The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RE SE RV E BANK O F N E W YO R K r Circular No. 6 9 8 3 -1 L August 2, 1972 J AMENDMENTS TO REGULATION T — Credit for the Combined Acquisition of Mutual Fund Shares and Insurance — Same-Day Substitutions To A ll Brokers and Dealers, and Members of National Securities Exchanges, in the Second Federal Reserve D istrict: Enclosed is a copy of amendments to Regulation T, “Credit by Brokers and D ealers,” of the Board of Governors of the Federal Reserve System, relating- to the following m a tte rs : 1. Credit for the combined acquisition of mutual fund shares and insurance.— T h is am endm ent, effective Septem ber 5, 1972, is in the same form as that sub m itted for public com m ent on June 2. T h e text of the proposed am endm ent w as contained in our Circular N o. 6954, which w as sent to you on June 16. 2. Same-day substitutions.— T h is is a corrected am endm ent, effective Septem ber 18, 1972. W e have been informed by the Board of G overnors that the previously published am endm ent to section 2 2 0 .3 ( g ) , sent to you with our Circular N o. 6973, dated July 18, 1972, should be corrected by inserting the w ords “the com putation for” in the first sentence of paragraph ( 2 ) of that section after the w ords “section 8 ( g ) , ” and by deleting the rest of that sentence after the w ords “transactions on a given day,” and the first tw o w ords of the follow ing sentence. Additional copies of the enclosures will be furnished upon request. A lfred H ay es, P resid en t. Board of Governors of the Federal Reserve System CREDIT BY BROKERS AND DEALERS A M E N D M E N T S TO R E G U L A T IO N T 1. E ffective Septem ber 5, 1972, 2 2 0 .4 (k ) is am ended to read as follow s: section S E C T IO N 220.4— S P E C I A L A C C O U N T S * * * (k ) S p ecia l in su ran ce p rem iu m fu n d in g account. In a special insurance prem ium fund ing account a creditor m ay arrange for the e x tension or m aintenance of credit, not in excess of the prem ium s on the insurance policy (plus any applicable in terest), on a security issued by an investm ent com pany registered pursuant to section 8 of the Investm ent Company A ct of 1940 (1 5 U .S .C . 80a-8) that serves as collateral under a plan, program , or investm ent contract registered w ith the Securities and E xchange C om m ission under the Securities A ct of 1933 (1 5 U .S .C . 7 7 ) , that provides for the acquisi tion both o f a security issued by such in vest ment com pany and of in su ra n ce: Provided, That such credit is extended or m aintained by a lender subject to Part 207 of this Chapter (R egu lation G ) or a bank subject to Part 221 of this Chapter (R egulation U ) . A creditor arranging credit in a special insurance premium funding account shall not extend, arrange, or m aintain credit in the general account or any P R IN T E D other special account in § 220.3 and this section, except for transactions in volving the purchase of shares, in the special cash account described in paragraph ( c ) o f this section, in investm ent com panies which are so registered. 2. E ffective Septem ber 18, 1972, section 2 2 0 .3 ( g ) ( 2 ) is corrected to read as follow s: S E C T I O N 220.3— G E N E R A L A C C O U N T * * * ( g ) T ran saction s on given day. * * * (2 ) In the case of an account subject to sec tion 8 ( g ) , the com putation for the required deposit, under paragraph ( b ) ( 1 ) (ii) of this section in connection w ith transactions on a given day, m ay be made at the close of trading on such day and shall be m ade exclu sive of any deposit of cash, deposit of securities, covering transactions or other liquidation that has been effected on such day, pursuant to the require m ents of paragraph (b ) or ( e ) of this section, in connection writh a transaction on a previous day. IN NEW YORK
@FedFRASER