Page:United States Statutes at Large Volume 48 Part 1.djvu/913

 73d CONGRESS. SESS. II. CH. 404. JUNE 6, 1934 . 887 (2) 100 per centum of the lowest market price of the security during the preceding thirty-six calendar months, but not more than 7 5 per centum of the current market price. Such rules and regulations may make appropriate provision with Rules governing n , gined account, respec t to t he car rying of un dermar gined accou nts fo r limi ted withdra mar der wals, etc. periods and under specified conditions ; the withdrawal of funds or securities ; the substit ution or addi tional purcha ses of securit ies ; t he tran sfer of acco unts fro m on e le nder to anot her ; sp ecial or different margin requirements for delayed deliveries, short sales arbitrage sh Dt ela yed del iv eri es, transactions, and securitie s to which pa ragraph (2) of this sub- section does not apply ; the bases and the methods to be used in calcul ating loans, and margin s and market pric es ; a nd si mi l ar administrative adjustments and details. For the purposes of para- graph (2) of this subsection, until July 1, 1936, the lowest price D eterm inin g lo west at which a security has sold on or after July 1, 1933, shall be con- price of a security. sidered as the lowest price at which such security has sold during the prec edin g th irty -six cal enda r mo nths. (b) Notwithstanding the provisions of subsection (a) of this giDai~iequro ema section, the Federal Reserve Board, may, from time to time, with standard permitted. respect to all or specified securities or transactions, or classes of securities, or classes of transactions, by such rules and regulations (1) pres crib e su ch l ower mar gin requ irem ents for the ini tial ext en- sion or maintenance of credit as it deems necessary or appropriate for the accommodation of commerce and industry, having due regard to the general credit situation of the country, and (2) prescribe such higher margin requirements for the initial extension or mainte- nance of credit as it may deem necessary or appropriate to prevent the excessive use of credit to finance transactions in securities. (c) It shall be unlawful for any member of a national securities Unlawful credit ex- tensions, etc., to cus- exchange or any broker or dealer who transacts a business in securi- toner. ties through the medium of any such member, directly or indirectly to extend or maintain credit or arrange for the extension or mainte- nance of credit to or for any customer- (1) On any security (other than an exempted security) registered on a national securities exchange, in contravention of the rules and regulations which the Federal Reserve Board shall prescribe under subsections (a) and (b) of this section. (2) Without collateral or on any collateral other than exempted Exceptions under regulations Federal securities and/or securities registered upon a national securities Res erv e Boa rd may exchange, except in accordance with such rules and regulations as prescribe. the Federal Reserve Board may prescribe (A) to permit under specified conditions and for a limited period any such member, broker, or dealer to maintain a credit initially extended in con- formity with the rules and regulations of the Federal Reserve Board, and (B) to permit the extension or maintenance of credit in cases where the extension or maintenance of credit is not for the purpose of purchasing or carrying securities or of evading or circumventing the provisions of paragraph (1) of this subsection. (d) It shall be unlawful for any person not subject to subsection Regulations by Board to prevent eva- (c) to extend or maintain credit or to arrange for the extension or sion of provisions. maintenance of credit for the purpose of purchasing or carrying any security registered on a national securities exchange, in contra- vention of such rules and regulations as the Federal Reserve Board shall prescribe to prevent the excessive use of credit for the pur- chasing or carrying of or trading in securities in circumvention of the other provisions of this section. Such rules and regulations ma May impose lin ita- g. y Lions on loans for pur- impose upon all loans made for the purpose of purchasing or carry- chasing, etc ., registered ing securities registered on national securities exchanges limitations s ecuri ties.