19420130_Minutes.pdf

146

A meeting of the Board of Governors of the Federal Reserve

SYstem was held in Washington on Friday, January 30, 1942, at 12:30134%

PRESENT: Mr, Eccles, ChairmanMr. 'Ransom, Vice ChairmanMr. McKeeMr. Draper

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

The action stated with respect to each of the matters herein—after referred 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.

Telegrams to Messrs.Sanford, Post,te'lles of the Federal Reserve Banks of4114

Chicago, respectively, Mr. Woolley

11""Ire Bank of Kansas City, Mr.%Ire

Bank of Dallas, and Mr.

NI* Of San Francisco,

taetrt without change by the

4a-lluary 27, by the Federal

Xallae's CitY, and Dallas onNrilt0f Phi

ladelphia today,their

existing schedules.

Hays, and Dillard, Secre—

New York Philadelphia, Cleveland,

Vice President of the Federal

Gilbert,

Hale,

President of the Federal Re—

Secretary of the Federal Reserve

stating that the Board approves the establish—

Federal

Reserve

January

of the

Reserve Bank of San Francisco on

Banks of New York, Cleveland, Chicago,

29, 1942, and by the Federal Reserve

rates .of discount and purchase in

Approved unanimously.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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1/30/42

Memorandum dated January 23, 1942, from Mr. Nelson, Assist-ant 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 in-

easedfrom q,380 to $1,500 per annum, effective February 1, 1942,

'11c1 (2) that Charles R. Nichols be appointed on a temporary basis for

411 indefinite period as a guard in the Secretary's Office, with salaryat the

- rate of n,380 per annum, effective as of the date upon whichhe ent

factor,I.--LY the usual physical examination, with the understanding that

itWOrk is

satisfactory during the first six months of his appoint-illent 4

further recommendation will be submitted that his salary be in-creae,_'"0( to 0w1,500 per annum.

ers upon the performance of his duties after having passed satis-


Memorandum dated January 27, 1942, from Mr. Goldenweiser, Di-

of the Division of Research and Statistics, submitting the res-

ti°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

Lcumond, reading as follows:

lett "In accordance with the request contained in yourer of January 27, the Board approves the designation


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1130/42 -3-"of

Charles E. Hall as a special assistant examiner.Such approval is with the understanding, of course, thathe will not be transferred permanently to examination workwithout the Board's approval."


Letter to Mr. Neil G. Greensides, Acting Chief of the Divisionof 4antin

ation of the Federal Deposit Insurance Corporation, reading as

f°110ws:

"This is in reply to your letter of January 28 ad-

nsing that the Board of Directors of your Corporation;as authorized the purchase of certain assets of FloralPark Bank and Trust Company, Floral Park, New York, inOrder to facilitate the assumption of the liabilities

The the acquisition of acceptable assets of the bank by

ills First National Bank and Trust Company of Floral Park."In accordance with your request, the Board of Gov-ernors

of the Federal Reserve System hereby grants writtenconsent, pursuant to the provisions of subsection (k)(2)°I section 12B of the Federal Reserve Act, for examiners

lor the Federal Deposit Insurance Corporation to make2ch examination of the Floral Park Bank and Trust CornParty as is required to consummate the proposed trans-

the tivision of Examinations, recommending that the matter of charging

tol' the f'orthcoming investigation of The Provident Savings Bank and

INst

tank of

Cleveland be left to the discretion of the Reserve Bank insteadot


Memorandum dated January 24, 1942, from Mr. Paulger, Chief of

°mPanY, Cincinnati, Ohio, by examiners for the Federal Reserve

being made at the expense of the member bank as recommended in the80,arci

8 letter of December 3, ,Pederal b 1 1941to Mr. Fleming, President of the

Reserve Bank of Cleveland.



