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146 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Friday, January 30, 1942, at 12:30 134% PRESENT: Mr, Eccles, Chairman Mr. 'Ransom, Vice Chairman Mr. McKee Mr. Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters herein— after r eferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pecleral Reserve System held on January 29, 1942, were approved unani— ni°1181Y. Te legrams to Messrs.Sanford, Post, Hays, and Dillard, Secre— te'lles of the Federal Reserve Banks of New York Philadelphia, Cleveland, 4114 Chicago, respectively, Mr. Woolley Vice President of the Federal 11""Ire Bank of Kansas City, Mr. Gilbert, President of the Federal Re— %Ire Bank of Dallas, and Mr. Hale, Secretary of the Federal Reserve NI* Of San Francisco, stating that the Board approves the establish— taetrt without change by the Federal Reserve Bank of San Francisco on 4a-lluary 27, by the Federal Reserve Banks of New York, Cleveland, Chicago, Xallae's CitY, and Dallas on January 29, 1942, and by the Federal Reserve Nrilt 0f Phi ladelphia today, of the rates .of discount and purchase in their existing schedules. Approved unanimously. 147 1/30/42 Memorandum dated January 23, 1942, from Mr. Nelson, Assistant secretary, recommending (1) that Charles S. Overmiller, guard, be Promoted on a temporary basis for an indefinite period to the po" *°n of clerk in the Secretary's Office and that his salary be ineased from q,380 to $1,500 per annum, effective February 1, 1942, '11c1 (2) that 411 Charles R. Nichols be appointed on a temporary basis for indefinite period as a guard in the Secretary's Office, with salary at the - rate of n,380 per annum, effective as of the date upon which he ent ers upon the performance of his duties after having passed satisfactor. ,I --LY the usual physical examination, with the understanding that it WOrk illent is satisfactory during the first six months of his appoint- 4 further recommendation will be submitted that his salary be increae,_ '" ( 0 to 0 w1,500 per annum. Approved unanimously. M emorandum dated January 27, 1942, from Mr. Goldenweiser, Diof the Division of Research and Statistics, submitting the resti°4 °f William H. Glazier as an economic assistant in that Division, tc3bee°41e effective as of the close of business on February 3, 1942, Ne°mInending that the resignation be accepted as of that date. The resignation was accepted. Letter to Mr. Mercer, Vice President of the Federal Reserve L cumond, reading as follows: lett "In accordance with the request contained in your er of January 27, the Board approves the designation 148 1130/42 -3- "of Charles E. Hall as a special assistant examiner. Such approval is with the understanding, of course, that he will not be transferred permanently to examination work without the Board's approval." Approved unanimously. Letter to Mr. Neil G. Greensides, Acting Chief of the Division of 4antin ation of the Federal Deposit Insurance Corporation, reading as f°110ws: "This is in reply to your letter of January 28 adsing that the Board of Directors of your Corporation ;as authorized the purchase of certain assets of Floral Park Bank and Trust Company, Floral Park, New York, in Order to facilitate the assumption of the liabilities the acquisition of acceptable assets of the bank by The ills First National Bank and Trust Company of Floral Park. "In accordance with your request, the Board of Governors of the Federal Reserve System hereby grants written consent, pursuant to the provisions of subsection (k)(2) °I section 12B of the Federal Reserve Act, for examiners or the Federal Deposit Insurance Corporation to make 2ch examination of the Floral Park Bank and Trust Corn Party as is required to consummate the proposed trans- n l Approved unanimously. Memorandum dated January 24, 1942, from Mr. Paulger, Chief of the ti vision of Examinations, recommending that the matter of charging tol 'the f 'orthcoming investigation of The Provident Savings Bank and INst °mPanY, Cincinnati, Ohio, by examiners for the Federal Reserve tank of Cleveland be left to the discretion of the Reserve Bank instead ot being made at the expense of the member bank as recommended in the 80,arci 8 letter Mr. Fleming, President of the of December 3, 1 1941to , b Pederal Reserve Bank of Cleveland. Approved unanimously. 