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F E D E R AL R E SE R V E BANK
OF N E W YORK
T C ir c u l a r N o . 3 7 5 3 ' 1
S e p t e m b e r 5 , 1951 J

L

R E A L E S T A T E C R E D IT
R E G U L A T IO N X
As A m ended Effective Septem ber 1, 1951

To all Persons E ngaged in the Business o f E xtend in g Heal E sta te Credit
in the Second Federal R eserve D istrict:

The Board of Governors of the Federal Reserve System and the Housing and Home
Finance Agency released the following joint statement fo r publication September 1, 1951:
The B oard o f Governors o f the Federal Reserve System and the Housing and Home Finance
A gency today announced the revision o f Regulation X and related restrictions on housing credit
affecting 1- to 4-family housing to bring the regulation into conform ity with the provisions o f the new
Defense H ousing and Community Facilities and Services A ct o f 1951.
The A ct provides that with respect to veterans’ home loans guaranteed under the G I B ill o f Rights,
where the sales price does not exceed $7,000, the down payment shall not exceed 4 % ; where the sales
price does not exceed $10,000, the down paym ent shall not exceed 6 % ; and where the sales price
does not exceed $12,000, the down payment shall not exceed 8% .
W ith respect to other home loans (conventional and F H A -in su red), the A ct provides that no more
than 10% down payment shall be required where the transaction price does not exceed $7,000; no
more than 15% where the transaction price does not exceed $10,000; and no more than 20% where
the transaction price does not exceed $12,000.
The A ct also provides that credit restrictions shall not require the term or m aturity o f any loan
on housing up to $12,000 to be less than 25 years. Under the previous regulations the maximum
m aturity was 20 years for housing priced at more than $7,000, except for hardship cases under
GI loans.
Similar terms— both as to down payment and m aturity— also apply to farm housing loans made
by the Farmers Home Administration.
The new schedule o f maximum loans and minimum down payments follow s the requirements
o f the A ct up to $12,000 and then, as rapidly as practical, returns to the schedule o f down payments
required under the credit controls instituted last October. E xcept fo r fractional changes made in
the interest o f sim plifying calculations, the level o f the previous regulations is reached at $15,000
and from that point on the m ortgage limits are substantially the same as before.
Follow ing is the new schedule of credit terms fo r 1-4 -fam ily housing that is financed through
conventional loans or FH A -insured m ortgages:
M A X IM U M M O R T G A G E AM O U N TS
I f the “ value p er fam ily u n it” is

The “ maximum loan value p er fam ily u n it” is

Not more than $7,000
More than $7,000 but not more than

90% o f “ value per fam ily u n it”
85% o f “ value per fam ily u n it”

$10,000
More than $10,000
$ 12,000
More than $12,000
$15,000
More than $15,000
$20,000
More than $20,000
$24,500
Over $24,500



but not more than

80% o f “ value per fam ily u n it”

but not more than

$9,600 plus 4 0% o f excess of
“ value per fam ily u n it” over $12,000
$10,800 plus 20% o f excess of
“ value per fam ily u n it” over $15,000
$11,800 plus 10% o f excess of
“ value per fam ily u n it” over $20,000
5 0% o f “ value per fam ily u n it”

but not more than
but not more than

M IN IM U M D O W N P A Y M E N T S
I f the “ value p er fam ily u n it” is
Not more than $7,000
More than $7,000 but not more than

The “ minimum down paym ent p er fam ily u n it” is
10% o f “ value per fam ily u n it”
15% o f “ value per fam ily u n it”

$10,000
M ore than $10,000 but not more than

20% o f “ value per fam ily u n it”

$12,000
More than $12,000 but not more than
$15,000
M ore than $15,000 but not more than

$20,000
M ore than $20,000 but not more than
$24,500
Over $24,500

$2,400 plus 60% o f excess of
“ value per fam ily u n it” over $12,000
$4,200 plus 80% o f excess of
“ value per fam ily u n it” over $15,000
$8,200 plus 9 0% o f excess of
“ value per fam ily u n it” over $20,000
50% o f “ value per fam ily uni t ”

F ollow ing is the new schedule o f credit terms for 1 -4 -fam ily housing financed with the assistance
o f VA -guaranteed loans:
M A X IM U M M O R T G A G E AM OU N TS
I f the price p er fam ily unit is
Not more than $7,000
More than $7,000 but not more than

The maximum m ortgage loan p er fam ily unit is
96% o f price
94% o f price

$10,000
M ore than $10,000 but not more than

92% o f price

$12,000
More than $12,000 but not more than
$15,000
More than $15,000 but not more than

$20,000
More than $20,000 but not more than
$24,500
Over $24,500

$11,040 plus 17% o f excess o f
price over $12,000
$11,550 plus 2 5% o f excess o f
price over $15,000
$12,800 plus 15% o f excess of
price over $20,000
5 5% o f price

M IN IM U M D O W N P A Y M E N T S
I f the price p er fam ily unit is
Not more than $7,000
M ore than $7,000 but not more than
$ 10,000
M ore than $10,000 but not more than

The minimum down paym ent p er fam ily unit is
4 % o f price
6 % o f price
8 % o f price

$12,000
M ore than $12,000 but not more than
$15,000
M ore than $15,000 but not more than

$20,000
M ore than $20,000 but not more than
$24,500
Over $24,500

$960 plus 83% o f excess of
price over $12,000
$3,450 plus 7 5% o f excess of
price over $15,000
$7,200 plus 8 5% o f excess o f
price over $20,000
4 5% o f price

The new A ct also provides for the suspension o f credit restrictions in critical defense housing
areas fo r housing programmed fo r defense workers and military personnel and selling fo r not more
than $12,000 or renting fo r not more than $85 a month. Regulation X and related restrictions have
been amended accordingly, to bring the provisions with respect to defense areas into conform ity
with the new law. A t the same time, it was announced that credit terms are also suspended fo r
defense housing program med in areas previously designated as critical defense areas.
Regulation X has been further amended to provide fo r the exemption from the regulation of
certain essential nonresidential defense construction.

O n the fo llo w in g p a g e is a sch edule w h ich is a part o f the a b ov e statem ent. I t show s the
n ew m in im u m d ow n paym en ts an d m axim um m ortg a g e am ounts b y $1,000 in tervals u n der
R e g u la tio n X an d related resid en tia l cre d it restriction s.
A c o p y o f R e g u la tio n X , as am en ded effectiv e S ep tem ber 1, 1951, is e n clo s e d ; a d d ition al
co p ie s o f this circ u la r and o f the am ended reg u la tion m a y be ob ta in ed u p on request.




A lla n

S p r o u l,

P res id en t.

N E W M INIM UM D O W N PA Y M E N TS AN D M A X IM U M M O R T G A G E AM OU N TS U NDER R E G U L A T IO N X
AN D R E L A T E D R E SID E N T IA L C R E D IT R E STRICTIO N S
---------- Minim um Down Paym ents----------F H A & conventional loans
V A loans
Value or price Percent of
Dollar
P ercen t o f Dollar
per fam ily unit
value
amount
price
amount

$ 5,000

10.0%

$

500

4.0%

$

---------- Maximum M ortgage Loans —
F H A & conventional loans
V A loans
P ercen t o f Dollar
Value or price P ercen t of Dollar
amount
amount
price
per fam ily unit
value

200

$ 5,000

. . 90.0%

$ 4,500

96.0%

$ 4,800

6,000

10.0

600

4.0

240

6,000

90.0

5,400

96.0

5,760

7,000

10.0

700

4.0

280

7,000

90.0

6,300

96.0

6,720

8,000

15.0

1,200

6.0

480

8,000

85.0

6,800

94.0

7,520

9,000

15.0

1,350

6.0

540

9,000........ .. 85.0

7,650

94.0

8,460

10,000

15.0

1,500

6.0

600

10,000

85.0

8,500

94.0

9,400

11,000

20.0

2,200

8.0

880

11,000

80.0

8,800

92.0

10,120

12,000

20.0

2,400

8.0

960

12,000

80.0

9,600

92.0

11,040

13,000

23.1

3,000

13.8

1,790

13,000

76.9

10,000

86.2

11,210

14,000........ . . 25.7

3,600

18.7

2,620

14,000

74.3

10,400

81.3

11,380

15,000.

28.0

4,200

23.0

3,450

15,000........ .. 72.0

10,800

77.0

11,550

16,000

31.2

5,000

26.2

4,200

16,000

68.8

11,000

73.8

11,800

17,000

34.1

5,800

29.1

4,950

17,000

65.9

11,200

70.9

12,050

18,000

36.7

6,600

31.7

5,700

18,000

63.3

11,400

68.3

12,300

19,000

38.9

7,400

33.9

6,450

19,000

61.1

11,600

66.1

12,550

20,000

41.0

8,200

36.0

7,200

20,000

59.0

11,800

64.0

12,800

21,000

43.3

9,100

38.3

8,050

21.000

56.7

11,900

61.7

12,950

22,000

. . 45.5

10,000

40.5

8,900

22,000

54.5

12,000

59.5

13,100

23,000

47.4

10,900

42.4

9,750

23,000

52.6

12,100

57.6

13,250

24,000

49.2

11,800

44.2

10,600

24,000

50.8

12,200

55.8

13,400

24,500

50.0

12,250

45.0

11,025

24,500

50.0

12,250

55.0

13,475

25,000........ . . 50.0

12,500

45.0

11,250

25.000........ .. 50.0

12,500

55.0

13,750

N ote:

.

.

.,,

Dollar amounts may vary slightly from amounts derived by use o f percentages due to rounding.




B O A R D OF G O V E R N O R S
o f the

F E D E R A L R E S E R V E S Y ST E M

REAL ESTATE CREDIT
▼
R E G U L A T IO N X
A b a m en ded effective S ep tem ber 1, 195 1




INQUIRIES REGARDING THIS REGULATION
Any inquiry relating to this regulation should be addressed
to the Federal Reserve Bank or Federal
Reserve braneh bank of the district
in which the inquiry arises.

N o t e . — Amendments Nos.

reprint.




1 through

6

are included in this

FOREWORD
This regulation applies to real estate construction credit with respect
to property on which a new residence, multi-unit residence, or nonresidential structure, or a m ajor addition or m ajor improvement to
an existing residence, multi-unit residence, or nonresidential structure
is begun after 12 o ’clock meridian, August 3, 1950. The regulation
applies, in general, to banks, savings and loan associations, insurance
companies, mortgage companies, loan companies, finance companies,
real estate companies, or other institutions or individuals who are
engaged in the business of extending real estate credit with respect to
residences, residential property, multi-unit residential property, or
nonresidential property. In order to determine whether a particular
institution or individual or a particular transaction is subject to this
regulation, reference should be made to the provisions o f the regu­
lation itself.




