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FEDERAL RESERVE BANK O F N E W YORK Fiscal A g e n t of the United States rCircular No. 2 7 3 6 L December 15, 1943 J R E G U L A T I O N S G O V E R N I N G T H E P A Y M E N T T H R O U G H D E P O S I T A R Y B A N K S OF FUNDS W I T H H E L D AS T A X E S IN A C C O R D A N C E W I T H T H E PROVISIONS OF T H E C U R R E N T T A X P A Y M E N T A C T OF 1943 Second Amendment to Treasury Department Circular No. 714 To all Banking Institutions in the Second Federal Reserve Qualified to Act as Depositaries for Withheld Taxes: District There is enclosed herewith the Second Amendment to Treasury Department Circular No. 714, "Regulations Governing the Payment through Depositary Banks of Funds Withheld as Taxes in Accordance with the Provisions of the Current Tax Payment Act of 1943". The amendment affects the seventh paragraph of Section^ and the fifth and sixth paragraphs of Section 8 of the Circular. The seventh paragraph of Section as amended, has the effect of authorizing the signing or initialing of depositary receipts in pencil; however, signatures or initials in ink are preferable. The fifth paragraph of Section 8, as amended, modifies the basis upon which initial allotments of 2 Percent Depositary bonds will be made. The sixth paragraph of Section 8, as amended, modifies the provisions concerning the periodical adjustment of allotments of 2 Percent Depositary bonds. The first such adjustment will be made as of January 1, 1944, on the basis of the average monthly business transacted during the calendar months from the close of the period used for the establishment of the initial allotment to November 30, 1943. Thereafter, appropriate adjustments will be made as of July 1 and January 1 on the basis of the average monthly business transacted during the periods from December 1 to May 31, and from June 1 to November 30, respectively. A basis is also provided for the adjustment of the allotment of any depositary receiving its initial allotment during such a six-month period. The text of the amendment should be consulted in any case involving its application. In accordance with instructions received from the Treasury Department, each Depositary in the Second Federal Reserve District which has previously filed a subscription on Treasury Form No. 418 for 2 Percent Depositary Bonds, Second Series, is hereby requested to submit an amended subscription on Form No. 418 (Revised), 2 copies of which are herewith enclosed. Each Depositary should indicate on the Form the method by which it elects to make payment for such Bonds; and may elect to make payment by any of the alternative methods therein described, irrespective of the method by which it has heretofore elected to make payment. In order to make possible adjustments of allotments as of January 1,1944, it is requested that one copy of Form 418 (Revised) be submitted promptly by each Depositary to the head office of the Federal Reserve Bank of New York, Federal Reserve P. 0 . Station, New York 7, N. Y. ALLAN SPEOUL, President. REGULATIONS GOVERNING THE PAYMENT THROUGH DEPOSITARY BANKS OF FUNDS WIT3IHELD AS TAXES IN ACCORDANCE WITH THE PROVISIONS OF THE CURRENT TAX PAYMENT ACT OF 19*4-3 1943 Dep».rtment Circular No. 714 Second Amendment Fiscal Service Bureau of Accounts Division of Deposits TREASURY DEPARTMENT OFFICE OF THE SECRETARY W a s h i n g t o n , D. C . N o v e m b e r 3 0 , I9I+3 Treasury Department Circular No. 714 dated June 25, 19u3» hereby further amended as follows as amended, is Delete the sixth paragraph of Section 7 and insert in lieu thereof the following paragraph: "Hie original and Federal Reserve Bank copy of each depositary receipt must be signed by an officer or employee duly authorized by the depositary. This signature may be in any one of the following forms: (1) a manual signature of a duly authorized officer or employee followed by the title of such officer or employee; (2) a rubber stamp impression containing the name of the depositary supported by the manual initial of the receipting officer or employee and followed by his official title; ( 3 ) & facsimile or rubber stamp impression signature of a duly authorized officer over his official title, supported by the manual initial of such officer or the employee receiving the deposit; or (I4.) a facsimile or rubber stamp impression signature of a duly authorized employee over his official title, supported by the manual initial of such employee. It is preferable that initials or manual signatures be in ink; however, if made by pencil they will be acceptable.n Delete the fifth paragraph of Section 8 and insert in lieu thereof the following paragraph: "The initial allotment to a depositary for withheld taxes under either of the two alternative methods will be calculated on the basis of the business transacted under this circular by the depositary during the calendar month immediately succeeding that in which the depositary was qualified. However, if specifically requested by a depositary, the initial allotment may be made on the basis of the business transacted during the calendar month in which the depositary was qualified. If more than one full calendar month elapses after a bank qualifies as a depositary for withheld taxes before it enters a subscription for the initial allotment, such initial allotment should be calculated on the basis of the average business transacted monthly by