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Memorandum dated January 26, 1942, from Mr. Parry, Chief of

the Division of Security Loans, recommending that the Board (1) ap-

PIlove 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 tothe

Federal Reserve Banks. The memorandum stated that it might be

riecessarY to print additional copies as it was not possible at thistime

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 FormR. 563-a was in preparation but authorizing the Re::rye Banks until further notice to accept Registrationluluatements on Form F.R. 563. The new Form F.R. 563-a

now been approved by the Board, and several copies1,1 ,1_cating the content of this form are enclosed here-

Z'u. The new forms are now being printed here on singleeets, 8-1/2 by 11 inches, with instructions on the re-verse

side.t. "The distribution of these forms, like the distribu-j: r

°n,°f Form F.R. 563, will in general be in the hands ofFed

FormReserve Banks and will be effected by such

coar?-s as they may determine. An initial supply of 3,000arPlee of Form F.R. 563-a will be sent you as soon as theymn! readY; Please notify the Board when and if you need-.Le copies:

"Form F.R. 563-a is intended to be suitable for ther stration of all of the classes of persons who will becoglstering henceforth -- such as newly-organized concerns,b,n?erne organized to succeed existing businesses, existing5nesses which begin to engage in activities which are

41)23ect to Regulation IV, and concerns making instalmentIles,! of articles which in the future, by ameftdment to'ation Vs', become 'listed articles' -- as well as


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1130/42-5-

concerns which which should have registered on or before De-cember 31, 1941, but failed to do so.

"Because of the varying circumstances under whichthiS form will be used, it will probably be desirable toIlse several different forms of Notice to Registrants.

ere is enclosed a suggested form,of notice which isintended primarily for those Registrants which are newconcerns; it is requested that each Reserve Bank deter-

for itself whether to use this suggested form ofnotice, either as it stands or with modifications. When

ZI:ld 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 regu-lation by reason of such amendment.

"As stated in the Board's telegram of December 31,You may continue to accept such registration statementsmaY be tendered on Form F. R. 563 by persons who haveeadY received that form. On all new requests for forms

-n the future, however, copies of the new Form F.R. 563-ashould besupplied.

byIn acknowledging the completed statements receivedtj,

“e Reserve Banks on Form F.R. 563-a, it is requestedrat +am'-he Reserve Banks use the se 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 'Addi-na1 Notes Regarding the Filling Out of Form F.R. 563'

,,11ch the Board sent with its letter R-915 dated October1-'1-4e will be applicable. It may be noted, however, thatnew

businesses, which may comprise a substantial propor-110Z11 of the concerns registering on Form F.R. 563-a, will

be required to fill out Question III of the form."


Letter to Mr. Kennel, Assistant Counsel of the Federal Reservetank of ,o

ston, reading as follows:

8, "Receipt is acknowledged of your letter of Januaryma00

191 2 enclosing a copy of a letter from Mr. E. J.

ua: ermott of the M-A-C Plan Management Bureau, Worcester,a 'eachusetts, regarding the effect of Regulation W upon

cel'tain proposed transfer of equity in an automobile.


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. "The facts appear to be that prior to September 1an individual had purchased a car for 800 on a financePlan; that the outstanding balance has now been paid down

that the purchaser anticipates entering the Navyand wishes to transfer his equity to his father; and thatthe father wishes to borrow from the M-A-C Plan ManagementBureau a sum sufficient to pay off the outstanding balance,

new loan to be on an instalment basis. The questionls whether the Bureau may lend the full amount, or onlytwo-thirds.

"You point out that this case differs in at least(1)/:le respect from that described in W-72, namely, that adlfferent lender is asked to finance the outstanding bal-ance after the transfer of the equity. However, this ise only

important difference if the terms of the loanto 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 section5„(e) the son could have borrowed the full amount from the1,:ureau and could then have transferred his equity to his1,_ather in exact compliance with V.-72, and consequently• e making of the transfer in one operation as proposedln Mr. MacDermott's letter would be permitted., "Even if the terms upon which the money were borrowed1Fom 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 mightn11 cover the case. That provision permits a Registrantthat°makiie any renewal or revs on, or to take any actiont shall deem necessary in Good faith, with respect

any obligation of any member of the armed forces ofUnited 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 prac-alially all cases the individual wishes to rearrange histhlalrs before joining the Service. It would seem thate, 8 difficulty could be met either by postponing thee„!eution of the new contract until Some date after his.t:1;6rY into the Service, or by providing in the contractviat it would be effective upon his entry into the Ser-a 8ee. Obviously these methods would not be as convenient

t11 completin:; the transfer prior to his induction intothe Service, but if section 8(a)(1) were made applicable

ises where an individual merely contemplated enter-the11 Service, there would probably be a great many


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1/30/42

Bank

-7-

"Cases where revisions would be allowed for individualsWho ultimately did not join the Service.