CONTENTS
S e c . 1. S c o p e a n d A p p l i c a t i o n o f R e g u l a t i o n .......................................................
S e c . 2 . D e f i n i t i o n s .....................................................................................................................

(a )
(b)
(c )
( d)
(e )
(/)
(q)
(h)
(t)
(;)
(k)
(I)
(m )
(n )
(o )
(p)
(q )
(r)
(s)

1
1

“ Person"
“ Registrant”
“ C redit”
“ Extending credit.” “ extension o f credit” and “ extends cred it"
“ Real estate construction credit”
“ New construction”
“ M a jo r addition ” or “ m a jor im provem ent”
“ Real property”
“ M axim um loan value”
“ Bona fide sale price”
“ R esidence”
“ M ulti-unit residence”
“ Fam ily unit”
“ Residential property”
“ Farm property”
“ M ulti-unit residential property”
“ Nonresidential property”
“ Nonresidential structure”
“ Public u tility”

S e c . 3 . G e n e r a l R e q u i r e m e n t s a n d R e g i s t r a t i o n .............................................

7

(а ) General Requirements
( б ) Registration
(c )
Suspension o f Registration
S ec. 4. E x t e n s io n

(a )
(b )
(c )
(d )

o f C r e d i t ...............................................................................................

8

A m ou n t; M a tu rity; Am ortization
Secondary Borrowing
Ascertaining N ature o f Credit
Statement o f the Borrower

S e c . 5 . E x e m p t i o n s a n d E x c e p t i o n s .............................................................................. 11

(a )
(b )
(c )
(d )
(e )
(/)
(g )
(h)
(i)
(;')
(k)
(I)
(m )
S ec.

6 M
.

M inim um Am ount
Short-Term Residential Construction Credits
Other Short-Term Construction Credits
M edical Expenses, etc.
Casualties
Contracts to Sell
C ontem plated Construction
Labor and M aterial
Credits Secured b y Life Insurance Policies
Farm Property
E xem ption for Certain N ew Construction
M aterials, Articles and Services Used in N ew Construction
Essential Nonresidential Defense Construction

is c e lla n e o u s

(a )
(b )
(c )
( d)
(e )
( /)
(g )
(h )
(t)
(;')
(k )
(1)
(m )
(n )
(o )
(p )
(q )

P r o v i s i o n s ...................................................................................................

S u p p l e m e n t ..................................................................... .. .............. ..........................................................................

Schedule I. O ne- to Four-U nit Residential P roperty and Farm
Residences
Schedule I I . M ulti-unit R esidential Property
Schedule III. Nonresidential Property




1
6

Evasions
Outstanding Contracts and Obligations
R eal Property Outside the U nited States
Preservation o f R e co rd s ; In spection s; Adm inistrative R eports
D efault and F oreclosure; Servicem an’s Preinduction D ebt
Veterans Programs under State Law
State and M unicipal Programs
Extension o f C redit for M ixed Purposes
C alculation o f M axim um M aturity
Three- and Four-U nit Residences
Right o f Registrant to Im pose Stricter Requirem ents
Reliance upon Statem ent o f the Borrower
False Statements
Statutory Penalties
E nforceability o f Contracts
Defense Construction
Critical D efense H ousing Areas

2
1

R E G U L A T IO N X
As am ended effective Septem ber 1, 1951

REAL ESTATE CREDIT
S E C T IO N

1. SCO PE A N D A P P L IC A T IO N O F R E G U L A T IO N

This regulation is issued by the Board o f Governors o f the Federal
Reserve System (hereinafter called the “ B oard” ), with the concur­
rence o f the Housing and Home Finance Administrator with respect
to provisions relating to real estate construction credit involving resi­
dential property and multi-unit residential property, under authority
o f the “ Defense Production A ct of 1950,” approved September 8, 1950
(hereinafter called the “ A ct” ), and Executive Order N o. 10161, dated
September 9, 1950.
This regulation applies to any person who is engaged in the business
o f extending real estate credit with respect to residences, residential
property, multi-unit residential property, or nonresidential property,
including any person who acts as agent in arranging for such credit.
F or the purposes o f this regulation, a person shall be deemed to be
engaged in the business o f extending such real estate credit if, in his
own right or as agent or fiduciary, he either (1) extends or has ex­
tended such real estate credit more than three different times during
the current calendar year or during the preceding calendar year, or
(2) extends or has extended such real estate credit in an amount
or amounts aggregating more than $50,000 during the current calendar
year or during the preceding calendar year. F or the purposes o f this
section, such real estate credit shall be deemed to include credit with
respect to any residence, residential property, multi-unit residential
property, or nonresidential property, whether or not there is any new
construction thereon, and whether or not such credit is extended,
insured, or guaranteed by the Federal Housing Administration, the
Veterans’ Administration, or any other department, independent estab­
lishment or agency o f the United States, and whether or not such
credit is exempt from this regulation.
S E C T IO N 2 . D E F IN IT IO N S

For the purposes o f this regulation, unless the context otherwise
requires:
(a)
A ct.1

“ Person” has the meaning given it in section 702(a) o f the

‘ Section 702(a) o f the A ct provides: “ T h e w ord ‘ person’ includes an individual,
corporation, partnership, association, or any other organized group o f persons, or




1

2

R E G U L A T IO N

X

Sec. 2

( b) “ Registrant” means a person who is registered pursuant to
section 3 o f this regulation.
(c) “ C redit” has the meaning given it in section 602(d) (2) o f the
A ct.2
(d) “ Extending credit,” “ extension o f credit” and “ extends credit"
shall include extending or maintaining any credit, or renewing, revising,
consolidating, refinancing, purchasing, selling, discounting, or lending
or borrowing on, any obligation arising out of any credit, or arranging
as agent for any o f the foregoing, and also shall include a sale of,
or other transfer o f title to, real property if the vendee or transferee
assumes, or takes such property subject to, indebtedness secured by a
mortgage or other lien upon such property.
(e) “ Real estate construction credit” means any cre d it3 which
(1)
(2)
(3)
(4)

is wholly or partly secured by, or
is for the purpose o f purchasing or carrying, or
is for the purpose o f financing, or
involves a right to acquire or use,

new construction on real property or real property on which there is
new construction, if such new construction is a residence, multi-unit
residence, or nonresidential structure, or a m ajor addition or m ajor
improvement to a residence, multi-unit residence, or nonresidential
structure, whether such credit is extended before or after such new
construction is begun; but the term “ real estate construction credit”
legal successor or representative o f the foregoing, and includes the U nited States
or any agency thereof, or a n y other governm ent, or any o f its political subdivi­
sions, or any agency o f any o f the foreg oin g : P rovided , T h a t no punishment
p rovided b y this A ct shall a pply to the U nited States, or to any such governm ent,
political subdivision, or governm ent agen cy.”
2 Section 6 0 2 (d )(2 ) o f the A ct provides: “ ‘ C red it’ means any loan, mortgage,
deed o f trust, advance, or discou nt; any conditional sale con tra ct; any contract
to sell o r sale o r contract o f sale, o f property or services, either for present or
future delivery, under which part or all o f the price is payable subsequent to the
m aking o f such sale or co n tra ct; any rental-purchase contract, or any contract for
the bailm ent, leasing, or oth er use o f property under which the bailee, lessee, or
user has the option o f becom ing the ow ner thereof, obligates him self to pa y as
com pensation a sum substantially equivalent to or in excess o f the value thereof,
o r has the right t o have all or part o f the paym ents required b y such contract
applied t o the purchase price o f such property or similar p rop erty ; any option,
dem and, lien, pledge, or sim ilar claim against, or for the delivery o f property or
m o n e y ; any purchase, discount, or oth er acquisition of, or any credit under the
security o f, any obligation or claim arising ou t o f any o f the foregoin g; and any
transaction o r series o f transactions having a similar purpose or effect.”
3 E xtended on or after O ctober 12. 1950. with respect to farm residences, resi­
dential property, and m a jor additions and m a jor im provem ents t o residences;
or on o r after January 12, 1951, with respect to m ulti-unit residential property
and m a jor additions and m ajor im provem ents to m ulti-unit residences; or on
o r after February 15. 1951. with respect to nonresidential property and m ajor
additions and m ajor im provem ents to nonresidential structures.




S

ec

. 2

R E G U L A T IO N

X

3

shall not include any loan or loans made, insured, or guaranteed, in
whole or in part, by the Federal Housing Administration, the V et­
erans’ Administration, or any other department, independent estab­
lishment or agency in the executive branch o f the United States,
or by any wholly owned Government corporation, or by any mixedownership Government corporation as defined in the Government
Corporation Control A ct, as amended (including any loan evidenced
by obligations o f any local public agency or public housing agency
which national banks may purchase pursuant to the provisions of
section 602(a) o f the Housing A ct o f 1949).
( /) “ N ew construction” means any structure, or any m ajor addi­
tion or m ajor improvement to a structure, which is or has been begun
after 12 o ’clock meridian, August 3, 1950. Construction will be deemed
to have been “ begun” when any essential materials which are to be
an integral part o f the structure have been affixed to or incorporated
on the site in a permanent form.
(g)
“ M a jor addition” or “ major im provem ent” means any enlarge­
ment, reconstruction, alteration, or repair o f an existing structure,4 or
any other addition or improvement which becomes or is to become
physically attached to and a part of the structure,4 if the cost or esti­
mated cost o f such addition or improvement exceeds $2,500, and also
exceeds (1) if the structure is a residence or multi-unit residence, an
amount determined by multiplying $1,500 by the number o f family
units in such residence or multi-unit residence prior to such addition
or improvement, or (2) if the structure is a nonresidential structure,
an amount equal to 15 per cent o f the appraised value o f the nonresi­
dential structure* as determined in good faith by the Registrant who
extends the credit.6
* N otw ithstanding this definition or any oth er provision o f this regulation,
an addition or im provem ent to any existing structure which will becom e a “ resi­
dence,” “ m ulti-unit residence.” or “ nonresidential structure” b y reason o f such
addition or im provem ent shall be treated as an addition or im provem ent to an
existing “ residence,” “ m ulti-unit residence,” or “ nonresidential structure,” respec­
tiv e ly ; and, in determ ining whether the cost or estim ated cost o f an addition
o r im provem ent to an existing structure which will becom e a “ residence” or
“ m ulti-unit residence” is such that it w ould be a m a jor addition or m a jor im prove­
m ent within the meaning o f section 2 ( g ) . and in determ ining what the maximum
loan value is, the determ ination shall be according to the num ber o f fam ily units
which will be in the structure after the a dd ition or im provem ent has been
com pleted.
s F or this purpose, the value o f the land upon which the nonresidential structure
is located is n ot taken in to con sidera tion ; and the appraised value is the appraised
value o f the structure b efore the m ajor addition or m a jor im provem ent is m ade.
8 It should be n oted that section 2(f) defines “ new con stru ction ” as including
“ any m ajor addition or m ajor im provem ent” and that section 2 (e ) defines “ real
estate construction credit” as including certain credit with respect to “ real prop­
erty on which there is new construction.” A ccordin gly, if a m a jor addition or




