View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK OF DALLAS
DALLAS, T E X A S

75222

Circular No. 80-180(D)
September 19, 1980
MONETARY CONTROL ACT - RESERVE REPORTING
TO THE CHIEF EXECUTIVE OFFICER OF AFFECTED
COMMERCIAL BANKS, SAVINGS AND LOAN ASSOCIATIONS,
CREDIT UNIONS, EDGE ACT AND AGREEMENT CORPORATIONS
IN THE ELEVENTH FEDERAL RESERVE DISTRICT:
On March 31, 1980 the Monetary Control Act of 1980 was enacted,
extending reserve requirements to nearly all depository financial institutions. The Act
requires your institution to file data reports with a Federal Reserve Bank or Branch
office. The Federal Reserve will use this information to compute the amount of
reserves that your financial institution will be required to maintain. This procedure is
described in Federal Reserve Regulation D which was distributed to your organization
with our Circular 80-170 of September 9, 1980.
Enclosed are copies of two Federal Reserve reporting forms, and a summary
instruction booklet. The forms are:
(1)

Report of Transaction Accounts, Other Deposits and
Vault Cash (FR 2900)

(2)

Report of Certain Eurocurrency Transactions (FR 2950)

Although your financial institution is required by Regulation D to begin
filing the FR 2900 with the Federal Reserve office indicated on the report form, the
Federal Reserve deferred reporting for smaller institutions—those with total deposits of
less than $1 million on December 31, 1979—until May 1980. You will not have to file
a reserve report until then. A reporting schedule, forms and additional information will
be sent to you later this year.
A copy of form FR 2950 must also be filed if your institution had any
eurocurrency borrowings during a reserve computation period.
If there are any questions regarding the report forms or instructions, they
should be directed to the Statistical Department at the Dallas Office (214) 651-6141
or Ext. 6142; or to the Accounting Department at the Houston Office, (713) 659-4433;
San Antonio Office, (512) 224-2141; or El Paso Office, (915) 544-4730.
Sincerely yours,
Ernest T. Baughman
President
Enclosures

Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

F R 2900
A p p r o v e d b y F e d e ra l Reserve B o a r d —A u g u s t 1 9 8 0

Report of Transaction Accounts, Other Deposits and Vault Cash

a Report of Certain Euro­
currency Transactions if your institution
You must file

For the week ended.

had during the reporting period any foreign
borrowings.

.. 1 9 .

If your in stitu tio n had no outstanding balances o f transaction accounts (Item 7),
other nonpersonal savings deposits (Item 11), nonpersonal tim e deposits w ith
original m aturities o f less than 4 years (Item 14.a), or ineligible acceptances or
obligations by affiliates maturing in less than 4 years (Schedule A , Items 1 and
2.b), you need not complete this report. Rather, please check this box, sign the
report, and return it to the designated Federal Reserve Bank. □

This report is required by law [12 U.S.C. § 248(a) and §461),
The Federal Reserve System regards the inform ation provided by each respondent
as confidential. If it should be determined subsequently that any inform ation
collected on this form must be released, respondents w ill be notified.

PLEASE R EA D IN S T R U C T IO N S PRIO R TO C O M P L E TIO N O F T H IS REPO RT
Report all balances as of the close of business each day to the nearest thousand dollars
Item

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Thursday

Friday

Saturday

Sunday

Monday

Tuesday

Column 3

Column 7

C ode

Wednesday

Items

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Total

Thous.

Mils.

Thous.

T R A N S A C T IO N A C C O U N TS
Demand Deposits
1.

Due to depository institutions:
a. B anks............................................................................

2311

b. Other depository institu tion s................................

2312

2.

U.S. G o v e rn m e n t...........................................................

2280

3.

Other dem and ..................................................................

2340

Other Transaction Accounts
4.

A T S acco u nts..................................................................

2402

5.

Telephone and preauthorized transfers....................

2403

6.

NOW Accounts/Share Drafts

.....................................

2398

7. Total (must equal sum o f Items 1 through 6 above) . . . .

2215

D E D U C T IO N S FROM T R A N S A C T IO N AC CO UNTS
8.

Demand balances due from depository institutions
in the U.S...........................................................................

9.

0063

Cash items in process of c o lle c tio n ...........................

0020

O T H E R S A V IN G S A N D T IM E DEPOSITS
Other Savings Deposits
10.

Personal ............................................................................

2368

11.

N o n perso n al.....................................................................

2369

______ 12.

Total (must equal sum o f Items 10,and 11) . . . . .

2369
Please continue on page 2.

F R 2900
Page 2
_

_

_

j

Report all balances as of the close of business each day to the nearest thousand dollars

Item

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

Code

Thursday

Friday

Saturday

Sunday

Monday

Tuesday

Wednesday

Items

Mils.

Thous.

Mils.

Thous.

Mils.

Mils.

Thous.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Column 8
Total
Mils.

Thous.

•SwxWvlwlvXvX'/XvS'X^

O T H E R S A V IN G S A N D T IM E DEPOSITS (continued)
Tim e Deposits
13.
14.

2563

Personal (regardless of m a tu rity ).......................................
Nonpersonal:............................................................................
a. Original m aturity of less than 4 ye ars.........................

2557

b. Original maturity o f 4 years or m o r e ........................

2558

15.

Total (must equal sum of Items 13 and 14) .................

2514

16.

All tim e deposits in denomination of $1 0 0 ,0 0 0 or
more (included in Items 13 and 1 4 ) ................................

2604

17. V A U L T C A S H ......................................................................................

0080

If your institution had no ineligible acceptances or obligations by affiliates, please check this box and do not complete Schedule A. □
S C H E D U L E A: O TH ER R ESE R V A B L E O B L IG A T IO N S BY

|

R E M A IN IN G M A T U R IT Y
Ineligible Acceptances and Obligations by Affiliates
1.

Maturing in less than 14 d a y s ............................................

2.

2245

I

Maturing in 14 days or more but less than 4 years:
a. Personal...............................................................................

2877

b. Nonpersonal.......................................................................

2878

I certify that the information shown on this report is correct

A u th o r iz e d S ig n a tu re

T itle

Person t o be C o n ta c te d C o n c e rn in g t h i s R e p o r t (please p r in t )

A re a C od e and T e le p h o n e N u m b e r

PLEASE RETURN BY NO LATER THAN THE THURSDAY AFTER THE REPORT DATE TO: STATISTICAL DEPARTMENT, FEDERAL RESERVE BANK OF DALLAS, STATION K, DALLAS, TEXAS 75222

FR 2950
Approved b y Federal Receive B o a rd —August 1 9 8 0

Report of Certain Eurocurrency Transactions
For All Depository Institutions Other Than U.S. Branches and Agencies of Foreign Banks
For the week enrieri

f 19______

If yo u r in s titu tio n had no outstanding balances to rep o rt, please check
this box, sign the report, and return to
the FederalReserve
Bank
designated below. □

This report is required by law [1 2 U.S.C. § 248(a) and §4611.
The Federal Reserve

System regards the

in fo rm a tio n provided by each

respondent as co n fid en tia l. If it should be determ ined subsequently that
any in fo rm a tio n collected on this fo rm m ust be released, respondents w ill
-

be n o tifie d.

PLEASE READ INSTRUCTIONS PRIOR TO COMPLETION OF THIS REPORT
Column 2

Column 3

Colum n 4

Column 5

Gross Balances
Due to Own
Non-U.S. Branches

Gross Balances
Due fro m Own
Non-U.S.Branches

Assets Sold to
and Held by Own
Non-U.S. Branches
Acquired fro m
U.S. Offices

Credit Extended by
Own Non-U.S.
Branches to
U.S. Residents

Column 1

Day o f
Week

Borrowings from
Non-U.S. Offices o f
O ther D epository
In stitu tion s and
fro m Certain
Designated Non-U.S.
Entities

Date

M onth

Day

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Thursday

Friday
Saturday

Sunday

Monday
Tuesday

Wednesday

TOTAL

I ce rtify th at the inform ation shown on this report is correct.
Name and Address o f In s titu tio n

A u th o rized Signature

Perion to be contacted concerning this re p o rt

Area Code and Telephone Number

P L E A S E R E T U R N BY N O L A TER T H A N T H U R S D A Y
F O L L O W IN G T H E R E P O R T IN G D A TE
TO:

S T A T IS T IC A L D E P A R T M E N T
F E D E R A L R E S E R V E B A N K O F D A LL A S
S T A T IO N K
D A L L A S , T E X A S 75222

T itle

Federal
Reserve
Bank of
Dallas

In s tru c tio n s for the P r e p a r a tio n of:

• Report of Transaction Accounts,
Other Deposits and Vault Cash
(FR 2900)
• Report of Certain Eurocurrency Transactions
(FR 2950)

F o r Use By:

|

• Commercial Banks
• Edge Act and Agreement Corporations
• Industrial Banks

DETAILED INSTRUCTIONS
FOR
PREPARATION OF THE
REPORT OF TRANSACTION ACCOUNTS,
OTHER DEPOSITS AND VAULT CASH
(FR 2900)
AND
REPORT OF CERTAIN EUROCURRENCY TRANSACTIONS
(FR 2950)

For Use by Commercial Banks,
Edge Act or Agreement Corporations,
and
Industrial Banks

CONTENTS

INTRODUCTION

.............................................

1

PART I— Report of Transaction Accounts, Other Deposits and
Vault Cash (FR 2900)
SECTION 1— GENERAL INSTRUCTIONS
Who Must R e p o r t ...........................................
3
Frequency of R e p o r t .............. '
........................
3
How to R e p o r t .............................................
4
What Liabilities Are Reservable Under Regulation D . . . .
8
Deposits as Defined Under Regulation D ..................
9
Treatment of Pass-Through Balances
.......................
13
Treatment of Trust F u n d s .............. • ................ 13
Treatment of Escrow Funds .................................
14
SECTION 2— ITEM-BY-ITEM INSTRUCTIONS
General Description of Transaction Accounts ..............
Summary of Transaction Account Classifications
..........
Demand Deposits ...........................................
Demand Deposits Due to Depository Institutions ..........
Demand Deposits Due to B a n k s .......................... 22
Calculation of Net ReciprocalBalances .................
Demand Deposits Due to Other Depository Institutions
. .
U.S. Government Demand Deposits...........................25
Other Demand D e p o s i t s ................................... 27
Other Transaction Accounts
...............................
ATS A c c o u n t s ............ ...................... ..
Telephone or Preauthorized Transfer Accounts ............
NOW A c c o u n t s ............................................. 30
Total Transaction Accounts ...............................
D e d u c t i o n s ............................................... 30
Demand Balances Due From Depository Institutions ........
Cash Items in Process of C o l l e c t i o n .....................33
Other Savings Deposits
...................................
Other Savings Deposits — Personal ....................... 37
Other Savings Deposits — N o n p e r s o n a l .............. .. •
Total Other Savings Deposits .............................
Time D e p o s i t s ............................................. 38
Time Deposits — P e r s o n a l ............................... 41
Time Deposits — Nonpersonal............................. 42
Total Time D e p o s i t s ........................... ..
Time Deposits in Denomination of $100,000 or More
....
Vault C a s h ............................................... 44
Schedule A— Other Reservable Obligations by Remaining
M a t u r i t y ................................................. 45

15
16
17
21
23
24

29
29
29
30
30
35
37
37

43
43

CONTENTS (con’t)

PART II— Report of Certain Eurocurrency Transactions
,
(FR 2950)
SECTION 1— GENERAL INSTRUCTIONS
Who Must R e p o r t ........................................... 49
How to Report
........................................... 49
Amounts to be R e p o r t e d ................................... 51
SECTION 2--ITEM-BY-ITEM INSTRUCTIONS
Gross Borrowings from Non-U.S. Offices of Other Depository
Institutions and from Certain Designated NON-U.S.
E n t i t i e s ..................................................52
Gross Balances Due To Own Non-U.S.B r a n c h e s ................ 53
Gross Balances Due From Own Non-U.S.Br a n c h e s .............. 53
Assets Sold to and Held by Own Non-U.S. Branches
Acquired from U.S. o f f i c e s ............................... 53
Credit Extended by Own Non-U.S. Branches to U.S.
Residents ................... .............................. 54
G L O S S A R Y ....................................................G-1

INTRODUCTION

Under Che Monetary Control Act of 1980, every depository institution
that has transaction accounts or nonpersonal time deposits is required to
file with the Federal Reserve a Report of Transaction Accounts, Other Deposits
and Vault Cash. Every .depository institution that obtains funds from foreign
(non-U.S.) sources or that maintains foreign branches is also required to
file with the Federal Reserve a Report of Certain Eurocurrency Transactions.
These reports are used for the calculation of Federal required reserves and
for construction of the monetary aggregates. Rules governing the reserve
requirement provisions of the Monetary Control Act are contained in Federal
Reserve Regulation D, "Reserve Requirements of Depository Institutions. "1/
The report forms listed below are provided for the following institut ions:
Report of Transaction Accounts, Other Deposits and Vault Cash
FR 2900— For all commercial banks, Edge Act and Agreement corpora­
tions and their branches, industrial banks, and U.S.
branches and agencies of foreign banks; for mutual savings
banks, building or savings and loan associations and
homestead associations; and for credit unions.
Report of Certain Eurocurrency Transactions
FR 2950— For all depository institutions except U.S. branches and
agencies of foreign banks.
FR 2951— For U.S. branches and agencies of foreign banks.
This booklet presents detailed Instructions for preparation of the
reports by the following types of institutions, regardless of their size:
all commercial banks, industrial banks, Edge Act and Agreement corporations,
and U.S. branches and agencies of foreign banks.
Separate instruction booklets are provided for mutual savings banks,
building or savings and loan associations, and homestead associations; and for
credit unions. These booklets may be obtained upon request from the Federal
Reserve Banks.
Subsequent sections of this booklet are organized as follows: Part I
provides detailed Instructions for preparation of the Report of Transaction
Accounts, Other Deposits and Vault Cash (FR 2900). Part II provides detailed
Instructions for preparation of the Report of Certain Eurocurrency Transactions.
A glossary, which appears at the end of the booklet, defines in alphabetic
order important terms and phrases that appear in all capital letters in
Parts I and II. This booklet has been printed in looseleaf form to allow
for future changes.