149 V30/42 -4Memorandum dated January 26, 1942, from Mr. Parry, Chief of the Division of Security Loans, recommending that the Board (1) apPIlove the following letter to the Presidents of all Federal Reserve 13anks and the registration form (a copy of which is attached to these Minutes) i and form of notice to registrants referred to in the letter, 44d (2) authorize the printing of 60,000 copies for distribution to the Federal Reserve Banks. The memorandum stated that it might be riecessarY to print additional copies as it was not possible at this time to forecast whether more copies would be needed: "Reference is made to the Board's telegram of De! ember 31 regarding registration under Regulation W on after January 1, 1942, notifying you that a new Form R. 563-a was in preparation but authorizing the Re : :rye Banks until further notice to accept Registration luluatements on Form F.R. 563. The new Form F.R. 563-a now been approved by the Board, and several copies , 11 1 ,_cating the content of this form are enclosed here'u. The new forms are now being printed here on single eets, 8-1/2 by 11 inches, with instructions on the reverse side. t. "The distribution of these forms, like the distribu°n,°f Form F.R. 563, will in general be in the hands of : Fed r Reserve Banks and will be effected by such coar?-s as they may determine. An initial supply of 3,000 arPlee of Form F.R. 563-a will be sent you as soon as they mn !readY; Please notify the Board when and if you need -.Le copies: "Form F.R. 563-a is intended to be suitable for the r stration of all of the classes of persons who will be coglstering henceforth -- such as newly-organized concerns, b,n?erne organized to succeed existing businesses, existing 5nesses which begin to engage in activities which are 2 )3ect to Regulation IV, and concerns making instalment Iles,! of articles which in the future, by ameftdment to 'ation Vs', become 'listed articles' -- as well as Z j 41 150 1130/42 -5- concerns which should have registered on or before December 31, 1941, but failed to do so. "Because of the varying circumstances under which thiS form will be used, it will probably be desirable to Ilse several different forms of Notice to Registrants. ere is enclosed a suggested form,of notice which is intended primarily for those Registrants which are new concerns; it is requested that each Reserve Bank deterfor itself whether to use this suggested form of notice, either as it stands or with modifications. When : Ild if Regulation W is amended by the inclusion of addi, 1°nal listed articles in the Supplement, it will probably ?e desirable to use a somewhat different form of notice addressing the persons who become subject to the regulation by reason of such amendment. "As stated in the Board's telegram of December 31, You may continue to accept such registration statements maY be tendered on Form F. R. 563 by persons who have eadY received that form. On all new requests for forms -n the however, copies of the new Form F.R. 563-a should future, be supplied. In acknowledging the completed statements received by tj , “e Reserve Banks on Form F.R. 563-a, it is requested rat '-he + Reserve Banks use the se am form of 'Registration ertificate' that they have been using heretofore. "In answering questions regarding this form which gistrants may direct to the Reserve Banks, the 'Addina1 Notes Regarding the Filling Out of Form F.R. 563' ,,11ch the Board sent with its letter R-915 dated October ' -11-4 e will be applicable. It may be noted, however, that new businesses, which may comprise a substantial propor110Z11 of the concerns registering on Form F.R. 563-a, will be required to fill out Question III of the form." Z Approved unanimously. Letter to Mr. Kennel, Assistant Counsel of the Federal Reserve tank of ,o ston, reading as follows: 8, 191"Receipt is acknowledged of your letter of January ma00 2 enclosing a copy of a letter from Mr. E. J. :ermott of the M-A-C Plan Management Bureau, Worcester, ua ' a eachusetts, regarding the effect of Regulation W upon cel ' tain proposed transfer of equity in an automobile. 151 1130/42 -6- . "The facts appear to be that prior to September 1 an individual had purchased a car for 800 on a finance Plan; that the outstanding balance has now been paid down that the purchaser anticipates entering the Navy and wishes to transfer his equity to his father; and that the father wishes to borrow from the M-A-C Plan Management Bureau a sum sufficient to pay off the outstanding balance, new loan to be on an instalment basis. The question ls whether the Bureau may lend the full amount, or only t wo-thirds. "You point out that this case differs in at least (1)/:le respect from that described in W-72, namely, that a dlfferent lender is asked to finance the outstanding balance after the transfer of the equity. However, this is e only important difference if the terms of the loan to the father are the same as the terms upon which the ? u tstanding balance was to have been paid by the son, and the son is liable on the loan. In view of section 5„(e) the son could have borrowed the full amount from the ,1 :ureau and could then have transferred his equity to his 1,_ather in exact compliance with V.