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FEDERAL RESERVE BANK OF CHICAGO 79 WE S T M ON R O E STR E ET October 7, 1918, Bulletin lo. l2i . . TO THI UJ.IIBIR BANK ADDUSSIDs le are pleased to &dvise that Section e200 of the Revised Statutes h&s recentlJ been amended to read as tollow1s "The total liabilities to any asaociation, of any person. or of any company, corporation, or firm tor money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, ahall at no time exceed 10 per centum of the amount of the capital stock of such association, actually paid in and unimpaired, and 10 per centum of its unimpaired surplus fund, Provided, however, That (1) the discount of bills ot exchange drawn in cood faith against actully existing values, (2) the discount of commercial or business paper actually owned by the person, oo■pan1, corporation, or firm, negotiating the same, and (8) the purehase or discount of any note or notes secured b7 not less than a like face amount of bonds of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as money borrowed within the meaninc of this section; but the total liabilities to an7 association of any person or of any company, corporation, or firm upon an7 note or notes purchased or discounted by such association and secured by such bonds or certificates of indebtedness, shall not exceed (except to the extent permitted by rules and 1•egulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) 10 per centum of such capital stock and surplus fund of such association." Under the foregoing, national banks are p~rmitted to loan 1oi of their capital and surplus to individuals, firms, or corpora.tions a1 heretofore, and, furthermore, may loan an additional 1oi to the borrower provided the same is secured by United States Libert7 Loan Bonda or Cartificates of Indebtedness. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Very truly JOUl"St J.B. MoDou,al Governor.
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