the depositary during the preceding full calendar months; however, if the elapsed period is more than six months, the initial allotment will be calculated on the basis of the average business transacted - 2 - monthly during the six full calendar months preceding the request for the initial allotment. The initial allotment will "be made as of the first day of the second calendar month following the close of the period which is used as a basis for determining the amount of such initial allotment. For example, if the business transacted during the period ending November JO, 1943» is to be used as a basis for calculating the initial allotment, such initial allotment will be made as of January 1, Delete the sixth paragraph of Section 8 and insert in lieu thereof the following paragraph: "Appropriate adjustments in allotments will be considered periodically on the basis of fluctuations in the business transacted after the initial allotments are established. The first of such adjustments will be made as of January 1, 19UU, on the basis of the average monthly business transacted during the calendar months from the close of the period used for the establishment of the initial allotment to November JO, 1%-J* Thereafter, appropriate adjustments will be made as of July 1 and January 1 on the basis of the average monthly business transacted during the periods from December 1 to May J1 and June 1 to November JO, respectively; provided, however, that in the case of a depositary which received its initial allotment during such preceding six-month period, the adjustment will be based on the business transacted from the close of the period used in establishing the initial allotment to May 31 or November JO, as the case may be." (Signed) D. W. BELL Acting Secretary of the Treasury Form No. 418 (Revised) T R E A S U R Y D E P A R T M E N T FISCAL SERVICE B U R E A U OF A C C O U N T S SUBSCRIPTION FOR 2 PERCENT D E P O S I T A R Y BONDS, S E C O N D SERIES (Date) T o FEDERAL RESERVE BANK OF N E W YORK, Fiscal Agent of the United States, Withheld Taxes Division, Federal Reserve P. O. Station, N e w Y o r k 7, N. Y. Pursuant to the provisions of Resolution Authorizing Execution of Application-Agreement, Depositary for Withheld Taxes (Treasury Form 4 1 1 - A ) , the undersigned depositary subscribes and agrees to make payment for 2 Percent Depositary Bonds, Second Series, which may be allotted from time to time for purchase by the depositary under the provisions of Section 8 of Treasury Department Circular No. 714, as amended. For determining the amount of such bonds which the undersigned depositary may be initially or periodically entitled to purchase, and for effecting payment for the bonds allotted for purchase, the method indicated below 3 is selected: 2 PERCENT DEPOSITARY BONDS, SECOND SERIES, TO BE PURCHASED WITH THE DEPOSITARY'S OWN FUNDS The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent Depositary Bonds, Second Series, on the basis of Table I attached as exhibit Cb to Treasury Department Circular No. 714, as amended, and the Federal Reserve Bank is authorized to effect payment for the bonds thus allotted by charging the reserve or clearing account of this depositary. The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent Depositary Bonds, Second Series, on the basis of Table I attached as Exhibit Cb to Treasury DepartmentCircular No. 714, as amended, and this depositary will make payment for the bonds thus allotted by remittance of the purchase price upon advice from the Federal Reserve Bank as to the amount o f the approved allotment. BALANCE TO THE CREDIT OF THE TREASURER OF THE UNITED STATES TO BE PLACED WITH THE DEPOSITARY TO BE USED FOR THE PURCHASE OF AN EQUAL AMOUNT OF 2 PERCENT DEPOSITARY BONDS, SECOND SERIES A balance to the credit of the "Federal Reserve Bank of New York. Fiscal Agent of the United States, for Account of the Treasurer of the United States — Time Deposit" shall be deposited with this depositary. The amount of such balance will be computed by the Federal Reserve Bank as Fiscal Agent of the United States on the basis of Table II attached as Exhibit Cb to Treasury Department Circular No. 714, as amended. T h e Federal Reserve Bank is authorized, in lieu of remitting the amount of such authorized balance to this depositary or crediting the account of this depositary for the amount thereof, to apply such amount to the purchase o f an equal amount of 2 Percent Depositary Bonds, Second Series, for account of this depositary. The initial allotment of 2 Percent Depositary Bonds, Second Series, is to be computed by the Federal Reserve Bank, as fiscal agent o f the United States, on the basis of the transactions of this depositary through the month o f It is agreed that payment f o r all 2 Percent Depositary Bonds, Second Series, purchased by the undersigned depositary shall be made on the first day of the second month following the end of the month referred to above, and that such bonds shall be issued as of such date, or as of such later date as payment for the Bonds is received by the Federal Reserve Bank for credit in the General Account of the Treasurer o f the United States. All 2 Percent Depositary Bonds purchased on subsequent adjustment dates as provided in Treasury Circular No. 714, as amended, shall be handled in like manner. This subscription f o r 2 Percent Depositary Bonds, Second Series, and selected method of allotment and