4

REGULATION X

Sec. 2

( “Real property” includes leaseholds and other i t r s i such
h)
neet n
property.
() The “maximum loan value” of any property7 s a l be the amount
i
hl
which i computed i the manner prescribed i the Supplement to t i
s
n
n
hs
regulation. In making such computations:
( ) For a major addition or major improvement to a resi e ce
1
dn ,
multi-unit r s d nc , or nonresidential s r c u e “value” s a l be
eie e
tutr,
hl
the c st or estimated cost8 of such major addition or major improve­
o
ment;
( ) For r s d n i l property, other than major additions or major
2
eieta
improvements:
(A) In the case of an extension of c e i i connection with a
rdt n
bona fide s l of r s d n i l property, “value” s a l be the bona fide
ae
eieta
hl
sl pie
ae rc;
(B) In the case of any other extension of c e i with respect t
rdt
o
r s d n i l property:
eieta
( ) I the e ti e c s of the property t the borrower has been
i f
n r ot
o
incurred by him not more than 1 2 months prior to the extension
of c e i or i to be incurred by him af er such extension o
rdt
s
t
f
c e i , “value” s a l be the bona fide c s of the property to the
rdt
hl
ot
borrower, including a bona fide estimate of the c of completing
ost
new construction on such property when the extension o c e i
f rdt
i f r the purpose o financing such new construction;
s o
f
(i I any part of the c s of the property to the borrower
i) f
ot
has been incurred by him more than 1 2 months prior to the
extension of c e i , or i any part of such property has been
rdt
f
acquired by g f , exchange, or i h ritance, “value” s a l be the
it
ne
hl
appraised value as determined i good f i h by the Registrant
n
at
who extends the c e i ;
rdt
m a jor im provem ent is made to an existing structure, even though such structure
was erected o r begun prior to August 3, 1950. any subsequent extension o f credit
w ith respect t o such structure or the property on which it is located is “ real
estate construction credit.”
H ow ever, in determ ining whether property has
b e co m e “ real property on which there is new construction” b y reason o f a
m a jor addition o r m a jor im provem ent having been made to an existing structure,
there shall be considered on ly such costs as are o r have been incurred during
a n y period o f 12 consecutive m onths (o r during a period n o t exceeding 12
m onths beginning January 12. 1951. if the structure is a residence or m ulti-unit
residence, o r beginning February 15, 1951, if the structure is a nonresidential
stru cture).
7 As used here, “ property” means residential property, m ulti-unit residential
property, nonresidential property, a residence on farm property, or a m a jor addi­
tion o r m a jor im provem ent to a residence, a m ulti-unit residence, or nonresidential
structure, as the case m ay be.
8 Based on such evidence and supporting data as norm ally w ould be required
b y a prudent lender.




S ec . 2

REGULATION X

5

( ) For an extension of c e i which i f r the purpose o financ­
3
rdt
s o
f
ing the construction of a residence on farm property, “value” s a l
hl
be the t t l of (A) the c s or estimated c st o such new construc­
oa
ot
o f
t o , and (B) 5 per cent of such c or estimated cost.9
in
ost
( ) For multi-unit r s d n i l property and nonresidential prop­
4
eieta
e t , other than major additions or major improvements:
ry
(A) In the case of an extension of c e i i connection with a
rdt n
bona fide s l of multi-unit r s d n i l property or nonresidential
ae
eieta
property, “value” s a l be the bona fide s l p i e
hl
ae rc;
(B) In the case of any other extension of c e i with respect t
rdt
o
multi-unit r s d n i l property or nonresidential property, “value”
eieta
s a l be the appraised value as determined i good f i h by the
hl
n
at
Registrant w’ extends the c e i . Appraisals pursuant to t i
ho
rdt
hs
provision and other provisions of t i regulation w l be subject
hs
il
to inspection by the Board and the Federal Reserve Banks i
n
accordance with section 6 ( ) of t i regula i , and appraisals
d
hs
t on
found to be i excess of those dictated by sound and established
n
practice i the community s a l be deemed s f i i n ground f r
n
hl
ufcet
o
the suspension of the Registrant pursuant to secti n 3 ( ) of t i
o
c
hs
re u a i n
glto.
( ) “Bona fide sale price” means the amount paid or t be paid by
;
o
the vendee i money or i s equivalent. I in l d s i addition to c s ,
n
t
t cue, n
ah
( ) the value of any property accepted i part payment, ( ) the
1
n
2
unpaid principal amount of any indebtedness incurred or assumed
by the vendee or to which the property remains s b ect, ( ) the
uj
3
amount o any l e s f r taxes or s e i l assessments which are i
f
in o
pca
n
default or currently due and payable, ( ) the amount of any me­
4
chanics’l e s or other l e s which the vendee i required to discharge,
in
in
s
( ) the amount which the vendee agrees to pay fo any alt r i n o
5
r
e at o r
other modification made or to be made to the property as an incident
to the s l t e e f and ( ) any amounts paid by the vendee f r clos n
ae hro,
6
o
ig
c s s I does not include any prepaid charges, or any accrued r nt
ot. t
e s
which w l be paid t the vendee.
il
o
(c “Residence”1 means any structure which i used or designed
/)
0
s
f r permanent or transient dwelling purposes, and which include a
o
t
8 T h e 5 per cent is added when the extension o f credit is for the purpose o f
financing the construction o f a residence on farm property in order t o take
account o f the value o f the land upon which the residence is to be constructed.
“ Structures such as hotels, m otels, room ing houses, club houses, fraternity or
sorority houses, rest hom es, and the like, in which m ore than on e-h alf o f the
floor space consists o f units which d o n ot contain kitchen facilities or space
designed for kitchen facilities shall n ot be deem ed to be residences or m ulti­
unit residences. See section 2 (r ).




6

REGULATION X

S

ec

. 2

l a t one but not more than four family u i s i the f o r space con­
es
nt, f
lo
tained i such family units comprises at l a t one-half of the f o r
n
es
lo
space of such s r c u e Houses connected by common walls and
tutr.
commonly known as “row houses” or “semidetached houses” s a l be
hl
considered separate s r c u e .
tutrs
{I) “Multi-unit residence”1 means any structure such as an apart­
0
ment house or apartment hotel (whether owned cooperatively or other­
wise) which i used or designed f r permanent or transient dwelling
s
o
purposes, and which includes more than four family u i s i the f o r
nt, f
lo
space contained i such family units comprises at l a t one-half o
n
es
f
the f o r space of such s r c u e
lo
tutr.
(m) “Family unit” means space which i used or designed f r dwell­
s
o
ing purposes and which contains one or more rooms with kitchen
f c l t e ( r space designed f r kitchen f c l t e ) i or appurtenant
aiiis o
o
aiiis n
to such rooms.
( ) “Residential property” means any r a property, other than
n
el
farm property, on which there i or i to be a residence or r s d n e .
s
s
eiecs
( ) “Farm property” means any r a property, other than multi-unit
o
el
r s d n i l property or nonresidential property, located outside o
eieta
f
urban a e s which i principally used f r the production o c o s
ra,
s
o
f rp,
livestock or other a i ultural commodities.
gr c
( ) “Multi-unit residential property” means any r a property on
p
el
which there i or i to be a multi-unit residence or multi-unit r s ­
s
s
ei
dences.
( “Nonresidential property” means any r a property on which
q)
el
there i or i to be a nonresidential structure or s r c u e .
s
s
tutrs
( ) “Nonresidential s tr u c tu r e means any structure other than
r
( ) arsdne
1
eiec,
( ) a multi-unit r s d nc ,
2
eie e
( ) a s o l h s i a , or church,
3
ch o , o p t l
( ) a structure exclusively used or designed f r use
4
o
() by a public u i i y
i
tlt,
(i by any Government or p l t c l subdivision, o
i)
oiia
r
( ) a structure more than 80 per cent o the f o r space of which
5
f
lo
i used or designed f r use
s
o
( ) i processing materials, goods, or a t c e i t f n s e or
i n
rils no iihd
partly f n s e manufactured products,
iihd
(i i mining or otherwise extracting raw materials, o
i) n
r
10 F or footn o te , see preceding page.
11 Nonresidential structures ordinarily subject to this regulation include, am ong
others, the fo llow in g : Office buildings, warehouses, stores (including sales display
and service facilities, whether wholesale or retail), banks, hotels, m otels, m otor
courts, garages, a utom obile service stations, restaurants, and clubs.




Sec

s

. 2, 3

R E G U L A T IO N

X

7

(i) on farm property i the production, s e t r or storage
ii
n
hle,
incidental t e e o of c o s livestock or other a r
hrt,
rp,
g icultural com­
modities.
( ) “Public utility” means any transportation company, e e t i
s
lcrc
l g t or power company, gas company, water company, pipe l n com­
ih
ie
pany, telephone company, telegraph company, or other similar business
which i operated f r the convenience, service or accommodation o
s
o
f
the public i ( ) the operations of such company are supervised by a
f 1
Federal or State agency, or ( ) the members of the public as such
2
are e t t e as of r g to demand and use i s f c l t e or s r i e .
nild
i ht
t aiiis
evcs
SECTION 3 .

