Part 201 302

Part 201 Discounts for and advances to

member banks by Federal Re

serve banks. (Amended) 222 Consumer credit. (Amended)

Part 223 Financing of war production and

war contract termination. (Revised)

PART 201-DISCOUNTS FOR AND ADVANCES TO MEMBER BANKS BY FEDERAL RESERVE BANKS

(d) Statement of transaction. The statement of transaction need not include a description of the article if it is purchased by means of a coupon book or similar medium of instalment credit upon which a cash down payment of at least one-third of its purchase value has been made. (Sentence added Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3443]

事

INTRODUCTION Sec. 201.1 Discount of notes, drafts, and bills of

member banks. (Amended) $ 201.1 Discount of notes, drafts, and bills of member banks.

(h) Determination of eligibility. The requirement of this section that a note, draft, or bill of exchange be negotiable shall not be applicable with respect to any note, draft, or bill of exchange evidencing a loan which is in whole or in part the subject of a guarantee or commitment made pursuant to Executive Order No. 9112 or the Contract Settlement Act of 1944. [Last sentence amended, effective Sept. 11, 1944, 9 F.R. 11147]

$ 222.5 Charge accounts.

(d) Curing defaults. In the case of any charge account obligation of any member or former member of the armed forces of the United States incurred prior to his induction into such service, a default may be cured by the purchaser entering into a written agreement in good faith to make payment according to such terms as the registrant shall deem it appropriate to require.

CODIFICATION: The text set forth above was added to $ 222.5 (d) following subparagraph (3) thereof by Regulations, Board of Governors of the Federal Reserve System, Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3443.

PART 222_CONSUMER CREDIT Sec. 222.4 Instalment sales. (Amended) 222.5 Charge accounts. (Amended) 222,6 Instalment loans. (Amended] 222.7 Single payment loans. (Amended) 222.8 Exceptions. (Amended] 222.10 Renewal, revisions, and additions of

instalment credit. (Amended] 222.12 Miscellaneous provisions. (Amended) 222.13 Listed articles, down payments and

maximum credit values. (Amended) $ 222.4 Instalment sales. (a) Down payment.

(3) In the case of articles the cash price of which is $10.00 or less, no down payment is required. [Subparagraph (3) amended Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3443)

(f) “Authorization" of small items. CODIFICATION: In $ 222.5 (1) "30 days” was substituted for "15 days" by Regulations, Board of Governors of the Federal Reserve System, Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3443.

(g) Small defaults. A charge account shall not be deemed to be "in default” within the meaning of $ $ 222.5 (c) or 222.12 (m) if the amount in default is less than $10.00. [Paragraph (g)

whether or not there has been compliance with the requirements of the regulations in this part, every person required to be licensed under $ 222.3 shall permit the Board or any Federal Reserve Bank, by its duly authorized representatives, to make such inspections of his business operations as the Board or Federal Reserve Bank may deem necessary or appropriate, including inspections of books of account, contracts, letters or other relevant papers wherever located, and, for such purpose, shall furnish such reports as the Board or the Federal Reserve Bank may require. When ordered to do so by the Board, every such person shall furnish, under oath or otherwise, such information relative to any transaction within the scope of the Executive order as the Board may deem necessary or appropriate for such purpose, including the production of books of account, contracts, letters or other papers in the custody or control of such person. (Paragraph (i) amended Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3445]

(b) Extension of credit for mized purposes. In case an extension of credit is partly subject to one section of this regulation and partly subject to another section, the amount and terms of such extension of credit shall be such as would result if the credit were divided into two or more parts and each part were treated as if it stood alone. In case an extension of credit is partly subject to this regulation and partly not subject to the regulation, the amount and terms of such extension of credit shall be such as would result if the credit were divided and the part subject to the regulation were treated according to the applicable provisions of the regulation; the part not subject to the regulation may be treated as if the regulation did not exist. (Paragraph (b) amended June 20, 1944, effective June 22, 1944, 9 F.R. 6937]

(n) Mail orders. An instalment sale shall not be deemed to be in violation of § 222.4 (a) if the sale is made upon the receipt of a mail order for one or more articles and the cash deposit received with the order fails by less than $1.00 to equal the sum of the down payments required by the regulations in this part for all of the articles included in the order. (Paragraph (n) added Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3445]

$ 222.13 Listed articles, down payments and maximum credit values.

