SECURITY DELIVERIES, LOANS, AND TRANSFERS 367
lender’s office by 10:15 a.m., the lender delivers the security
collateral to the Stock Clearing Corporation by 10:30 A.M.
But if the agreement does not reach the lender until after 10:15
A.M. the matter goes over until 12 :30 P.M., by which time all
agreements for the paying of loans to be effected through the
Stock Clearing Corporation that day must reach the lender.
The lender then leaves his office immediately after the last loan
agreement has been received, and comes to the Stock Clearing
Corporation, bringing with him the collateral to the loans which
are to be paid off to him; as between Stock Exchange members
by rule in the Stock Exchange Constitution (Rules, Chapter
III, Sec. 3), and with lenders in Wall Street without law but
by long established custom, no loans are called after 12:15.
Against such checks as the Stock Clearing Corporation pays
to lenders in behalf of borrowers who are paying off loans, it
deposits in the banks upon which these checks are drawn funds
arising from certified checks, or bank checks received by it
during the day representing payments to it by its clearing mem-
bers either for security balances received, or for new loans
made, or for the final daily settlement of its account by the
clearing member with the Stock Clearing Corporation.
Withdrawal of Collateral Securities “Free.”—\Ve must
now consider some of the problems which arise after the Stock
Clearing Corporation has paid off a loan for a borrower and
while it holds the borrower's collateral securities. Usually the
borrower will need some or all of the securities held in this
way by the Stock Clearing Corporation for the routine busi-
ness of the day. Perhaps the envelope at the Corporation con-
tains a certificate for 100 shares of U. S. Steel which he must
deliver on balance to another clearing member whose name the
Night Branch has given him; or perhaps the borrower may
wish to get this 100 shares of Steel in order to substitute jt for
100 shares of Reading which he has to deliver but which is at
present in another loan envelope at a bank as collateral for
another loan. The Stock Clearing Corporation will permit the