-72, and consequently • e making of the transfer in one operation as proposed ln Mr. MacDermott's letter would be permitted. , "Even if the terms upon which the money were borrowed 1Fom the Bureau were not the same as the terms upon which ,,Te outstanding balance was to have been paid by the son, ,ue provision in section 8(a)(1) to which you refer might n11 cover the case. That provision permits a Registrant e any renewal or revs on, or to take any action that°makii t shall deem necessary in Good faith, with respect any obligation of any member of the armed forces of United States incurred prior to his induction into 0, e Service. Of course the provision refers to a 'member' tt the armed forces, whereas you point out that in pracalially all cases the individual wishes to rearrange his thlalrs before joining the Service. It would seem that , e 8 difficulty could be met either by postponing the e„!eution of the new contract until Some date after his . : t1;6rY into the Service, or by providing in the contract viat it would be effective upon his entry into the Sera ee. Obviously these methods would not be as convenient t11 8 completin:; the transfer prior to his induction into the Service, but if section 8(a)(1) were made applicable ises where an individual merely contemplated enterthe1 Service, there would probably be a great many 152 1/30/42 -7- "Cases where revisions would be allowed for individuals Who ultimately did not join the Service. "You also describe a transfer of equity which is accomplished by the following means: the husband sells his equity to his wife who agrees to pay the outstanding balance due on the chattel mortgage, and the husband then assigns this conditional sales contract to the finance ?ompany, thus completing the substitution of obligors. some cases the husband guarantees the payment of the conditional sales contract; but it is assumed that in anY event the husband remains liable to the seller. AS indicated above, the mechanics by which the transfer of equity is accomplished are not important, Provided the other conditions of W-72 are met." Approved unanimously. Letter to Mr. Gilmore, Assistant Cashier of the Federal Reserve Bank °I ' St. Louis, reading as follows: or, "Receipt is acknowledged of your letter of January enclosing a letter dated January 6 from Mr. J. G. mlitler, Vice President of the Industrial Bank, St. Louis, tiss°11/;1, inquiring whether under the provisions of secpac'n 5c)(2) of Regulation Vi the following schedule of Yments would be permissible: $40 on January 20, ,,,10 11 17ebruary 5, %0 on February 20, 110 on March 5, etc. (Th res reason for such a schedule would be that the obligor arceives his compensation semi-monthly and has already 0,ranged for his rent and certain other bills to fall due u the first payday in the month. th "As you point out, such a schedule would not violate .(3e sPirit or purpose of section 5(c)(2). However, as advised Mr. Butler, the proposed schedule would not 11111, ..act comply with the provisions of that section, since that ti I,8eotion requires that instalments shall be substanme : equal in amount or be so arranged that no instalb,"' is substantially greater in amount than any preceding ' tstalment. a.nle ,"If you should feel that it would be desirable to the Regulation so as to take care of this situation, the ' r() Board, of course, would appreciate an expression of views. "Of course, where a loan in reality represents two 153 1/30/42 -8- separate transactions, Regulation Wwould not prevent the parties from making two separate notes having different instalment dates. Furthermore, if two such notes were made, they could be consolidated subsequently under Option 1 in section 8(b) into an obligation having the same paym.ent schedule as the two notes originally had. Obviously, 1:f there were actually only one loan, this could not be clone, and it would not be permissible, for example, to lake one note payable in 18 instalments and the other note ln a lump sum payable 19 months from date.” Approved unanimously. Telegram to Mr. Swanson, Vice President of the Federal Reserve tank of Minneapolis, reading as follows: "Re your telegram January 23, it is not necessary under Group E that the contract relate to both materials and services. The contract may be for materials alone Or for services alone or for both combined. "Regarding the second paragraph of your wire, the Status of equipment as an 'alteration or improvement' ! .11 Ilder Group E would not be affected by any agreement beteen the landlord