3-percent bonds, due July 15, 1972 (hereinafter collectively called the bonds). As examination has been made of the latest editions available to the bank of the general statutes and in some instances regulations of the United States and the several States and the District of Columbia with reference to the legality of the bonds for investment by (i) national banks, (ii) commercial banks, savings banks, and insurance companies organized under the laws of such jurisdictions, and (iii) trustees subject to the laws of such jurisdictions. From such examination, it appears that the status of the bonds with respect to the authority of such banks, insurance companies, and trustees to invest therein is as set forth in appendix A hereto attached. The bank has been advised by Fitch Investors Service that it has rated the bonds "AA" and has also been advised by Standard & Poor's Corp. that it has rated the bonds "A."

The statements made herein are subject in certain instances to the exercise of broad discretionary powers of authorities of the United States and of certain of the States having jurisdiction with reference to investments by banks, insurance companies, and trustees and also to limitations imposed by the United States and by certain States by statute or regulation as to the amount and character of funds which may be invested in certain types of securities and in the securities of any one issuer. Such statements are also subject in certain instances to the provisions of special statutes governing the investment of particular kinds of trust funds, such as funds held by guardians, executors, and administrators.

For the purpose of this memorandum regulations or rulings of insurance commissions, banking commissions, or other State or Federal regulatory bodies, and court decisions have been examined only in certain instances and only to the extent available to the bank. Opinions of local counsel have not been obtained, and this memorandum has not been prepared by experts in the laws of any particular State or States.

CHESTER A. MCLAIN,

General Counsel.

This memorandum is not an offer to sell or the solicitation of an offer to buy any of the bonds. It is intended only as a general guide for the convenience of dealers, and each investor should satisfy itself that it is authorized to invest in the bonds.

APPENDIX A1

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

10-year 2-percent bonds, due July 15, 1957

and

25-year 3-percent bonds, due July 15, 1972

LEGALITY FOR INVESTMENT

I. United States

The bonds are legal investments for national banks organized under the laws of the United States and are acceptable at face value to secure (i) special deposits of public money under the act of Congress approved Septmber 24, 1917, as amended (Second Liberty Bond Act, as amended) and (ii) deposits of public moneys of the United States with general and limited depositaries.

1 This appendix is to be read only in connection with the memorandum dated June 1, 1948, of the general counsel of the bank to which this is attached, of which this is a part and by which this is qualified in its entirety.