"You also describe a transfer of equity which is ac-complished by the following means: the husband sells hisequity to his wife who agrees to pay the outstanding bal-ance due on the chattel mortgage, and the husband thenassigns this conditional sales contract to the finance?ompany, thus completing the substitution of obligors.

some cases the husband guarantees the payment of theconditional sales contract; but it is assumed that inanY event the husband remains liable to the seller.

AS indicated above, the mechanics by which thetransfer of equity is accomplished are not important,Provided the other conditions of W-72 are met."


Letter to Mr. Gilmore, Assistant Cashier of the Federal Reserve

°I' St. Louis, reading as follows:

or, "Receipt is acknowledged of your letter of Januaryenclosing 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 sec-pac'n 5c)(2) of Regulation Vi the following schedule ofYments would be permissible: $40 on January 20, ,,,10

(Th 11 17ebruary 5, %0 on February 20, 110 on March 5, etc.res reason for such a schedule would be that the obligorarceives his compensation semi-monthly and has already0,ranged for his rent and certain other bills to fall dueu 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, as11111,advised Mr. Butler, the proposed schedule would not

that ..act comply with the provisions of that section, since

ti I,8eotion requires that instalments shall be substan-me: equal in amount or be so arranged that no instal-b,"' is substantially greater in amount than any preceding'tstalment.

a.nle ,"If you should feel that it would be desirable tothe

the Regulation so as to take care of this situation,r()' Board, of course, would appreciate an expression of

views."Of course, where a loan in reality represents two


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1/30/42 -8-

separate transactions, Regulation Wwould not preventthe parties from making two separate notes having differentinstalment dates. Furthermore, if two such notes weremade, they could be consolidated subsequently under Optioni1 n section 8(b) into an obligation having the same pay-

m.ent schedule as the two notes originally had. Obviously,1:f there were actually only one loan, this could not beclone, and it would not be permissible, for example, tolake one note payable in 18 instalments and the other noteln a lump sum payable 19 months from date.”


Telegram to Mr. Swanson, Vice President of the Federal Reservetank of

Minneapolis, reading as follows:

"Re your telegram January 23, it is not necessaryunder Group E that the contract relate to both materialsand services. The contract may be for materials aloneOr for services alone or for both combined.

"Regarding the second paragraph of your wire, theStatus of equipment as an 'alteration or improvement'.11!Ilder Group E would not be affected by any agreement be-teen the landlord and the tenant as to the right of thetenant to remove it at the expiration of the lease butl"ld depend upon the nature of the equipment."

Telegram


to Mr. Swanson, Vice President of the Federal Reservet of .

ullnneapolis, reading as follows:

"Your wire 26th regarding loan company which makes4an t0 retire an outstanding obligation that was orig-viTh'Lly drawn for 15 months under Option 2. You aski„ether company has duty to ascertain whether loan be-•retired was restricted to 15 months. As explainedeon ast paragraph of Ruling W-118, the facts themselvesac rol and company would be violating regulation if it18 8 on the assumption that the loan was extensible to

Months and this assumption proves to have been wrong."



1130/42

154

-9-

Telegram to Mr. Hale, Vice President of the Federal ReserveBank of

San Francisco, reading as follows:

"Your wire today. Amendment Section 9(d) provisionafter semicolon refers to both (1) and (2) of paragraph.However, the reference to section 8 includes section 8(e)nlch provides the concession referred to in W-19 for pre-September contracts. Intention was to continue this excep-tion as to pre-September contracts whether they involveold listed articles or those newly added, but to deny theoncession of 8(e) to any credit extended after September1.11

rollows:


Letter to Hr. Emory B. Smith, Washington, D. C., reading as

„ "Receipt is acknowledged of your letter of January:0 regarding the effect of RegulationW in a case wheret taxi driver, having his license suspended for 30 days,irled his car in to the dealer from whom he was buyingw °r1 an instalment basis, intending that the dealerJuld hold it and repair it for him, but the dealer,

gh a misunderstanding, had title recorded againaZ Ills own name. When the misunderstanding was discovered,the end of the 30-day period, the parties desired to

41-nstate the instalment sale contract, but wish to knowwil aer, under Regulation W, the reinstatement, whicha's' 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 trans-ulti °n is not entered into as a means of evading the Reg-thation but merely as a means of rectifying a mistake,ejlie would be no objection to reinstating the instalmentd 'e contract on its original terms, without requiring atrrl Payment, even though such reinstatement might require13;e rocordinc, of a new title or other steps which, taken

themselve might have some of the appearances of anew sale." y



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Letter 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, 1941in response to your invitation, with regard to a newsubdivision (14) which is proposed to be added to sec-tion 2 of the Securities Act of 1933, the Board statedt:hat at an appropriate time it might have comments which

would wish to submit to your Committee with respectto other proposals for amendments to the Securities Actof 1933 and the Securities Exchange Act of 1934.