and the tenant as to the right of the ltenant to remove it at the expiration of the lease but "ld depend upon the nature of the equipment." Approved unanimously. Telegram to Mr. Swanson, Vice President of the Federal Reserve t of . ullnneapolis, reading as follows: "Your wire 26th regarding loan company which makes 4an t0 retire an outstanding obligation that was origTh vi 'Lly drawn for 15 months under Option 2. You ask i„ether company has duty to ascertain whether loan be•retired was restricted to 15 months. As explained eon ast paragraph of Ruling W-118, the facts themselves ac rol and company would be violating regulation if it 18 8 on the assumption that the loan was extensible to Months and this assumption proves to have been wrong." Approved unanimously. 154 1130/42 -9Telegram to Mr. Hale, Vice President of the Federal Reserve Bank of San Francisco, reading as follows: "Your wire today. Amendment Section 9(d) provision after semicolon refers to both (1) and (2) of paragraph. However, the reference to section 8 includes section 8(e) lch provides the concession referred to in W-19 for preSeptember contracts. Intention was to continue this exception as to pre -September contracts whether they involve old listed articles or those newly added, but to deny the oncession of 8(e) to any credit extended after September 1.11 n Approved unanimously. Letter to Hr. Emory B. Smith, Washington, D. C., reading as rollows: „ "Receipt is acknowledged of your letter of January :0 regarding the effect of RegulationW in a case where t taxi driver, having his license suspended for 30 days, irled his car in to the dealer from whom he was buying w °r1 an instalment basis, intending that the dealer Juld hold it and repair it for him, but the dealer, gh a misunderstanding, had title recorded again aZ Ills own name. When the misunderstanding was discovered ,the end of the 30-day period, the parties desired to 1-nstate the instalment sale contract, but wish to know wil aer, under Regulation W, the reinstatement, which ' ' as involve a new transfer of title, must be regarded a new sale requiring a down payment. a . "Assuming, as appears to be the case, that the transult i °n is not entered into as a means of evading the Regthation but merely as a means of rectifying a mistake, lie would be no objection to reinstating the instalment ej d 'e contract on its original terms, without requiring a trrl Payment, even though such reinstatement might require 13 ; e rocordinc, of a new title or other steps which, taken emselve y might have some of the appearances of a sale. " newth 4 Approved unanimously. 155 1/30/42 -10Letter prepared for the signature of Chairman Eccles to e°11gressman Lea, Chairuan of the House Committee on Interstate and P"eign Commerce, reading as follows: %len the Board wrote to you on November 12, 1941 in response to your invitation, with regard to a new subdivision (14) which is proposed to be added to section 2 of the Securities Act of 1933, the Board stated t:hat at an appropriate time it might have comments which would wish to submit to your Committee with respect to other proposals for amendments to the Securities Act of 1933 and the Securities Exchange Act of 1934. "Since that time the views of the Board with respect to certain of the proposals relating to the Securities Act and with respect to the exemption of banks from ' 1:om the Of 1933, proposed section 17(c) of the Securities Act relating to false reports, have been submitted Your Committee. As shown on page 834 of Part III of to of the Hearings of your Committee, the Board and other ;7c1 Other Federal bank supervisory agencies have recommended that the banks supervised by these various Federal :gencies be exempted from the provisions of the proposed 13:!_i°n 17(c). As stated in that recommendation these wnIKS are subject to section 5209 of the Revised Statutes ;4-eh, among other things, deals generally with the same 'Problems to which section 17(c) is addressed. "As you know, the supervision of holding company lliates of banks was vested in the Board of Governors ;7 - 0 t131.he .Lenking Act of 1933 and these companies under the oraru's supervision are also made subject to the penalties st,!ection 5209 of the Revised Statutes relating to false an'ements or reports. Accordingly, the Board feels that such companies should be exempted from the provisions ot , me section 17(c) on the same basis as the Board has recomtilnded that banks be exempted. Briefly this basis is that bystitutions already subject to supervision and examination suPervisory agency and subject to a statute which dr-'s with the same problems to which section 17(c) is adesed need not be subjected to a duplication