364 THE WORK OF THE STOCK EXCHANGE 
cipal and interest of the loan in the manner described in the 
present and an earlier chapter.™ 
When a clearing member pays off a loan through the Stock 
Clearing Corporation, the borrower first fills out a quadrupli- 
cate return loan agreement in his office. This brown form 
(Figure 37) contains the borrower’s clearing number, the 
names of the borrower and lender, the amount of the principal 
and interest of the loan, as well as an itemized list of the securi- 
ties pledged as collateral for the loan and held in the envelope 
by the lender, together with the number of shares, the price, 
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Figure 38. Stock Clearing Corporation Check for Pay-Off Loan 
and the value of each. The borrower signs the three forms of 
this agreement with a signature recognized by the Stock Clear- 
ing Corporation, for although the form is in quadruplicate, 
only three forms are used in paying off loans. At the same 
time the borrower fills out a credit memorandum (Figure 38) 
form which he signs on the left edge, making payable to the 
lender the amount of the principal and interest of the loan in 
question. The form, of course, possesses no value as a check 
until it is signed by an official of the Stock Clearing Corpora- 
tion, and until the latter designates one of its depository banks 
to which the lender should present it for payment. At first, 
therefore, the borrower fills out all but the bottom line of the 
form, where space is left for these two important items to be 
filled in later. 
TT 10 Qee Chapter XI. p. 295.