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F ed er a l Reser ve Ba n k o f D allas

DALLAS, TEXAS

75222
Circular No. 75-153
October 14, 1975

SUSPENSION OF APPLICABILITY OF REGULATIONS D AND Q
TO "LOAN-TO-LENDER" TYPE PROGRAMS

TO ALL MEMBER BANKS
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
R e f e r e n c e is m a d e to t h i s B a n k 's C i r c u l a r No. 7 5 -11 8, d a te d A u g u s t 18, 1975,
t r a n s m i t t i n g t h e v i e w s of th e B o a rd of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y ste m w ith r e s p e c t to
th e a p p l i c a b i l i t y of R e g u la t io n s D a n d Q to p r o m i s s o r y n o te s is s u e d b y m e m b e r b a n k s to S ta te o r
m u n ic ip a l h o u s i n g a u t h o r i t i e s u n d e r " L o a n - t o - L e n d e r " p r o g r a m s . T h e r e Is q u o te d below a p o r ­
tion of a l e tte r d a te d S e p t e m b e r 29, 1975, w h ic h in d i c a t e s t h a t t h e B o ard of G o v e r n o r s h a s d e ­
c i d e d to r e v i e w its d e c i s i o n r e g a r d i n g th e " d e p o s i t " s t a t u s o f t h e s e o b lig a tio n s :
S in c e th e a n n o u n c e m e n t of t h a t d e t e r m i n a t i o n , t h e B o a rd h a s r e c e i v e d r e q u e s t s
from m e m b e r b a n k s , Sta te h o u s i n g a u t h o r i t i e s a n d o t h e r s r e q u e s t i n g t h a t th e B oard
r e v ie w its e a r l i e r a c t i o n . T h e s e r e q u e s t s u r g e t h a t t r e a t m e n t of L o a n - t o - L e n d e r o b ­
lig a tio n s a s " d e p o s i t s " will h a v e a n a d v e r s e im pact u p o n th e a b i l i t y of m e m b e r b a n k s
to p a r t i c i p a t e in t h e s e S t a t e - s p o n s o r e d h o u s i n g p r o g r a m s . B a s e d u p o n a d d itio n a l
in fo rm a tio n t h a t h a s b e e n p r o v i d e d to t h e B o a r d , a n d in r e s p o n s e to t h e s e r e q u e s t s ,
th e B o a rd h a s d e c i d e d to r e v i e w its d e c i s i o n r e g a r d i n g th e " d e p o s i t " s t a t u s of t h e s e
o bligations.
D u r i n g t h e p e n d e n c y of its r e v i e w of L o a n - t o - L e n d e r p r o g r a m s , th e B o a rd
b e l i e v e s it a p p r o p r i a t e to s u s p e n d t h e e f f e c t i v e n e s s of its p r i o r d e t e r m i n a t i o n a n d ,
t h e r e f o r e , to w a iv e t h e m a i n t e n a n c e of r e s e r v e r e q u i r e m e n t s . . . .
With r e s p e c t to " L o a n - t o - L e n d e r " t y p e p r o g r a m s , q u e s t i o n s r e l a t i n g to R e g u la tio n D,
" R e s e r v e s of M em ber B a n k s , " s h o u ld b e d i r e c t e d to t h i s B a n k 's A c c o u n t in g D e p a r tm e n t (214)
651-6334, a n d q u e s t i o n s c o n c e r n i n g R e g u la tio n Q, " I n t e r e s t o n D e p o s i t s , " s h o u ld b e d i r e c t e d
to t h i s B a n k 's R e g u la t io n s D e p a r t m e n t (214) 651-6169.

Sincerely yours,
T. W. Plant
First Vice President

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