of superand to duplicate statutory provisions. The exempof-n,which the Board recommends would avoid duplication statutory requirements applicable to holding company 4 156 1130/42 -11- affiliates over which the Board exercises supervision and of duplication of supervision which might arise out of the application of the proposed provisions of section 17(c) "The holding company affiliates of banks proposed exemption of has been discussed with representatives of the ourities and Exchange Commission and we are advised that t btehe Commission feels that the question of exemption of .hese companies is one which the Reserve Board may wish to present to your Committee and as to the adoption of w thi,oh the Securities and Exchange Commission has no posi2J3n. In this connection, it may be mentioned that when re Investment Company Act of 1940, which was considered a L7 , your Committee, was pending in Congress the Board, ilter considering the matter with representatives of the v?curities and Exchange Commission, recommended that in _lew of the Board's supervisory responsibilities with 1:espects to holding company affiliates of banks these av-ns titutions be exempted from the provisions of the In4.??tment Company Act. Your Committee and Congress adopted recommendation and exempted from that Act holding srPanY affiliates which hold general voting permits isbY the Board under its supervisory authority. The proposed section 17(c) now pending before your ,oMmittee reads as follows: 'It shall be unlawful for any issuer, by use of the mails or in interstate commerce, to send to its stockholders a report containing any statement which is false or misleading with to a material fact.' The Board specifically recommends that the follow"The inp - language be added to that proposed amendment: 'This subsection shall not apply to any bank the officers of which are subject to section 5209 of the Revised Statutes, as amended, or to any holding company affiliate, as defined in the Banking Act of 1933, which holds a general voting permit issued to it by the Board of Governors of the Federal Reserve SysUnder the provisions of section 5144 of the li evised Statutes, as amended.' men4 It will be noted that the above recommended amendhas ' includes the exemption applicable to banks which tof,Previously been submitted to your Committee. As here1'e stated, the penalties contained in section 5209 of ' 15 1130/42 -12- "the Revised Statutes for false entries in any book, rePort, or statement are by existing statutes made applicable to officers, directors, agents, and employees of holding company affiliates which would be exempted from Irom the proposed section 17(c) by the above amendment." Approved unanimously. It was suggested that the Board authorize the payment of the cost of a luncheon served in the Board's dining room today to Mr. ICentorl IL Cravens, Vice President of the Cleveland Trust Company, who lv"Present at the meeting on Regulation VI held this morning. Approved unanimously. Thereupon the meeting adjourned. Secretary. Chairman. 114il0hoilfillt4it elnent is --ee of ale ,,,-— be filed with - . J. fn the Reserve Bank (main office or branch) of the district in which the Under 11,., ,Ileg..istrant is located. Federal kte_ durin In case you are registering because of an amendment listing additional - wilation Ar, etantteMent should be sent before the end of the second calendar month after the aroest shisc4vdmiell the ametnhedina fro'Zitant is autobe sent on becomes effective. In case you are registering for any other reason, or before thedate of commencing business which is subject to Regulation W. The tiea ve BilaYacebnefs:d upon e; eetai_nin kir ii;ft : filing of this statement; it is not necessary to wait for acknowledgment D2:(Meetio:Twering re commencing business under Regulation W. 'erve 11,4°out thisft . tops, please read e(Meat' 1 d the instructions on the back of this form. If you have °I. branch, which is not covered by the instructions on the back, please communicate with the tontr Please leave this space blank 158 REGISTRATION STATEMENT ,:this Date of filing '4444 t°131xtileceurittive filed in accordance with the provisions of Regulation W issued by the Board of Governors of the Federal Reserve System Order No. 8843 issued by the President of the United States relating to consumer credit. ••• ........... ....... Name. ... 