GENERAL REQU IREM EN TS AND REGISTRATION

( ) General Requirem ents.— No person engaged i t e business
а
n h.
of extending r a est t c e i with respect t r s d n e , r s d n i l
el a e rdt
o eiecs eieta
property, multi-unit r s d n i l property or nonresidential property
eieta
s a l extend r a estate construction c e i unless ( ) he i r g s e d
hl
el
rdt
1
s e i t re
pursuant to t i s c i n and ( ) he has no knowledge o , and has no
hs eto,
2
f
reason t know, any f c by reason o which such c e i f i s to com­
o
at
f
r d t al
ply with any applicable provision of t i re u a i n
hs glto.
( ) Registration. — Every person engaged i the business o extend­
б
n
f
ing r a es a c e i with respect to r s d n e , r s d n i l property,
e l t te r d t
eiecs eieta
multi-unit r s d n i l property or nonresidential property s a l be
eieta
hl
deemed t be reg s r d pursuant t t i regulation u t l such time
o
i te e
o hs
ni
as the Board, by public announcement,1* may require r g s r t o
1
eitain
statements t be f l d by al or any s e i i d c a s s o , such p r o s.
o
ie
l,
pcfe lse f
esn
Should the Board require such r g s r t o statements, a person s a l
eitain
hl
continue t be reg st r a t r the time such statements are required
o
i e ed f e
only i he s a l have complied with the requirements of the Board’
f
hl
s
announcement. Every person who i r g s r d i accordance with
s e i te e n
the provisions o t i subsection i referred to i t i regulation as a
f hs
s
n hs
“Registrant.”
()
c
Suspension o f Registration.— Any Registrant may, after rea­
sonable notice and opportunity f r ao
hearing, be suspended by the
Board, as to a l or as t particular a t v t e or particular o f c s and
l
o
ciiis
fie
f r s e i i d or i d f n t p r d , because of any w l f l or negligent
o pcfe
n e i i e e io s
ilu
f i u e to comply with any provision of t i r g l t o .
alr
hs euain
” * Pursuant to public announcem ent made b y the B oard on M a y 11, 1951. all
persons so engaged in the business described a b ove on M a y 31, 1951. must register
with the nearest Federal Reserve Bank or branch not later than June 30, 1951.
o n Form F .R . 269. which m ay be obtained at any such Bank or branch. All
persons w ho thereafter becom e so engaged in business must register within 30 days.




8

REGULATION X

S ecs . 3, 4

A suspension f r a s e i i d period w l terminate upon the expira­
o
pcfe
il
t o of such per o A suspension f r an i d f n t period may be
in
i d.
o
neiie
terminated by the Board, i i s d s r t o , i the Board i s t s i d
n t icein f
s aife
that i s action would not lead t further violations of t i regulation
t
o
hs
by the suspended Registrant and would not be otherwise incompatible
with the public i t r s .
neet
SECTION 4. E X T E N SIO N OF CREDIT

()
a
A m ou n t; M aturity; Am ortization. — Except as otherwise per­
mitted by t i r g a io , no Registrant s a l e t e i connection
h s e ul t n
hl, i h r n
with a s l or otherwise:
ae
( ) Extend r a e t e construction c e i with respect to r s ­
1
e l s at
rdt
ei
den ia property, multi-unit r s d n i l property, or nonresidential
t l
eieta
property (other than major additions or major improvements) i the
f
amount o c e i outstanding with respect to the property (includ­
f rdt
ing any c e i exempt from, or not subject to the prohibitions o ,
rdt
f
t i regulation) exceeds, or as a r s l of such extension of c e i
hs
eut
rdt
would exceed, the applicable maximum loan value of such property;
( ) Extend r a estate construction c e i f r the purpose o
2
el
rdt o
f
financing a major addition or major improvement t a r s d n e
o
eiec,
multi-unit residence or nonresidential structure i the amount o
f
f
c e i outstanding f r the purpose of financing the major addition
rdt
o
or major improvement (including any c e i exempt from, or not
rdt
subject t the prohibitions o , t i regulation) exceeds, or as a r s l
o
f hs
eut
of such extension of c e i would exceed, the applicable maximum
rdt
loan value of such major addition or major improvement;
( ) Extend r a estate construction c e i f r the purpose o
3
el
rdt o
f
financing the construction of a residence on farm property i the
f
amount of c e i outstanding f r the purpose of financing the con­
rdt
o
struction of the residence (including any c e i exempt from, or
rdt
not subject to the prohibitions o , t i regulation) exceeds, or as a
f hs
r s l of such extension of c e i would exceed, the applicable maxi­
eut
rdt
mum loan value of such residence;
( ) Extend r a e t e construction c e i i such c e i would
4
e l s at
rdt f
rdt
have a maturity which exceeds the applicable maximum maturity
provisions, or would be repaid i any manner which does not con­
n
form with the applicable amortization provis n , s t forth i the
io s e
n
Supplement to t i regulation;
hs
( ) Purchase, discount or lend on any c e i instrument evidenc­
5
rdt
ing r a estate construction c e i which i subject to and not
el
rdt
s
exempt from t i regula o , unless the terms of such c e i con­
hs
ti n
rdt




S ec. 4

REGULATION X

9

formed with the provisions o the Supplement t t i regulation
f
o hs
when such c e i was o i i l y extended or conform with the pro­
rdt
r g na l
vis on of the Supplement at the time of such purchase, discount
i s
or loan; but f r the purposes of t i paragraph c e i s a l be con­
o
hs
rdt hl
sidered to be subject to the regulation even though extended by a
person other than a Registrant;
( 1 I the Registrant i acting as principal— s l, or transfer t t e
6 f
s
el
il
t , r s d n i l property, multi-unit r s d n i l property or non­
o eieta
eieta
r s d n i l property on which there i new construction (which i
eieta
s
s
a r s d nc , multi-unit residence or nonresidential s r c u e or a
eie e
tutr,
major addition or major improvement to a res de c , multi-unit
i ne
residence or nonresidential s
tructure) and with respect to which the
vendee or transferee assumes, or takes such property subject t ,
o
indebtedness secured by a mortgage or other l e upon such property,
in
i the amount of outstanding c e i (including any c e i exempt
f
rdt
rdt
from, or not subject to the prohibitions o , t i regulation) which
f hs
was extended a t r October 1 , 1950, ( r a t r January 1 , 1951, i
fe
2
o fe
2
f
i i a s l or transfer of multi-unit r s d n i l property or a t r
t s
ae
eieta
fe
February 1 , 1951, i i i a s l or transfer of nonresidential
5
f t s
ae
property) with respect to the property exceeds, or as a r s l of such
eut
s l or transfer would exceed, the applicable maximum loan value
ae
of such property, or i any outstanding r a e t e construction
f
e l s at
c e i (subject t and not exempt from t i regulation) with respect
rdt
o
hs
to such property does not conform with the provisions of t i regu­
hs
l t o and the Supplement thereto.12
ain
( ) Secondary B orrow ing.— Except as otherwise permitted by t i
6
hs
r
egula o , no Registrant s a l extend r a estate construction c e i
ti n
hl
el
rdt
i he knows or has reason to know that there i,or that there i to b ,
f
s
s
e
any other c e t extended with respect t the property13 (1 ) which,
r di
o
when added t the c e i proposed t be extended by the Registrant,
o
rdt
o
would cause the t t l amount of c e i outstanding with respect t
oa
rdt
o
the property13 (including any c e i exempt from, or not subject t
rdt
o
the prohibitions o , t i regulation) to exceed the applicable n\aximum
f hs
loan value of such property, or ( ) which, i i i r a e a e construc­
2
f t s e l st t
t o c e i subject to and not exempt from t i r g l ti n does not
in rdt
hs eu a o ,
or would not comply with the applicable maximum maturity and amor­
t z t o provisions s t f rt i the Supplement t t i r g l t o .
iain
e o h n
o hs euain
12 F or application to three- and four-unit residences, see section 6 (;').
13 As used here, “ property” means residential property, m ulti-unit residential
property, nonresidential property, a residence on farm property, or a m a jor addi­
tion or m a jor im provem ent to a residence, a m ulti-unit residence or nonresidentail structure, as the case m ay be.




10

REGULATION X

S ec . 4

( ) Ascertaining Nature o f Credit.— No Registrant s a l extend
c
hl
any c e i unless he i s t s i d and maintains records which reason­
rdt
s aife,
ably demonstrate on t e r f c , whether such c e i i or i not r a
hi ae
rdt s
s
el
estate construction c e i ; provided, however, unless the Registrant
rdt
has actual knowledge that the c e i i r a e a e construction c e i ,
r d t s e l st t
rdt
the requirements of t i sentence s a l not apply ( ) to any exten­
hs
hl
1
sion o c e i which i made by a bank, savings and loan a s c a i n
f rdt
s
soito,
or similar i s i u i n and which i t be repaid within s x months and
nttto
s o
i
i f l y secured by withdrawable shares issued by or savings accounts
s ul
held with the l n e , or ( ) to any extension of c e i i the ordinary
edr
2
rdt n
course of business f r a commercial, a r c l u a , or business purpose
o
giutrl
where the Registrant, because of a previous course of dealings or
correspondence between himself and the borrower, has no reason t
o
believe that the c e i i or w l be r a e a e construction c e i .
rdt s
il
e l st t
rdt
The preceding sentence does not require that a Registrant obtain a
signed statement from each borrower, and i the Registrant i s t s
f
s ai­
f e that c e i i not r a estate construction c e i , other kinds o
id
rdt s
el
rdt
f
records may be used t demonstrate t i f c . Such records may
o
h s at
i c ud , among o h r , ( ) any correspondence, memoranda, loan
nl e
tes 1
applications or other documents of any kind, whether or not originat­
ing i connection with the c e i i question, which on the b
n
rdt n
asis o
f
a reasonable interpretation show that the c e i i not r a e t t
rdt s
el sae
construction c e i ; or ( ) a written endorsement or rubber stamp
rdt
2
legend, placed upon the c e i instrument or upon other papers i
rdt
n
connection with the c e i and signed by the Registrant or a respon­
rdt
s b e o f c rof the Registrant, stating that he i s t s i d that the c e i
i l fie
s aife
rdt
i question i not r a e t e construction c e i . I , however, a Regis­
n
s
e l s at
rdt f
trant d s r s to obtain, and accepts i good f i h a signed Statement
eie
n
at,
of the Borrower stating that the c e i i not wholly or partly secured
rdt s
by, or f the purpose of purchasing or carrying, or f r the purpose
or
o
of fina c g or one which involves the r g t t acquire or u e new
n in ,
ih o
s,
construction on r a property or r a property on which there i new
el
el
s
construction ( that such new construction, i any, i not a r s ­
or
f
s
ei
dence, multi-unit residence or nonresidential s r c u e or a major
tutr,
addition or major improvement to a res e ce multi-unit residence
id n ,
or nonresidential struc u ) such Statement s a l be deemed to be
t re ,
hl
compliance with the requirements of t i subsection.
hs
( d ) Statement o f the B orrow er. — No Registrant s a l extend r a
hl
el
e ta e construction c e i unless he has accepted i good f i h a
s t
rdt
n
at
signed Statement of the Borrower ( ) stating whether the c e i i
1
rdt s




