80-6

STATE BANKING DEPARTMENT
OF CALIFORNIA

Los Angeles Office
January 31, 1980

ATTENTION:

Gentlemen:

In response to your letter dated November 27, 1979 and the additional information you submitted with your letter dated January 9, 1980, please be advised that foreign exchange futures contracts are considered by this department to be purchase and/or sale transactions and as such do not create obligations subject to the lending limitations of the Banking Law nor borrowings subject to Section 1202 of the Banking Law.

Yours very truly,

MORTON R. MICHAELS
Superintendent of Banks

By:

H. DOYLE
Deputy Superintendent of Banks

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