1/ The Federal Reserve Board has deferred reporting and reserve requirements
for those depository institutions (other than Edge Act and Agreement corporations,
U.S. branches and agencies of foreign banks and member commercial banks), with
total deposits of less than $1 million as of December 31, 1979.

-

2

-

In order to avoid the imposition of unnecessary reserve requirements
and to provide accurate monetary statistics, the amounts reported on any
one
of the above
"reserve requirement" reports should not be resorted in any item
on the other report.
Accurate preparation of these reports is an important first step in
the reserve maintenance cycle. Based on the deposit levels that your depository
institution reports each reporting period, the Federal Reserve calculates
the level of reserves that must be maintained at or passed through to a
Federal Reserve Rank on these deposits two weeks later. Efficient reserve
management begins with accurate and timely deposit reporting. Errors in
reporting may result in higher reserve requirements, which could reduce your
institution's potential earnings, or in insufficient reserves, which may
subject your
institution to the assessment of penalties.
In
addition to their use in the calculation of required reserves,
data from these reports are basic to the construction of the monetary aggregates
that are used by the Federal Preserve System in the formulation and conduct of
monetary policy.
Inaccurate reporting may result in a deterioration in the
quality of the monetary aggregate estimates.
The following instructions are based on Regulation D of the Board
of Governors of the Federal Reserve System (12 CFR §204) and are designed to
assist depository institutions in meeting the reserve requirements established
by Regulation D. These instructions in no way alter or modify the require­
ments of Regulation D. While every effort has been made to incorporate all
existing regulatory provisions, applicable regulations, interpretations,
and legal opinions governing the classification of deposits subject to reserve
requirements, this booklet should not be considered the final authority on
the deposit status of all instruments, obligations, or transactions. Final
authority rests with the Board of Governors of the Federal Reserve System.
Inquiries concerning specific instruments, obligations, or transactions, as
well as suggestions for improving the content of this booklet, may be directed
to the Federal Reserve Bank In your District.

- 3 -

PART I
INSTRUCTIONS FOR PREPARATION OF REPORT OF TRANSACTION ACCOUNTS, OTHER
DEPOSITS AND VAULT CASH (FR 2900)

Section 1 contains general instructions and guidelines which provide
the basic framework for reporting on the Report of Transaction Accounts,
Other Deposits and Vault Cash (FR 2900) and which describe, in general, the
nature of reservable liabilities and the specific procedures for reporting
these liabilities.
Section 2 contains item-by-item instructions for completing the
report. This section describes the coverage of each item to be reported
and specifies the categories of deposits to be included in or excluded from
each item.

SECTION 1— GENERAL INSTRUCTIONS
A.

Who Must Report.
This report is required from each of the following institutions, except
those listed in B.4. below, that has TRANSACTION ACCOUNTS or NONPERSONAL
TIME DEPOSITS*: all commercial banks; all EdgeAct or Agreement
corpor­
ations and their U.S. branches; U.S. agencies of foreign banks whose
parent foreign bank (1) has total worldwide consolidated bank assets in
excess of $1 billion, or (2) is controlled by a foreign company or by a
group of foreign companies that own or control foreign banks that in the
aggregate have total worldwide consolidated bank assets in excess of $1
billion; all U.S. branches of foreign banks; and industrial banks.

3.

Frequency of Report.
R.l.

B.2.

All other depository institutions listed in A. above that have
total deposits of $5 million or more shall submit the Report of
Transaction Accounts, Other Deposits and Vault Cash (FR 2900)
each week.

B .3

*

All EDGE ACT and AGREEMENT CORPORATIONS and U.S. BRANCHES AND
AGENCIES OF FOREIGN BANKS listed in A. above, regardless of
size, shall submit the Report of Transaction Accounts, Other
Deposits and Vault Cash (FR 2900) each week.

All commercial and industrial banks having less than $5 million
in total deposits except those discussed in B.4. below shall file a
Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) once each calendar quarter for a seven-day computation

Terns and phrases appearing in all capital letters are defined and described
in alphabetical order in the glossary section of this manual.

- 4 -

period that begins on the third Thursday of a given month during
the calendar quarter, and maintain reserves on such deposits over
the subsequent three-month period beginning 8 days after the close
of the computation period. Those commercial and industrial banks
that have less than $5 million in total deposits as of December
31, 1979, shall qualify under this paragraph until they report
total deposits of $5 million or more for two consecutive calendar
quarters.
A commercial or industrial bank that qualifies under
this paragraph may elect at the beginning of a calendar year to
report deposits and maintain reserves on a weekly rather than
quarterly basis.
The quarterly reporting system will commence in January 1981.
However, member commercial banks, as well as nonmember banks that
were members of the System between July 1, 1979 and August 31, 1980,
that have less than $5 million in total deposits shall continue to
report deposits and maintain reserves on a weekly basis until January
1981. Other nonmember commercial and industrial banks having less
than $5 million in total deposits will not be required to report
or maintain reserves until the quarterly procedure begins.
B.4.

In addition, the Board of Governors of the Federal Reserve System
has temporarily deferred reserve requirements for nonmember commer­
cial and industrial banks that have less than $1 million in total
deposits as of December 31, 1979.
These institutions will be
exempt temporarily from reporting and reserve maintenance.

Please note that this report 3hall reflect amounts outstanding as of the
close of business each day during the reserve computation period. The
computation period is the seven-day period that starts on Thursday and
ends on the following Wednesday. If your institution had no outstanding
balances of reservable liabilities during the computation period, please
check the box designated at the top of the reporting form, sign the report,
and return it to your local Federal Reserve Bank.

C.

How to Report.
The report should be prepared in accordance with the following procedures.
C .1.

Consolidation.
a.

Consolidation for banka
For commercial banks, a consolidated report must be
that combines all deposits, vault cash, and allowable
of the following entities:

prepared
deductions

(1)

the head office of the bank;

(2)

all branches located in the 50 states of the United
States or the District of Columbia; and

(3)

all OPERATIONS SUBSIDIARIES of the bank located in the
50 states of the United States or the District of Columbia

Edge Act and Agreement subsidiaries of the reporting bank
are required to file separate reports to the Federal Reserve
and therefore should not be consolidated in the bank's report
Deposits due to and due from NON-U.S. offices of the
reporting bank should be excluded from this report and reported
on the Report of Certain Eurocurrency Transactions.
Consolidation for Edge Act and Agreement corporations and their
branches
All offices of an EDGE ACT or AGREEMENT CORPORATION located in
the same state and within the same Federal Reserve District
shall submit an aggregated report of deposits to the Federal
Reserve Bank in whose District they operate. Offices of an
EDGE ACT or AGREEMENT CORPORATION located in the same state but in
different Federal Reserve Districts shall file separate reports
to their respective Reserve Banks.
Deposits due to or due from other U.S. offices of the same
EDGE ACT or AGREEMENT CORPORATION should not be consolidated
on this report.
Deposits due to or due from NON-U.S. offices of EDGE ACT and
AGREEMENT CORPORATIONS should be excluded from this report
and reported in the Report of Certain Eurocurrency Transactions.
NOTE: The deposits of offices of an EDGE ACT or AGREEMENT COR­
PORATION that is a subsidiary of a foreign bank should not be
aggregated with those of the U.S. BRANCHES AND AGENCIES of that
foreign bank for purposes of reporting deposits and calculating
reserve requirements.
This treatment parallels the treatment
of EDGE ACT or AGREEMENT CORPORATIONS controlled by U.S. banks,
since deposit liabilities of EDGE ACT or AGREEMENT CORPORATIONS
owned by U.S. banks are not be aggregated with the deposit
liabilities of their parent bank.
Consolidation for U.S. agencies and branches of NON-U.S. banks
A foreign bank's branches and agencies located in the same
state and within the same Federal Reserve District shall submit
an aggregated report of deposits to the Federal Reserve Bank
in whose District they operate. However, a foreign bank's
branches and agencies located in the same state but in different
Federal Reserve Districts shall report deposits separately
to their respective Reserve Banks.

-

6

-

In reporting deposits for purposes of calculating reserve require­
ments, U.S. BRANCHES AND AGENCIES will exclude transactions with
other U.S. BRANCHES AND AGENCIES of the same foreign bank. For
example, balances due to U.S. BRANCHES AND AGENCIES, wherever
located, of the same foreign bank will not be treated as deposits
due to banks, and balances due from U.S. BRANCHES AND AGENCIES,
wherever located, of the same foreign bank will not be deductible
from gross TRANSACTION ACCOUNTS as balances due from other banks.
Deposits due to or due from NON-U.S. BRANCHES AND AGENCIES
of the same foreign parent bank should be excluded from this
report and be reported in the Report of Certain Eurocurrency
Transactions.
The consolidation for reporting institutions may differ from that
used on the quarterly condition report and certain other reports.
Preparing a consolidated report involves two steps:
a.

combining all comparable accounts of the individual entities
to be consolidated on an account-by-account basis; and

b.

eliminating all inter-office transactions that reflect the
existence of debtor-creditor relationships among the entities
and branches of such entities to be consolidated.

EXAMPLE:
"Checks on hand” received at a bank's OPERATIONS SUBSIDIARY
should be combined with the bank's "cash items in process of col­
lection," and demand accounts of a bank's OPERATIONS SUBSIDIARY at
banks other than the parent bank should be combined with the parent
bank's balance "due from other banks.” Similarly, obligations of
an OPERATIONS SUBSIDIARY that meet the definition of "deposits”
should be included as deposit liabilities of the
parent bank.
C.2.

Denomination.
Amounts should be rounded and reported to the nearest
thousand U.S. dollars.
L
j

C.3.

C.4.

Foreign (NON-U.S.) currency-denominated deposits. Deposits denominated
in NON-U.S. currency should be valued initially in U.S. dollars at the
prevailing exchange rate at the time of deposit and periodically revalued
in accordance with generally accepted accounting
principles.
Overdrafts or negative balances. Unless covered
by the exemption
described in the following paragraph, all deposit accounts having
a negative balance as of the close of business each day (whether
resulting from prearranged or unplanned overdrafts or from operating
or other factors) should be regarded as having a zero balance when
computing deposit totals. Overdrawn deposit accounts of customers
should be regarded as loans made by the DEPOSITORY INSTITUTION and

- 7 should not be reported as negative deposits.
Similarly, deposit
accounts that the reporting institution maintains at another DEPOSITORY
INSTITUTION that have negative balances should be regarded as having
zero balances when computing "due from" totals and considered borrowings
(not "due to's”) by the reporting institution.
Overdrawn accounts of a depositor who maintains more than one
checking account at the reporting institution may be offset by accounts
with positive balances if a bona fide cash management function is
served. For purposes of this report, a bona fide cash management
arrangement must also be evidenced by a prior written agreement
between the reporting institution and the depositor authorizing
transfers between such checking accounts.
C.5.

Record-keeping. The amount reported for each day should reflect the
amount outstanding at the "close of business" for that day. The
term "close of business" refers to the time established by the reporting
institution as the cut-off time for posting transactions to its
general ledger accounts for that day. The time designated as close
of business should be reasonable and applied consistently. For any
day on which the reporting institution was closed, report the closing
balance as of the preceding day.
For purposes of this report, the reporting institution is open when
both of the following criteria are met:
a.

a majority of all domestic banking offices are open to conduct
banking business; and

b.

entries are made to the general ledger accounts of the reporting
institution for that day.

The posting of a transaction to the general ledger account means
that both debit and credit entries must be recorded as of the same date.
Reservable obligations for which settlement is in clearinghouse or
uncollected funds should be reported as of the date that the transaction
is executed and not as of the settlement date or date that collected
funds are tot be received. Transactions that result from prior commit­
ments should be reported on the date that the transaction is executed,
not as of the commitment date. However, where payment information
(such as that contained on magnetic tape, paper listings, and similar
items involving automated arrangements) is sent to the reporting
institution prior to the effective payment date, the institution may
credit its depositors' accounts one day prior to the effective payment
date in order to ensure that the deposit will be available to the depositor
at the opening of business on the payment date. When such prior credit
to deposit accounts is given in connection with automated arrangements,
the credits should be offset by appropriate debit entries to "cash items
in process of collection.”