S ecs . 4. 5

REGULATION X

11

with respect to property' 4 subject t the r g la i n, and ( ) s a i g
o
eu to
2
ttn,
i the Registrant claims that such c e i i exempt from t i regula­
f
rdt s
hs
t o , the reason f r such exemption; and, i the c e i i not exempt,
in
o
f
rdt s
( ) stating the amount of c e i . r vi u y extended and outstand­
3
r d t p e o sl
i g and the amount of any other c e i to be extended, with respect
n,
rdt
to the property,14 ( ) s a i g i the Registrant i computing “value”
4 ttn, f
n
r l e upon cost or estimated c s to the borrower (where such c s
eis
ot
ot
or estimated c s may be used f r t i purpose!, the bona fide amount
ot
o hs
of such co or estimated cost to the borrower, and ( ) s a i g i
st
5 ttn, f
the extension of c e i i i connection with a s l , the s l p i e
rdt s n
ae
a e rc,
that the s l p i e was bona fide, and the value and a b i f descrip­
ae rc
re
tion of any property accepted i part payment. I the extension o
n
f
f
c e i i i connection with a s l , such Statement s a l s a that
rdt s n
ae
h l t te
the vendor of the property has or w l have no f n n i l i t r s i
il
iaca neet n
such property or i the proceeds of any subsequent d s o t on t e e f
n
i p si i h r o ,
except such i t r s as may be f l y d sclosed to the Registrant. The
neet
ul i
amount of any such f n n i l i t r s of the vendor retained i the
iaca neet
n
property or any proceeds of the disposition thereof s a l be deemed
hl
to be r a e a e construction c e i extended with respect to such
e l st t
rdt
property. The Statement of the Borrower may be made, i d s r d
f eie,
on a form a sample of which i obtainable at any Federal Reserve
s
Bank or branch.
SECTION 5.

E XE M P TIO N S AND EXCEPTIONS

( ) M inim um A m ount. — The prohibitions of subsections ( ) and
а
a
( ) o section 4 of t i regulation s a l not apply to any extension
6
f
hs
hl
of c e i i the t t l amount t e e f including a l outstanding c e i
rdt f
oa
hro,
l
rdt
which was granted a t r October 1 , 1950, with respect to the same
fe
2
property,14 i not i excess of $2 5 0
s
n
,0.
( ) Short-Term Residential Construction Credits.— The prohibi­
б
t o s of subsections ( ) and ( ) o sect o 4 o t i regulation s a l
in
a
6
f
in
f hs
hl
not apply to any c e i which i f r the purpose of financing the con­
rdt
s o
struction of a residence or residences or a major addition or major
improvement to a r s d n , i the maturity o such c e i i not
e i e ce f
f
rdt s
more than 18 months; provided, that t i exemption s a l not be
hs
hl
construed to permit any renewal, r v s o , consolidation, or refinancing
eiin
of such c e i except on terms which conform with the provisions o
rdt
f
t i regulation and the Supplement t e e o I (1 ) the i i i l purpose
hs
hrt. f
nta
14 As used here, “ property” means residential property, m ulti-unit residential
property, nonresidential property, a residence on farm property, or a m ajor addi­
tion o r m ajor im provem ent to a residence, m ulti-unit residence, or nonresidential
structure, as the case m ay be.




12

REGULATION X

S ec . 5

of an extension of c e i having a maturity exceeding 18 months i
rdt
s
the financing of the construction o a residence or residences or a major
f
2
r di
addition or major improvement to a residence and ( )the c e t instru­
ment provides, or an agreement with respect to the cre i r q i e ,
dt eurs
that within 32 days a t r completion o such construction or upon a
fe
f
s e i i d date when the Registrant estimates i good f i h the construc­
pcfe
n
at
t
ion w l be completed, which i ei h r case s a l be not more than
il
n te
hl
18 months after the extension of the c e i , the terms o the c e i
rdt
f
rdt
s a l conform thereafter with the applicable maximum loan value and
hl
the applicable maturity and amortization provisions s t forth i
e
n
Schedule I o the Supplement to t i r g l i n, then i such event
f
h s e u at o
n
the prohibitions o subsections ( ) and ( of sect on 4 of t i regu­
f
a
b)
i
hs
l t o s a l not apply to such c e i u t l after the lapse o the time
ain hl
rdt ni
f
so described or s e i i d but i at any time a t r the date o the
pcfe,
f
fe
f
extension o such c e i , a Registrant s l s or t ansfers t t e to the
f
rdt
el
r
il
property with respect to which the c e i i extended, such s l or
rdt s
ae
transfer o t t e must conform to the provisions of t i regulation and
f il
hs
Schedule I o the Supplement-thereto.15
f
( ) O ther Short-Term Construction Credits.— The prohibitions o
c
f
subsections ( ) and ( o section 4 o t i regulation s a l not apply
a
b) f
f hs
hl
to any c e i which i f r the purpose o financing the construction
rdt
s o
f
of a multi-unit residence or nonresidential structure or a major addi­
tion or major improvement to a multi-unit residence or nonresidential
structure and which i extended to any person other than the owner
s
o the property and has a maturity of not more than 24 months; pro­
f
vided, that t i exemption s a l not be construed to permit any re­
hs
hl
newal, r v s o , consolidation, or refinancing o such c d t except on
eiin
f
re i
terms which conform with the provisions o t i regulation and the
f hs
Supplement t e e o Extensions of c e i f r the purpose o financ­
hrt.
rdt o
f
ing the construction of a multi-unit residence or nonresidential struc­
ture or a major addition or major improvement to a multi-unit
residence or nonresidential structure may not be made to the owner
of the property i a t t l amount exceeding the maximum loan
n
oa
value o the property; but any such c e i extended to the owner
f
rdt
of the property s a l be exempt from the amortization provision i
hl
n
Schedule III of the Supplement to t i regulation i ( ) such c e i
hs
f 1
rdt
has a maturity of not more than 24 months, or ( ) the i i i l purpose
2
nta
of c e i having a maturity exceeding 24 months i the financing o
rdt
s
f
“ It should be n oted that this exem ption does n ot apply to any credit which
is fo r the purpose o f financing the construction o f a m ulti-unit residence or
nonresidential structure or a m a jor addition or m ajor im provem ent to a m ulti­
unit residence o r nonresidential structure. H ow ever, see section 5 (c ).




S ec. 5

REGULATION X

13

the construction o a nonresidential structure or nonresidential struc­
f
tures or a major addition or major improvement to a nonresidential
s r c u e and the c e i instrument provides, or an agreement with
tutr,
rdt
respect t the c e i r q i e , that within 32 days a e completion
o
rdt eurs
ft r
o such construction or upon a s e i i d date when the Registrant
f
pcfe
estimates i good f i h the construction w l be completed, which i
n
at
il
n
e h r case s a l be not more than 24 months a t r the extension o
it e
hl
fe
f
the c e i , the terms o the c e i s a l conform thereafter with the
rdt
f
rdt hl
applicable maturity and amortization provisions s t forth i Schedule
e
n
I I of the Supplement to t i regulation; but i at any time a t the
I
hs
f
f er
date o the extension of such c e i , a Registrant s l s or tr n f r
f
rdt
el
ases
t t e to the property with respect to which the c e i i extended, such
il
rdt s
s l or transfer of t t e must conform to the provisions of t i regu­
ae
il
hs
l t o and Schedule I I o the Supplement t e e o
ain
I f
hrt.
( d ) Medical Expenses, Etc.— The prohibitions o subsections ( )
f
a
and ( ) of section 4 of t i regulation s a l not apply to any exten­
6
hs
hl
s on o r a es a construction c e i as to which the Registrant ac­
i f e l t te
rdt
cepts i good f i h a signed Statement o the Borrower cer f in that
n
at
f
ti y g
the proceeds thereof are to be used f r bona fide medical, h s i a ,
o
optl
den a or funeral expenses, or t pay debts incurred f such expenses,
t l,
o
or
and that the proceeds o the extension are to be paid over i amounts
f
n
s e i i d i such Statement to persons whose names, addresses and
pcfe n
occupations are stated t e e n
hri.

( ) Casualties.— The prohibitions of subsections ( ) and ( ) o
e
a
6
f
section 4 of t i regulation s a l not apply to any extension of r a
hs
hl
el
e ta e construction c e i as to which the Registrant accepts i good
s t
rdt
n
f i h a signed Statement of the Borrower cert f n that the proceeds
at
i yi g
thereof are to be used s l l fo the replacement, reconstruction or
oey r
repair of a r s d c , multi-unit residence or nonresidential structure
e i en e
destroyed or substantially damaged by f o d f r or other similar
l o , ie
casualty or s l l to finance the purchase or construction of a r s ­
oey
ei
dence, multi-unit residence or nonresidential structure to be used i
n
substitution f r a similar structure o which the borrower has been
o
f
deprived through or by reason of eminent domain or condemnation
proceedings.
(/) Contracts to Sell.— None of the provisions o t i regulation
f hs
s a l apply to a contract to s l r a property ( ) which does not pro­
hl
el e l
1
vide f r the payment of any part of the purchase p i e or of any
o
rc,
amount to be subsequently applied to such p i e except a deposit o
rc,
f
earnest money, before the transfer o t t e to such property, ( ) which
f il
2




