiting period have passed; and provide that such notice must be given to any exchange or national securities association of which the broker or dealer is a member, as well as to the broker or dealer itself, the Commission, and the Securities Investor Protection Corporation. 5. The proposed revision of paragraph (f)(2) in § 220.4 would clarify that the restrictions imposed by subdivision (iv) do not apply to credit extended by a firm to its partners or by an incorporated broker/dealer to its officers or employees, or officers or employees of its affiliated corporations; would delay the effective date of the amend ment to October 1, 1971; provide that credit is eligible for the exemption - 13 - even though an amount up to $10,000 is withdrawable with the permission of appropriate committee of an exchange or national securities association upon the retirement of a partner, officer, or employee of the broker or dealer before the expiration of the one-year waiting period; provide that notice of withdrawal of the contribution may be given after six months of the initial one-year waiting period have passed; and provide that such notice must be given to any exchange or national securities association of which the broker or dealer is a member, as well as to the broker or dealer itself, the Commission, and the Securities Investor Protection Corporation. 6. The proposed revision of paragraph (m) in § 221.2 would provide that credit extended directly by banks to brokers and dealers would be subject to the same restrictions on withdrawal as credit extended to third persons for the purpose of making contributions of capital to the brokers and dealers; clarify that the exemption is not available for publicly traded stock in an incorporated broker or dealer; remove the requirement that credit of the kind described therein be actually secured and substitute a requirement that an appropriate committee of the exchange or national securities association of which the broker or dealer is a member be satisfied that the proceeds of the credit will not be used to increase the amount of dealing in securities by the broker or dealer for its own account; provide that credit is eligible for the exemption even though an amount up to $10,000 is withdrawable upon the retirement of a partner, officer, or employee of the broker or dealer before expiration of the one-year waiting period; - 14 - provide that notice of withdrawal of the contribution may be given after six months of the initial one-year waiting period have passed; and provide that such notice must be given to any exchange or national securities association of which the broker or dealer is a member, as well as to the broker or dealer itself, the Commission, and the Securities Investor Protection Corporation. 7. § 221.3 would The revision to the proposed new subparagraph (b)(4) of clarify that credit extended directly to a broker or dealer, by a bank, for the purpose of providing capital to the broker or dealer is "purpose" credit, but that credit to purchase or carry publicly traded stock of a broker or dealer is not "purpose" credit (unless the stock is itself a margin stock). 8. The proposed new subparagraph (c)(2) of § 221.3 is 9. Paragraph (q) of § 221.3 would be amended to provide deleted. that credit extended for the purpose of providing capital to a broker or dealer, as described in subparagraph (b)(4) of § 221.3, must be secured by collateral held by the bank unless segregated and disassociated from the business of purchasing and carrying securities, or exempted by § 221.2 . If adopted by the Board, the changes will apply to credit extended by banks, broker/dealers, and persons subject to Regulation G after October 1, 1971, and to renewals after October 1, 1971, of credit extended by banks after April 16, 1971, except in the case of credit - 15 - extended by banks directly to broker/dealers where the restrictions would apply to such credit extended after October 1, 1971, and to renewals after October 1, 1971, of such credit extended after July 9, 1971. This notice is published pursuant to section 553(b) of Title 5, United States Code, and § 262.2(a) of the rules of procedure of the Board of Governors of the Federal Reserve System (12 CFR 262.2(a)). To aid in the consideration of these matters by the Board, interested persons are invited to submit relevant data, views, or arguments. Any such material should be submitted in writing to the Secretary, the Board of Governors of the Federal Reserve System, Washington, D. C. 1971. 20551, to be received not later than August 20, Such material will be made available for inspection and copying upon request, except as provided in § 261.6(a) of the Board's Rules Regarding Availability of Information. By order of the Board of Governors, July 6, 1971. ( S i g n e d ) K e n n e t h A. K en y on Kenneth A. Kenyon, Deputy Secretary. [SEAL]