-

C.6.

8

-

UNPOSTED DEBITS and CREDITS. UNPOSTED DEBITS consist of cash items
drawn on the reporting institution that have been "paid" or credited
by the reporting institution and are chargeable but that have not
been charged against deposits as of the close of business. These
items should be reported as "cash items in process of collection"
until they have been charged to either individual or general ledger
deposit accounts.
UNPOSTED CREDITS consist of items that have been received for
deposit and that are in process of collection but have not been posted
to individual or general ledger deposit accounts. These credits
should be reported as deposits.

C.7.

D.

Rejected items. Rejected items (resulting from mutilated documents,
incorrect account numbers or other factors) that would otherwise have
resulted in credit to deposit accounts should be included in deposit
totals for the day on which corresponding debits have been posted.
Rejected items that represent withdrawals from deposit accounts and
for which corresponding credits have already been recorded should be
deducted from deposits as of the close of business for that day.

What Liabilities Are Reservable Under Regulation D .
Under the Monetary Control Act of 1980, TRANSACTION ACCOUNTS and NON­
PERSONAL TIME DEPOSITS (including NONPERSONAL SAVINGS DEPOSITS) are
subject to Federal reserve requirements. Rules governing reserve require­
ments are contained in Federal Reserve Regulation D.
TRANSACTION ACCOUNTS include DEMAND DEPOSITS; NOW ACCOUNTS; ATS ACCOUNTS;
accounts that permit a depositor to make payments to third parties through
automated teller machines, remote service units, or by means of a debit
card; accounts that permit a depositor to make more than 3 TELEPHONE or
PREAUTHORIZED TRANSFERS per calendar month; and those obligations maturing
in less than 14 days if they take the form of ineligible acceptances and
obligations issued by the reporting institution's AFFILIATES.
Nonpersonal time deposits include NONPERSONAL SAVINGS and NONPERSONAL
TIME DEPOSITS and those obligations maturing in 14 days or more if they
take the form of ineligible acceptances and obligations issued by the
reporting institution's AFFILIATES.
Detailed instructions defining TRANSACTION ACCOUNTS, NONPERSONAL SAVINGS
DEPOSITS and NONPERSONAL TIME DEPOSITS can be found in the appropriate
item-by-item instructions. DEPOSITS as defined by Regulation D are
described in paragraph E immediately below. Please note, however, that
in addition to reservable liabilities, certain nonreservable liabilities
are also reported as separate items on the Report of Transaction Accounts,
Other Deposits and Vault Cash.

Deposits as Defined Under Regulation D.
In general, Regulation D defines deposits to include both deposits and
obligations issued.
For purpose of these instructions, deposits are
divided into Cwo broad categories of liabilities:
DEPOSITS and PRIMARY
OBLIGATIONS that are undertaken as a means of obtaining funds, regardless
of the use of the proceeds.
E.l.

DEPOSITS to be reported in Items 1-16 of the Report of Transaction
Accounts, Other Deposits and Vault Cash consist of:
a.

Funds received or held by the reporting Institution for which
credit has been given or is obligated to be given to DEMAND, NOW,
ATS, TELEPHONE or PREAUTHORIZED TRANSFER, other SAVINGS, or TIME
DEPOSIT accounts.

b.

Funds received or held by departments other than the trust depart­
ment of the reporting institution for a special or specific purpose,
such as escrow funds, funds held as security for securities loaned
by the reporting institution, funds deposited as advance payments
or subscriptions to U.S. governments securities, and funds held
to meet the reporting institution's acceptances.

c.

Outstanding CERTIFIED, OFFICERS' AND CASHIERS' CHECKS and other
DRAFTS (including PAYABLE THROUGH DRAFTS) issued by the reporting
institution in the usual course of business for any purpose,
including payment for services, dividends, or purchases, unless
drawn on a deposit account maintained at another DEPOSITORY
INSTITUTION or at a Federal Reserve Bank.

d. Liabilities arising from the sale of travelers checks and money
orders sold to customers unless the proceeds are remitted daily
to another party under a consignment arrangement.
e.

Funds received or held in connection with LETTERS OF
CREDIT
issued to customers, including funds credited to CASH COLLATERAL
ACCOUNTS and similar accounts.

f. CHECKS or DRAFTS drawn by or on behalf of a NON-U.S.
office of
the reporting institution on an account maintained at a U.S.
office of the reporting institution.
g.

h.

Deposits at NON-U.S. branches of the reporting institution which
are payable at a U.S. office or for which the depositor is
guaranteed payment at a U.S. office.
Any obligation to pay a CHECK, such as a CERTIFIED CHECK drawn
on the reporting institution, that has been presented for collec­
tion by a third party when the depositor's account at the
reporting institution has already been charged and settlement
of the CHECK has not been made.

-

10

-

i.

CREDIT BALANCES.

j.

Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by the AFFILIATE
in the form of a DEMAND, SAVINGS, or TIME DEPOSIT.

E.2.

For purposes of this report, DEPOSITS do not include:
a.

b.

Trust funds received or held by the DEPOSITORY INSTITUTION
it keeps properly segregated as trust funds and apirt from
general assets or which it deposits in another institution to
the credit of itself as trustee or other fiduciary.

c.

An obligation that represents a conditional, contigent or endorser's
liability.

d.

Obligations, the proceeds of which are not used by the DEPOSITORY
INSTITUTION for purpose of making loans, investments, or maintaining
liquid assets such as cash or "due from" DEPOSITORY INSTITUTIONS or
other similar purposes. An obligation issued for the purpose of
raising funds to purchase business premises, equipment, supplies,
or similar assets is not a deposit.

e.

Accounts payable.

f.

HYPOTHECATED DEPOSITS created by payments on an
installment loan
where (1) the amounts received are not used immediately to reduce
the unpaid balance due on the loan until the sum of the payments
equals the entire amount of loan principal and INTEREST; (2) and
where such amounts are irrevocably assigned to the DEPOSITORY
INSTITUTION and cannot be reached by the borrower or creditors of
the borrower.

g.

E.3.

Balances due to NON-U.S. offices of the reporting institution.
These balances are reported on the Report of Certain Eurocurrency
Transactions.

A dividend declared by a DEPOSITORY INSTITUTION
intervening between the date of the declaration
and the date on which it is paid.

for the period
of the dividend

PRIMARY OBLIGATIONS to be reported as deposits in Items 1-16 of the
Report of Transaction Accounts, Other Deposits and Vault Cash:
a.

that
its

Promissory notes, ACKNOWLEDGEMENTS OF ADVANCE, and other similar
obligations (written or oral) that are issued by the reporting
institution to NONEXEMPT ENTITIES as a means of obtaining funds,
regardless of the use of the proceeds.
(NOTE: Purchases of
"Federal funds” from NONEXEMPT ENTITIES are PRIMARY OBLIGATIONS.)

-

11

-

b.

c.

Liabilities arising from the issuance of DUE BILLS or similar
instruments that are issued by the reporting institution to any
customer (including another DEPOSITORY INSTITUTION), regardless
of the use of the proceeds, or a debit to an account of the
customer before the securities are delivered, unless collateralized
within three business days from date of issuance by a security
similar to the security purchased by the reporting institution's
customer.
A security is similar if it is of the same type and
if it j s of comparable maturity to that purchased by the customer.
.
In the absence of such collateral, DUE BILLS become reservable
deposits beginning on the fourth business day after the date of
issuance, without regard to the purpose of the DUE BILL or to
whom issued.

d.

Mortgage-backed securities that are issued
and sold by the report­
ing institution to NONEXEMPT ENTITIES and that represent sales of
participation certificates in pools of one-to-four family mortgages
when the reporting Institution retains more than a ten percent
interest in the pool. In such a case, all proceeds from such parti­
cipation certificates are reservable, not just the reporting insti­
tution's interest in the pool. Institutions holding a 10 percent
or less interest in such pools shall exclude these obligations from
this report since such securities are not deposits.

e.

E.4.

REPURCHASE AGREEMENTS entered into with NONEXEMPT ENTITIES on
any asset other than an obligation of, or fully guaranteed as
to principal and interest by, the U.S. Government or Federal
agencies.

Mortgager-backed bonds that are liabilities
tution and that are issued and sold by the
to NONEXEMPT ENTITIES.

of the reporting insti­
reporting institution

PRIMARY OBLIGATIONS to be reported in Schedule A of the Report of
Transaction Accounts. Other Deposits and Vault Cash;
a.

Any liability of the reporting institution's nondepository AFFILIATE
on any promissory note, acknowledgement of advance, DUE BILL, or
similar obligation (written or oral), with a maturity of less than
four years, to the extent that the proceeds are used to supply or
maintain the availability of funds (other than capital) to the
reporting institution J^f the AFFILIATE'S liability would have been
regarded as reservable if issued by the reporting institution, and
if the proceeds from the AFFILIATE'S liability are channeled to
the reporting institution in the form of a nonreservable transaction
(e.g., a sale of the reporting institution's assets to its AFFILIATE).
(NOTE: If the proceeds from the AFFILIATE'S liability (whether
regarded as reservable or nonreservable if issued by the reporting
institution) are channeled to the reporting Institution in the form
of a DEMAND, SAVINGS, or TIME DEPOSIT, 9uch funds are reported by

-

12

-

the reporting institution as a DEMAND, SAVINGS, or TIME DEPOSIT (see
Subsection E.l, paragraph j above).
If the AFFILIATE'S liability
would have been regarded as nonreservable if issued by the reporting
Institution, and if the proceeds from the AFFILIATE'S liability
are channeled to the reporting institution in the form of a non­
reservable transaction, such funds are excluded from the Report of
Transaction Accounts, Other Deposits and Vault Cash.)
b.

Liabilities arising from BANKERS ACCEPTANCES that are created and
discounted by the reporting institution and that are subsequently
sold to NONEXEMPT ENTITIES, and that are ineligible for discount
at Federal Reserve Banks, including so-called "finance bills" and
"working capital acceptances."
t

E.5.

PRIMARY OBLIGATIONS to be reported on other "reserve requirement" reports:
Borrowings from NON-U.S. offices of other DEPOSITORY INSTITUTIONS
and from certain designated NON-U.S. entities. These transactions
are reported on the Report of Certain Eurocurrency Transactions.

E.6.

Except for DUE BILLS, PRIMARY OBLIGATIONS issued to EXEMPT ENTITIES
are not subject to reserve requirements. Such obligations are excluded
from both the Report of Transaction Accounts, Other Deposits and Vault
Cash and the Report of Certain Eurocurrency Transactions.

NOTE: Regulations may require certain balances that are not classified
as deposits on other reports to be treated as deposits subject to reserve
requirements and therefore included in this report. For example, certain
debt obligations Issued to NONEXEMPT ENTITIES are defined as deposits for
purposes of Regulation D and this report but are reported as borrowings on
the Consolidated Report of Condition. Consequently, the deposit balances
on this report may differ from amounts in corresponding lines reported on
your institution's quarterly Report of Condition and on certain other
reports submitted to the Federal Reserve, F.D.I.C., Comptroller of the
Currency or state regulators.
In general, funds received by an institution that are immediately
applied to reduce or extinguish a customer's indebtedness to that institution
do not constitute deposits since no liability is incurred. Certain DEALER
RESERVE or DIFFERENTIAL ACCOUNTS, such as those that arise when financing a
merchant's installment accounts receivable, and which provide that the dealer
may not have access to the funds in the account until the installment loans
are repaid, are exempt from reserve requirements until the reporting institution
becomes obligated to the merchant for the full amount or any portion of the
funds. Similarly, funds that have been irrevocably assigned to the reporting
institution and cannot be reached by its customer or the customer's creditors,
such as DEPOSITS which simply serve as collateral for loans, are not subject
to reserve requirements.
Finally, certain other liabilities that do not
result in a receipt of funds, such as accrued liabilities and accounts
payable, are not regarded as reservable liabilities.

- 13 -

F.

Treatment of Pass-Through Balances.
A depository institution may satisfy reserve requirements by holding vault
cash or by holding its required reserve balance at the Federal Reserve.
The Monetary Control Act of 1980 authorizes a DEPOSITORY INSTITUTION that
is not a member of the Federal Reserve System, a U.S. BRANCH or AGENCY OF
A FOREIGN BANK, or an EDGE ACT or AGREEMENT CORPORATION ("respondent") to
hold its required reserve balance at the Federal Reserve in one of two
ways. The respondent may deposit its required reserve balance directly
with the Federal Reserve Bank or Branch which serves the territory in
which it is located. Alternatively, in accordance with procedures adopted
by the Board, the respondent may elect to pass its required reserve balance
through a "correspondent." The correspondent may be a Federal Home Loan
Bank, the National Credit Union Administration Central Liquidity Facility,
a DEPOSITORY INSTITUTION which holds a required reserve balance directly
at a Federal Reserve Bank or Branch, or an institution that has been author­
ized by the Board to pass through required reserve balances. The corres­
pondent must pass through these required reserve balances to the Federal
Reserve 3ank or Branch in the territory in which the main office of the
nonmember respondent institution is located.
The correspondent institution shall exclude from this report all
balances received from nonmember respondent institutions and subsequently
passed through by the correspondent to the appropriate Federal Reserve
Bank or Branch. Respondent institutions shall exclude from this report
all balances that the correspondent passes through to the Federal Reserve
Bank or Branch on behalf of the respondent.