1, hid, .......,..., ...... Street4 cireas leatie bY check Registrant (print or type); state also trade name if different from legal name .................... State County City mark whether Registrant is (or is to be) in business as an individual..............., partnership................,corporation form (8PecifY) (Leipal (Cheek otlelhtleinees of 'Registrant III. Credit outstanding and sales (Whether or not subject to Regulation 1v) A. PM'alleiail (Note—In case Registrant is a new business or successor to an existing business Ci r, 1. business, Registrant should note the fact under Question VI and need sales finance not answer any part of Question III.) ,,i 2. co ,_ . comPanY even dollars, cents A. Registrants in classes 1 to 6 please report the (In mtnercial bank omitted; where amount an or trust :: sindustrial company unpaid balance of retail and personal instal- is none, write "none") ment paper held at close of business on a date company or bank I:I s cl • te-licensecl small loan within two months prior to date of filing of this company wetitt Statement: Date used 6. union 6. Other financial 1. Retail instalment paper purchased business (specify) 2. Retail instalment credit (loans) extended ........ directly 11: ........... portio..th.er 4i ,to LI 7. h. ntractor, or other ..................................................... business n. . --ilartment or general store rj 10, Antomobile dealer Purniture or house furnishings store ii. Ellinnsettold a ppliance or radio store 12' tz ect,rie c't gas EiEl la. utility company .iftroWare or Naler or c automotive accessory store. 1:1) 4. ;31r ontra.ctor in heating, plumb' plumbing or -conditioning , equipment eal,er or c 1:3 18. ontractor in other construction Or Zan'Materials 6 -'10Mfacturer (specify •• " .......• . type of product) .... ................................................................ (8Peeify) ............................................................ 3. Personal instalment cash loans B. Registrants in classes 7 to 16 please report the following data using a date within two months prior to date of filing of this Statement: Date used. Retail sales-12 months ending on date used (including all retail sales of listed and unlisted articles and of services): 4. Total net sales 5. The sales reported in item 4 were approximately: a. Instalment sales (incl. down-payments) b Other credit sales c. Cash sales Retail receivables held—unpaid balance at close of business on date used: 6. Instalment receivables ....................................................................... 7. Other receivables n't have any branches? (Please attach a list of branches and their addresses) If so, how many? "ent der(4,:p rnore of If so, please etition vi Registrant's voting stock owned or controlled directly or indirectly by any other company? the name and address of the controlling company and state the nature of its business. 44 ' ItY ' natter ' Which Registrant may wish to add (in case Registrant is successor to an existing business, see General Instruction back of fors). .! • ...... •, teli14 eery ate ettitoa gY that ...... : 11) • , ••• ........................................ ••••••............. ................................••-••• • .................. ....... ..... . .... ... te the best of my knowledge and belief the foregoing statement is correct (except as to any items marked good faith). e .......... .....title....... ............... http://fraser.stlouisfed.org/h................ name and official Federal Reserve Bank of St. Louis Authorized signature .......... INSTRUCTIONS FOR REGISTRATION STATEMENT (Numbered to correspond with questions on Registration Statement) IV.—Branches should include stores or offices at which the Registrant is engaged in making instalment sales or otherwise extending instalment credit, or purchasing or discounting or making loans on instalment obligations. not of thert:t all or r _AeceeS" y0 to succeeding buoso 0 VI.—In case Registrant is ther names of more existing concerns, the , °1c1 A or att. part of of be one noted under Question VI. If only ' tte indicate be taken over, the part taken over should bi ered; successor is eqyriltioe is poirJ the whether Where there is doubt ,400 new regis v be acc°°) tration of a predecessor or whether a, ' tsli : j rearas 1319 filed; this it is suggested that a new form be the statement of 11, if the Registrant desires, by a re4tilre3 request that the new form be returned if 50t°'cial 0 If Registrant's business is not yet in operation, please indicate whether Registrant will have branches after commencing operations. anY ATM—Thisstatement may be signed by Registrant. ized to sign statements for the GENERAL INSTRUCTIONS: III.—Instalment credit should include credit for which the agreed repayment is in two or more parts. Instalment sales should include sales made on instalment credit. A business not yet in operation will have nothing to report under Question III. QUESTION III—SPECIAL INSTRUCTIONS FOR FINANCIAL BUSINESSES: (Sales finance company, bank, loan company, credit union, or other financial business). III-A.