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FE D E RA L RE SE R V E BANK O F NEW YORK No. 4 0 2 8 T October J [Circular 14, 1953 CASH OFFERING 2 Y2 Per Cent Commodity Credit Corporation Certificates o f Interest Dated O ctober 28, 1953 Due August 2, 1954 T o A ll Commercial Banks in the Second F ederal R eserve D is tr ic t: The C om m odity C redit C orporation (C C C ) has inform ed us that it has placed in a pool outstanding agricultural com m odity loans, other than cotton, totaling $360,000,000. CCC is inviting com m ercial banks (defined as banks accepting dem and deposits) to participate in financing the loans in this amount and, accordingly, is offerin g to the banks 2 ^ per cent Certificates o f Interest, to be dated O ctober 28,1953, to evidence such participation. The terms o f this offerin g are contained in the announcement o f the CCC, set fo rth on the follow in g pages. The Certificates w ill m ature on A u gu st 2, 1954, but w ill be purchased b y CCC p rior to m aturity upon demand. These Certificates w ill be issued in registered fo r m only but m ay be transferred (in the manner prescribed in numbered paragraph 4 o f the CCC announcem ent) to any com m ercial bank, F ederal R eserve Bank, or such other banking institution as m ay be determ ined b y CCC to be eligible. Assignm ent form s required fo r such transfer m ay be obtained fr o m this Bank. These Certificates o f Interest m ay be purchased b y national banks under the provisions o f paragraph 10 o f Section 5200 o f the R evised Statutes o f the U nited States. E ffective O ctober 7, 1953, the N ew Y ork State Banking B oa rd am ended General Regulation Num ber 9 to p ro vide that the restrictions on extensions o f credit contained in Subdivision 1 o f Section 103 o f the Banking L aw shall not be applicable to these Certificates. W hile this amendment w ill expire nine months a fter O ctober 7, 1953, it is our understanding that at the next m eeting o f the N ew Y o rk State Banking B oard, consideration w ill be given to extending the effective period o f the amendment to conform with the m aturity o f these Certificates. E ffective O ctober 8, 1953, the Com m issioner o f Banking and Insurance and the Banking A d v iso ry B oa rd o f the State o f N ew Jersey amended O rder N o. 2 to perm it a bank to purchase these Certificates to an amount not in excess o f 25 p er cent o f the aggregate o f its unim paired capital stock and surplus. B y reason o f an amendment to T rea su ry D epartm ent Circular No. 92 (R ev ised ) these Certificates w ill be eligible as collateral fo r T rea su ry T ax and L oan A ccounts at fa ce amounts less any repaym ents thereon, provided they are accom panied at the time o f pledge b y p rop erly executed assignment form s. These Certificates w ill also be eligible as collateral fo r advances by F ederal R eserve Banks to m ember banks under the provisions o f Section 2 (a ) o f R egula tion A , as amended. Paym ent fo r these Certificates m ay not be made b y credit to the T reasury T ax and L oan A ccount. It is suggested that a nonmember bank request its correspondent member bank to authorize the necessary charges to the la tter’s reserve account on O ctober 28, 1953. The subscription books w ill be opened O ctober 19, 1953, and w ill close at the close o f busi ness O ctober 20, 1953. Subscriptions should be made on the official application fo rm (F orm No. 94-40), a co p y o f which is enclosed. A pplication s addressed to the H ead Office o f the F ederal R eserve Bank o f New Y ork and postm arked p rior to m idnight O ctober 20, 1953, w ill be con sidered tim ely applications. A dditional copies o f this circular w ill be furnished upon request. A llan S proul, President. COMMODITY CREDIT CORPORATION ANNOUNCEMENT CHF-1 OCTOBER 14, 1953 Offering Comm ercial Banks the Opportunity to Finance Price Support Loans on Commodities Other Than Cotton W hich W ere Originally Disbursed by CCC or Purchased by CCC From Lending Agencies SECTION I O ffer of P a r t ic ip a t io n Com m odity Credit Corporation (hereinafter ealled “ C C C ” ) has placed in a pool outstanding price support com m odity loans other than cotton totaling $360,000,000. Commercial Banks, which fo r this purpose are defined as banks accepting demand deposits, (hereinafter called “ Banks” ) may participate in the financing o f these price support loans b y m aking fun ds available to CCC at the Federal Reserve