G.

Treatment of Trust Funds.
Trust funds that a reporting institution receives or holds but keeps
segregated from its general assets and that are not available for general
investment or lending purposes do not constitute deposits and should not
be reported in any item on this report. However, trust funds should be
reported as deposits of the reporting institution when:
G.l.

deposited by the trust department of the reporting institution in
the commercial or other department of the reporting institution;

G.2.

deposited in the commercial department or other department of the
reporting institution by the trust department of another depository
institution; or

G.3.

mingled with the general assets of the reporting institution,
regardless of where held.

NOTE: Items such as bonds, stocks, jewelry, coin collections, etc.
that are left with the reporting institution for safekeeping, some­
times referred to as "special deposits," should not be included as
deposits on this report.

- 14 -

H.

Treatment of Escrow Funds.
Escrow funds consist of funds deposited with a depository institution
under an agreement that requires the depository institution to pay all
or some portion of the funds to a third party at a certain time or upon
fulfillment of certain conditions. The obligation of the reporting
depository Institution on the funds maintained may constitute a deposit
liability against which reserves must be held.
If escrow funds are held
in the reporting institution's own trust department as part of the trust
department's fiduciary activities, they are to be treated as trust funds
and, for reporting purposes, are subject to the provisions noted above
under "Treatment of Trust Funds."
Escrow funds should be classified as TIME DEPOSITS when deposited
with the reporting institution pursuant to a written agreement that
all funds must remain on deposit for at least 14 days before any
payment can be made. For reporting purposes, however, escrow funds
shall be reported as SAVINGS DEPOSITS if the written agreement provides
that payments may be made after a certain number of deposits have been
received during a period of not less than 3 months, even though some
deposits may have been received within 14 days from the payment date.
In addition, when the escrow agreement provides that a depository institution
may simply reserve the right to require at least 14 days written notice
before a payment can be made, escrow funds should be classified as SAVINGS
DEPOSITS.
The classification of escrow funds as TIME or SAVINGS DEPOSITS
does not depend on whether interest is paid on the funds. Escrow agreements
entered into by depository institutions in states where the payment of
interest on such accounts is required by law must comply with the notice
or maturity provisions applicable to TIME and SAVINGS DEPOSITS. Agree­
ments that do not meet the specific conditions stipulated above for
TIME and SAVINGS DEPOSITS must be classified as DEMAND DEPOSITS.

- 15 -

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS

Transaction Accounts (Items 1 through 7)
Items 1 through 7 of the report collect data on TRANSACTION ACCOUNTS
by component. Provided below is a general description of TRANSACTION ACCOUNTS,
followed by a summary of transaction account classifications. These broad
descriptions are followed by detailed instructions for each item to be reported
under TRANSACTION ACCOUNTS.
General Description of TRANSACTION ACCOUNTS
Report in these items deposits or accounts from which the depositor or
account holder is permitted to make withdrawals by negotiable or transferable
instruments, payment orders of withdrawal, telephone transfers or other
similar devices for the purpose of making payments or transfers to third
parties or others.
Include as TRANSACTION ACCOUNTS:
1.

DEMAND DEPOSITS.

2.

DEPOSITS or accounts subject to withdrawal by CHECK, DRAFT
negotiable order, SHARE DRAFT, or other similar item;

3. SAVINGS DEPOSITS or accounts from which withdrawals may be
made
automatically through payment to the
deoository institution
itself or through transfer of credit to a DEMAND DEPOSIT or
other
account in order to cover CHECKS OR DRAFTS drawn upon the institu­
tion or to maintain a specified balance in, or to make periodic
transfers to such accounts; and
4.

DEPOSITS or accounts from which payments may be made to third
parties by means of an automated teller machine, remote service
unit or other electronic device.

5. DEPOSITS or accounts in which payments may be made to third
by means of a debit card.

parties

6. DEPOSITS or accounts under the terms of which, or which by practice
of the depository institution, the depositor is permitted or
authorized or make more than three withdrawals per month for
purposes of transferring funds to another account or for making
a payment to a third party by means of preauthorized or telephone
agreement, order or instruction. An account that permits or
authorizes more than three such withdrawals in a calendar month
is a TRANSACTION ACCOUNT whether or not more than three such
withdrawals actually are made in a calendar month. A PREAUTHORIZED
TRANSFER includes any arrangement by the deDOsitory institution
to pay a third party from the account of a depositor uoon written

- 16 or oral instruction (including an order received through an auto­
mated clearing house (ACH), or any arrangement by a depository
institution to pay a third party from the account of the depositor
at a predetermined time or on a fixed schedule).
An account is
not a TRANSACTION ACCOUNT by virtue of an arrangement that permits
withdrawals for the purpose of repaying loans and associated ex­
penses at the same depository institution (as originator or servicer).
Exclude from TRANSACTION ACCOUNTS those PRIMARY OBLIGATIONS maturing in less
than 14days if they take the form of ineligible acceptances or of obligations
issued bythe reporting institution's AFFILIATES described in Part I, Section I,
Subsection E.4.
(To be reported in Item 1 of Schedule A).
Summary of Transaction Account Classifications
A.

Always Regarded as Transaction Accounts
1.

DEMAND DEPOSITS.

2.

NOW ACCOUNTS.

3.

SHARE DRAFT accounts.

4.

ATS ACCOUNTS.

5.

Accounts that

6.

Accounts that permit third party payments through use of CHECKS,
DRAFTS, negotiable instruments, debit cards or other similar items.

permit third party payments through ATMs or RSUs.

B . Accounts Regarded as Transaction Accounts If More Than Three of
the Following Transactions Per Calendar Month Are Permitted to
Be Made by Telephone or Preauthori 2 ed Order or Instruction
1.
2.

Transfers to another account of the depositor at the same
institution.

3.
C.

Payments or transfers to third parties.

Transfers to an account at another DEPOSITORY INSTITUTION.

Not Regarded as Transaction Accounts (Unless Specified Above)
1.

Accounts that permit TELEPHONE or PREAUTHORIZED TRANSFERS
or transfers by ATMs or RSUs to repay loans made or serviced
by the same depository institution.

2.

Accounts that permit telephone or preauthorized withdrawals where
the proceeds are to be mailed to or picked up by the depositor.

3.

Accounts that permit transfers to other accounts of the
depositor at the same institution through ATMs or RSUs.

4.

Accounts that permit three or less telephone or preauthorized
payments or transfers to third parties or to other accounts.

- 17 Demand Deposits (Items 1 through 3)

For Items 1, 2, and 3 of the report, DEMAND DEPOSITS include DEPOSITS
described in Part I, Section I, Subsection
E.I, and PRIMARY OBLIGATIONS
described in Part I, Section 1, Subsection 5.3, that are payable immediately
on demand or issued in ORIGINAL MATURITIES of less than 14 days, or that are
payable with less than 14 days notice, or for which the depository institu­
tion does not reserve the right to require at least 14 days written notice
of an intended withdrawal.

Include as DEMAND DEPOSITS:
1.

All checking accounts, including those pledged as collateral for
loans or maintained as compensating balances. However, do not
Include NOW ACCOUNTS, which are reported in Item 6.

2.

Outstanding CERTIFIED, OFFICERS' AND CASHIERS' CHECKS and DRAFTS
(including PAYABLE THROUGH DRAFTS) issued by the reporting institu­
tion (including checks issued by the depository institution in
payment of stock dividends) unless drawn on a deposit account
maintained at another DEPOSITORY INSTITUTION or at a Federal
Reserve Bank.

3.

Outstanding travelers' checks and money orders sold to customers
unless the proceeds are remitted daily to another party under a
consignment arrangement or unless already booked as a reservable
deposit.

4.

Funds received or held in connection with LETTERS OF CREDIT sold
to customers, including funds credited to CASH COLLATERAL ACCOUNTS
and similar accounts.

5.

Withheld taxes, withheld insurance premiums, and other funds with­
held from salaries of the reporting institution's employees.

6.

Funds received or held in escrow accounts that may be withdrawn on
demand or within 14 days from the date of deposit, except escrow
funds held as SAVINGS or TIME DEPOSITS (see Part I, Section 1,
Subsection H, for general treatment of escrow funds).

7.

All matured TIME CERTIFICATES OF DEPOSITS, even if interest is
paid after maturity, unless the deposit agreement specifically
provides for automatic renewal at maturity (automatically renewable
time deposits remain TIME DEPOSITS until redeemed) or unless the
deposit agreement specifically provides for the funds to be
transferred to a SAVINGS DEPOSIT.
NOTE:
Recent rulings of the Depository Institutions Deregulation
Committee allow DEPOSITORY INSTITUTIONS to continue paying interest
on a TIME DEPOSIT certificate for the first 7 days following the
date of maturity.

- 18 8.

All matured TIME DEPOSIT OPEN ACCOUNTS that have not been redeemed
in conformance with a written notice provided by the depositor
indicating an Intention to withdraw the deposit at the expiration
of the notice period, unless the deposit agreement specifically
provides for the funds to be transferred to a SAVINGS DEPOSIT.

9.

CHECKS or DRAFTS drawn by or on behalf of a NON-U.S. office of
the reporting depository institution on an account maintained at
any of the institution's U.S. offices.

10.

DEMAND DEPOSIT accounts at NON-U.S. offices of the reporting insti­
tution that are guaranteed payable in the U.S. or when the depositor
Is guaranteed payment at a U.S. office.

i

T

11.

An obligation to pay on demand or within 14 days a check (or other
instrument, device, or arrangement for the transfer of funds)
drawn on the reporting institution, where the account of the
institution's customer already has been debited.

12.

The institution's liability on PRIMARY OBLIGATIONS described in
Part I, Section 1, Subsection E.3(a), (b), (d), and (e), that
are issued by the reporting institution in ORIGINAL MATURITIES
of less than 14 days.

13.

DUE BILLS described in Part I, Section 1, Subsection E.3(c),
that are issued by the reporting institution in ORIGINAL MATURITIES
of less than 14 days.

14.

CREDIT BALANCES that meet the criteria for DEMAND DEPOSITS as
described in the box at the top of page 17.

15.

Any funds received by the reporting depository institution's
AFFILIATE and later channeled to the reporting institution
by the AFFILIATE in the form of a DEMAND DEPOSIT.

Exclude from DEMAND DEPOSITS the following categories of liabilities that
have an ORIGINAL MATURITY of less than 14 days:
1.

HYPOTHECATED DEPOSITS.
Please note that for purposes of this
report, HYPOTHECATED DEPOSITS do not include DEPOSITS simply
serving as collateral for loans.

2.

Funds received and credited to DEALER RESERVE or DEALER DIFFERENTIAL
ACCOUNTS that the reporting institution is not obligated to make
available to either the dealer or the dealer ' 9 creditors.

3.

CHECKS OR DRAFTS drawn by the reporting institution on the Federal
Reserve or on a deposit account maintained at another DEPOSITORY
INSTITUTION.

4.

REPURCHASE AGREEMENTS involving obligations of, or fully guaranteed
as to principal and Interest by, the U.S. Government or a Federal
agency.

- 19 5.

DUE BILLS issued by any entity that are collateralized within
three business days by securities similar to the securities
purchased (see Part I, Section 1, Subsection E.3.C.).

6.

Except for DUE BILLS, any PRIMARY OBLIGATION issued or undertaken
as a means of obtaining funds, regardless of the use of the
proceeds, when transacted with the U.S. office of the following
EXEMPT ENTITIES:
A.

U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;

B.

a U.S. BRANCH OR AGENCY of a bank organized under foreign
(NON-U.S.) law (including U.S. BRANCHES AND AGENCIES of FOREIGN
OFFICIAL BANKING INSTITUTIONS);

C.

EDGE ACT and AGREEMENT CORPORATIONS;

D.

mutual and stock savings banks;

E.

building or savings and loan associations, and homestead
associations;

F.

cooperative banks;

G.

industrial banks;

H.

credit unions;

I.

the U.S. Government and its agencies and instrumentalities such
as the Federal Home Loan Bank Board, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks, Banks
for Cooperatives, the Federal Home Loan Mortgage Association,
Federal Deposit Insurance Corporation, Federal National
Mortgage Corporation, Federal Financing Bank, Student Loan
Marketing Association, National Credit Union Share Insurance
Fund and National Credit Union Administration Central Liquidity
Facility;

J.

Export-Import Bank of the U.S.;

K.

Government Development Bank of Puerto Rico;

L.

Minbanc Capital Corporation;

M.

securities dealers, but only when the borrowing (a) has a mat­
urity of one day, (b) is in IMMEDIATELY-AVAlLABLE FUNDS, and
(c) is in connection with the clearance of securities; and

N.

the U.S. Treasury (U.S. TREASURY TAX AND LOAN ACCOUNT NOTE
BALANCES).

-

0.

20

-

New York State Investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING
BUSINESS and that are majority-owned by one or more NON-U.S.
banks.

7.

