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'I;.-}, .'5' Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, September PRESENT: 4, 1952. Mr. Szymczak, Acting Chairman Mr. Evans Mr. Vardaman Mr. Mills Mr. Robertson Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Federal Reserve System on September 3, 1952, were approved Letter to Mr. Young, President, Federal Reserve Bank of Chicago, reading as follows: "The Board is in receipt of a letter dated August 19, 1952 from Mrs. Valerie R. Frank, Secretary of the Retirement System of the Federal Reserve Banks, regarding the approval of a proposed rider to be incorporated in the group life insurance policy carried with the Connecticut General Life Insurance Company. The Board assumes that each of the Federal Reserve Banks, including your own, has received a similar letter. "The effect of the proposed rider would be to permit certain payments to be made on behalf of minor beneficiaries to the person caring for and supporting the minor without the necessity of appointing a guardian. "This letter is to inform you that the Board has aPProved the rider, in the form of the photostat which is enclosed, and your Bank is hereby authorized to execute it on behalf of the Board of Governors after you lave received a like authorization from each of the Federal Reserve Banks. The Board understands that the insurance company will submit the rider for approval of the State of Illinois." 7h...;)-tIi 9A/52 -2Approved unanimously, with a copy to Mrs. Frank, Secretary, Retirement System of the Federal Reserve Banks, Nei York, New York. Letter to the Board of Directors, Princeton Bank and Trust Company, Princeton, New Jersey, reading as follows: "Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board Of Governors approves the establishment and operation of a branch at the Princeton Shopping Center, to be located in Princeton Township, New Jersey, by Princeton Bank and Trust Company, upon condition tnat formal approval is obtained from the appropriate State authorities and the branch is established within eighteen months from the date of this letter." Approved unanimously, for transmittal through the Federal Reserve Bank of Philadelphia. Telegram to Mr. Cowan, Assistant Counsel, Federal Reserve of Neu York, reading as follows: "Reurlet August 28, 1952, with enclosures, to Benner concerning the determination under section 2(i) of Regulation X of the maximum loan which may be made to a lessee of land on which he proposes to construct a multi-unit residence. In case presented, lessee (1) has option to purchase land and (2) would be obligated as compensation a sum substantially equivalent to )or in excess of the value of the land on which the 4 ' multi-unit residence is to be constructed. Lessor, the owner of the fee, proposes to join in the mortgage and to pledge the fee as part of the security for loan. "The Board concurs in your view and that of the A cksonville Branch of the Federal Reserve Bank of j Atlanta that the appraised value of the land should 1559 9/4/52 -3- "be considered, by reason of the lease, as credit outstanding. Accordingly, in determining the mexLmum loan permitted to be made to the lessee, the maximum loan on land and improvements permitted under Regulation X must be reduced by an amount equal to the appraised value of the land. * * obligates "With respect to the clause . himself to pay as compensation a sum substantially equal to or in excess of the value thereof * * 1 ill footnote 2 on page 2 of Regulation X, the Board concurs in your view that in order for the clause to be applicable, it is not required that the lessee have the right to become the owner of the property." Approved unanimously, with a copy to Mr. Clark, Assistant Manager, Jacksonville Branch, Federal Reserve Bank of Atlanta. Assis ant'IBecretary.
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