79-3

79-3

Los Angeles Office

February 23, 1979

Gentlemen:

This is in response to your letters dated November 14, 1973 and February 5, 1979 requesting an opinion as to whether certain loaning arrangements entered into by ________ should be treated as an asset of the Los Angeles Agency or of the home office of the bank.

It would be our opinion that letters of credit opened by the Los Angeles Agency, as well as drafts accepted or discounted by it should be carried on the books of the Agency and not on the books of its home office. In fact, all loans originated by the Agency, unless sold unconditionally, should be carried as assets of the Agency.

We trust the above provides the information you need. Feel free, however, to call upon us at any time.

Yours very truly,

J. L. TAUPER
Superintendent of Banks

By

M. R. MICHAELS
Deputy Superintendent of Banks