Funds obtained from state and municipal housing authorities under
L0AN-T0-LENDER PROGRAMS involving the issuance of tax exempt bonds
and the subsequent lending of the proceeds to the reporting insti­
tution for housing finance purposes.

8.

Borrowings from a Federal Reserve Bank.

9.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting
depository institution and that are ineligible for discount at
Federal Reserve Banks (PRIMARY OBLIGATIONS described in Part I,
Section 1, Subsection E.4.b.).
These transactions are reported
in Schedule A, Item 1.

10.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Part I.
Section 1, Subsection E.4.a. These transactions are reported
in Schedule A, Item 1.

11.

Any liability of a U.S. BRANCH OR AGENCY OF A FOREIGN BANK to
another U.S. BRANCH OR AGENCY of the same foreign bank, or the
liability of the U.S. office of an EDGE ACT or AGREEMENT CORPORATION
to another U.S. office of the same EDGE ACT or AGREEMENT CORPORATION.

NOTE:

Unless created as a result of a bona fide cash management arrange­
ment , overdrafts in DEMAND DEPOSIT accounts are not to be treated
as negative DEMAND DEPOSITS and should not be netted against
positive balances. Overdrafts are properly reflected on an
institution's books as loans.

- 21 Report Item 1--Demand Deposits Due to Depository Institutions.
Report in Item l.a DEMAND DEPOSITS due to banks, EDGE ACT and AGREEMENT
CORPORATIONS located both in the U.S. and abroad, and U.S. BRANCHES AND AGENCIES
OF FOREIGN BANKS.
Report in Item l.b DEMAND DEPOSITS due to other DEPOSITORY
INSTITUTIONS.
PRIMARY OBLIGATIONS issued to DEPOSITORY INSTITUTIONS are not
subject to reserve requirements.
Exclude from both reporting form Items l.a and l.b:
1.

DEMAND DEPOSITS

due to:

A.

nonmember "respondent" DEPOSITORY INSTITUTIONS to the extent
that such deposits represent balances that your institution,
serving as pass-through agent or correspondent, has passed
through to the Federal Reserve Bank for the "respondent".

B.

Nondeposit and limited purpose trust companies (reported in
Item 3).

C.

Trust departments of the reporting institution and of other
DEPOSITORY INSTITUTIONS (reported in Item 3).

D.

Nondepository AFFILIATES of the reporting institution and of
other DEPOSITORY INSTITUTIONS (reported in Item 3).

E.

the U.S. Government and its agencies and instrumentalities
(reported in Item 2 or 3), including the Federal Home Loan
Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives,
the Federal Home Loan Mortgage Association, Federal Deposit
Insurance Corporation, Federal National Mortgage Corporation,
Federal Financing Bank, Student Loan Marketing Association,
National Credit Union Share Insurance Fund, National Credit
Union Administration Central Liquidity Facility, and ExportImport Bank of the U.S.

F.

Any office of the reporting institution located outside the 50
states of the United States and the District of Columbia (report­
ed on the Report of Certain Eurocurrency Transactions).

2.

A DEMAND DEPOSIT due to a DEPOSITORY INSTITUTION that is negative
(i.e., overdrawn). The amount of such negative balance should
be regarded as zero when computing the deposit total.

3.

Any negative "due from” balance which results from the reporting
institution overdrawing a deposit account at another DEPOSITORY
INSTITUTION.
Such a balance should be classified as a borrowing.

4.

Any PRIMARY OBLIGATIONS issued to NON-U.S. offices of U.S. DEPOSITORY
INSTITUTIONS and of foreign (NON-U.S.) banks (reported on the Report
of Certain Eurocurrency Transactions).

Report Item l.a— Demand Deposits Due to Banks
Include in this item the balance of all OEMAND DEPOSITS in the form of DEPOSITS
due to:
1.

U.S. offices of the following institutions:
A.

B.

U.S. commercial banks and trust companies conducting a
commercial BANKING BUSINESS;
BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS
(including BRANCHES AND AGENCIES of FOREIGN OFFICIAL
BANKING INSTITUTIONS);

C. EDGE ACT and AGREEMENT CORPORATIONS; and
D.
E.

2.

industrial banks.
New York State investment companies (chartered under
Article XII of the New York State Banking Code) that
perform a BANKING BUSINESS and that are majority-owned
by one or more NON-U.S. banks.

NON-U.S. offices of:
A.

other U.S. banks and EDGE ACT and AGREEMENT CORPORATIONS
(that is, other than the reporting institution’s own
foreign offices);

B.

commercial banks, merchant banks, discount houses, and
similar banking institutions organized under the laws
of a foreign country, Puerto Rico, Guam, American Samoa,
or the Virgin Islands, or other territories of the
United States; and

C.

FOREIGN OFFICIAL BANKING INSTITUTIONS.

All demand balances due to an institution that is listed in 1.
above may be reported net of balances "due from" those institutions (see
calculations of net reciprocal balances below).
If it is burdensome for the
reporting institution to report reciprocal balances with the above institutions
on a net basis, for purposes of this report, they may report such balances
gross.
Similarly, all transactions with the Clearing House Interbank Payment
System (CHIPS) may be reported on either a net-by-bank-basis or a gross
basis. All demand balances due to the institutions listed in 2. above
should be reported gross basis.

- 23 Exclude from this item DEMAND DEPOSITS due to mutual and stock savings banks,
credit unions, building or savings and loan associations, homestead associations
and cooperative banks.
(Reported in Item l.b).

Calculation of net reciprocal balances (an example):
Reciprocal balances arise when two "banks" maintain deposit accounts with
each other; that is, each bank has both a "due to" and a "due from" balance
with the other bank.
If the demand balance "due from" a bank is greater than
the demand deposit "due to" that same bank, the "due to" balance should be
subtracted from the "due from” resulting in a net amount "due from" that
bank, which should be included in Item 8. On the other hand, if the balance
"due to" a bank is greater than the balance "due from" that same bank, the
"due from" balance should be subtracted from the "due to" balance resulting
in a net amount "due to" that bank. To arrive at the net reciprocal balance,
the net amount "due to" each bank should be summed, and the sum should be
included in Item l.a.
All net reciprocal balances should be computed only after adjustment is
made for overdrawn accounts by placing each overdrawn account at zero balance.
Example:

A.

Calculation of Net Reciprocal Balances

"Due to" Banks
Bank A
Bank B
Bank C

B.

Net "Due to" Banks
Bank A
Bank B
Bank C

C.

$ 200,000
$ 500,000
$1,700,000

$

0
200,000
0

"Due from" Banks
$1,000,000
$ 300,000
$2,500,000
Net "Due from" Banks
$
$

800,000
0
800,000

Sura of Net Reciprocal Balances
"Due to" Banks
$ 200,000
(Report in Item l.a)

"Due from” Banks
$1,600,000
(Report in Item 8)

- 24 Report Item l.b— Demand Deposits Due to Other Depository Institutions
Include in this item DEMAND DEPOSITS, in the form of DEPOSITS, issued to:
1.

Mutual and stock savings banks;

2.

Building or savings and loan associations, homestead associations
and cooperative banks;
Credit unions.

3.

All reciprocal balances with the above institutions should be reported
gross.
Exclude from this item the balances of all DEMAND DEPOSITS in the form of
DEPOSITS due to banks included under Report Item l.a above.

- 25 Report Item 2— U.S. Government Demand Deposits
Include in this item the balance of all DEMAND DEPOSIT accounts in the form
of DEPOSITS that are designated as FEDERAL PUBLIC FUNDS for which your
institution serves as depository, such as:
1.

U.S. TREASURY TAX AND LOAN ACCOUNTS, including withheld Federal
income tax deposits, social security tax deposits and other
Federal tax payments, and the proceeds from sales of U.S. Savings
Bonds. (Exclude TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES.)

2.

U.S. TREASURY GENERAL ACCOUNTS and special collection accounts.

3.

U.S. Treasury compensating balance DEMAND DEPOSIT accounts.

4.

Postmaster's DEMAND DEPOSIT accounts.

5.

DEMAND DEPOSIT accounts of the following:
A.
B.

6

.

the Tennessee Valley Authority; and
disbursing officers of the Department of Defense and Department
of the Treasury.

DEMAND DEPOSIT accounts of other public funds that are subject to
control or regulation by the United States government, including
accounts of military organizations, such as post exchanges,
military clubs and similar entities.

Please note that for purpose of reporting this item, DEMAND DEPOSITS
include only DEPOSITS held for the credit of the U.S. Government, and exclude
all PRIMARY OBLIGATIONS to the U.S. Government. Such PRIMARY OBLIGATIONS are
exempt from reserve requirements.
Exclude from this Item:
1.

DEMAND DEPOSITS due to Federally-sponsored agencies (to be reported
in Item 3), such as:
A.

Banks for Cooperatives;

B.

Federal Home Loan Banks and the Federal Home Loan Bank Board;

C.

Federal Horae Loan Mortgage Corporation;

D.

Federal Intermediate Credit Banks;

E.

Federal Land Banks;

F.

Federal National Mortgage Corporation;

G.

Student Loan Marketing Association;

- 26 H.

Export-Inport Bank of the U.S.;

I. Federal Deposit Insurance Corporation;
J.

National Credit Union Adminstration Central Liquidity Facility;

K.

Federal Financing Bank; and

L.

National Credit Union Share Insurance Fund.

2.

DEMAND DEPOSITS held for state or local governments or their
political subdivisions (reported in Item 3).

3.

TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES (see below).

4.

PRIMARY OBLIGATIONS.

TREASURY TAX AND LOAN ACCOUNT— Treatment of Note Option and Remittance
Option:
Only the deposits credited to U.S. TREASURY TAX AND LOAN Demand Deposit
ACCOUNTS that represent funds received as of the close of business of the
current day should be reported as TREASURY TAX AND LOAN Demand Deposits.
Funds credited to Tax and Loan Demand Deposit Accounts as of the close of
business on previous days should already have been remitted to the Federal
Reserve Bank or automatically converted into open-ended interest-bearing
notes, depending on the option selected by the reporting institution. Interestbearing TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES are exempt from reserve
requirements and should not be reported as deposits.

C
c

1

- 27 Report Item 3— Other Demand Deposits
Include in this item the balance of all other DEMAND DEPOSITS in the form of
DEPOSITS and PRIMARY OBLIGATIONS, including:
1.

DEMAND DEPOSITS in the form of DEPOSITS held for:
A.

individuals, partnerships, and corporations, wherever located;

B.

states and local governments and their politcal subdivisions;

C.

U.S. Government agencies and instrumentalities including the
Federal Home Loan Bank Board, Federal Home Loan Banks, Federal
Intermediate Credit Banks, Federal Land Banks, Banks for
Cooperatives, the Federal Horae Loan Mortgage Association,
Federal Deposit Insurance Corporation, Federal National
Mortgage Corporation, National Credit Union Administration
Central Liquidity Facility, Export-Import Bank of the U.S.,
National Credit Union Share Insurance Fund, Student Loan
Marketing Association, and Federal Financing Bank;

D.

nondeposit and limited purpose trust companies;

E.

trust departments of the reporting institution and of other
institutions (see Part I, Section 1, Subsection G, for
"Treatment of Trust Funds");

F.

nondepository AFFILIATES of the reporting institution and of
other DEPOSITORY INSTITUTIONS; and

G.

FOREIGN (NON-U.S.) GOVERNMENTS, both national and regional, and
INTERNATIONAL INSTITUTIONS.

2.

Withheld state and local government taxes, insurance premiums,
and similar items (but not withheld Federal tax payments, which
are reported in Item 2).

3.

Outstanding CERTIFIED, OFFICERS' AND CASHIERS' CHECKS and DRAFTS
issued by the reporting institution, unless drawn on an account
maintained at another DEPOSITORY INSTITUTION or at a Federal
Reserve Bank.

4.

Outstanding travelers' checks and money orders sold to customers,
unless the proceeds are remitted daily to another party under a
consignment arrangement or unless already booked as a reservable
deposit.

5.

Funds received in connect ion with LETTERS OF CREDIT issued to
customers, including funds credited to CASH COLLATERAL ACCOUNTS
or similar accounts.

Funds
deposited to the credit of the reporting institution's own
trust
department where the funds involved
are utilized to cover
CHECKS or DRAFTS.
Funds
received or held in escrow accounts
that may be withdrawn
on demand or within 14 days fromthe date
of deposit, except
escrow funds held as SAVINGS DEPOSITS.
(See Part I, Section 1,
Subsection H for general treatment of escrow funds.)
PRIMARY OBLIGATIONS issued to NONEXEMPT ENTITIES, except:
(a) Those issued to FOREIGN NATIONAL GOVERNMENTS, FOREIGN
OFFICIAL BANKING INSTITUTIONS, and INTERNATIONAL INSTITU­
TIONS (to be reported on the Report of Certain Eurocurrency
Transactions).
(b) Funds received from the sales of BANKERS ACCEPTANCES that
are created and discounted by the reporting depository
Institution and that are ineligible for discount at
Federal Reserve Banks (PRIMARY OBLIGATIONS described in
Part I, Section 1, Subsection E.4.b). These transactions
are reported in Schedule A, Item 1.
(c) Certain obligations issued by the reporting institution's
nondepository AFFILIATES (PRIMARY OBLIGATIONS described
in Part I, Section 1, Subsection E.4.a. These trans­
actions are reported in Schedule A, Item 1.
Noninterest-bearing deposits subject to negotiable orders of
withdrawal (NINOWS).