"Since that time the views of the Board with respectto certain of the proposals relating to the Securities

from Act and with respect to the exemption of banks

'1:om the proposed section 17(c) of the Securities ActOf 1933, relating to false reports, have been submitted

to Your Committee. As shown on page 834 of Part III of

and Other of the Hearings of your Committee, the Board

;7c1 other Federal bank supervisory agencies have recom-mended that the banks supervised by these various Federal:gencies be exempted from the provisions of the proposed13:!_i°n 17(c). As stated in that recommendation thesewnIKS 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 companylliates of banks was vested in the Board of Governors;-70 t131.he .Lenking Act of 1933 and these companies under the

oraru's supervision are also made subject to the penaltiesst,!ection 5209 of the Revised Statutes relating to falsean'ements or reports. Accordingly, the Board feels thatot, such companies should be exempted from the provisionsme section 17(c) on the same basis as the Board has recom-tilnded that banks be exempted. Briefly this basis is thatbystitutions already subject to supervision and examination

4 suPervisory agency and subject to a statute whichdr-'s with the same problems to which section 17(c) is ad-esed need not be subjected to a duplication of super-

and to duplicate statutory provisions. The exemp-of-n,which the Board recommends would avoid duplication

statutory requirements applicable to holding company


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affiliates over which the Board exercises supervisionand of duplication of supervision which might arise outof the application of the proposed provisions of section17(c)

of "The proposed exemption of holding company affiliates

banks has been discussed with representatives of the

btehe

ourities and Exchange Commission and we are advised that

t Commission feels that the question of exemption of.hese companies is one which the Reserve Board may wishto present to your Committee and as to the adoption ofwthi,oh the Securities and Exchange Commission has no posi-2J3n. In this connection, it may be mentioned that whenre Investment Company Act of 1940, which was consideredLa7, your Committee, was pending in Congress the Board,ilter considering the matter with representatives of thev?curities and Exchange Commission, recommended that in_lew of the Board's supervisory responsibilities with1:espects to holding company affiliates of banks theseav-ns

titutions be exempted from the provisions of the In-4.??tment Company Act. Your Committee and Congress adopted

recommendation and exempted from that Act holdingsrPanY affiliates which hold general voting permits is-

the bY 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 containingany statement which is false or misleading with

"The to a material fact.'

The Board specifically recommends that the follow-inp- language be added to that proposed amendment:

'This subsection shall not apply to anybank the officers of which are subject to sec-tion 5209 of the Revised Statutes, as amended,or to any holding company affiliate, as de-fined in the Banking Act of 1933, which holdsa general voting permit issued to it by theBoard of Governors of the Federal Reserve Sys-

Under the provisions of section 5144 of theli evised Statutes, as amended.'

men4 It will be noted that the above recommended amend-has' includes the exemption applicable to banks whichtof,Previously been submitted to your Committee. As here-'1'e stated, the penalties contained in section 5209 of


15

1130/42 -12-

"the Revised Statutes for false entries in any book, re-Port, or statement are by existing statutes made appli-cable to officers, directors, agents, and employees of

from holding company affiliates which would be exempted

Irom the proposed section 17(c) by the above amendment."


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.

ILICentorlCravens, Vice President of the Cleveland Trust Company, who

lv"Present at the meeting on Regulation VI held this morning.


Thereupon the meeting adjourned.

Secretary.

Chairman.


City County State

to be) in business as an individual ....... ........, partnership................,corporation

.....................

construction

or

Or

. ................................................................

(8Peeify)

............................................................

.......................................................................

n't have any branches?