Bank o f Chicago, Fiscal A gent fo r CCC (hereinafter called “ C ustodian” ). Certificates o f Interest (hereinafter called “ Certificates” ) bearing interest at the rate o f 2 ^ per cent per annum will be issued to evidence participation in this pool o f loans. Certificates w ill mature on A ugust 2, 1954, but will be purchased by CCC p rior to m aturity upon demand. The terms and conditions upon which banks may participate in the pool are set forth in Section I I o f this announcement. Banks which desire to participate in the financing o f the pool o f loans shall make application to the Federal Reserve Bank or Branch o f the district in which they are located. A pplications may be made on form s which will be available at any Federal Reserve Bank or B ranch or by wire or mail. Books fo r the receipt o f applications will be opened October 19, 1953, and w ill close at the close o f business October 20, 1953. A pplications addressed to any Federal Reserve Bank or Branch and postmarked p rior to m idnight October 20, 1953, will be considered tim ely applications in this first offering o f partici pation certificates. CCC reserves the right to reject any application, in whole or in part, to allot less than the amount o f Certificates applied for, and action in these respects shall be final. A pplicants will be inform ed o f allotments as soon as possible after closing o f the books. Paym ent fo r the Certificates allotted shall be made through the Federal Reserve Bank or Branch where application was filed in funds available at the Federal Reserve Bank o f Chicago on October 28, 1953, and Certificates w ill be issued as o f that date. In the event the total amount available is not applied for, the amount remaining w ill be announced and w ill be available to applicants in the order o f receipt o f their applications by the Federal Reserve Bank o f Chicago. F rom time to time as additional price support loans are made or purchased by CCC, the loans will be placed in the pool and offerings o f additional Certificates w ill be made b y the Custodian. SECTION II T erm s and C o n d it io n s Certificates evidencing participation in the pool will be issued upon the follow in g terms and con dition s: 1. The Federal Reserve Bank o f Chicago, Fiscal A gent fo r CCC (hereinafter called “ C ustodian” ), will issue Certificates and act as Custodian o f the Certificates fo r the holders thereof. 2. Certificates w ill be issued in multiples o f $1,000 except that no Certificate will be issued fo r less than $5,000. The aggregate value o f all outstanding Certificates will not exceed the amount o f the pool. The Custodian will retain the Certificates and will furnish each original holder with a cop y thereof. 3. The Certificate w ill be issued as o f the date on which funds therefor are credited by the Custodian to the account o f CCC. The face amount o f the Certificate, less principal payments thereon, will constitute the value o f the Certificate. Interest at the rate o f two and one-half p er cent (2 * 4 % ) per annum will be payable at the time and upon the amount o f each principal paym ent made upon the Certificate and will be com puted on a 365-day basis from and including the date o f the Certificate to, but not including, the date o f such payment. 4. The Certificate may be transferred to any com mercial bank, Federal Reserve Bank or such other banking institution as may be determined by CCC to be eligible, by execution o f an Assignment of Certificate o f Interest (Com m odity Credit Corporation F orm 316, hereinafter called “ Assignm ent’ *). Transfers will be recorded as o f the date o f receipt and acceptance o f such Assignment by the Custodian or as o f the date o f receipt by the Custodian o f telegraphic advice o f such Assignment i f such advice is prom ptly confirmed by the delivery to the Custodian o f a d uly executed Assignment, In the event o f announcement by CCC, as provided in Item 6 hereof, that Certificates will be purchased during a designated month, Assignments and telegraphic advices received during the first ten calendar days o f that month will not be recorded p rior to the expiration o f such period. 5. CCC will, upon demand by the Certificate holder o f record to the Custodian, purchase through any Federal Reserve Bank or Branch any outstanding Certificate at any time by paying to the Certificate holder o f record the value thereof plus accrued interest. CCC will purchase at maturity all outstanding Certificates. 