- 29 Other Transaction Accounts (Items 4 through 6)
Report as "Other Transaction Accounts" those DEPOSITS authorized
for automatic transfer (ATS), those subject to TELEPHONE TRANSFER OR PRE­
AUTHORIZED TRANSFER, and those subject to negotiable orders of withdrawal (NOW
ACCOUNTS).
Report Item 4— ATS Accounts
Report in Item 4 the balance of all ATS ACCOUNTS. ATS ACCOUNTS are
SAVINGS DEPOSITS of individuals that are authorized for automatic transfer
to DEMAND DEPOSIT or other accounts pursuant to written agreement arranged
in advance between the reporting institution and the depositor.
Report Item 5— Telephone or Preauthorized Transfer Accounts
Report in Item 5 the balance of SAVINGS DEPOSITS, TIME DEPOSITS, or
accounts under the terms of which, or which by Dractice of the reporting
institution, the depositor is permitted or authorized to make more than three
withdrawals per month for purposes of transferring funds to another account
or for making a payment to a third party by means of preauthorized or telephone
agreement, order or instruction.
An account that permits or authorizes more than three such withdrawals
in a calendar month is a TRANSACTION ACCOUNT whether or not more than three
such withdrawals actually are made in a calendar month.
A PREAUTHORIZED TRANSFER includes any arrangement by the reporting institution
to pay a third party from the account of a depositor upon written or oral
instruction (including an order received through an automated clearing house
(ACH), or any arrangement by the reporting institution to pay a third party
from the account of the depositor at a predetermined time or on a fixed
schedule.
Also report in this item the balance of SAVINGS DEPOSITS, TIME DEPOSITS
or accounts in which payments may be made to third parties by means of a
debit card, an automated teller machine, remote service unit or other electronic
device.
An account is not a "TRANSACTION ACCOUNT" merely by virtue of an arrange­
ment that permits withdrawals for the purpose of repaying loans and associated
expenses, such as insurance and escrow requirements, at the same reporting
institution (as originator or servicer). In addition, an account is not a
TRANSACTION ACCOUNT because withdrawals to be paid directly to the depositor
could be effected by telephone or preauthorized order.
Exclude from this item those accounts that permit no more than three
telephone or preauthorized transfers a month to another account of the depositor
in the same institution or to a third party.

- 30 Item 6--N0W Accounts
Report in Item 6 the balance of all NOW (Negotiable Order of Withdrawal)
ACCOUNTS. NOW ACCOUNTS represent interest-bearing DEPOSITS that can be
withdrawn or transferred to third parties by issuance of a negotiable or
transferable instrument. NOW ACCOUNTS are authorized by Federal law and are
limited to accounts in which the entire beneficial interest is held by:
1.

one or more individuals; or

2.

a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for profit,
such as church organizations; professional associations; trade
associations; labor unions; fraternities, sororities and similar
social organizations; and nonprofit recreational clubs.

Report Item 7— Total Transaction Accounts
Report in this item the sum of Items la, lb, 2, 3, 4, 5, and 6.

Deductions (Items 8 and 9)

Report Item 8— Demand Balances Due From Depository Institutions
Report in Item 8 all DEMAND DEPOSIT balances in the fora of DEPOSITS
(exclude PRIMARY OBLIGATIONS) that are due from U.S. offices of the following
institutions located in the U.S. Do not include in this item any deposit
due from these institutions that are negative (i.e., overdrawn).
1.

U.S. commercial banks and trust companies conducting a commercial
BANKING BUSINESS;

2.

EDGE ACT and AGREEMENT CORPORATIONS;

3.

industrial banks;

4.

U.S. BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) T3ANKS (including
U.S. BRANCHES AND AGENCIES of FOREIGN OFFICIAL BANKING INSTITUTIONS);

5.

mutual or stock savings banks;

6.

credit unions; and

7.

building or savings and loan associations, homestead associations
or cooperative banks.

Also include in this item DEMAND DEPOSIT balances due from a correspondent
DEPOSITORY INSTITUTION that have not been passed through to the Federal Reserve
by the correspondent institution.

- 31 Reporting Instruction:
For purposes of this report, the reporting institution
may report reciprocal demand balances with the institutions listed in 1.
through 4. of the paragraph above either on a net-by-lnstitution basis or on
a gross basis, whichever method proves to be less burdensome. Those
institutions reporting reciprocal demand balances on a net basis should see
the sample calculation under Reporting Item l.a. Similarly, transactions
with the Clearing House Interbank Payments System (CHIPS) may also be reported
on a gross or net-by institution basis. All demand balances with the
institutions listed in 5. through 7. of the paragraph above should be reported
gross of balances "due to" those institutions.
Exclude from Item 8:
1.

all balances due from Federal Reserve Banks, including:
a)

your institution's reserve balances held directly with the
Federal Reserve;

b)

your institution's reserve balances that were passed through
to the Federal Reserve by a correspondent;

c)

reserve balances of another institution for which your
institution is serving as pass-through agent (correspondent)
and that were passed through by your institution to the
Federal Reserve;

d)

your institution's clearing balance maintained at a Federal
Reserve Bank.

Note, however, that if your institution passes its reserves to
the Federal Reserve through a correspondent, any DEMAND DEPOSIT
balances that you have at the correspondent that were not passed
through by the correspondent to the Federal Reserve should be
reported in this item.
2. DEMAND DEPOSIT balances due from other DEPOSITORY INSTITUTIONS
that are pledged by the reporting institution and are not available
for immediate withdrawal.
3.

TIME and SAVINGS DEPOSIT balances held at other DEPOSITORY INSTI­
TUTIONS .

4. Trust funds deposited in other DEPOSITORY INSTITUTIONS by the
reporting institution's trust department.
5.

Amounts at other DEPOSITORY INSTITUTIONS that represent balances
that will not be available for immediate withdrawal until a future
date but that have been booked by the reporting institution in
advance.

6. Cash items in process of collection (reported in Item 9).
7. Any deposit account due to a correspondent or other DEPOSITORY
INSTITUTION that is overdrawn, or amounts that, if charged against
a correspondent's account by the reporting institution, would
result in an overdraft in that account.

- 32 -

8.

Any deposit account due from a correspondent or other DEPOSITORY
INSTITUTION that is negative (i.e., overdrawn). The amount of
such negative balance should be regarded as zero when computing
the deposit total.

9.

For EDGE ACT and AGREEMENT CORPORATIONS: balances due from other
U.S. offices of the same EDGE ACT or AGREEMENT CORPORATION.

10.

For U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS: balances due
from other U.S. BRANCHES AND AGENCIES of the same foreign bank
parent.

11.

DEMAND DEPOSIT balances that are due from:
A.

any NON-U.S. office of any U.S. DEPOSITORY INSTITUTION;

R.

trust companies that do not conduct a commercial BANKING
BUSINESS;

C.

any NON-U.S. office of any foreign (NON-U.S.) banks.

D.

N.Y. State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING
BUSINESS and that are majority owned by one or more NON-U.S.
banks .

- 33 Report Item 9— Cash Items In Process of Collection
Include as CASH ITEMS in process of collection:
1. CHECKS in process of collection that are drawn on another DEPOSITORY
INSTITUTION and that are payable immediately upon presentation
in
the U.S. This includes checks in the process of collection with:
A.

Federal Reserve Banks;

B.

other DEPOSITORY INSTITUTIONS; or

C.

clearing houses.

2.

CHECKS on hand that will be presented for payment or forwarded
collection on the following business day.

3.

CHECKS drawn on the Treasury of the United States that are in
process of collection.

4.

for

Other items in process of collection that are payable immediately
upon presentation in the U.S. and that are customarily cleared or
collected by DEPOSITORY INSTITUTIONS as CASH ITEMS, such as:
A.

redeemed U.S. savings bonds if shipped for collection at
least every other day;

B.

money orders and travelers checks;

C.

NOW (Negotiable Order of Withdrawal) or NINOW (NoninterestBearing NOW) ACCOUNT drafts;

D.

credit union SHARE DRAFTS;

E.

bank DRAFTS and FEDERAL RESERVE DRAFTS;

F.

PAYABLE THROUGH DRAFTS that have been received by the reporting
institution and that will be forwarded to another DEPOSITORY
INSTITUTION;

G.

BROKERS SECURITY DRAFTS and COMMODITY OR BILL OF LADING
DRAFTS (including arrival drafts) that are payable immediately
upon presentation in the U.S.;

H.

amounts associated with automated payment arrangements In
connection with payroll deposits, Federal recurring payments,
and other items that are credited to a depositor's account
prior to the payment date to ensure that the funds are
available on the payment date;

I.

RETURNED ITEMS drawn on other DEPOSITORY INSTITUTIONS; and

- 34 J.

UNPOSTED DEBITS.

NOTE:
Checks and drafts that have been credited to a DEPOSIT account
are considered CASH ITE'IS in process of collection only when the
depositor is given immediate credit by the forwarding institution,
regardless of any right of charge back or limited availability.
Exclude from this item and from this report:
1.

2.

Items handled as MONCASH ITEMS, whether or not cleared
Federal Reserve Banks.

through

Items not payable in the U.S.

3.

Items for which the reporting institutionhasalreadyreceived
credit.

4.

COMMODITY OR BILL OF LADING DRAFTS (including arrival drafts) not
yet payable (because the merchandise against which the draft was
drawn has not yet arrived), whether or not deposit credit has been
given.

5.

ITEMS PAYABLE THROUGH received by the reporting institution
if
acting in the capacity of a clearing agent for a nondepository
institution that have not been collected from that nondepository
institution xfhich is the drawer of the draft.

6.

Credit card slips in process of collection, whether or not
deposit credit has been given.

Treatment of CASH ITEMS forwarded to Federal Reserve Banks
CASH ITEMS forwarded to a Federal Reserve Bank for collection and for
credit should continue to be reported as CASH ITEMS until such time as credit
actually has been given by a Federal Reserve Bank in accordance with the
appropriate time schedules established pursuant to Federal Reserve Bank
"Operating Circulars."
CASH ITEMS in process of collection also should reflect the actual
availability of funds received for DIRECT SENT CASH ITEMS.
Adjustment should be made to:
1.

Retain as CASH ITEMS in process of collection the amounts for items sent
directly to Federal Reserve Banks in other districts that will arrive when
those Federal Reserve offices are closed for a local or regional holiday.

2.

Remove from CASH ITEMS in process of collection the amounts for items
sent directly to Federal Reserve Banks in other districts that will arrive
when the reporting institution's Federal Reserve offices are closed.
Credit for such items will be given on a back-valued basis by the local
Federal Reserve Office.

- 35 Other Savings Deposits (Items 10 and 11)

For these items, SAVINGS DEPOSITS include DEPOSITS described in Part I,
Section 1, Subsection E.l, and PRIMARY OBLIGATIONS described in Part I, Section
1, Subsection E.3, that are not payable on a specified date or after a speci­
fied period of time from the date of deposit, but for which the depository
institution expressly reserves the right to require at least 14 days written
notice before an intended withdrawal.

Status of SAVINGS DEPOSITS when notice is required.
If the depository
institution exercises its right to require written notice of an intended
withdrawal in connection with a SAVINGS DEPOSITS, the deposit continues to be
a SAVINGS DEPOSIT and should not be classified as a TIME DEPOSIT. Where
written notice actually is required by the depository Institution and such
notice is received from a depositor, the SAVINGS DEPOSIT becomes a DEMAND
DEPOSIT after expiration of the notice period and should be reported in Item
1, 2, or 3 as appropriate.
Include as Other SAVINGS DEPOSITS:
1. Interest-bearing and noninterest-bearing SAVINGS DEPOSITS.
2.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFERS
where the depositor is not permitted or authorized to make more
than three withdrawals per month for purposes of transferring funds
to another account or for making a payment to a third party by
means of preauthorized or telephone agreement, order or instruction.

3.

SAVINGS DEPOSITS maintained as compensating balances or pledged
as collateral for loans. For purposes of this report such SAVINGS
DEPOSITS are not defined as HYPOTHECATED DEPOSITS.

4.

Escrow deposits where the depository institution reserves the right
to require at least 14 days written notice before payment can be made
(see Part I, Section 1, Subsection H, for the general treatment
of escrow funds).

5.

INTEREST paid by crediting SAVINGS DEPOSIT accounts.

6.

SAVINGS DEPOSITS in the form of Individual RetirementAccounts
(IRA) or Keogh Plan accounts.

7.

CLUB ACCOUNTS, such as Christmas, vacation or other similar accounts,
as specified in the Treatment of Club Accounts below.

8.

CREDIT BALANCES that meet the criteria described in the
for SAVINGS DEPOSITS.

9.

Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by its AFFILIATE in
the form of a SAVINGS DEPOSIT.

box

above

- 36 -

Treatment of Club Accounts
All CLUB ACCOUNTS, whether in the form of SAVINGS DEPOSITS or TIME
DEPOSITS, will be reported as SAVINGS DEPOSITS by all commercial hanks that
were members of the Federal Reserve System (a) on or after July 1, 1979, but
that withdrew from membership prior to September 1, 1980; or (b) on September 1,
19 80, and by all EDGE ACT or AGREEMENT CORPORATIONS.
For all other DEPOSITORY INSTITUTIONS, only those CLUB ACCOUNTS in the
form of SAVINGS DEPOSITS should be reported as SAVINGS DEPOSITS.
For all
other DEPOSITORY INSTITUTIONS, those CLUB ACCOUNTS in the form of TIME DEPOSITS
should be reported as TIME DEPOSITS.

Limitations on SAVINGS DEPOSITS. SAVINGS DEPOSIT accounts are limited to
accounts in which the entire beneficial interest is held by:
1.

One or more individuals.

2.

A partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
education, or other similar purpose, and not operated for profit,
such as church organizations; professional associations; trade
associations; labor unions; fraternities, sororities and similar
social organizations; and nonprofit recreational clubs.

3.

The United States; any state, county, municipality, or their
political subdivisions; or the District of Columbia, the Common­
wealth of Puerto Rico, the Virgin Islands, American Samoa, Guam,
or their political subdivisions.

4.

Any other organization or entity— for example, insurance companies,
credit unions, savings and loan associations, savings banks, and
Federally-sponsored lending agencies.

Please note, however, that SAVINGS DEPOSITS of any organization or
entity not described in categories 1 through 3 above are limited to a maximum
balance of $150,000. Balances held by these entities that are in excess of
the $150,000 limitation should be reported as DEMAND DEPOSITS in Item 1 or 3.
The $150,000 limitation is applicable for commercial banks, EDGE ACT or
AGREEMENT CORPORATIONS and U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS subject
to 12 CFR Part 217 or 12 CFR Part 329.
Exclude from Other SAVINGS DEPOSITS:
1.

NOW (Negotiable Order of Withdrawal) ACCOUNTS (reported in Item 6),
and NIN0W ACCOUNTS (reported in Item 3).

- 37 2.

ATS ACCOUNTS (reported in Item 4).

3.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFERS
(reported in Item 5), unless the depositor is not permitted or not
authorized to make more than three withdrawals per month for purposes
of transferring funds to another account or for making a payment
to a third party by means of preauthorized or telephone agreement,
order or instruction.

4.

Special passbook or statement accounts, such as "ninety-day notice
accounts," "golden passbook accounts," or deoosits labeled as "savings
certificates", that have a specified ORIGINAL MATURITY of 14 days
or more (reported in Items 13 or 14).

5.

INTEREST accrued on SAVINGS DEPOSITS but not yet paid or credited
to a deposit account.

6.

HYPOTHECATED deposits.

7.

Funds deposited to the credit of the depository institution's
own trust department where the funds involved are utilized to
cover CHECKS or DRAFTS.
Such funds are TRANSACTION ACCOUNTS
and are reported in Item 3.

Report Item 10— Other Savings Deposits— Personal
Report in Item 10 the balance of all Other SAVINGS DEPOSITS that represent
funds deposited to the credit of or in which the entire beneficial interest
is held by a depositor who is a NATURAL PERSON.
Include as PERSONAL SAVINGS DEPOSITS:
1.

Individual Retirement Accounts (IRA) and Keogh Plan accounts in the
form of SAVINGS DEPOSITS.

2.

Escrow accounts, such
asfunds held for tax or insurance payments,
if the depositor is a
NATURAL PERSON and other conditions of a
SAVINGS DEPOSIT are met.

3.

Trust funds held in the name of a trustee or other fiduciary,
whether or not a NATURAL PERSON, if the entire beneficial interest
is held by NATURAL PERSONS and other conditions of a SAVINGS
DEPOSIT are met.

Report Item 11— Other Savings Deposits— Nonpersonal
Report
in
funds deposited
by, a depositor
listed above in

Item 11 the balance of all Other SAVINGS DEPOSITS that represent
to the credit of,or
in which any beneficial interest is held
which is not a NATURAL PERSON (including those organizations
2, 3, or 4 under Limitations on SAVINGS DEPOSITS).

Report Item 12— Total Other Savings Deposits

Report in this item the sum of Items 10 and 11.

- 38 Time Deposits (Items

13, 14, 15, and 16)

Include In Items
13, 14, and 15 the balance of all TIME DEPOSITS, in
the
form of both DEPOSITS and PRIMARY OBLIGATIONS, that are outstanding at the
close of business each day. Item 13 includes PERSONAL TIME DEPOSITS; Item 14
NONPERSONAL TIME DEPOSITS; Item 15 is the total of Items 13 and14; and Item
16 includes all TIME
DEPOSITS, whether personal or nonpersonal, that are in
denominations of $100,000 or more.

For these items TIME DEPOSITS include DEPOSITS described in Part I, Section
1, Subsection E.l, and PRIMARY OBLIGATIONS described in Part I, Section 1,
Subsection E.3, that are payable on a specified date, after a specified period
of time from the date of deposit, or after a specified notice period, which
in all cases may not be less than 14 days from the date of deposit.

Reporting of Deposits Issued on a Discount Basis or on Which Interest is
Prepaid
TIME DEPOSITS issued on a discount basis should be reported initially
on the basis of the amount of funds actually received by the depository
institution. For example, if the reporting institution received $96,000 in
exchange for a certificate of deposit issued at face value of $100,000, only
the $96,000 received at the time of issuance should be reported initially as a
TIME DEPOSIT. However, as the institution's obligation to the depositor
increases over the life of the deposit, representing INTEREST earned on the
deposit, the incremental amounts as credited to the certificate also should be
reported as TIME DEPOSITS.
TIME DEPOSITS for which INTEREST has been prepaid should be reported
on the basis of the face value of the deposit issued by the depository
institution without deduction for the amount of prepaid INTEREST. For example,
if the depository institution received $10,000 in exchange for a certificate
of deposit issued at a face value of $10,000 and prepaid $500 of INTEREST, the
institution should report as a TIME DEPOSIT the $10,000 received at the time
of issuance. For reporting purposes, the $500 prepaid INTEREST should not
be deducted from the face amount of the certificate.
Include as TIME DEPOSITS:
1.

TIME CERTIFICATES OF DEPOSIT, whether evidenced by negotiable or
nonnegotiable Instruments.

2.

TIME DEPOSIT, OPEN ACCOUNTS, evidenced by written contracts.

- 39 3.

CLUB ACCOUNTS, such as Christmas, vacation or other similar
accounts, in the form of TIME DEPOSITS.
Such CLUB ACCOUNTS
are to be reported In Items 13 through 16 by all DEPOSITORY
INSTITUTIONS except commercial banks that were members of the
Federal Reserve System (a) on or after July 1, 1979, but that
withdrew from membership prior to September 1, 1980; or (b)
on September 1, 1980, and EDGE ACT or AGREEMENT CORPORATIONS.
For purposes of this report, these institutions should include
such CLUB ACCOUNTS In Other Savings Deposits (Items 10 and 11).

4.

Savings certificates, notice accounts, passbook accounts (but not
SAVINGS DEPOSITS).

5.

MONEY MARKET TIME DEPOSITS (certificates).

6.

Funds received or held in escrow
after not less than 14 days from
less than 14 days written notice
Part I, Section 1, Subsection H,
escrow funds).

7.

accounts that may be withdrawn
the date of deposit or after not
of an intended withdrawal (see
for the general treatment of

Interest-bearing and noninterest-bearing TIME DEPOSITS.

8.

DEPOSITS in time accounts of Individual Retirement Account (IRA)
funds or Keogh Plan accounts.

9.

TIME DEPOSITS maintained as compensating balances or pledged as
collateral for loans.

10.

All INTEREST paid by crediting TIME DEPOSITS accounts.

11.

TIME DEPOSIT accounts at NON-U.S. offices of the reporting
DEPOSITORY INSTITUTION when the DEPOSIT is payable in the U.S.
or is guaranteed payable at a U.S. office.

12.

The reporting institution's liability on PRIMARY OBLIGATIONS
described in Part I, Section 1, Subsection E.3 (a), (b), (d),
and (e), that are issued in ORIGINAL MATURITIES of 14 days or
more to NONEXEMPT ENTITIES.

13.

DUE BILLS described in Part I, Section 1, Subsection E.3(c) that
are issued in ORIGINAL MATURITIES of 14 days or more.

14.

CREDIT BALANCES that meet the criteria for TIME DEPOSIT described
In the box at the top of page 38.

15.

Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by the AFFILIATE in
the form of a TIME DEPOSIT.

- 40 Exclude from TIME DEPOSITS the following categories of liabilities that have
an ORIGINAL MATURITY of 14 days or more.
1.

HYPOTHECATED DEPOSITS. Please note that for purposes of this report,
HYPOTHECATED DEPOSITS do not include DEPOSITS simply serving as
collateral for loans.

2.

Funds received and credited to DEALER RESERVE OR DEALER DIFFERENTIAL
ACCOUNTS that the reporting Institution is not obligated to make
available to either the dealer or the dealer's creditors.

3.

REPURCHASE AGREEMENTS involving obligations of, or fully guaranteed
as to principal and interest by, the U.S. Government or a Federal
agency.

4.

DUE BILLS issued to any entity that are collaterized within three
business days by securities similar to the securities purchased
(see Part I, Section I, Subsection E.3.c).

5.

Except for DUE BILLS, any PRIMARY OBLIGATION Issued or undertaken
to obtain funds, regardless of the use of the proceeds, when
transacted with the U.S. offices of EXEMPT ENTITIES.

6.

SUBORDINATED NOTES AND DEBENTURES.

7.

Funds obtained from state and local housing authorities under
LOAN-TO-LENDER PROGRAMS involving the issuance of tax exempt bonds
and the subsequent lending of the proceeds to the reporting
institution for housing finance purposes.

8.

Borrowings from a Federal Reserve Bank.

9.

DEPOSITS for which the depository institution merely reserves the
right to require at least 14 days written notice of an intended
withdrawal.

10.

ATS and NOW ACCOUNTS (reported in Items 4 and 6 respectively).

11.

SAVINGS DEPOSITS or accounts authorized for TELEPHONE OR PRE­
AUTHORIZED TRANSFER (reported in Items 5, 10, or 11).

12.

Other SAVINGS DEPOSITS reported in Items 10 and 11.

13.

Matured TIME certificates of DEPOSITS, even if INTEREST is paid
after maturity, which are to be reported as DEMAND DEPOSITS
in Items 1, 2, or 3, unless the deposit provides for automatic
renewal at maturity.

14.

INTEREST accrued on TIME DEPOSITS but not yet paid or credited
to a DEPOSIT account.

- 41 15.

CLUB ACCOUNTS, such as Christmas, vacation and other similar
accounts, reported by commercial banks that were members of the
Federal Reserve System (a) on or after July 1, 1979, but that
withdrew from membership prior to September 1, 1980; or (b) on
September 1, 1980, and EDGE ACT or AGREEMENT CORPORATIONS. CLUB
ACCOUNTS of these institutions should be reported in Item 10 or 11
(Other Savings Deposits).

16.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Part I,
Section 1, Subsection E.4.a.). These transactions are reported
in Schedule A, Item 2.b.

Report Item 13— Time Deposits— Personal
Include as PERSONAL TIME DEPOSITS, regardless of ORIGINAL MATURITY, funds
deposite'd to the credit of, or in which the entire beneficial interest is
held by, a NATURAL PERSON, including:
1.

A TIME DEPOSIT that was issued before October 1, 1980 to and held
by a NATURAL PERSON, regardless of its transferability.

2.

A TIME DEPOSIT that is issued to and held by a NATURAL PERSON and
that contains a statement on the document that evidences the account
— whether in certificate, passbook, statement or book-entry form— that
it is not TRANSFERABLE or that it is TRANSFERABLE only on the
books of, or with the permission of, the reporting institution.

3.

Individual Retirement Account (IRA) and Keogh Plan TIME DEPOSITS.

4.

Nontransferable TIME DEPOSITS held by a trustee or other fiduciary,
whether or not a NATURAL PERSON, if the entire beneficial interst
in the TIME DEPOSIT is held by a NATURAL PERSON. A nontransferable
TIME DEPOSIT that Is an asset of a pension fund would normally be
regarded as a PERSONAL TIME DEPOSIT since the entire beneficial
interest of such funds normally is held by NATURAL PERSONS.

5.

Escrow accounts, such as funds held for tax or insurance payments,
if the depositor is a NATURAL PERSON, and the other conditions of
a TIME DEPOSIT are met, notwithstanding that the funds are held by
the depository institution or other organization as escrow agent.

6.

CLUB ACCOUNTS.
(To be reported here by all DEPOSITORY INSTITUTIONS
except commercial banks that were members of the Federal Reserve
System (a) on or after July 1, 1979 but that withdrew from membership
prior to September 1, 1980; or (b) on September 1, 1980, and EDGE
ACT or AGREEMENT CORPORATIONS).

- 42 Report Item 14— Time Deposits— Nonpersonal
Report in Item 14 the balance of all NONPERSONAL TIME DEPOSITS.
Include as NONPERSONAL TIME DEPOSITS:
1. funds deposited to the
credit of, or in which
any beneficial
interest is held by, adepositor which is not
a NATURAL PERSON.
2.

