The opinions requested should be identified by paragraph number and date. Normally, no more than one copy will be supplied. The opinions furnished may have deletions. The Division cannot provide whole sets of opinions nor fill blanket requests for all of the opinions digested in an issue of the Journal.

Subject: Section 541.9, Federal Regulations. Loans on the security of first liens.

Reference: Paragraph 719, Annotated Manual.

A second secured loan to borrowers presently indebted to the association under a loan secured by a first mortgage on the same property as would secure the second loan would not result in a second lien, provided that the association retains the first loan and there are no intervening liens. In these circumstances no other party would have priority over the association upon foreclosure, and the second loan would result in a (permissible) first lien. 10/22/71

Subject: Section 569.2, Insurance Regulations. Form of proxies.

Reference: Paragraph 1262, Annotated Manual.

A proxy may not include a requirement of notice to

the association as a condition precedent to revocation. 11/2/71

A proxy form includes provisions permitting both permanent revocation and also revocation of the proxy as to any particular meeting or meetings; this is permissible since such temporary revocation is left wholly to the discretion of the person giving the proxy. 11/2/71

Subject: Section 545.8, Federal Regulations. Unsecured loans.

Reference: Paragraph 842, Annotated Manual.

A Federal association may purchase a home improvement loan with an outstanding balance of less than $5,000 even though the loan when originally made was for an amount in excess of $5,000. The term net proceeds as used in subsection (b) (1) refers to the amount invested by the association in the loan.

Similarly, any arrangement whereby an association acquired a senior interest of up to $5,000 in a loan in excess of this sum would be permissible as long as the payments on the loan will be used first to satisfy the association's paramount interest before any other creditor having a lesser interest is paid. 2/1/71

Subject: Section 545.8, Federal Regulations. Unsecured loans.

Reference: Paragraph 842, Annotated Manual.

An unsecured loan for the repair, equipping, alteration, or improvement of a mobile home would not be within the authority of this section; section 5 (c) of the Home Owners' Loan Act specifically limits improvement loans to real property. 8/11/71

(Continued from page 22)

*Patrick A. Gormley, president-managing officer, Mesa Federal Savings and Loan Association, Grand Junction, Colo.

*Solon G. Hatfield, president, Southwest Federal Savings and Loan Association, Wichita, Kans. *Joe J. Morris, president, Columbia Savings Association, Emporia, Kans.

*Kenneth D. King, president, Union Loan and Savings Association, Lincoln, Nebr.

Federal Home Loan Bank of San Francisco Raymond D. Edwards, president-chief executive officer, Glendale Federal Savings and Loan Association, Glendale, Calif.

*Anthony M. Frank, president, Citizens Federal Savings and Loan Association, San Francisco, Calif.

Robert L. Rand, executive vice president-managing officer, Coast and Southern Federal Savings and Loan Association, Los Angeles, Calif.

Robert T. Souter, president, World Savings and Loan Association, Lynwood, Calif.

Federal Home Loan Bank of Seattle

*Gordon W. Hartlieb, president and board chairman, First Federal Savings and Loan Association, Anchorage, Alaska

*George A. Cook, president, First Federal Savings and
Loan Association of Hawaii, Honolulu, Hawaii
Gene Donovan, president-board chairman-manager,
Prudential Federal Savings and Loan Association,
Salt Lake City, Utah

*E. W. Mersereau, Jr., president, First Federal Savings and Loan Association, Mt. Vernon, Wash.

'Monthly data are averages of daily secondary market quota-

tions, except for State and local government bonds, which are

based on Thursday quotations only. Except for bills, the quotations

are for a limited number of suitable issues of the indicated type,

including only general obligations for State and local government

bonds.

2 Aaa is the highest quality rating given by Moody's Investors

Service.

Monthly data are based on opinion reports of FHA field offices

on prevailing conditions in their localities as of the first of the

succeeding month. Yields are derived from secondary market

prices for sec. 203, 30-year mortgages with minimum downpay-

ment and an assumed prepayment at the end of 15 years. Gaps

in monthly data are because of periods of adjustment to changes

'Average of daily figures for (1) demand deposits at all commer. cial banks other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of all commercial banks. Federal Reserve data.

* Includes, in addition to currency and demand deposits, an average of daily figures for savings deposits, time deposits open account, and time certificates of deposits other than negotiable time certificates of deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. Federal Reserve data.

* Includes M2, plus the average of the beginning and end of month deposits of mutual savings banks and savings and loan associations. Federal Reserve data.

'FHLBB estimates for all operating associations described in the notes to table S.4.1.

National Credit Union Administration estimates for all credit unions based on reports submitted by a sample of credit unions holding more than one-fifth of total assets. Data are revised annually to reflect benchmark data.

'National Association of Mutual Savings Banks data for all mutual savings banks. Figures include a small amount of demand deposits.

'Federal Reserve estimates for the last Wednesday of the month of all commercial bank holdings of time and savings deposits except (1) domestic interbank, (2) U.S. Treasurer's open account, and (3) postal savings redeposited in commercial banks.

• Preliminary.

'Not available.

Revised for total and associations from January 1969 through October 1971.