SECURITY DELIVERIES, LOANS, AND TRANSFERS 381 
than five days; if so, the old receipt is called in, and a new one 
is issued. 
Lenders on security collateral have agreed to accept these 
receipts in lieu of the actual security certificates which they 
represent. In this way a Stock Exchange firm may deliver 
stock certificates to the Transfer Department to be put by it 
into transfer, obtain from it a transfer receipt, and employ this 
receipt as collateral for loans until the newly transferred 
security certificates have been prepared and can be obtained 
at the Transfer Department. Thus, during periods when large 
amounts of stock are in transfer, illiquidity is obviated, and no 
especial strain thereby is thrown upon the capital of Stock Ex- 
change firms. Since a regular stock assignment form is printed 
on the back of the receipt, the borrower on security collateral 
by assigning the receipt to the lender or in blank can enable the 
lender to sell it in case he wishes to exercise this privilege under 
a loan agreement ; thus the transfer receipt is “assignable.’ 
Exchange Receipts.—Sometimes, when an old issue oi. 
securities is rendered exchangeable for a new issue, a tie-up of 
the old securities submitted for such exchange may occur. Tc 
protect Stock Exchange members against this contingency, the 
Stock Clearing Corporation provides another kind of receipt, 
known as an “exchange receipt.”*®* Thus (as previously with 
a transfer receipt) a member can turn his old securities to the 
Transfer Department, obtain “exchange receipts” for them, 
and employ these as loan collateral by making assignment on 
their backs, until the new securities obtained in exchange for 
the old securities are ready at the Transfer Department; he 
then obtains the new securities by presenting and surrendering 
the “exchange receipt.” 
Temporary Exchange Receipt.—When the Stock Ex- 
change member wishes (as for example in the case of rights 
to subscribe) to exchange old securities and money for new 
18 See Appendix XIIId