—Any hypothecated payments or deposits which are for the purpose of retiring loans should be deducted before reporting the unpaid balances of such loans. In case a Registrant cannot readily secure an exact division of its outstandings between items III-A-1, 2 and 3, the division may be estimated. III-A-1 and 2.—Include the unpaid balances of all instalment credits arising from the retail sale of and secured by articles, whether or not listed in Regulation W,such as automobiles, trucks, household appliances, furniture, clothing, jewelry, etc., including also loans for building repair or modernization (whether or not insured under FHA Title I and whether or not secured). Any retail instalment paper purchased from or rediscounted for dealers or others "ylf , cidf loans nilisaretiedles sb°111 uom uld bef. reported in item III-A-1 and sh 1 plil Aeors L'1,,, $ue b Y secured d loamre d use ers oIrIIt-hAe-2p.urDchuasueuotf rode to uured by w" toetil include ported in if sec even notes, paper.own promissory companies on their d 04 fired sn .fig of instalment 11 0 of all sec- 43 balances indivic111017000it? III-A —Report the unpaid instalme-n3. t loans which were made to of deh'Aigie 0 ,1,1)4 consolidation used for such purposes as -,., -eeros ' do not (but general personal expenditures, etc. business c°,-;o05 os other ov ported in item III-A-2, nor loans to mortgages or purposes, nor loans secured by nor agricultural loans). QUESTION III—SPECIAL INSTRUCTIONS FOR DEALERS, CONTRACTORS, AND OTIIERS: 11 to, h°°t1:4 should reoPoryIII-B-6 and 7.—Retail receivables III-B-4.—Give net retail sales figure (gross sales less returns and represented bY ietrss discounts), but do not deduct trade-ins. In the event that the Regis- balances of all receivables, whether sales by therforoitur:OC/ trant is not able to furnish an exact figure without undue inconvenience or otherwise, arising from retail 1 000 oi household 001°- 'tiler or expense, the figure may be estimated. A store should include sales sales of automobiles, trucks, modernization (ileti iiielousi posid/ bob0of of leased departments for which it arranges and holds retail credit. jewelry, building repair and receivables shooltrot, A Registrant which is engaged in manufacturing or other business under FHA Title I), etc. Retail i 1113° or ic is n Reg the pledged as security for loans to should report only the sales which it makes at retail. A Registrant ori011il WI t' with) V elude if credits sold to (or discounted who is a contractor should include receipts from repair work and the include or without recourse. COT A tO F. like. There should be excluded from item III-B-4, however, sales of company with retailr holding 003- sroV electricity or gas by a Registrant who is a utility company and sales in addition to In case a Registrant, • iteins ohieb of real estate (and receivables arising from such sales should also be lendingsales (reportable against of its own ,,, latter 1 1, purchaseu--1 7). and III-B-6 from items excluded receivables vables which were receivables of ti'votip !VP 01 holds reportedb the Registrant, the A concern which has not been in operation for 12 months should report in,,tratiliti 901, items i sales for the period for which it has operated, indicating clearly the be against the appropriate der der 111110,Alo or P° manufacturers length of such period. etns—such as some Registrants—such may 1/ 1110: to re1 011 till reportorettail h sales or retail credit loans urider 1 0 have III-B-5.—"Instalment sales" should include all sales on instalment bid I-. it et or paper their purchased credit, regardless of whether the paper is sold or discounted or held should ternIttle el‘iire;o is unable to de In case the Registrant • by the Registrant, and should include the down payment (whether division °f °esti° • or expense, the instaim mence cash or trade-in) as well as the amount deferred. "Other credit sales" inconve MO be division ent and other credit, this should include those on open credit, charge account, or similar basis. i i , , ,ty grod - NOTE:—Section 3(d) of Regulation W provides in part as follows: "The license of any Registrant may, after reasonable notice and opportunity for hearing, be suspended by the t ther, or as to particular activities or particular offices or for specified periods, on any of the following grounds: Pursliti (1) Any material misstatement or omission willfully or negligently made in the registration statement; n 0,rd (2) Any willful or negligent failure to comply with any provision of this regulation or any requirement of the J-,°
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