SECURITY DELIVERIES, LOANS, AND TRANSFERS 3653
Notification of the Lender and the Clearing Corporation.
—The borrower’s representative then takes the return loan
agreement to the lender’s office. The receipt of the return loan
agreement by the lender constitutes a notification to him from
the borrower that the loan will be paid off. The lender de-
taches one of the three forms of the return loan agreement,
signs the other two forms, and returns them to the borrower’s
representative. The latter then takes these two forms, together
with the credit memorandum above described, to the Day
Branch of the Stock Clearing Corporation, and delivers both
agreements and memorandum to the particular cage in which
the account of his firm is kept. Thus the Stock Clearing Cor-
poration is notified concerning the clearance to be made, and
has on the face of the agreement the list of securities which it
must receive from the lender in behalf of the borrower. The
Corporation reserves the right to refuse to act, in which case
the loan must be paid off “ex,” in the manner described in
Chapter XI.
Making Payment to the Lender. The next step is taken
by the lender’s representative, who comes to his booth in the
Stock Clearing Corporation with his copy of the return loan
agreement and the envelope of security collateral itemized on
its face. He goes to the cage where the borrower's account is
kept and delivers the loan envelope and its contents. The clerk
in the cage compares the securities in the envelope with the
itemized list on the face of the return loan agreements previ-
ously received from the borrower. If the securities in the
envelope agree with this list in all respects, the clerk retains the
security collateral for the account of the borrower. The first
teller of the cage, as an authorized representative of the Stock
Clearing Corporation, then signs the credit memorandum
(Figure 38) previously left there by the borrower, and under
the word “To” fills in the name of a bank where part of the
clearing fund is deposited. Thus the credit memorandum be-
comes the check of the Stock Clearing Corporation, drawn on