14

REGULATION X

S

ec

. 5

i to be performed by a transfer of t t e to such property within s x
s
il
i
months a e the date on which the contract was entered i t , and ( )
ft r
no
3
which provides f r the subsequent transfer o t t e to such property on
o
f il
terms which conform to the provisions of t i regulation and the Sup­
hs
plement thereto i e f c on the date the contract was entered i t .
n fet
no
((?) Contemplated Construction. — Any builder or other person
who had made substantial commitments or undertakings before ( )
a
January 1 , 1951, with a view to the building of new construction
2
which i a multi-unit residence or a major addition or major improve­
s
ment to a multi-unit r s d n e, or ( ) February 1 , 1951, with a
eiec
6
5
view to the building o new construction which i a nonresidential
f
s
structure or a major addition or a major improvement to a nonresi­
dential s r c u , and who a s r s that h s i a i i y to obtain c e i
t u t re
set
i nblt
rdt
to finance such new construction on the ba s contemplated by him
si
and by a Registrant prior to January 1 , 1951, or February 1 , 1951,
2
5
as the case may b , would cause him a c e r and substantial f n n i l
e
la
iaca
hardship, may apply to the Federal Reserve Bank of the d s r c i
itit n
which the new construction i contemplated f r an exemption from
s
o
t i regulation f r such new construction, showing a l the f c s and
hs
o
l
at
submitting a l necessary supporting documents with respect to h s
l
i
commitments or undertakings and why compliance with the regulation
would cause him a cl a and substantial f n n i l hardship. I such
er
iaca
f
Federal Reserve Bank after consideration o the application and sup­
f
porting documents determines that substantial commitments or under­
takings were made prior to January 1 , 1951, or February 1 , 1951,
2
5
as the case may b , and that a c e r and substantial f n n i l hard­
e
la
iaca
ship would r s l from the application o t i regulation i such c s ,
eut
f hs
n
ae
i may i s e to such builder or such other person a c r i i a e approv­
t
su
etfct
ing such application and thereupon any extension of c e i to such
rdt
builder or such other person by the Registrant named i such cer­
n
t f c t with respect to the new construction that may be s e i i d i
iiae
pcfe n
such c r i i a e s a l be exempt from the prohibitions o subsections
etfct hl
f
( ) and (b) o section 4 of t i r g la i . Applications under t i
a
f
h s e u t on
hs
subsection must be sent to the Federal Reserve Bank prior to April
1, 1 1
5 95 .
(h )
Labor and Material.— No person s a l be required to r g s e
hl
eitr
pursuant to section 3 o t i regulation because of the f ct that he
f hs
a
performs labor or furnishes material fo new construction on an open
r
account, unless he s a l be otherwise engaged i the business of ex­
hl
n
tending r a estate c e i .
el
rdt




S ex:. 5

REGULATION X

15

(i) Credits Secured by Life Insurance Policies. — None of the pro­
v s o s o t i regulation s a l apply to an extension o r a e t t
iin f hs
hl
f el sae
construction c e i which i f l y secured by the loan value or cash
rdt
s ul
surrender value o a l f insurance policy; and, notwithstanding any
f
ie
other provisions of t i regula o , a Registrant i determining the
hs
ti n
n
amount o c e i which he may extend under the provisions of sec o
f rdt
ti n
4 o the regulation need not take i t account any cre i which i
f
no
dt
s
secured i the manner s e i i d i t i subsec i .
n
pcfe n hs
t on
(;) Farm Property. — The prohibitions of subsections ( ) and ( b )
a
of sec i 4 of t i regulation s a l not apply to any extension o r a
t on
hs
hl
f el
es at construction c e t with respect to farm property unless the
t e
r di
extension of c e i i fo the purpose o financing the construction o
rdt s r
f
f
a residence on farm property or a major addition or major improve­
ment to a residence on farm property.16

( Exem ption fo r Certain New Construction.— The prohibitions
k)
o subsections ( ) and ( ) o section 4 o t i regulation s a l not
f
a
6
f
f hs
hl
apply to any r a e t te construction c e i extended p
el sa
rdt
rior to a date
32 days a t r construction i completed, with respect to new construc­
fe
s
tion ( ) begun prior t October 1 , 1950, i such new construction i
1
o
2
f
s
a residence or a major addition or major improvement to a r s d n e
eiec,
( ) begun prior to January 1 , 1951, i such new construction i a
2
2
f
s
multi-unit residence or a major addition or major improvement to a
multi-unit residence,17 or ( ) begun prior t February 1 , 1951, i
3
o
5
f
such new construction i a nonresidential structure or a major addi­
s
t on or major improvement to a nonresidential s r c u e
i
tutr.
(/) Materials, Articles and Services Used in New Construction.—

None of the provisions of t i regulation s a l apply to an extension
hs
hl
of c e i which i f r the purpose o purchasing, or i i connection
rdt
s o
f
s n
with a s l o , materials, a t c e and s rv c s f r new construction i
ae f
rils
e ie o
f
the c e i i extended on terms which provide f a minimum down
rdt s
or
payment o 10 per c n , or a maximum loan value of 90 per c n , and
f
et
et
fo repayment within 30 months by ( ) substantially equal monthly
r
1
or weekly payments covering principal and i t r s or ( ) substan­
neet
2
t a l equal monthly or weekly payments o principal.18
ily
f
18 It is to be n oted that the term “ farm property” as defined in section 2(o)
does n o t include m ulti-unit residential property or nonresidential p rop erty;
accordingly, the location o f m ulti-unit residential property or nonresidential
property does n ot affect the question whether extensions o f credit with respect
to such property are subject to the regulation.
17 For application to three- and four-unit residences, see section 6 (;').
18 It should be n oted that in certain circum stances m ore restrictive terms w ould
be required b y R egu lation W .




16

REGULATION X

S ecs . 5, 6

(m) Essential Nonresidential Defense Construction. — I i ex­
f n
ceptional circumstances proposed nonresidential construction i c r i
s et­
f e by the head or a i ta t head of an appropriate agency or depart­
id
ss s n
ment of the United States Government to be e s n i l to the national
seta
defense, application may be made to the Federal Reserve Bank o the
f
d s r c i which such construction i proposed f r an exemption from
itit n
s
o
t i regulation f r such construction, and such Federal Reserve Bank
hs
o
w l i s e a c r i i a e of exemption t e e o . Any extension of c e i
il su
etfct
hrfr
rdt
with respect to nonresidential construction s e i i d i such a c r i i
pcfe n
etf­
cate of exemption s a l be exempt from the prohibitions of subsec­
hl
t o s ( ) and ( ) of sect o 4 of t i r g l t o .
in a
6
in
hs euain
SECTION 6.

MISCELLANEOUS PROVISIONS

( ) Evasions.— No extension o r a estate construction c e i com­
а
f el
rdt
p i s with the requirements o t i regulation i at the time i i made
le
f hs
f
ts
there i any agreement, arrangement, or understanding, of which the
s
Registrant knows or has reason to know, by which c ed t i or i to be
r i s
s
extended i violation o t i regula i , even though such extension
n
f hs
t on
o c e i i or i to be made i d r c l , or which would otherwise evade
f rdt s s
niety
or circumvent, or conceal any evasion or circumvention o , any pro­
f
vision o t i regulation or the Supplement t e e o No Registrant
f hs
hrt.
extending cr d subject to t i regulation s a l divide such c e i i t
e it
hs
hl
rdt no
two or more p r s or enter in any agreement or understanding with
at,
to
any other person as a r s l o which two or more c e i s are extended,
eut f
rdt
when the purpose or e f c o such action i to circumvent or avoid
fet f
s
the amortization or maturity provisions o t i regulation or the
f hs
Supplement t e e o
hrt.
( ) Outstanding Contracts and Obligations.— The prohibitions o
б
f
subsections ( ) and ( ) of section 4 o t i regulation s a l not apply
a
6
f hs
hl
to or a f c ( ) any c e i with respect to r s d n i l property or a
fet i
rdt
eieta
major addition or major improvement to a residence i extended pr o
f
ir
to October 1 , 1950, or pursuant to any firm commitment to extend
2
c e i made prior to such d
rdt
ate, (i any c e i with respect to multi­
i)
rdt
unit r s d n i l property or a major addition or major improvement
eieta
to a multi-unit residence i extended prior t January 1 , 1951, or
f
o
2
pursuant to any firm commitment to extend c e i made prior to such
rdt
date, or (i) any c e i with respect to nonresidential property or a
ii
rdt
major addition or major improvement to a nonresidential structure i
f
extended prior to February 1 , 1951, or pursuant t any firm commit­
5
o
ment to extend c e i made prior to such date, i such firm commitment
rdt
f
complies with Clause ( ) of the next succeeding sentence. For t i
1
hs




S ec . 6

REGULATION X

17

purpose, a firm commitment means e h r (1 ) a written agreement
it e
under which the Registrant i required without option or d
s
iscretion
on h s part to extend c e i upon demand by the borrower or upon
i
rdt
compliance by the borrower with one or more conditions r f
e erred t
o
i such agreement; or ( ) any other agreement to extend c e i with
n
2
rdt
respect to r s d n i l property, a r s d nc , or a major addition or
eieta
eie e
major improvement to a residence which has been entered i i good
nto n
f i h by the part e and i r l a ce upon which the prospective borrower
at
is
n ein
or builder has taken s e i i action prior to October 1 , 1950, i the
pcfc
2
f
Registrant prior to January 1 1951, s a l have sent to the Federal
,
hl
Reserve Bank of the d s r c i which he does business a l t e or other
itit n
etr
statement r c t n the f c s with respect to such agreement and the
eiig
at
s e i i action taken by the prospective borrower or builder prior t
pcfc
o
October 1 , 1950; or ( ) any other agreement to extend c e i with
2
3
rdt
respect to multi-unit r s d n i l property or a major addition or major
eieta
improvement to a multi-unit residence which has been entered in i
to n
good f i h by the par e and i r liance upon which the prospective
at
ti s
n e
borrower or builder has taken s e i i action p
pcfc
rior to January 1 , 1951,
2
i the Registrant p
f
rior to March 15,1951, s a l have sent to the Federal
hl
Reserve Bank of the d s r c i which he does business a l t e or other
itit n
etr
statement r c t n the f c s with respect to such agreement and the
eiig
at
s e i i action taken by the prospective borrower or builder prior t
pcfc
o
January 1 , 1 5 . *
2 91"
( ) Real P roperly Outside the United States.— None o the pro­
c
f
hi it o of t i regulation s a l apply t any extension of r a e t t
b i ns
hs
hl
o
el sae
construction c e i with respect t r a property i Alaska, the Panama
rdt
o el
n
Canal Zone, or any t r i o y or possession outside the continental
ertr
United S a e .
tts
{d) Preservation o f R ecord s; Inspections; Administrative R e­
ports. — For the purpose o determining whether or not there has been
f

compliance with the provisions of t i regula o , every person ex­
hs
ti n
tending r a estate c e i with respect t r s d c s, r s d n i l prop­
el
rdt
o e i en e e i e t a
e t , multi-unit r s d n i l property or nonresidential property s a l
ry
eieta
hl
preserve f r the period hereinafter s e i i d such accounts, correspond­
o
pcfe
ence, memoranda, papers, books, and other r c r , or photostats o
e o ds
r
other copies t e e f as are relevant to establishing whether such
hro,
person i engaged i the business of extending such r a estate c e i ;
s
n
el
rdt
whether each c e i extended i or i not r a estate construction c e i
rdt
s
s
el
rdt
with respect t a farm r s d n e r s d n i l property, multi-unit r s o
eiec, eieta
ei
,nF or application to three- and four-unit residences, see section 6 (7).