III. Credit outstanding and sales(Whether or not subject to Regulation 1v)(Note—In case Registrant is a new business or successor to an existingbusiness, Registrant should note the fact under Question VI and neednot answer any part of Question III.)A. Registrants in classes 1 to 6 please report the

unpaid balance of retail and personal instal-ment paper held at close of business on a datewithin two months prior to date of filing of thisStatement: Date used

1. Retail instalment paper purchased

2. Retail instalment credit (loans) extendeddirectly

3. Personal instalment cash loans B. Registrants in classes 7 to 16 please report the

following data using a date within two monthsprior to date of filing of this Statement:Date used.

Retail sales-12 months ending on date used(including all retail sales of listed and unlistedarticles and of services):

4. Total net sales 5. The sales reported in item 4 were approxi-

mately:a. Instalment sales (incl. down-payments)

b Other credit sales

c. Cash sales

Retail receivables held—unpaid balance atclose of business on date used:

6. Instalment receivables

7. Other receivables

If so, how many?

(In even dollars, centsomitted; where amountis none, write "none")

(Please attach a list of branches and their addresses)

Registrant's voting stock owned or controlled directly or indirectly by any other company? If so, pleasethe name and address of the controlling company and state the nature of its business.

Which Registrant may wish to add (in case Registrant is successor to an existing business, see General Instruction

...... •••

.! • : 11) • ,

...... ................ . ....................... • • • • • • ............. ...... . ........ ................. • •-• • • • . . ......... . ...... ....... ..... . .... ... . .........

leatie bY check mark whether Registrant is (or is4i

portio..th.er form

(8PecifY) (Cheek otlel

(Leipal htleinees of

'RegistrantA.

PM'alleiail business

,,i 2. co .

Cir, 1. sales finance comPanY

:: sindustrial

an

company or bank

6.

, _ mtnercial bank or trust company

I:I s te-licensecl small loan company

cl • wetitt union6. Other financial business

(specify)

114ilhilfillt4itelnent is f n0o

tontr--ee of ale ,,,-- — be filed with the Federal Reserve Bank (main office or branch) of the district in which theUnder 11,., ,Ileg..istrant is located. In case you are registering because of an amendment kte_ durin - wilation Ar, listing additional

aroest shisc4vdmiell the ametnhedinaetantteMent should be sent before the end of the second calendar month after the

becomes effective. In case you are registering for any other reason, The

fro'Zitant is auto be sent on or before thedate of commencing business which is subject to Regulation W. kir ii;ft:eetai_nine;vtieae BilaYacebnefs:d upon filing of this statement; it is not necessary to wait for acknowledgmentD2:(Meetio:Twering re commencing business under Regulation W.'erve 11,4°out this fte 1(Meat' d the instructions on. tops, please read the back of this form. If you have

°I. branch, which is not covered by the instructions on the back, please communicate with the

,:this

'4444 t°131xtileceurittive filed in accordance with the provisions of Regulation W issued by the Board of Governors of the Federal Reserve SystemOrder No. 8843 issued by the President of the United States relating to consumer credit.

- . J.

Please leave

this space blank

158

•••

..................

Date of filing

Name . Registrant (print or type); state also trade name if different from legal name...

....... , . . . , ..... ....................

Street 4cireas.1, hid,

11: , toLI 7. h. ntractor, or other business

6 n.

--ilartment or general store. Antomobile dealerrj 10, Purniture or house furnishings storeii. Ellinnsettold appliance or radio storeEl 12' tz ect,rie c't gas utility company

Ei la. .iftroWare or

automotive accessory store. plumbing

Naler or contra.ctor in heating

1:1) 4. ;31r-conditioning

equipment,eal,er or contractor in other

, plumb'

1:3 18. Zan' Materials-'10Mfacturer (specify type of product)

REGISTRATION STATEMENT

........

...........

• • " ....... •

....

"entder (4,:p rnore of

etition vi

44 'ItY' 'natterback of

fors).

14 •teli eery,gYate et thattitoa te the best of my knowledge and belief the foregoing statement is correct (except as to any items marked

good faith).

................................

h................e .......... ..... ...............name and official

title....... Authorized signature


INSTRUCTIONS FOR REGISTRATION STATEMENT

(Numbered to correspond with questions on Registration Statement)

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.

IV.—Branches should include stores or offices at which the Regis-

trant is engaged in making instalment sales or otherwise extending

instalment credit, or purchasing or discounting or making loans on

instalment obligations.