payment thereof shall remain in effect as long as the undersigned depositary is qualified as a depositary f o r withheld taxes unless new f o r m of subscription in substitution thereof is submitted to the Federal Reserve Bank in time to be effective on the regular adjustment dates of January 1 and July 1 prescribed by Treasury Department Circular No. 714, as amended. A.B.A. No (Name and Location of Depositary) By: (Name and Title)c a One of the three alternative methods shown should be selected by placing a check in the appropriate square. b Allotments of depositary bonds will be computed by the Federal Reserve Bank on the basis of the amount of remittances received by the Federal Reserve Bank and number of items- related to such remittances. c T h e officer subscribing on behalf of the depositary shall be one designated in the Resolution ( F o r m 411-A) mentioned above. Form No. 418 (Revised) TREASURY DEPARTMENT FISCAL SERVICE B U R E A U OF A C C O U N T S SUBSCRIPTION FOR 2 PERCENT DEPOSITARY BONDS, S E C O N D SERIES (Date) T o FEDERAL RESERVE BANK OF NEW YORK, Fiscal Agent of the United States, Withheld Taxes Division, Federal Reserve P. O. Station, New York 7, N. Y. Pursuant to the provisions of Resolution Authorizing Execution of Application-Agreement, Depositary for Withheld Taxes (Treasury Form 4 1 1 - A ) , the undersigned depositary subscribes and agrees to make payment f o r 2 Percent Depositary Bonds, Second Series, which may be allotted from time to time for purchase by the depositary under the provisions of Section 8 of Treasury Department Circular No. 714, as amended. For determining the amount of such bonds which the undersigned depositary may be initially or periodically entitled to purchase, and for effecting payment for the bonds allotted for purchase, the method indicated below a is selected: 2 PERCENT DEPOSITARY BONDS, SECOND SERIES. TO BE PURCHASED WITH THE DEPOSITARY'S OWN FUNDS The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent Depositary Bonds, Second Series, on the basis of Table I attached as exhibit C b to Treasury Department Circular No. 714, as amended, and the Federal Reserve Bank is authorized to effect payment for the bonds thus allotted by charging the reserve or clearing account of this depositary. The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent Depositary Bonds, Second Series, on the basis of Table I attached as Exhibit Cb to Treasury Department Circular No. 714, as amended, and this depositary will make payment for the bonds thus allotted by remittance of the purchase price upon advice f r o m the Federal Reserve Bank as to the amount of the approved allotment. BALANCE TO THE CREDIT OF THE TREASURER OF THE UNITED STATES TO BE PLACED WITH THE DEPOSITARY TO BE USED FOR THE PURCHASE OF AN EQUAL AMOUNT OF 2 PERCENT DEPOSITARY BONDS. SECOND SERIES A balance to the credit of the "Federal Reserve Bank of New York. Fiscal Agent of the United States, f o r Account of the Treasurer of the United States — Time Deposit" shall be deposited with this depositary. The amount of such balance will be computed by the Federal Reserve Bank as Fiscal Agent of the United States on the basis of Table II attached as Exhibit Cb to Treasury Department Circular No. 714, as amended. T h e Federal Reserve Bank is authorized, in lieu of remitting the amount of such authorized balance to this depositary or crediting the account of this depositary for the amount thereof, to apply such amount to the purchase o f an equal amount of 2 Percent Depositary Bonds, Second Series, for account of this depositary. The initial allotment of 2 Percent Depositary Bonds, Second Series, is to be computed by the Federal Reserve Bank, as fiscal agent of the United States, on the basis of the transactions of this depositary through the month of It is agreed that payment f o r all 2 Percent Depositary Bonds, Second Series, purchased by the undersigned depositary shall be made on the first day of the second month following the end of the month referred to above, and that such bonds shall be issued as of such date, or as of such later date as payment f o r the Bonds is received by the Federal Reserve Bank for credit in the General Account of the Treasurer o f the United States. All 2 Percent Depositary Bonds purchased on subsequent adjustment dates as provided in Treasury Circular N o . 714, as amended, shall be handled in like manner. This subscription f o r 2 Percent Depositary Bonds, Second Series, and selected method of allotment and payment thereof shall remain in effect as long as the undersigned depositary is qualified as a depositary f o r withheld taxes unless new form of subscription in substitution thereof is submitted to the Federal Reserve Bank in time to be effective on the regular adjustment dates of January 1 and July 1 prescribed by Treasury Department Circular No. 714, as amended. A.B.A. No (Name and Location of Depositary) By: (Name and Title)c a One of the three alternative methods shown should be selected by placing a check in the appropriate square. b Allotments of depositary bonds will be computed by the Federal Reserve Bank on the basis of the amount of remittances received by the Federal Reserve Bank and number of items related to such remittances. c The officer subscribing on behalf of the depositary shall be one designated in the Resolution ( F o r m 411-A) mentioned above.
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