90-4

July 19, 1990

Dear M ________:

This is in reference to our telephone conversation last week.

Pursuant to the authority granted in Section 1223, the Department has declared the classes of personal property listed below ineligible as security for loans. The declaration of ineligibility is based on the consideration that such property is easily removed or transferred or is not readily identifiable.

1. Assigned accounts receivable, whether or not taken on notification basis.

2. Assigned contracts covering services which are to be, or have been performed; or covering property which is to be, or has been, manufactured.

3. Trust receipts covering all flooring, including automobiles, boats, appliances, machinery, and equipment of any and all types.

4. Goods in trade or inventories including goods covered by an inventory lien.

5. Tools and small implements.

6. Household furniture and appliances.

7. Furniture and fixtures in stores, offices, etc.

8. Growing crops.

9. Perishable commodities, unless warehoused and covered by a warehouse receipt.

Very truly yours,

JAMES E. GILLERAN
Superintendent of Banks

By

KENNETH SAYRE-PETERSON
Counsel

KSP: arc