The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK r Circular No. 7 4 9 1 “I l_ October 30, 1974 J Extensions of Credit by Federal Reserve Banks To All Member Banks, and Others Concerned, in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System has adopted an amendment, effective October 25, 1974, to its Regulation A , “ Extensions of Credit by Federal Reserve Banks,” to pro vide that the interest rate charged by Federal Reserve Banks on advances to member banks that are secured by mortgages on one-family to four-family residences shall be the same as the basic discount rate. In submitting the amendment for publication in the Federal Register, the Board of Governors made the following statement: T h e B oard o f G overn ors has amended section 2 0 1 .3 (b ) o f its Regulation A (1 2 C F R 2 0 1 .3 ( b ) ) to m od ify the authority o f Federal R eserve Banks to make advances to mem ber banks on the security o f residen tial m ortgages. T his action was taken pursuant to the B oard ’s authority to prescribe rules and regulations under section 1 0 (b ) of the Federal Reserve A ct (1 2 U .S .C . 3 4 7 ( b ) ) and P .L . 93-449, the E m ergency H om e Purchase A ct of 1974, which recently amended that section o f the A ct. T h e effect of the regulatory amendment is to make the rate on advances secured by on e-to-fou r family m ortgages the same as the basic discount rate applicable to loans secured by eligible collateral as defined in the Federal R eserve A ct. A dvances secured by such m ortgages were form erly made at a rate at least onehalf o f one percentage point above the basic discount rate. T here was no notice, public participation, and deferred effective date with respect to this amendment because the B oard determined that such procedure w ould result in delay that w ould be contrary to the public interest and serve no useful purpose. See § 2 6 2 .2 (e ) o f the B oard ’s Rules o f P rocedure (1 2 C F R § 2 6 2 .2 ( e )). Enclosed is a copy of the amendment to Regulation A and a copy of this Bank’s Operating Circular No. 13 on discount rates. Additional copies of the enclosures will be furnished upon request. A lfred H ayes, President. Board of Governors of the Federal Reserve System EXTENSIONS OF CREDIT B Y FEDERAL RESERVE BANKS A M E N D M E N T T O R E G U L A T IO N A E ffective O ctober 25, 1974, section 2 0 1 .3 (b ) is amended to read as fo llo w s : S E C T I O N 201.3— A D V A N C E S T O M EM BER BANKS * * * (b ) A dva n ces o n o th e r security. A Reserve Bank may make advances to a m em ber bank fo r not m ore than fou r months if secured to the satisfaction o f the R eserve Bank, whether or not secured in conform ity with § 2 0 1 .3 ( a ) , but the rate on such advances shall be at least one-half o f one per cent per annum higher than the rate applicable to advances under § 2 0 1 .3 ( a ) . Provided, however, advances under this para graph, when secured by m ortgages on on e-tofou r family residential property, shall be at a rate equal to the rate applicable to advances made under § 2 0 1 .3 ( a ) . P R IN TE D IN N E W YORK F E D E R A L R E S E R V E BA N K OF N E W Y O R K t Operating C ircular No. 13 ~1 Revised effective October 25, 1974J DISCOUNT RATES T o A ll M em b er Banks, and O thers Concerned, in the Second Federal R eserv e D istrict: 1. Effective October 25, 1974, the Board of Governors of the Fed eral Reserve System amended section 2 01 .3(b ) of its Regulation A , “ Extensions of Credit by Federal Reserve Banks,” to provide that the interest rate charged by Federal Reserve Banks on advances to member banks that are secured by mortgages on one-family to four-family resi dences shall be the same as the basic discount rate. In order to reflect this change in our Operating Circular No. 13, the schedule of rates in effect at this Bank on advances and discounts made under the Federal Reserve A ct has been amended, effective October 25, 1974, as shown below. 2. This circular supersedes our Operating Circular No. 13, Revised September 27, 1974. Rate Schedule, Effective O ctober 25, 1974 Percent Per Annum Advances to and discounts for member banks: (a ) Advances and discounts under sections 13 and 13a of the Federal Reserve Act, and under section 1 0 (b ) of the A ct if secured by mortgages on onefamily to four-family residences ............................... (b ) Advances under section 1 0 (b ) of the Federal Reserve Act, except as otherwise provided in this sch ed ule............................................................................ ( c ) Advances for prolonged periods and in significant amounts under section 1 0(b) o f the Federal Reserve A c t ...................................................................... 8 8^2 10 Advances to individuals, partnerships, and corporations other than member banks: Advances under last paragraph of section 13 of the Federal Reserve A c t ....................................................... 10 A lfred H a y e s , President.
@FedFRASER