Full text of Federal Reserve Bank of New York Circulars : 5582. Collection of Items Requiring Special Handling as Noncash Items

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F E D E R A L R E S E R V E BA N K
O F NEW YORK

r Circular No. 5 5 8 2 T
U December 1, 1964 J

Collection of Items Requiring Special Handling as Noncash Items

To the Member and Nonmember Clearing Banks of the
Second Federal Reserve District:

In our Circular No. 5478, dated A p ril 6, 1964, we inform ed you that, effective
January 1, 1965, the F ederal R eserve Banks w ill classify all envelope drafts, checks
with vouchers attached, and other checks and drafts containing m ore than a single
thickness o f card or paper as items requiring special handling which must be sent to
the F ederal R eserve offices as noncash items. "We further inform ed you that, on and
after such effective date, i f items requiring special handling are sent to a Federal
R eserve office as cash items, rather than as noncash items, such items w ill be handled
in the follow in g manner :
(a) Items of $1,000 or more received from banks located outside the city of the re­
ceiving Federal Reserve office will be charged back and entered for collection as noncash
items; and
(b) All other items will be charged back and returned.

Because this change in F ederal R eserve collection practices is to occur on Janu­
a ry 1, 1965, we bring it to your attention again. A s we stated in our earlier circular,
the change is being made by the F ederal R eserve Banks in order to im prove the
efficiency o f the check collection system in view o f the increasing volume o f items
being processed by banks on high-speed check-handling equipment. W e believe this
action w ill be welcom ed by com m ercial banks generally as a further constructive step
that should prove mutually beneficial in minim izing the operating problem s caused by
handling “ headache” items as cash items. W e again ask your cooperation in exclud­
ing fro m cash item channels all items requiring special handling.

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F I F T I E T H

A N N I V E R S A R Y

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