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FED ERAL R E SER VE BANK OF NEW YORK J" Circular N o. 5 0 8 1 T L September 6, 1961 J TRANSFERS OF FUNDS Revision of Operating Circular No. 10 To the Member and Nonmember Clearing Banks of the Second Federal Reserve D istrict: Enclosed is a copy of Operating Circular No. 10, Revised effective September 11, 1961. The revised operating circular contains some editorial changes and a change in paragraph 6 that has been adopted uniformly by all Federal Reserve Banks. Paragraph 6 (formerly 5), on interdistrict telegraphic transfers for member banks (other than certain transfers of bank balances that are made without charge), now provides for a service charge of $1.50 for a telegram or telegrams transmitted over the leased wire, instead of a charge approximating the commercial wire rate. Additional copies of the enclosure will be furnished upon request. A lfred H ayes, President. F ed era l of R N B eser v e ew Y ank ork Operating Circular No. 10 Revised effective September 11, 1961 TRAN SFER S OF FUNDS To the Member and Nonmember Clearing Banks o f the Second Federal Reserve D istrict: T his circu la r sets fo r th the rules g ov ern in g telegraph ic and m ail tran sfers o f fu n d s m ade th rou gh this B ank at its H ea d Office in N ew Y o rk C ity or its B ra n ch in B uffalo, N ew Y o r k : ( a ) to oth er F e d e ra l R eserv e B a n k s (w h ich as u sed in this circu la r shall in clu d e B ra n ch es o f F e d e ra l R eserve B a n k s ) at the requ est o f m em b e r bank s o f the S econ d F e d e ra l R eserve D is trict f o r cred it to m em ber an d n on m em b er clea rin g banks o f oth er F e d e ra l R eserve D istricts, ( b ) fr o m o th er F e d e ra l R eserve B a n k s f o r cred it to m em ber an d n on m em b er cle a rin g ba n k s o f the S econ d F e d e ra l R eserve D istrict, and ( c ) a t the req u est o f m em ber a nd n on m em b er cle a rin g banks o f the S e co n d F e d e ra l R eserve D istrict, f o r cred it to oth er m em ber a n d n on m em ber cle a rin g banks o f the S econ d F e d e ra l R eserve D istrict. T E L E G R A P H IC TRA N SFERS OF FUN DS TO A N D FRO M O TH E R FE D E R A L RESER VE B A N K S A N D BRAN C H ES Schedule of time limits 1. O p eratin g C ircu la r No. 11 contains a schedule show ing the latest hours on each business d a y at w hich we w ill receive an d accep t requests fo r telegraph ic tran sfers o f fu n d s on the same d a y to oth er F ed era l R eserve B anks, p u rsu an t to the p rov ision s o f this circu la r. W e m ay, in ou r discretion, receive an d a ccept, on an y business d ay a fte r the hours show n in such schedule, requests fo r such tran sfers on that day, bu t on ly u p o n the u n d ersta n d in g that the com p letion o f each requested tra n sfer w ill be d iscretion a ry w ith the receiv in g F e d e ra l R eserve B ank. Transfers of bank balances for and to member banks 2. T eleg rap h ic tran sfers o f fu n d s betw een F e d e ra l R eserve B anks o f bank balances in m u ltiples o f $1,000 w ill be m ade w ith ou t charge f o r m em ber banks to m em ber banks, and telegram s requ estin g us to make such tran sfers m ay be sent to us “ c o lle c t.’ ’ 3. The descrip tive data in telegram s tra n sfe rrin g bank balances w ith ou t charge m ust be lim ited to (1 ) the name o f the sen din g m em ber bank, (2 ) the name o f its corresp on d en t m em ber bank requesting the transfer, if any, (3) the name of the member bank receiving credit, and (4) the name of its correspondent member bank, if any. 4. The term ‘ ‘ bank balance ’ ’ as used in paragraphs 2 and 3 shall be construed to mean an accumulation of funds comprising an estab lished account maintained by a member bank with its Federal Reserve Bank or with another member bank. 5. Transfers for the benefit or use of an individual, firm, corpora tion, or nonmember bank, and transfers of the proceeds of individual collection items or individual cash letters, will not be made without charge. Other transfers for member banks 6. Telegraphic transfers of funds for any purpose and in any amount and without the above limitation as to descriptive data will be made for and paid to member banks, subject either to a service charge of $1.50 (except transfers of bank balances in multiples of $1,000 as prescribed above) for the telegram or telegrams transmitted over the leased wire, or at the commercial wire rate for the telegram or telegrams transmitted by commercial wire. W hile such transfers will be accepted from and paid to member banks only, they may be for the use of any bank, individual, firm, or corporation. 7. A t the request of member banks, telegraphic transfers of bank balances in multiples of $1,000 will be made to nonmember clearing banks, subject to a charge as outlined in the preceding paragraph. 