6 . CCC reserves the right to purchase at its option any outstanding Certificate in whole or in part and will, in the event the value o f the outstanding Certificates on the last day o f any month p rior to maturity exceeds the unpaid principal o f the loans com prising the pool as determined by CCC during that month, purchase outstanding Certificates, in whole or in part, in a total amount sufficient to reduce the outstanding Certificates to the unpaid principal amount o f the loans com prising the pool. CCC w ill pay fo r any Certificate purchased, in whole or in part, all or the respective part o f the value o f the Certificate plus accrued interest on such amount. A n y purchase by CCC o f outstanding Certificates, in whole or in part, except as provided in Item 5, will be made only durin g the first ten calendar days o f a month and CCC will announce by press release on the first business day o f each month p rior to maturity whether any purchases o f Certificates, in whole or in part, will be made during the month. Payments fo r such purchases will be made during the first ten calendar days o f such month to the Certificate holders o f record as o f the last day o f the preceding month. 7. N o Member of, or Delegate to, Congress, or any Resident Commissioner, w ill be admitted to any share or part o f this contract or to any benefit to arise therefrom except that this provision w ill not be construed to extend to their interest in any incorporated com pany, if the contract be fo r the general benefit o f such company. 8 . The A pplicant bank warrants that it has n ot employed any person to solicit or secure this contract upon any agreement fo r a commission, percentage, brokerage, o r contingent fee and that no such considera tion or paym ent has been or will be made. Breach o f this warranty will give CCC the right to annul the contract, or at its discretion, to deduct from the contract consideration the amount o f such commission, percentage, brokerage, or contingent fees. This warranty w ill not a pp ly to commissions payable b y the A pplican t bank upon contracts secured o r made through bona fide employees or bona fide established com mercial or selling agencies utilized by the A pplican t bank fo r the purpose o f securing business. SECTION III P u rpo se a n d F in a n c ia l O r g a n iz a t io n of CCC The Commodity Credit Corporation engages in buying, selling, lending, and other activities with respect to agricultural commodities, their products, foods, feeds, and fibers fo r the purpose o f stabilizing, supporting, and protecting farm income and p rice s; assisting in the maintenance o f balanced and adequate supplies o f such com m odities; and facilitating their orderly distribution. The Corporation also makes available materials and facilities required in connection with the production and marketing o f such commodities. The Corporation is managed b y a board o f directors, subject to the general supervision and direction o f the Secretary o f Agriculture, who is, ex officio, a director and the chairman o f the board. In addition to the Secretary, the board consists o f six members appointed by the President and confirmed by the Senate. There is also a bipartisan advisory board o f five members appointed b y the President to survey the general policies o f the Corporation and advise the Secretary with respect thereto. The Corporation has an authorized capital stock o f $100,000,000, all o f which is held by the United States, and authority to borrow up to $6,750,000,000. On A u gust 31, 1953, outstanding commitments against this authority amounted to $4,061,981,207.00. CCC w ill at all times hold in reserve an amount o f its borrow ing authority sufficient to cover outstanding Certificates. J. J. SOMERS, Controller, Comm odity Credit Corporation. G OVERN MEN T BOND D EPAR TM EN T F E D E R A L R E SE R V E BANK OF NEW YORK NOTICE OF ALLOTMENT For Commodity Credit Corporation 2 1 /2 Per Cent Certificates of Interest T o S u bscriber: r -i L J Referring to your application for $ (face amount) of Commodity Credit Corporation 2 1 /2 per cent Certificates of Interest, dated October 28, 1953, due August 2, 1954, which you filed with us pursuant to the provisions of Commodity Credit Corporation Announcement CHF-1, dated October 14, 1953, the amount of par ticipation allotted to you by the Commodity Credit Corporation is — $ D E LIV E R Y .