MONEY CLEARANCE AND SETTLEMENT 395 
a special form (Figure 45) which states the number, name, 
price, and value of the shares to be delivered, and agree that 
this delivery shall be made by transfer subject to the approval 
of the Stock Clearing Corporation, and that upon this approval 
the receiving member will immediately hand to the Corpora- 
tion a certified check to its order for the value of the stock 
placed in transfer. By rule of the Stock Clearing Corpora- 
tion (Rule 8A), the Corporation must be notified by 10 A. M. 
if the delivery is to be made through the Central Delivery De- 
partment. In practice, however, deliveries by transfer through 
the Stock Clearing Corporation are very rarely made, since 
members prefer to “fail to deliver” and settle “ex-Clearing 
House ”’ 
Actual Credits and Debits from Security Loans.—The 
clearance of security loans by the Stock Clearing Corporation 
was described as a separate process in Chapter XIII. In actual 
fact, however, debits and credits on a clearing member’s ac- 
count arising from such loans are handled together with those 
arising from security deliveries and also other operations. 
It was pointed out'® that clearing members may obtain credits 
on their Day Branch accounts by calling loans which they 
have made as lenders or contracting new loans as borrow- 
ers, and debits on their Day Branch accounts by making new 
loans as lenders or paying off old loans as borrowers. Before 
any such credits or debits can be established for their account 
at the Stock Clearing Corporation, however, the latter must 
be specifically ordered to do so on the appropriate forms by 
the clearing members in question. Chapter XIII has already 
described" how credits are established at the Stock Clearing 
Corporation for lending firms calling loans by the “pay-off 
loan credit tickets” (Figure 41a), and for borrowing firms 
contracting new loans by the “new loan credit tickets” (Figure 
42a) or by the “new loan agreements” (Figure 40); in the 
12 See Chapter XIII, p. 361.