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(h) Preservation of records. Every registrant shall preserve, for the life of the obligation to which they relate, such books of account, records, and other papers (including any statements required by or obtained pursuant to the regulations in this part) as are relevant to establishing whether or not an extension of credit within the scope of the regulations in this part was in conformity with the requirements thereof, Provided, however, That the statement of the Borrower obtained pursuant to $ 222.6 (d) or $ 222.7 (d) shall be preserved for the life of the obligation to which it relates or for one year, whichever period is longer, And provided further, That the registrant may preserve photographic reproductions in lieu of such books of accounts, records, or papers. (Paragraph (h) amended Mar. 23, 1944, effective Apr. 3, 1944, 9 F.R. 3445]

(1) Inspections and production of records. For the purpose of determining

PART 223—FINANCING OF WAR

PRODUCTION AND WAR CON

TRACT TERMINATION [REVISED] Sec. 223.1 Objective of the Federal Reserve Sys

tem. 223.2 Operations of the Federal Reserve

Banks. 223.3 Rates. 223.4 Responsibility and expenses of Fed

eral Reserve Banks. 223.5 Reports.

AUTHORITY: $ $ 223.1 to 223.5, inclusive, issued under 38 Stat. 262, 265, 48 Stat. 1105, as amended, 56 Stat. 355, 58 Stat. 649; 12 U.S.C. and Sup., 248, 391, 352 (a), 50 U.S.C. App., Sup., 1107.

SOURCE: $ $ 223.1 to 223.5, inclusive, contained in Regulation V, Board of Governors of the Federal Reserve System, revised effective Sept. 11, 1944, 9 F.R. 11148.

CROSS REFERENCE: For interim financing regulations of the Office of Contract Settlement, see Title 32, Chapter XX, infra.

$ 223.1 Objective of the Federal Reserve System. The objective of the Federal Reserve System in carrying out the purposes of the applicable provisions of the Executive order and of the Settlement Act is to facilitate and expedite the financing of contractors, subcontractors and others in connection with war production and in connection with claims arising out of the termination of war contracts or operations. The Board of Governors of the Federal Reserve System and the Federal Reserve Banks will cooperate fully in order to achieve this objective. The Federal Reserve Banks have heretofore been desi ted as fiscal agents of the United States by the Secretary of the Treasury pursuant to the terms of the Executive order and are authorized by the Settlement Act to act on behalf of the contracting agencies las fiscal agents of the United States in carrying out the purposes of the act.

$ 223.2 Operations of the Federal Reserve Banks. The operations of the Federal Reserve Banks pursuant to the provisions of the Executive order and

of the Settlement Act will be conducted, under the supervision of the Board of Governors of the Federal Reserve System, in accordance with such instructions as may be issued by the contracting agencies.

$ 223.3 Rates. Rates of interest, guarantee and commitment fees, and other charges with respect to loans made or guaranteed in whole or in part by any contracting agency through the agency of any Federal Reserve Bank will from time to time be prescribed, either specifically or by maximum limits or otherwise, by the Board of Governors of the Federal Reserve System with the concurrence of the Director of Contract Settlement.