8. Member banks should prepay the cost of telegrams when requesting us to make transfers that are subject to a charge. Advice of credit 9. Mail advice of credit for all telegraphic transfers of funds will be given by the Federal Reserve Bank receiving the transfer to the member or nonmember clearing bank receiving credit therefor and, in addition, immediate advice of credit, by telegraph, telephone, or otherwise, will be given when the bank receiving credit or the bank requesting the transfer has asked for such immediate advice, or where the nature of the transaction, or the amount involved, indicates that the additional expense is justified, as to which the receiving Federal Reserve Bank will exercise its discretion. 10. Long distance telephone charges and telegraph charges, if any, in connection with such immediate advices will be charged to the mem ber or nonmember clearing bank receiving credit unless the sending bank has requested that such expenses be charged to its account. T E L E G R A P H IC TR A N SFERS OF FUN DS W IT H IN TH E SECOND F E D E R A L R ESER VE D IS T R IC T Transfers of bank balances for and to member banks 11. Member banks of the Second Federal Reserve District may request us by telegraph to make transfers of bank balances in multiples of $1,000 to other member banks of this District, and telegrams re questing us to make such transfers may be sent to us “ collect,’’ 12. The descriptive data in telegrams transferring bank balances and sent “collect’’must be limited to (1) the name of the sending member bank, (2) the name of itscorrespondent member bank request ing the transfer, if any, (3) the name of the member bank receiving credit, and (4) the name of its correspondent member bank, if any. 13. The term “bank balance” as used in paragraphs 11 and 12 shall be construed to mean an accumulation of funds comprising an established account maintained by a member bank with this Bank or with another member bank in this District. 14. Telegrams requesting us to make transfers for the benefit or use of an individual, firm, corporation, or nonmember bank, and trans fers of the proceeds of individual collection items or individual cash letters, should not be sent collect. Other transfers 15. Member banks of the Second Federal Reserve District may request us by telegraph to make transfers of funds to other member or nonmember clearing banks of this District for any purpose and in any amount and without limitation as to descriptive data. Such trans fers may be for the benefit or use of any bank, individual, firm, or corporation. Telegrams requesting us to make such transfers should be sent prepaid, and the cost of telegrams sent by us to member and nonmember clearing banks advising of credit for such transfers will be charged to the accounts of the banks requesting us to make the transfers. 16. Nonmember clearing banks located in the territory assigned to the Head Office of this Bank may request the Head Office by telegraph to make transfers of funds to member or other nonmember clearing banks located in the Head Office territory. Nonmember clearing banks located in the territory assigned to the Buffalo Branch may request the Buffalo Branch by telegraph to make transfers of funds to member or other nonmember clearing banks located in the Branch territory. Such transfers may be made for any purpose, in any amount, and without limitation as to descriptive data, and may be for the benefit or use of any bank, individual, firm, or corporation. Telegrams requesting us to make such transfers should be sent prepaid, and the cost of tele grams sent by us to member and nonmember clearing banks advising of credit for such transfers will be charged to the accounts of the banks requesting us to make the transfers. M A IL T R A N SF E R S 17. Transfers of funds for any purpose and in any amount and without limitation as to descriptive data will be made by mail for member and nonmember clearing banks to other member and non member clearing banks located in this or in any other Federal Reserve District. While such transfers will be made for and paid to member 3 and nonmember clearing banks only, they may be for the use of any bank, individual, firm, or corporation. GENERAL 18. Transfers of funds will be made by us only from collected funds on deposit with us to the credit of the bank making the request. 19. When a request to transfer funds is sent to us by telegram, the American Bankers Association Code should be used with our test word, and a letter of confirmation (not in code) over an authorized signature should follow. 20. Member and nonmember clearing banks are requested to co operate with us by using the mails to effect transfers of funds that do not require immediate credit, either by forwarding drafts direct or by using our mail transfer facilities. Liability of this Bank 21. This Bank will use due diligence and care in the transfer of funds by telegraph or by mail to the receiving Federal Reserve Bank for credit to the account of the payee bank, and in the transfer of funds made on itsbooks for banks within the Second Federal Reserve District, but will not be responsible for errors or delays caused by circumstances beyond its control. Revision of this circular 22. The right isreserved towithdraw, add to,or amend at any time any of the provisions of this circular. Effect of this circular on previous circular 23. This circular supersedes our Operating Circular No. 10, Revised effective January 15, 1957. A 4 lfred H ayes, President.
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