70-3

January 20, 1970

Dear Mr. ____________:

This is in reply to your letter of January 7, 1970.

In our view, Financial Code §1232 does not apply to a national

bank in making a loan on the security of stock of another bank.

If you have any further questions regarding this matter, please fell free to contact us.

Very truly yours,

JAMES M. HALL
Superintendent of Banks

By

JAMES F. CARRIG
Counsel