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380 .BOARD OF' GOVERNORS OF THE F"EOERAL RESERVE SYSTEM &.152 WASHINGTON. ADDIIIII:aa DFF'ICIAL CDIIIIIIItaPGNDIENDII: TO THII: aGAIIID December 17, 1958. Dear Sir: The Board approves, effective JanUV7 1, 19Z9, the chanps set forth below in the uniform parapoapba of the noncash collection circulars of the Federal Reserve btmlts :rec~ bJ the Standinc Committee on Collections in its reportcs dated Jleeeraber 17, 1957 and September 20, 1958, as approved by tbe Contorence of Presidents at ita meetin&s on February 28-Mareh 1, 1938, 1$d October 24-26, 1958, and in the Committee's report dated ·uay 26, 19M, as revised and approved by the Conference ot Presidents at 1~ eeettnc on October 24-26, 1938. Pa ( 4) Ma turin& bondcs and coupons (other than obl1gat1ona of the United States and of Gov~ntal a;enciea, which are redeeaed by l'cderal reserve banks as fiscal acenta separa.te]J hom this collection service). _(f) '1\dtt capY,gn "i•£11 ot QQ4~tcW.sm"a u nvJrPK· (See report of C~ttee dated Decesaber 17, 19&7 and lliautes of Presidents• Conference dated February 28-.Marcb 1, 19&8.) ParumRh ( S) A Federal reserve bELnk will forward such 1 tellS pqable in anothe'l' district for collection to the Federal reserve bank (or branch) of nch other district; proVlcled, however, tba~ a Federal reserve bank, in 1tcs discretion, 'f.ftll3 route direct to the. place of payment ln. another Federal reserve district any item the size or character of which, or -uae c1rcUII.8tanees in connec.tion 1d tb Which, would seem, in the Jucipent ot the Federal reserve bank, to justity such direct routing. Pft:lW!pbl YRSlK .918il91 "QgJaleoY:sm GIJAtaA" • . Y rev&•ld• (See report of Co.tt.tee 4ated . ··~~q ·2a, 1958 and. minutes ·or Presidents' · Collt'erence dated October 24-26, 1958.) The Federal reserve banks ID&tke no charge for their services in collecting non-cash items (except as pronded below) 381 -2- S-152 and, therefore, any item payable in a cicy where there is a Federal reserve bank or branch, the collection of which is not restricted, will be collected at par. If any such item is payable through or collectible by a specified bank or other collecting agent, any charge made b.Y such agent will be deducted and the net proceeds of the item credited. With respect to the collection of non-cash items payable outaido of Federal reserve bank and branch cities·, it is reco~lized that any bank selected b,y a Federal reserve bank as agent to collect any such item (except checks and bank drafts) renders a service, in presenting, collecting and remitting, for which a reasonable charge may be made if it cares to do so, and when such a charge is made,· it will be deducted and credit given for the net proceeds. Items sent to the Federal reserve banks for collection are subject to the following charges:· (1) Charges made by collecting banks or agents, referred to above. (2) Charges made in the discretion of the Federal reserve banks for handling or collecting securities. (5) A service charge of 15¢ per item on all collection items returned unpaid and unprotested. This charge will not apply to items that are protestad. ( 4) Expanses incurred for postage and insurance or express in forwarding items by registered mail or express. (5) All telephone and telegraph costs. (See paragraph below, "TELEGRAPHIC ADVICE".) Member banks may be permitted to route collection items payable in other F'ederal reserve districts direct to the Federal reserve bank~ and branches of the districts in which the items are payable for the account of the Federal Reserve Bank . 382 -5- S-152 of '· and are encouraged to apply for permission to exercise this privilege since it is of distinct advantage to them. The Federal Reserve Bank of reserves the right to require member banks to route collection items ~able in other districts direct to the other Federal reserve banks and branches, when, in our judpent, in any }Jlrticular case the number, amount or nature of collections handled would appear to justif.y such procedure. Very truly yours, Chester Morrill, Secretary. TO PRESIDENTS OF ALL FEDERAL RESERVE BANtS
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