18

REGULATION X

S ec. 6

dential property, nonresidential property, or a major addition or major
improvement to a r s d c , multi-unit r s d nc , or nonresidential
e i en e
eie e
structure;and whether each extension of r a estate construction c e i
el
rdt
conformed with the provisions o t i regulation and the Supplement
f hs
t e e o Every such person s a l preserve such records f r three years
hrt.
hl
o
a t r the extension of such c e i , or u t l the repayment of the c e i ,
fe
rdt
ni
rdt
whichever period i s o t r provided, however, that i such person
s hre,
f
s l sor transfers an obligation evidencing a c e t ( rr l s s c l a e a
el
r di o e ea e o l t r l
held as security f r such c e i ) and d l ve s h s records relevant t
o
rdt
ei r i
o
such c e i to the purchaser or t a s e e , such person need not there­
rdt
rnfre
a t r maintain such records with respect to the c e i but s a l keep
fe
rdt
hl
a record of the i ntity of the purchaser or transferee and the date
de
of such s l or transfer ( r such r l a e . Every such person s a l
ae
o
ees)
hl
permit the Board or a Federal Reserve Bank, by i s duly authorized
t
representative, to inspect such records and business operations as the
Board or a Federal Reserve Bank may deem necessary or appropriate;
and when ordered to do s , s a l f r i h under oath or otherwise, such
o hl uns,
r p r s information, or records relevant to extensions of c e i as the
eot,
rdt
Board or a Federal Reserve Bank may deem necessary or appropriate
f r the enforcement and administration o t i regulation.20
o
f hs
( e ) Default and F oreclosu re; Serviceman’ s Preinduction Debt.—

Nothing i t i regulation s a l be construed to prevent any Registrant
n hs
hl
from taking such action as he s a l deem necessary i good f i h (1 )
hl
n
at
with respect to any extension of c e i to any member or former
rdt
member of the armed f r e of the United States which was made t
ocs
o
him prior to h s induction into such serv e and assignment to active
i
ic
duty, or ( ) f r the Registrant’ own protection i connection with any
2 o
s
n
c e i which i i default and i the subject of a bona fide c l e t o
rdt
s n
s
olcin
e f r by the Registrant. The prohibitions of subsections ( ) and ( )
fot
a
b
of section 4 of t i regulation s a l not apply t an extension of c e i
hs
hl
o
rdt
by a Registrant i connection with a s l of property acquired by him
n
ae
through foreclosure proceedings i such c e i does not exceed the
f
rdt
unpaid principal amount of the foreclosed c e i , the c s s of acqui­
rdt
ot
s t o through f r c o u e and the c s s incurred i the r h b li a o
iin
oelsr,
ot
n
e a i t ti n
and repair of the property prior to the s l .
ae
(/) Veterans Program s under State Law.— Nothing ii t i regu­
t hs
l t o s a l be construed as prohibiting a State ( s distinguished from
ain hl
a
any other person af e t d by t i regulation) from according r g t
fce
hs
ihs
20 T h e reporting and record-keeping requirements o f this regulation have been
approved b y the Bureau o f the Budget in accordance with the Federal R eports
A ct o f 1942.




S ec . 6

REGULATION X

19

and preferences to e i i l veterans by extending, guaranteeing or
lgbe
in u i g i whole or i p r , r a e t e construction c e i pursuant
srn, n
n a t e l s at
rdt
t State l g s a i n similar i purpose or e f c to Title II of the Serv­
o
eilto
n
fet
I
icemen’ Readjustment Act o 1
s
f 944, as amended, provided that the
terms of the c e i are no more l b r l than are currently permitted
rdt
iea
i the case o comparable loans insured or guaranteed under that A t.
n
f
c
( g ) State and M unicipal Program s. — Nothing i t i regulation
n hs
s a l prohibit extensions of c e i to public corporations created pur­
hl
rdt
suant t a public housing program of a State or municipality where
o
such c e i i extended, i sured, or guaranteed by the State or munici­
rdt s
n
pality or the State or municipality has made commitments t furnish
o
funds t assure repayment. Nothing i t i regulation s a l apply t
o
n hs
hl
o
extensions o c e i by any State or p l t c l subdivision o a State or
f rdt
oiia
f
agencies of ei h r with respect t any nonresidential property.
te
o

(h) Extension o f Credit fo r Mixed Purposes. — In the case o an
f
extension of c e i which i partly subject t one provision of t i
rdt
s
o
hs
regulation and partly subject to another prov i n whether by reason
is o ,
of the types of property involved, or otherwise, the amount and terms
of such c e i s a l be such as would r s l i the c e i were divided
rdt hl
eut f
rdt
i to two or more parts and each part were treated as i i stood a o e
n
ft
ln.
In the case of an extension of c e i which i partly subject to t i
rdt
s
hs
regulation and partly not subject to ( r exempt from) the r g l t o ,
o
euain
the amount and terms o the extension of c e i w l comply with t i
f
rdt il
hs
regulation i they s t s y the requirements of t i regulation applicable
f
aif
hs
to the subject p rt o
o i n.
( ) Calculation o f Maximum Maturity.— In calculating the max­
i
imum maturity of c e i s which are subject t maximum maturity
rdt
o
provisions i the Supplement t t i r g l ti n a Registrant may u e
n
o hs eu a o ,
s,
at h s option, as “the date such c e i i extended,” any date not more
i
rdt s
than 32 days subsequent t the actual date such c e t i extended.
o
r di s
( ) Three- and Four-Unit Residences.— Notwithstanding any other
j
provisions of t i regula i , the provisions of se t
hs
t on
c ions 4(a) ( ) 5 ( k),
6 ,
and 6 ( ) o t i regulation which are applicable to multi-unit r s ­
6
f hs
ei
dences s a l be applicable to residences containing three or four family
hl
uis
nt.
(k) Right o f Registrant to Im pose Stricter Requirements.— Any
Registrant, i he d s r s may refuse to extend c e i , extend l s c e i
f
eie,
rdt
es r d t
than the amount permitted by t i r g l t n or require that repay­
h s e u a io ,
ment be made within a shorter period or i l rg r instalments than
n a e
prescribed i the Supplement to t i r g l t o .
n
hs euain




20

REGULATION X

Sec. 6

(I)
Reliance upon Statement o f the Borrow er. — The f c s s t
at e
f r h i any signed Statement of the Borrower which a Registrant
ot n
accepts and r l e upon i good f i h s a l be deemed t be correct f r
eis
n
at hl
o
o
the purposes of the Registrant.

(r) False Statements.— The making or submission by an> person
?c
of any f l e f c i i u or fraudulent statement or representation pur­
as, ittos
suant t , or which i intended to conform t , or show compliance with,
o
s
o
any requirement or provision o t i r g l i n, s a l be a v
f h s e u at o h l
iolation
of t i r g l t o .
hs euain
( ) Statutory Penalties.— The Act provides that “Any person who
n
w l f l y v o a es any provision of sec o * * * 602 ( e a i g to r a
ilul ilt
ti n
rltn
el
e ta e construction c e i ) or any regulation or order issued there­
s t
rdt
under, upon conviction t e e f s a l be fi ed not more than $5,000
hro, hl
n
or imprisoned not more than one year, or both.”
( ) Enforceability o f Contracts.— Nothing i t i regulation s a l
o
n hs
hl
a f c the enforceability of any c n r c .
fet
otat
( ) Defense Construction.— Terms d f e e t from those prescribed
p
ifrn
by t i regulation and the Supplement t e e o t be applicable to spe­
hs
hrt, o
c f c new construction necessary to the national defense, may be au­
ii
thorized by the Board i areas designated by the Housing and Home
n
Finance Administrator with the concurrence of the Board and a t r
fe
surveys have been made by the Administrator with respect to the
needs f r such necessary construction within such a e s Such d f e e t
o
ra.
ifrn
terms when so authorized w l be applicable only to such new construc­
il
tion as may be s e i i d by the Administrator within such designated
pcfe
areas and w l be subject to such conditions as may be prescr be .
il
i d
No action w l be taken under t i subsection with respect to any
il
hs
area designated as provided herein a t September 1 1951.
f er
,
( Critical Defense Housing Areas.— Whenever an area has been
q)
c r i i d under authority of any applicable Federal s a u e t be a
etfe,
ttt, o
c i i a defense housing a e , the terms prescribed by t i regulation
rtcl
ra
hs
and the Supplement thereto w l be suspended or relaxed to the extent
il
deemed necessary to encourage construction o housing needed f r
f
o
defense workers and military personnel, the extent of such suspension
or relaxation to be prescribed by public announcement.




SUPPLEMENT TO REGULATION X
As am ended effective Septem ber 1, 1951
SCHEDULE I.

