Evening star., 1933-11-04
RevisionS Are Made in Regu-
Iations Governing Exemp-
ton From Registration.
HOPE FOR RELIEF HELD
IN FINANCING FIELD
New Decision of Federal Body
Repeats Objectional Order
of July q, Last.
BY VINCENT TUTCHING.

The decision of the Federal Trade
Commission to revise its regulations
governing exemption of real estate
mortgages from the requirements of
registration under the securities act
was received enthusiastically in real
estate circles here this week
In effect, leading realty men declare,
the move will bring measure Of re-
lief to a virtually Stagnated mortgage
financing field.
Under the new ruling. first mortgages
under $4,000 are exempted from reg
istration. Under certain prescribed
under 100000 also are exempted
The order Of the Federal Trade Com
mission repealS the ruling Of July q
last, which exempted from necessity
of registration under the act two classes
of notes and bonds on the ground
that such registration was not needed
in the public interest. Real estate
and mortgage interests held. however,
that the July 27 order affixed de-
tailed conditions in each case which
were found by practical experience to
put "a clamp on the emergence Of
any new mortgage financing"
Text of Ruling.
The full text of the commissions
new ruling follows:
The Federal Trade Commission in
pursuance of the authority conferred
upon it by the securities act of 1893,
finding that registration under the act
with respect to the following securi-
ties does not appear to be necessary
in the public interest and for the pro-
1f Nv, >f
small amount involved and the lin
tied character CT the public offering,
eXempts from the requirements for
registration securities of the following
classes:
Notes and bonds comprising an is
sue the aggregate amount of which
does not exceed $4,000, directly Sc
cured by first mortgage or first deed of
trust on real estate or on leasehold
under a renewable lease for not less
than 90 years Cor such first mortgages
or first deeds OF truSC on such real
estate or lessehold), upon which there
is located a dwelling for not more
than four families occupied in whole
or In part By the issuer as a home
Conditions Stated.
Securities (other than securities
representing a fractional undivided in
terest in oil, gas, or mining rights
comprising an issue no portion of
which is to be issued otherwise than
for cash. which comply with the fol-
lowing conditions:
IL That no securities of the same
class as those herein exempted have
been sold otherwise than for cash with
in one year prior to the date of the
public offering of the securities herein
exempted.
"2. That the aggregate amount (be.
ing the product of the number of units
odered and the price per unit at which
they are ofered) at Which the secur1-
ties herein exempted are offered to the
public does not exceed 100000, eXclu-
sive of accrued interest and/or divi-
dends In case the securities are offered
at the market, the aggregate amount
at which the securities herein exempted
are offered to the public shall be de-
ternined by the above method, save
that the average price per unit at which
the securities are sold on the first day
sold shall be regarded as the price per
unit at which the securities were bona
fide publicly offered.
100000 Limit.
80 That the net proceeds. after de-
duction Of all expenses of distribution,
realized by the issuer from all other
securities, except such as are described
in section 8. issued by such issuer,
within one year prior to the offering
of the securities herein exempted, to-
gether with the net proceeds to be
realized from the issue herein exempt
cd, shall not exceed 100000.
a. That II distribution be effected
through an underwater, the net pro
ceeds. after deduction of all expenses
of distribution, to be realized by the
issuer from the securities herein
exempted. be not less than 80 per cent
Of the aggregate amount at which the
to the public, calculated in accordance
with paragraph CD above.
IS. That if the securities be bonds or
other evidences of indebtedness, except
as provided in paragraph (6), they be IN
denominations of face value OF not
less than $500; if shares of stock, the
par or stated value per share be not
less than 500; if any other kind OF
security the offering price thereon per
unit be not less than $500.
Other Provisions.
IS. That if the securities be notes or
bonds directly secured by first mortgage
or first deed Of trust on real estate or on
a leaseholo (other than oil, gas or min
ing leaseholds, provided that the grant
of a right to remove oil. gas or min
erals shall not limit the exemption W1th
reference to the first mortgage on tne
surface), or be such first mortgage or
first deed of trust, that such securities
also shall be exempted, even though
they be in denominations of face
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