—As stated in the official announcement, the original Certificates will be held by the Federal Reserve Bank of Chicago, F iscal Agent and Custodian of Commodity Credit Corporation; an authenticated copy with assignment form attached will be mailed by the Custodian direct to each purchaser. Payment for the total amount of Certificates allotted to you must be made on or before October 28, 1953, in immediately available funds. F E D E R A L R E SERVE BANK OF NEW YORK GOVERNMENT BOND D E PA R TM E N T F E D E R A L R E S E R V E BANK O F NEW YORK NOTICE OF ALLOTMENT For Commodity Credit Corporation 2 1 /2 Per Cent Certificates of Interest T o S u b scrib er: r j Referring to your application for $ (face amount) of Commodity Credit Corporation 2 1 /2 per cent Certificates of Interest, -dated October 28, 1953, due August 2, 1954, which you filed with us pursuant to the provisions of Commodity Credit Corporation Announcement CHF-1, dated October 14, 1953, the amount of par ticipation allotted to you by the Commodity Credit Corporation is — $ D E LIV E R Y .—As stated in the official announcement, the original Certificates will be held by the Federal Reserve Bank of Chicago, F iscal Agent and Custodian of Commodity Credit Corporation; an authenticated copy with assignment form attached will be mailed by the Custodian direct to each purchaser. Payment for the total amount of Certificates allotted to you must be made on or before October 28, 1953, in immediately available funds. F E D E R A L R E SER V E BANK OF NEW YORK Ref. N o. Form No. 94-40 APPLICATION FORM AND PAYMENT LETTER 2V*% c e r t i f i c a t e s o f in t e r e s t OF THE C O M M O D IT Y CREDIT CO RPORATION D ate___________________________________________ To FEDERAL RESERVE BANK OF CHICAGO Fiscal A g e n t a n d C usto d ia n o f Com m odity Credit C o rpo ratio n A p plication filed through the Federal Reserve B ank o f -------------------------------------------------------------------------( M a i n O ffice O R B ra n c h ) Gentlem en: Pursuant to the terms a n d conditions o f the official A n nouncem ent C H F-1, dated O cto b e r 14, 195 3 , o f the Com m odity Credit C o rpo ratio n the undersigned h e reby applies fo r $ ---------------------------------face am ount o f the Certificates o f Interest described therein. (se e n ote b e lo w ) N O T E : A p p lic a t io n s m ust b e in m ultip les o f $ 1 , 0 0 0 excep t tha t n o certificate w ill be issu e d fo r le ss th a n $ 5 , 0 0 0 . Paym ent* fo r total am ount allotted hereon to be m ade on o r before O cto b e r 28, 195 3 , b y a ch a rge to our reserve account Q at the Federal Reserve B ank o f ------------------------------------------------------------------------ or by check in im m ediately a va ila b le funds. Q (Main 0ffice OR Braneh where reserve accoun, !* carried> • P a ym e n t b y T re a su ry T a x a n d L oa n C re d it n ot perm itted. Repaym ents at or before maturity a s provided in the official Announcem ent are authorized to be m ade b y credit to o u r reserve account (in case o f member b a n k s ) o r b y check (in case o f nonm em ber b a n k s). Certificate to be inscribed a n d co p y thereof m ailed to: (Please type o r print.) N am e o f B ank---------------------------------------------------------------------------------------------------- Street A d d re ss_______________________________________________________________________ C ity or Tow n-------------------------------------------------------------------------------------------------------State_________________________________________________________________________________ O fficia l S ig n a tu re (A .B .A . N o _______________ ) O rig in a l— To b e fo rw a rd e d to Federal Reserve B a n k o f C h ic a g o b y Federal Reserve B a n k or Branch receiving application. F o r U se o f F e d e ra l R eserve B a n k o f C h ic a g o Typed by-------------------------------------------------------- Allotted $ _________________ C hecked b y----------------------------------------------------- Com puted by_ Date Sh ippe d o r Delivered____________________ C hecked by__ Digitized forBy-----------------------------------------------------------------FRASER Date Paym ent Received. R©f. No. Form N o . 