$ 223.4 Responsibility and expenses of Federal Reserve Banks. No Federal Reserve Bank shall have any responsibility or accountability except as agent in taking any action under the Executive order, the Settlement Act, or the regulations in this part. In any case in which any Federal Reserve Bank shall make or participate in making any loan, discount, advance, guarantee or commitment as agent of any contracting agency under authority of the Executive order or of the Settlement Act, all such funds as may be necessary to carry out any obligation assumed on behalf of such contracting agency shall be supplied by and disbursed under authority from such agency in accordance with such procedure as it may require. Each Federal Reserve Bank shall be reimbursed by each contracting agency for all expenses and losses (including, but not limited to, attorneys' fees and expenses of litigation) incurred by such Federal Reserve Bank in acting as fiscal agent of the United States on behalf of such contracting agency under or pursuant to the Executive order or the Settlement Act.

§ 223.5 Reports. Each Federal Reserve Bank shall make such reports as the Board of Governors of the Federal Reserve System shall require with respect to its operations pursuant to the terms of the Executive order or the Settlement Act and of the regulations in this part.

1 The term "contracting agency" is used herein with the same meaning as that given it in the Contract Settlement Act of 1944.

Part 302 Assessments. (Amended) 303 Advertisement of membership

(Amended) 304 Payment of deposits and interest

thereon by insured nonmember banks. [Amended]

Part 306 Agents for service of process.

[Revised) 309 Voluntary termination of insured

status. [Added]

minated under paragraphs (1) or (2) of subsection (i), of section 12B of the Federal Reserve Act, as amended (12 U.S.C. 264 (i) (1) and (2)), makes application to the Corporation, before the insurance of its deposits shall have ceased, to be permitted to continue or to resume its status as an insured bank and if the directors grant the application, the bank will be deemed, for assessment purposes, to continue as an insured bank and must thereafter furnish certified statements and pay assessments as though its insured status had not been terminated. (49 Stat. 688, 690, 693; 12 U.S.C. 264 (h), (i), (j)) [Res., June 15, 1944, 9 F.R. 8284]

PART 302-ASSESSMENTS Sec. 302.3 Payment of assessments by banks

whose insured status bas termi

nated. (Revised] $ 302.3 Payment of assessments by banks whose insured status has terminated-(a) Assumed deposits of terminating bank become deposits of assuming bank. The deposit liabilities of one bank, if assumed by a second insured bank, will, except to the extent that depositors of the first bank by affirmative action signify their express intention to hold the first bank liable as a debtor, be presumed for assessment purposes to cease being deposit liabilities of the first bank on the date the assumption becomes effective, Provided, The requisite notice of assumption be given to the depositors. The assumed deposits, for assessment purposes, are deposit liabilities of the assuming bank from the date of assumption, whether or not the requisite notice of assumption has been given to the depo ors.

(b) Payment of assessments by assuming bank on assumed deposits of terminating bank. Where the deposit liabilities of an insured bank are assumed by another insured bank and the assuming bank agrees to file the certified statement which the terminating bank is required to file, the filing of such certifed statement and the payment of the assessment thereon by the assuming bank shall be deemed the acts of the terminating bank: Provided, The requisite notice of assumption be given to the depositors of the terminating bank and, Provided further, That such certified statement shall be filed separately from that required to be filed by the assuming bank.

(c) Resumption of insured status before insurance of deposits ceases. bank whose insured status has been ter

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PART 303—ADVERTISEMENT OF

MEMBERSHIP Sec. 303.1 Mandatory requirements with regard

to the official signs and their dis

play. (Amended] 303.2 Mandatory requirements with regard

to the official advertising statement and m a n ner of use.

(Amended] $ 303.1 Mandatory requirements with regard to the official signs and their display.

(b) Oficial sign. The official sign referred to in paragraph (a) of this section shall be seven inches by three inches in size, and shall be of the following design:

NOTE: For illustration, see 12 CFR 303.1 (b).

Any insured bank may procure the standard signs from the Corporation or may use any other sign of the same size, wording and appearance which shall have been approved in writing by the Corporation as conforming to the requirements of this section. Such approval will be given only in individual cases where the standard sign does not

If a