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1126 A meeting of the Board of Governors of the Federal Reserve 8Ystem was held in Zashington on Tednesday, August 11, 1937, at 11:30 a. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Szymcziak McKee Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Con sideration was given to each of the matters hereinafter referred . t° end the action stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the Nerea Reserve System held on August 10, 1937, rere approved unani(3111Y. Letter to Mr. McKinney, President of the Federal Reserve 411/( of allas, reading as follots: clo :This refers to your letter of July 29, 1937, insin°. a copy of a letter from the First National Bank lagle Pass, Texas and a copy of your reply there11;11:-teerding the applicability of the 10 per cent loan 10e1 1 :1—non in section 5200 of the Revised Statutes to a sect; 'llaue by a national bank to its depositor upon the eecj itY of his time deposit under the provisions of 4.°11 4(e) of Regulation Q. o4 Viet of the fact that this question involves sta.-tn erpretation of section 5200 of the Revised uteswhicil is anaicable to national banks, it colapears that an authoritative ruling upon the question currd be obtained only from the Comptroller of the Y. Horover, an informal inquiry at the office 1127 MdA7 -2- of the Comptroller has failed to disclose any ruling on this matter and, in the absence of such a ruling there appears to be no reason to differ from the °Pinion expressed in your letter to the national bank the effect that loans made on the security of time aeposits are subject to the 10 Per cent limitation in section 5200." Approved unanimously. Letter to the Manufacturers' Casualty Insurance Company, Philade, .1Phia, Pennsylvania, reading as follows: "The Board of Governors of the Federal Reserve SY-stem purchased in June 1937 one new 1937 Dodge ene-ton truck, Serial No. 8076149, Motor No. T30-5573, a aost of 033.64. The truck will be used in and tl,(Dut Washington, D. C., not exceeding 50 miles from Board's building on Constitution Avenue between k.uth and 21st Streets, N. V. n "The Board has also purchased, in August 1937, one 7r 1937 Chrysler Custom Imperial Limousine, Serial No. ne°4 007, Motor No. C15-10091 at a cost of $16251 and one 891-91,7J7 Chrysler Royal Touring Sedan, Serial No. ' -4 54, Motor No. C16-78756, at a cost of 41;783. is desired to obtain insurance covering the gainst bodily injury liability (t20,000/40,000 tic's)) Property damage liability (5,000 limit), fire, irrt and tornado, for a period of one year beginning abilediately, with respect to each of the three cars prove described. It is understood that the annual amemiums for the above insurance will be the appropriate adrnts set forth in the proposal attached to the letter ressed to the Board by the President of the Guardian at ment Corporation under date of August 6, 1937, and ten, - at the expiration of the policy year a dividend of 14Jer cent of the amount of the premiums in respect to the litY and property damage insurance will be paid to Itoard 'J. 1128 8/11/37 -3"However, if the insurance is written, it will be necessarY that your company agree in writing that, except with the l'fritten consent of the Board, no claim or action for injuries °r damages covered by the bodily injury liability insurance °r property damage liability insurance will be denied or de ended on the ground that the Board is immune from such 1st% or action because of the fact that the Board is an es; 131ishment or agency of the United States. "If you are prepared to furnish the insurance subject tothis • agreement, please execute and forward the necessary 12°1icY covering all three cars and incorporate the agreement above set forth in a rider attached thereto. "In this connection it is understood that the policy issu ed will contain a paragraph substantially the same as the second paragraph entitled 'Additional Assured' under Leflei Provisions and Conditions' contained in a Specimen -:uomobile Policy of your company which has been furnished ; 0 i the Board and that under such provision all of the benets Provided in the policy with respect to bodily injury liabjlity coverage and property damage liability coverage be applicable and effective, subject to the other proOf the policy, in favor of the Board if claim is or e or suit is brought against the Board alone, or in favor anY person operating any of the three automobiles with b2 Permission of the Board if claim is made or suit is ii"oaught against such person alone, or in favor of both the a_eFd and such person if claim is made or suit is brought : 111 elnst both of them. In order, however, that the Board thl; be assured of its interpretation of the policy in yo48 respect, it is requested that in a letter to the Board garde°11t1rm our understanding as set forth above with reto the clause in question." Approved unanimously. Thereupon the meeting adjourned. Chairman.
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