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697 A meeting of the Board of Governors of the i'ederal Reserve system was held in Washington on Tuesday, May 11, 1943, at 11:30 a.m. PRESENT: Mr. MT. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans 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 hereinkrter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the 4clel'al Reserve System held on May 13, 1943, were approved unanimously. Memorandum dated May 7, 1943, from Mr. Leonard, Director of t4"1.1718i'n of Personnel Administration, recommending that the basic s alaries of James F."Hamilton and Daniel F. Lane, messengers in the .. file "of Governors Evans and Szymczak, respectively, be increased I'llt1)32C) to t1,440, effective May 16, 1943. Approved unanimously. Chi „tag() Telegram to Mr. Young, President of the Federal .Reserve Bank of numbered 1 3 co1 stating thrt, subject to conditions of membership ntained in the Board's Regulation H, the Board approves the ap- Dli tiO - of the "First State Npri 8' Bank of Forest Park", Forest Park, for membershio in the Federal Reserve System and for the ap- ate amount of stock in the Federal Reserve Bank of Chicago. The 698 5/11/43 tele, 5ram requested that the Federal Reserve Bank advise the applicant f the Board's approval of the application and conditions of membe P Prescribed, together with necessary instructions as to the proeeditre f°r accomplishing membership, and stated that a letter containi4detai1ed advice regarding such approval would be forwarded to the ''Plicant bank through the Reserve Bank. Approved unanimously, together with the following letter to the Federal Deposit Insurance Corporation: toda The Board of Governors of the Federal Reserve System aPproved the application of 'First State Bank of Fori;;; Parkt, Forest Park, Illinois, for membership in the oon al Reserve System, subject to compliance with certain °ns. The bank has not yet opened for business, and -Ls the plan to open as a member bank." Y Letter to Mr. Kennel, Assistant Counsel of the Federal Reserve 44k of boston, reading as follows: e "This refers to your letter of May 4, 1943, enclosing a 12 eY °f a letter dated April 29, 1943 from Mr. Lewis R. maarnan, Attorney for the Chelsea Savings Bank in Chelsea, ljaachusetts. Your inquiry is whether section 8(a) of Regmaa 1.°n 17 exempts as a 'first lien' a second mortgage loan upee bY the Savings Bank to the owner of the equity in realty whe1 , 1 which the Savings Bank also holds a first mortgage but Ito le the present owner of the equity is not the original rtgagor. itt W,128 'Is You point out, the situation is not identical l with z ale Lsince here the second mortgage loan is not made to the hap° uorrower' who obtained the first mortgage loan, which Row ' eened to be the case in the inauiry giving rise to W-128. shou17, it is the Board's view that the principle of W-128 apply in the case presented by you, assuming, of course, the ess -sence of intervening liens. Thus, it mould not be necwoldi for the Savings Bank to obtain a new mortgage which amett ' rit include the amount of the original mortgage plus the in tht of the second loan to the present owner of the equity Prolpert:f involved." Approved unanimously. 699 5/11/43 —3— Memorandum dated May 5, 1943, addressed to Governor Evans by kr, L'ead, Chief of the Division of Bank Operations, which submitted a illern°1barldtun of the same date from Mr. Thomas, Assistant Director of the bivis4 4J)11 of Research and Statistics, recommending, for the reasons ''tatela • In the memorandum, that the words "including $ deposits ace,— '4411-1.eted for payment of personal loans" be included in parenthesis "-Lag the item "Deposits of individuals, partnerships, and corpora— tjtrip . In Schedule F, Time Deposits, of the member bank call report form (P.R. 1, 4-'6) to be used for the midyear call. Approved unanimously. Thereupon the meeting adjourned. Chairman.
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