O N E - TO F O U R -U N IT RESIDENTIAL PROPERTY AND FARM
RESIDENCES

Maximum Loan Value.— For the purposes o Regulation X, maxi­
f

mum loan values f r a l r s d n i l property, farm r s d n e , and
o l eieta
eiecs
major additions and major improvements to residences s a l be deter­
hl
mined as f l w : ( ) Determine the “value” of the r s d n i l prop­
o lo s 1
eieta
e t , farm re i e c or major addition or major improvement to a
ry
s d n e,
r s d c , as the case may b , i accordance with sec i 2 ( ) of the
e i en e
e n
t on i
regulation; ( ) divide t i “value” by the number of family units i
2
hs
n
order to determine the “value per family unit”; ( ) determine the
3
“maximum loan value per family unit” from the table below; ( )
4
multiply the “maximum loan value per family unit” by the number
of family units i order t determine the maximum loan value of the
n
o
r s d n i l property, farm r s d nc , or major addition or major
eieta
eie e
improvement, as the case may b . Where a major addition or major
e
improvement w l change the number of family u i s the “value per
il
nt,
family unit” s a l be computed on the basis of the number of family
hl
units which the residence w l contain a t r the addition or improve­
il
fe
ment has been completed. In the case of c e i extended with respect
rdt
t r s d n i l property or farm residences involving more than one
o eieta
s r c u e the maximum loan value may be applied separately with
tutr,
respect to each such structure or with respect to the e t r property
nie
or a l such re i e c s at the e e t o of the Registrant.
l
sdne,
lcin
The “maximum loan value per
I the “value per family unit” i
f
s
family unit” i
s
Not more than $7,000
More than $7,000 but not more
than $10 ,0 0 0
More than $10,000 but not more
than $12,0 0 0
More than $12,000 but not more
than $15,000

90% of “value per family unit”
85% of “value per family unit”
80%: o “value per family unit”
f

More than $20,000 but not more
than $24,500

$9,600 plus 40% of excess o
f
“value per family unit” over
$ 12,000
$10,800 plus 20% of excess o
f
“value per family unit” over
$15,000
$11,800 plus 10% of excess o
f
“value per family unit” over

Over $24,500

50% of “value per family unit”

More than $15,000 but not more
than $20,000

$ 20,000
Maturity.— For the purposes o Regulation X, the following maturity
f
requirements are prescribed f r c e i with respect to r s d n i l propo rdt
eieta



21

22

REGULATION X

S u p i >.

e t , farm r i e c s and major additions and major improvements t
ry
es d n e ,
o
residences: No such c e i subject t the regulation s a l have a
rdt
o
hl
rdt s
maturity o more than 2 0 years from the date such c e i i extended
f
except that a c e i extended with respect t property having a value
rdt
o
per family unit of $12 ,0 0 0 or l s may have a maturity of not more
es
than 25 y ar .
e s
A m ortization.— For the purposes of Regulation X, the following
amortization requirements are prescribed f r c e i with respect
o rdt
to r s d n i l property, farm r s d n e , and major additions and
eieta
eiecs
major improvements t residences: With respect to every such
o
c e i subject t the regula o , amortization payments s a l be
rdt
o
ti n
hl
required which e t r ( ) w l annually reduce the o i i a p
i he 1 i l
r g n l rincipal
amount of such c e i by not l s than 5 per cent u t l the outstanding
rdt
es
ni
balance of such c e i has been reduced to an amount equal t or
rdt
o
l s than 50 per cent of the value of the property with respect to
es
which such c e i was extended or ( ) w l f l y li
rdt
2
i l u l quidate the o i i a
rgnl
principal amount of such c e i not l t r than the date of the maturity
rdt
ae
of the c e i through substantially equal monthly, quarterly, semi­
rdt
annual, or annual payments covering principal and i t r s or through
neet
substantially equal monthly, quarterly, semiannual, or annual pay­
ments of p i c p l The value referred to in the preceding sentence
rnia.
s a l be determined as of the date the c e i was extended i the
hl
rdt
n
manner provided i section 2(i) of the r g a io . I the amount o
n
e ul t n f
f
the c e i when extended i not more than 50 per cent of such value,
rdt
s
such c e i s a l not be subject to the amortization provisions of t i
rdt hl
hs
paragraph.
SCHEDULE II. M U L T I-U N IT RESIDENTIAL PROPERTY

M axim um Loan Value.— For the purposes o Regulation X, maxi­
f
m um loan values f r a l multi-unit r s d n i l property and major
o l
eieta
additions and major improvements to multi-unit residences s a l be
hl
determined as fo lows: (1 ) determine the “value” of the multi-unit
l
r s d n i l property, or major addition or major improvement to a
eieta
multi-unit resi e e as the case may b , i accordance with s c i n
d nc ,
e n
eto
2 ( ) of the re u t on . ( ) divide t i “value” by the number o
i
g la i ; 2
hs
f
family units i order to determine the “value per family unit”; ( )
n
3
determine the “maximum loan value per family unit” from the table
on the following page; ( ) multiply the “maximum loan value per
4
family unit” by the number o family units i order to determine the
f
n
maximum loan value of the multi-unit r s d n i l property, or the
eieta
major addition or major improvement as the case may b . Where a
e
major addition or major improvement w l change the number o
il
f
family u i s the “value per family unit” s a l be computed on the
nt,
hl
b
asis of the number of family units which the multi-unit residence
wl
i
fe
l contain a t r the addition or improvement has been completed.


S upp .

REGULATION X

23

In the case o c e i extended with respect to multi-unit r s d n i l
f rdt
eieta
property involving more than one such multi-unit r s d n , the maxi­
e i e ce
mum loan value s a l be applied separately with respect to each such
hl
multi-unit residence or with respect to the e t r property, at the
nie
e e ti n o the Registrant.
lc o f
I the “value per family unit” i
f
s

The “maximum loan value per
family unit” i
s

Not more than $7,000

83% of “value per family unit”

More than $7,000 but not more
than $15,000

$5,810 plus 53% of excess o
f
“value per family unit” over
$7,000

More than $15,000 but not more
than $23,500

$10,050 plus 20% of excess o
f
“value per family unit” over
$15,000

Over $23,500

50% of “value per family unit”
SCHEDULE III. NON RESIDEN TIAL PROPERTY

Maximum Loan Value.— For the purposes o Regulation X, the
f
maximum loan value of any nonresidential property or major addition
or major improvement to a nonresidential structure s a l be 50 per
hl
cent of the “value” of the property, or the major addition or major
hs
improvement, determined i accordance with sec i 2 ( ) of t i regu­
n
t on i
l t o . In the case of c e i extended with respect t nonresidential
ain
rdt
o
property involving more than one nonresidential s r c u e the maxi­
tutr,
mum loan value may be applied separately with respect to each such
s r c u e or with respect to the e t r property, at the e e t o of the
tutr,
nie
lcin
Registrant.
Maturity.— For the purposes of Regulation X, the following maturity
requirement i prescribed f r cr d with respect t nonresidential
s
o
e it
o
property and major additions and major improvements to nonresiden­
t a s r c ur s No such c e i subject to the regulation s a l have a
il t u t e :
rdt
hl
maturity of more than 25 years from the date such c e i i extended.
rdt s
Am ortization.— For the purposes o Regulation X, the following
f
amortization requirement i prescribed f r c ed t with respect to non­
s
o r i
r s d n i l property and major additions and major improvements t
eieta
o
nonresidential s ru t re : With respect to every such c e i subject t
t cu s
rdt
o
the r g l i n, amortization payments s a l be required which w l
e u at o
hl
il
f l y l quidate the o i i a principal amount of such c e i not l t r
ul i
rgnl
rdt
ae
than the date of the maturity of the c e i through substantially equal
rdt
monthly, quarterly, semiannual, or annual payments covering prin­
c p l and i t r s or through substantially equal monthly, quarterly,
ia
neet
semiannual, or annual payments of p i c p l
rnia.



LIST OF FEDERAL RESERVE BANKS AND BRANCHES
Federal Reserve Bank of

Address

B O ST O N

30 Pearl Street. B oston 6 . M assachusetts

NEW YORK
Buffalo Branch

33 Liberty Street. N ew Y ork 45. N ew Y ork
270-276 M ain Street, Buffalo 5. N ew Y ork

P H IL A D E L P H IA

925 Chestnut Street, Philadelphia 1. Pennsylvania

CLEVELAND

East 6 th Street and Superior A venue, C leveland 1,
Oliio
4th and R a ce Streets, Cincinnati 1. O hio
717 Grant Street. Pittsburgh 19. Pennsylvania

Cincinnati Branch
Pittsburgh Branch

C H IC A G O
D etroit Branch

9th and Franklin Streets, R ich m on d 13. Virginia
Calvert and Lexington Streets, B altim ore 3. M aryland
South T r y on and 2nd Streets, Charlotte 1, N orth
Carolina
104 M arietta Street. Atlanta 3. G eorgia
18th Street and 5th A venue, N orth. Birm ingham 2,
Alabama
Church and H ogan Streets. Jacksonville 1. Florida
228 3rd A venue. N orth, Nashville 3. Tennessee
Carondelet and C om m on Streets, N ew Orleans 11,
Louisiana
230 South LaSalle Street. C h icago 90, Illinois
160 Fort Street, W est, D etroit 31, M ichigan

S T . LO U IS
Little R o ck Branch
L ouisville Branch
M em phis Branch

411
121
5th
3rd

M IN N E A P O L IS
H elena Branch

73 South 5th Street. M inneapolis 2. M innesota
Park A venue and Lawrence Street, H elena, M ontana

K A N S A S C IT Y

10th Street and G rand Avenue, Kansas C ity 18, M is­
souri
17th and Arapahoe. D enver 17. C olorado
226 W est 3rd Street, Oklahom a C ity 1, Oklahom a
1701-5 D odge Street, Omaha 2 , Nebraska

R IC H M O N D
B altim ore Branch
Charlotte Branch
ATLANTA
Birm ingham Branch
Jacksonville Branch
N ashville Branch
N ew Orleans Branch

Denv er Branch
O klahom a C ity Branch
Omaha Branch

Locust Street, St. Louis 2. Missouri
W est 3rd Street. Little R ock . Arkansas
and M arket Streets. Lou isville 1. K entucky
and Jefferson Streets, M em ph is 1, Tennessee

DALLAS
El Paso Branch
H ouston Branch
San A n ton io Branch

W o o d and Akard Streets, Dallas 13, Texas
351 M yrtle Avenue, El Paso, Texas
1301 Texas A venue, H ouston 1, Texas
N avarro and V illita Streets, San A n ton io 6 , Texas

S A N F R A N C IS C O
L o s Angeles Branch

400 Sansom e Street.. San Francisco 20. California
409 W est O lym pic B oulevard, L os Angeles 54, C ali­
fornia
915 S.W . Stark Street, Portland 8 . Oregon
70 East South T em ple Street, Salt Lake C ity 10, LUah
1015 2nd Avenue, Seattle 14, W ashington

Portland Branch
Salt Lake C ity Branch
Seattle Branch




FEDERAL RESERVE SYSTEM
BOUNDARIES O F F E D E R A L R E S E R V E

D IS TR IC TS

AND T H E I R B R A N C H T E R R I T O R I E S

•

mm

-

BOUNDARIES O F FE D E R A L RESERVE DISTRICTS

---------

a

BOUNDARIES O F FED ER A L RESERVE BRANCH TER R ITO RIES

it

BOARD OF GOVERNORS O F T H E FE D E R A L RESERVE SYSTEM
F E D E R A L RESERVE BANK CTriES

 FEDERAL RESERVE


BRANCH O T K S

oro r*I i99
co 4
BOAUD o r 9 0 V t* H 0 * $ O F TMC F lD f K A L K t S t F V t S T B Ttt/


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102