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FED ER A L RESERVE BANK O F NEW YORK C ir c u la r N o. 6954 J u n e 16, 1972 P R O P O S E D A M E N D M E N T TO R E G U L A T I O N T To A ll B rokers and D e a le r s, and M em bers of N a tio n a l S e c u r itie s E x c h a n g e s, in the S eco n d F e d e r a l R e s e r v e D is tr ic t: P r i n t e d b e l o w is an e x c e r p t from the F e d e r a l R e g i s t e r of J u n e 13, c o n t a i n i n g the t e x t of a p r o p o s e d a m e n d m e n t to R e g u l a t i o n T, " C r e d i t b y B r o k e r s and D e a l e r s , " of the B o a r d of G o v e r n o r s of the F e d e r a l R e s e r v e System, w i t h r e s p e c t to c r e d i t for the c o m b i n e d a c q u i s i t i o n of m u t u a l fund sha r e s and insurance. Comments thereon s h o u l d be s u b m i t t e d by J u l y 7 and m a y be s e n t to our R e g u l a t i o n s and Bank Analysis Department. A lfred H a y e s, President. vestment Company Act of 1940 (15 U.S.C. 80a-8) that serves as collateral under a plan, program, or investment contract [ 1 2 CFR Part 220 ] registered with the Securities and Ex [R eg . T ] change Commission under the Securities Act of 1933 (15 U.S.C. 77), that provides CREDIT BY BROKERS AND DEALERS for the acquisition both of a security Credit fo r Combined Acquisition of issued by such investment company and M utual Fund Shares and Insurance of insurance: P rovided, That such credit it extended or maintained by a lender The Board of Governors proposes to subject to Part 207 of this chapter (Reg amend Part 220 (Regulation T) by elimi ulation G) or a bank subject to Part 221 nating from § 220.4 (k) the requirement of this chapter (Regulation U ). A credi that, in order to be eligible for the pro tor arranging credit In a special insur visions of that section, a creditor must be ance premium funding account shall not the issuer, or a subsidiary or affiliate of extend, arrange, or maintain credit in the issuer, of programs which combine the general account or any other special the acquisition of mutual fund shares account in § 220.3 and, this S220.4 and insurance. Section 220.4 (k) would also be amended to permit creditors who except for transactions involving the arrange credit for the acquisition of purchase of shares, in the special cash mutual fund shares and insurance to sell account described in paragraph (c) of mutual fund shares without insurance this section, in investment companies under the provisions of § 220.4(c) — which are so registered. Special Cash Account—of Regulation T. To aid in the consideration by the The designation of § 220.4(k) would be Board of these proposed amendments, changed to “Special insurance premium interested persons are invited to submit funding account.” relevant data, views, or arguments in The text of the proposed amendment writing to the Secretary, Board of Gov reads as follow s: ernors of the Federal Reserve System, Washington, D.C. 20551, to be received § 220.1 Special accounts. not later than July 7,1972. Such material * * * * * will be made available for inspection and ( k ) Special insurance premium, fund ing account. In a special insurance pre copying upon request, except as pro mium funding account a creditor may vided in § 261.1(a) of the Board’s rules arrange for the extension or m ainte regarding Availability of Information. By order of the Board of Governors, nance of credit, not in excess of the premiums on the insurance policy (plus June 2,1972. [s e a l! M i c h a e l A. G r e e n s p a n , any applicable interest), on a security Assistant Secretary o f th e B oard. issued by an investment company regis [F R Doc.72-8853 F ile d 6 - 1 2 - 7 2 ;8 :4 7 a m ] tered pursuant to section 8 of the In FEDERAL RESERVE SYSTEM
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