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FED ERAL RESER VE BANK OF NEW YORK r Circular N o. 4 8 4 0 "1 L January 6, 1960 J Reporting Securities Credit Extended by Lenders Other Than Banks or Brokers To A ll B anks in the Second Federal R eserve D istrict : The Board of Governors of the Federal Reserve System has adopted a new reporting form, F R 728, designed to obtain information fo r the first time concerning credit extended by lenders, other than banks or brokers, fo r the purpose o f purchas ing or carrying securities registered on a national securities exchange. The lenders required to file this report are more fully described in the notice published in the Federal Register o f December 22, 1959, a copy of which is printed on the reverse side of this circular. The information required on Form F R 728 includes the names of the officers and directors of any such lender and a simplified balance sheet as o f the end o f the last completed fiscal year, with additional detail on credit extended, classified both by purpose and collateral, and on sources of funds. Lenders may obtain copies o f the form from this Bank by directing their requests to the Bank Examinations Department. While no action is required of your bank in connection with this form, you may wish to call this new reporting requirement to the attention of any persons extending stock-market credit who are customers of your bank. Additional copies of this circular will be furnished upon request. A lfred H ayes, President. ( over) Title 12— BANKS AND BANKING Chapter II— Federal Reserve System [Reg. U] P A R T 221— LOANS B Y BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING REGISTERED STOCK Form T o Be Used in Reporting Securities Credit Extended by Lender Other Than a Bank or Broker 1. E ffective December 15, 1959, the follow ing the reasons fo r the request, addressed to the F ed eral Reserve Bank in the D istrict o f the person new center heading “ F orm s’ ’ and new § 221.51 requesting the extension. were added to P a rt 221 to read as fo llo w s : FORM S § 221.51 Form to be used in reporting securities credit extended by lender other than a bank or broker. Pursuant to authority conferred on the Board o f Governors o f the Federal Reserve System by the Securities E xchange A ct o f 1934 (15 U.S.C. Chapter 2 B ; 48 Stat. 881) and in accordance with § 221.3( j ) , the B oard has, effective December 15, 1959, adopted Form F R 728,1 to be used by persons (other than banks, as defined in § 221.3 (k ), and creditors, as defined in § 220.2(b) (R eg. T ) ) who are engaged in the business o f extending credit and who, in the ordinary course o f business, extend credit fo r the purpose o f purchasing or carrying securities registered on a national ex change. Persons whose activities as o f December 15, 1959 bring them w ithin the scope o f the above definition must return the filled-in form to the Federal Reserve Bank in their district on or before March 15, 1960. Persons who were not extending credit on or before December 15, 1959 fo r the said purpose, but whose activities at any time or from time to time thereafter bring them within the scope o f the above definition, must file filled-in forms within 90 days after the first extension o f credit fo r such purpose. Requests fo r extensions o f time fo r filing must be made in w riting, setting forth 2. (a ) The amendment is issued pursuant to the Securities Exchange A ct o f 1934, particularly sec tion 1 7 (b ) thereof. The purpose o f this action is to implement § 221.3( j ) as amended June 15, 1959 (24 F .R . 3867) b y the adoption o f a form in order to obtain inform ation concerning credit extended by persons other than banks and creditors, as defined above, fo r the purpose o f purchasing or carrying securities registered on a national securi ties exchange. (b ) The notice, public participation, and de ferred effective date described in section 4 o f the Adm inistrative Procedure A ct are not follow ed in connection with this amendment fo r the reasons and good cause fou n d as stated in § 262.2 (e) o f the B o a rd ’s rules o f procedure (P a rt 262), and especially because in connection with this amend ment such procedures are unnecessary as they would serve no useful purpose. The reporting re quirement contained herein has been approved by the Bureau o f the Budget in accordance with the Federal Reports A ct o f 1932. (S ec. 23, 48 Stat. 9 0 1 ; 15 U.S.C. 78w. Interprets or applies sec. 1 7 ( b ) , 48 Stat. 8 9 7 ; 15 U.S.C. 78q) B F [se a l] 1 F iled as part o f the original document. Copies available upon request to the B oard o f Governors o f the Federal Reserve System, W ashington 25, D . C., or to any Federal Reserve Bank. oard of M G ederal e r r it t S overnors of th e R eserve h er m an Syste m , , Secretary. [F .B . D oc. 5 9 -1 0 8 1 5 ; Filed, Dec. 21, 1959; 8 :4 7 a.m.]
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