If Registrant's business is not yet in operation, please indicate

whether Registrant will have branches after commencing operations.

not of thert:t

VI.—In case Registrant is succeeding to all or r _AeceeS" y0

of one or more existing

concerns, the names of the rbuoso 0

e noted under Question VI. If only part of att. A°1c1

b ,

ered bi ;taken over, the part taken over should be indicate' tte

Where there is doubt whether the successor is eqyriltioe is poirJ

tration of a predecessor or whether a, new regis v be acc°°),400

it is suggested that a new form be filed; this 1319:jrearastsli'

if the Registrant desires, by a statement of

the

request that the new form be returned if 50t re4tilre3 11,

°'cial 0

ATM—This statement may be signed by anY

ized to sign statements for the Registrant.

QUESTION III—SPECIAL INSTRUCTIONS FOR FINANCIAL BUSINESSES:nancial business).(Sales finance company, bank, loan company, credit union, or other

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

"ylffi

sshuomuld bef. reported in item III-A-1 and loans nilisaretiedles sb°111cidf,

ers

companies on their

oIrIIt-hAe-2p.urDchuasueuotf include

us de secured loamre d b Y $ue Aeors L'11,,, plil

of instalment

rode to uured by w"

III-A

paper.own promissory notes, even

if sec toetilported in

instalme-n3.t loans which were made to indivic111017000it?—Report the unpaid balances of all sec- 430

11fired sn .fig

d 04

used for such purposes as consolidation of deh'Aigie 0,1,1)4

general personal expenditures, etc. (but do not '-,.,-eeros

ported in item III-A-2, nor loans to business c°,-;o05 os

purposes, nor loans secured by mortgages or

other ov

paper purchased from or rediscounted for dealers or others nor agricultural loans).

QUESTION III—SPECIAL INSTRUCTIONS FOR DEALERS, CONTRACTORS, AND OTIIERS:

III-B-4.—Give net retail sales figure (gross sales less returns and

discounts), but do not deduct trade-ins. In the event that the Regis-

trant is not able to furnish an exact figure without undue inconvenience

or expense, the figure may be estimated. A store should include sales

of leased departments for which it arranges and holds retail credit.

A Registrant which is engaged in manufacturing or other business

should report only the sales which it makes at retail. A Registrant

who is a contractor should include receipts from repair work and the

like. There should be excluded from item III-B-4, however, sales of

electricity or gas by a Registrant who is a utility company and sales

of real estate (and receivables arising from such sales should also be

excluded from items III-B-6 and 7).

A concern which has not been in operation for 12 months should report

sales for the period for which it has operated, indicating clearly the

length of such period.

III-B-5.—"Instalment sales" should include all sales on instalment

credit, regardless of whether the paper is sold or discounted or held

by the Registrant, and should include the down payment (whether

cash or trade-in) as well as the amount deferred. "Other credit sales"

should include those on open credit, charge account, or similar basis.

III-B-6 and 7.—Retail receivables should reoPory-to, h°°t1:114

balances of all receivables, whether represented bY ietrss

or otherwise, arising from retail sales by therforoitur:OC/

sales of automobiles, trucks, household 001°- 't

j

iler 1 000 oi

ewelry, building repair and modernization (ileti iiielousi posid/

under FHA Title I), etc. Retail receivables shooltrot, bob

0 of

include if pledged as security for loans to

the Reg

el

isnic or 1113° i

ude credits sold to (or discounted with) t' WI ori011 il

company with or without recourse. V

of its own

retailr COT A tO F.

holds receivables

gistrant, in addition to holding 003- sroV

lendingsales (reportable against iteins ohieb ,,,,,ty

be

reportedb vables which were purchaseu--1 ,,, latter 1 1,

Registrants—such

the Registrant, the receivables of ti'votip

!VP 01

against the appropriate items

in,,tratiliti 901,

may have

etns—such as some manufacturers or P° derder 111110,Aloi

should reportorethtail sales or retail credit

to re1011 till grod - :1/their purchased paper or

loans u 1 0rider 1110

In case a Re •

et it bid I.-

inconve • gistrant is unable to de

ternIttle el‘iire;o

instaim mence or expense, the division °f °esti°In case the Re •

ent and other credit, this division MO be

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 t he

or as to particular activities or particular offices or for specified periods, on any of the following grounds:(1) Any material misstatement or omission willfully or negligently made in the registration statement; n 0,rd

Pursliti

(2) Any willful or negligent failure to comply with any provision of this regulation or any requirement of the J-,°

i i

t ther,


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