9 4 - 4 0 APPLICATION FORM AND PAYMENT LETTER 2 % % CERTIFICATES OF INTEREST OF THE C O M M O D ITY CREDIT CORPORATION Date________________________________________ To FEDERAL RESERVE BANK OF CHICAGO Fiscal A g e n t a n d C usto d ia n o f Com m odity Credit C orporation A p plication filed through the Federal Reserve B a n k o f -------------------------------------------------------------------------( M a in O ffice O R B ra n c h ) Gentlem en: Pursuant to the terms a n d conditions o f the official A n nouncem ent C H F-1, dated O cto b e r 14, 195 3 , o f the Com m odity Credit C o rpo ratio n the undersigned hereby a p p lie s fo r $ ---------------------------------face am ount o f the C e rtifica te s o f In te re st d e s c rib e d th e re in . N O T E : A p p lic a t io n s m ust b e in m u ltip le s o f $ 1 , 0 0 0 (see note below) excep t that n o certificate w ill be issu e d fo r le ss th a n $ 5 , 0 0 0 . Paym ent* fo r total am ount allotted hereon to be m ade o n o r before O ctobe r 28, 195 3 , b y a ch a rge to our reserve account j Q at the Federal Reserve B ank o f ----------------------------------------------------------------------- o r by check in im m ediately a va ila b le funds. □ (Main office OR Branch where reserve accoun» is carr!ed> • P a ym e n t b y T re a su ry T a x a n d L oa n C re d it n ot perm itted. Repaym ents at or before maturity as provided in the official Announcem ent are authorized to be m ade b y credit to our reserve account (in case o f member b a n k s ) or b y check (in case o f nonm em ber b a n k s). Certificate to be inscribed a n d co p y thereof m ailed to: (Please type o r print.) N a m e o f B ank_________________________________________________________ _____________ Street A d d re ss---------------------------------------------------------------------------------------- _ _ _ _ _ _ _ City or Tow n------------------------------------------------------------------------------------------------------Sta te-------------------------------------------------------------------------------------------------------------- - O fficia l S ig n a tu re (A .B .A . N o _______________ ) Duplicate— To be retained by Federal Reserve Bank receiving application. F o r U se o f F e d e ra l R eserve B a n k Allotted $ ______________ C om p uted b y ___________ Checked b y ____________ D ate Paym ent Received. Form No. 94-40 Ref. No. APPLICATION FORM AND PAYMENT LETTER 2 % % CERTIFICATES OF INTEREST OF THE C O M M O D ITY CREDIT CO RPORATION D ate___________________________________________ To FEDERAL RESERVE BANK OF CHICAGO Fiscal A g e n t a n d C usto d ia n o f Com m odity Credit C o rpo ratio n A p plication filed through the Federal Reserve B a n k o f -------------------------------------------------------------------------( M a in O ffice O R B ra n c h ) Gentlem en: Pursuant to the terms a n d conditions o f the official Announcem ent C H F -1 , dated O cto b e r 14, 195 3 , o f the Com m odity Credit C o rpo ratio n the un d ersign ed hereby applies fo r $ ---------------------------------face am ount o f the Certificates o f Interest described therein. (see note b e lo w ) N O T E : A p p lic a t io n s m ust be in m ultip les o f $ 1 , 0 0 0 excep t tha t n o certificate w ill be issu e d fo r le ss th a n $ 5 , 0 0 0 . Paym ent* fo r total am ount allotted hereon to be m ade on or before O ctobe r 28, 195 3 , b y a ch a rge to ou r reserve account Q at the Federal Reserve B a n k o f ----------------------------------------------------------------------- - or b y check in im m ediately a v a ila b le funds. □ (Main ° ffice OR Bronch where reserve account is carried> 'P a y m e n t b y T re a su ry T a x a n d L o a n C re d it n ot perm itted. Repaym ents at or before maturity a s provided in the official A n nouncem ent are authorized to be m ade b y credit to o u r reserve account (in case o f m em ber b a n k s ) or b y check (in case o f nonm em ber b a n k s). Certificate to be inscribed a n d co p y thereof m ailed to: (P le a se type o r print.) N am e o f B ank----------------------------------------------------------------------------------------------------Street A d d re ss-----------------------------------------------------------------------------------------------------City o r T ow n________________________________________________________________________ State----------------------------------------------------------------------------------------------------------------- O fficia l S ig n a tu r e (A .B .A . N o ---------------------- ) Triplicate— To be retained by Purchaser.
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