3.

A TIME DEPOSIT that is issued on or after October 1, 1980, to and
held by a NATURAL PERSON that does not contain on its face a state­
ment that it is not TRANSFERABLE.
a TIME DEPOSIT that is TRANSFERABLE, except a
TIME DEPOSIT
issued before October 1, 1980, to orheld by a NATURAL PERSON.

Exclude from this item
on or after October 1,
is not TRANSFERABLE or
the permission of, the

a TIME DEPOSIT issued to and held by a NATURAL PERSON
1980, if it includes on its face a statement that it
if it is TRANSFERABLE only on the books of, or with
reporting institution.

Report Item 14.a.— Time Deposits— Nonpersonal with Original Maturities of
less than 4 years

Report Item 14.b.— Time Deposits— Nonpersonal with Original Maturities of
4 years or more

- 43 Report Item 15— Total Time Deposits
Report in this item the sum of Items 13, 14.a. and 14.b.

Report Item 16— Amount of time deposits in Denomination of SIQO.OOO or More
(Included in Items 13 and 14)
Report in this item the balance of all TIME DEPOSITS (both PERSONAL and
NONPERSONAL) of $100,00 or more that are reported in Items 13 and 14. Include:
1.

Negotiable and nonnegotiable and TRANSFERABLE and nontransferble
certificates of deposit issued in denominations of $100,000 or
more, and OPEN ACCOUNTS and other TIME DEPOSITS having balances
of $100,000 or more.

2.

TIME DEPOSITS originally issued in denominations of less than
$100,000 but that, because of INTEREST paid or credited, or because
of additional deposits, now have a balance of $100,000 or more.

3.

The balance of all PRIMARY OBLIGATIONS of $100,000 or more that
are reported in Items 13 and 14.

In determining if a TIME DEPOSIT is $100,000 or more, do not combine
DEPOSITS that are represented by separate certificates or accounts,
even if held by the same customer.
Exclude from this item DEMAND DEPOSITS, SAVINGS DEPOSITS, NOW ACCOUNTS, ATS
ACCOUNTS, TELEPHONE TRANSFER accounts or PREAUTHORIZED TRANSFER accounts with
balances of $100,000 or more.

- 44Report Item 17— Vault Cash
Include as Vault Cash:
1.

United States currency and coin owned and held by the reporting
institution that may, at any time, be used to satisfy depositors'

claims.
2.

United States currency and coin in transit _ o a Federal Reserve
t_
Bank for which the reporting institution has not yet received
credit, and in transit from a Federal Reserve Bank when the report­
ing institution has already been charged.

3.

United States currency and coin in transit _to a correspondent
DEPOSITORY INSTITUTION if the reporting institution's account
at the correspondent institution has not yet been credited, and
in transit from a correspondent institution if the reporting
institution's account at the correspondent institution has
already been charged.

Exclude as Vault Cash:
1.

Foreign (NON-U.S.) currency and coin.

2.

Silver and gold coin and other currency and coin whose numismatic
or bullion value is in excess of face value.

3.

United States currency and coin that the reporting institution does
not have full and unrestricted right to use, such as coin collect­
ions held for safekeeping for Customers, currency and coin pledged
as collateral by the reporting institution or by customers, or
currency and coin sold under a repurchase agreement or purchased
under a resale agreement.

- 45 Schedule A— Other Reservable Obligations by Remaining Maturity

This schedule includes a breakdown, by maturity, of amounts outstanding
of funds obtained (1) through the use of ineligible acceptances ("finance
bills") and (2) through the issuance of obligations by AFFILIATES.

Schedule A— Items 1 and 2— Amounts Outstanding of Funds Obtained Through Use of
Ineligible Acceptances and Through Issuance of Obligations by Affiliates.
Report the following transactions in this item:
1.

Amounts outstanding of funds obtained through use of ineligible
acceptances ("finance bills"): Report the dollar amounts outstanding
of funds obtained by the reporting institution (or its OPERATIONS
SUBSIDIARIES) through its sale of any ineligible acceptances (accep­
tances not eligible for discount by Federal Reserve Banks— see
Section 13 of the Federal Reserve Act 12, U.S.C. Sections 346 and
|
372) when the obligation is issued or undertaken and discounted by
the reporting institution (or its OPERATIONS SUBSIDIARIES) as a
means of obtaining funds and is issued t t NONEXEMPT ENTITIES.
c
Ineli­
gible acceptances are sometimes referred to as finance bills. The
amounts to be reported are the funds received, and not necessarily
the face amounts of the ineligible acceptances issued or undertaken.
Therefore, the amounts outstanding reported in this item may differ
from the face amounts of outstanding ineligible acceptances.

2.

Amounts outstanding of funds obtained through issuance of obligations
by affiliates: Report the dollar amount^ outstanding of the funds
obtained by the reporting institution (ot its OPERATIONS SUBSIDIARIES)
when its nondepository AFFILIATES use the proceeds of the obligations
that they issue to supply or to maintain the availability of funds
to the reporting institution.
Such obligations may be in the form
of promissory notes, acknowledgements of advance, DUE BILLS, or
similar obligations (written or oral), with maturities of less than
four years. However, such obligations should be reported only to
the extent that they would have constituted "DEPOSITS" as described
in Part I, Section 1, Subsection E.l, or "PRIMARY OBLIGATIONS" as
described in Part I, Section 1, Subsection E.3, had they been
issued directly by the reporting depository institution.
DUE BILLS issued by the reporting institution's AFFILIATES
are reservable deposits without regard tb the purpose of the DUE
BILLS or to whom issued unless collateralized within three business
days from the date of issuance by a security similar to the security
purchased from the customer of the reporting institution's AFFILIATES.
The dollar amounts outstanding of DUE Blj.LS that are not so collaterlized
are to be reported depending on their maturity, in Items 1, 2.a. or
2.b. of this schedule.

- 46 Exclude from Schedule A funds obtained by the reporting institu­
tion through obligations Issued by AFFILIATES and deposited at the
reporting institution in the form of DEMAND, SAVINGS, or TIME DEPOSITS.
Such funds should be reported in the body of the Report of Transaction
Accounts, Other Deposits and Vault Cash as DEMAND, SAVINGS or TIME
DEPOSITS, as appropriate.
If the AFFILIATE'S obligation is determined to be a DEPOSIT
or PRIMARY OBLIGATION to be reported in Schedule A, then the
appropriate maturity category is determined by the shorter of
(1) the maturity of the AFFILIATE'S obligation or (2) the maturity
of the obligation issued by the reporting institution to the
AFFILIATE, or, in the case of assets purchased from the reporting
institution, the remaining maturity of the assets purchased.
The following chart summarizes the conditions under which
the proceeds from the issuance of an obligation by an AFFILIATE
would be a DEPOSIT or a PRIMARY OBLIGATION and indicates the
appropriate section of the FR 2900 in which the funds should be
reported:
Funds received by
reporting institution
in form of a DEPOSIT
or a PRIMARY
OBLIGATION

Funds received by
reporting institution
not in the form of a
DEPOSIT or a PRIMARY
OBLIGATION

1.

AFFILIATE'S obligation—
would have been
a DEPOSIT or a PRIMARY
OBLIGATION if issued
by the reporting
institution

To be reported on
FR 2900 as a DEMAND,
SAVINGS, or TIME DEPOSIT
as appropriate.
(See Example 1 below)

To be reported on
FR 2900 Schedule A
(See Example 2 below)

2.

AFFILIATE'S obligation—
would not have been
a DEPOSIT or a PRIMARY
OBLIGATION if issued
by the reporting
institution

To be reported on
FR 2900 as a DEMAND,
SAVINGS, or TIME DEPOSIT
as appropriate.
(See Example 3 below)

To be excluded from
both the body and
Schedule A of the
Fr 2900.
(See Example 4 below)

Example 1:
The AFFILIATE Issues commercial paper with a maturity of 6 months to a
nonfinancial corporation and Immediately supplies the proceeds to the reporting
institution by buying from the reporting institution a time certificate of deposit
(CD) with an original maturity of one year.
While both the AFFILIATE'S and the
reporting institution's obligations are reservable, reserves need not be maintained
against both obligations.
Thus, reserves should be held against the amount of
funds supplied to the reporting institution, i.e., the dollar amount of the CD.
The appropriate reserve ratio is determined by the shorter of the maturity of the
AFFILIATE'S commercial paper or the reporting institution's CD. In this example,
reserves would be held for a TIME DEPOSIT with a 6-month maturity.
The funds
received by the reporting institution would be reported in Item 14a (Nonpersonal
Time Deposits with Original Maturity of less than 4 years).

- 47 Example 2:
The AFFILIATE issues an unsecured DUE BILL to a NONEXEMPT entity with
a maturity of 3 months and supplies the proceeds to the reporting institution
when the DUE 3ILL has a remaining maturity of 2 months.
The AFFILIATE supplies
the proceeds of the DUE BILL to the reporting institution by purchasing from
the reporting institution assets maturing in 1 month.
The AFFILIATE'S obligation
is reservable, but the sale of the assets by the reporting institution to the
AFFILIATE is not.
The reporting institution must hold reserves on the trans­
action because the AFFILIATE'S obligation is subject to reserve requirements.
The maturity category is determined by the remaining maturity of the assets
sold by the reporting institution to the AFFILIATE (1 month), which is shorter
than the remaining maturity of the DUE BILL (2 months).
In this example, the
reserve requirement would be on the AFFILIATE'S DUE BILL (a PRIMARY OBLIGATION)
and the appropriate maturity would be one month, which is the remaining
maturity of the assets purchased.
The funds received by the reporting institu­
tion should be reported in Item 2.b. of Schedule A.

Example 3:
The AFFILIATE sells commercial paper with a maturity of 3 months to a
commercial bank and supplies the proceeds to the reporting institution by
depositing such funds in the reporting institution in a DEMAND DEPOSIT
account.
The AFFILIATE'S sale of commercial paper to a commercial bank is
not subject to reserve requirements, but the DEMAND DEPOSIT account is.
Thus, the reporting institution would hold reserves on the DEMAND DEPOSIT
account as a TRANSACTION ACCOUNT.
The funds received by the reporting
institution should be reported in Item 3 (Other Demand Deposits).

Example 4:
The AFFILIATE sells U.S. government securities under an agreement to
repurchase and uses the proceeds to purchase assets from the reporting
institution.
Neither the sale of the U.S. government securities under an
agreement to repurchase nor the purchase of assets is subject to reserve
requirements.
Thus, the reporting institution would not hold reserves against
this transaction.
The funds received by the reporting institution should be
excluded entirely from the Report of Transaction Accounts, Other Deposits
and Vault Cash.

- 48 The maturities to be reported in Items 1 and 2 are the remaining
maturities of the obligations at the time the proceeds are supplied to the
reporting institution.
Schedule A— Item 1— Report amounts outstanding of funds received from issuance
of obligations by AFFILIATES and funds obtained through the use of
ineligible acceptances maturing in less than 14 days.
Schedule A— Item 2.a— Amounts Outstanding of Funds Obtained Through Use of Ineligible
Acceptances and Through Issuance of Obligations by Affiliates Maturing
in 14 Days or More but Less than 4 Years— Personal
Report

in Item 2.a as personal obligations:

Funds deposited to the credit of, or in which the entire beneficial
interest is held by, a depositor which is a NATURAL PERSON, and
maturing in 14 days or more but less than 4 years including:
(a)

an obligation that is issued before October 1, 1980 to and
held by a NATURAL PERSON, regardless of its transferability; and

(b)

an obligation that is issued on or after October 1, 1980 to
or held by a NATURAL PERSON and that contains a statement
on its face that it is not TRANSFERABLE.

Schedule A— Item 2.b— Amounts Outstanding of Funds Obtained Through Use of
Ineligible Acceptances and Through Issuance of Obligations by Affiliates
Maturing in 14 Days or More but Less than 4 Years— Nonpersonal
Report in Item 2.b the balance of all such obligations maturing in
14 days or more but less than 4 years consisting of:
1.

Funds deposited to the credit of, or in which any beneficial
interest is held by, a depositor which is not a NATURAL PERSON.

2.

An obligation that is TRANSFERABLE, except an obligation
issued before October 1, 1980, to and held by a NATURAL
PERSON.

3.

An obligation that is issued on or after October 1, 1980,
to and held by a NATURAL PERSON that does not contain on
its face a statement that it is not TRANSFERABLE.

-

49

-

Part II

INSTRUCTIONS FOR THE PREPARATION OF THE REPORT OF CERTAIN EUROCURRENCY TRANSACTIONS
FOR ALL DEPOSITORY INSTITUTIONS OTHER THAN U.S. BRANCHES AND
AGENCIES OF FOREIGN BANKS

Section 1 below contains general instructions and guidelines, which
provide the basic framework for reporting on the Report of Certain Eurocurrency
Transactions (FR 2950) and which describe, in general, the nature of reservable
Eurocurrency liabilities and the specific procedures for reporting these
liabilities.
Section 2 contains item-hy-item instructions for completing the FR 2950.
This section describes the coverage of each item to be reported and specifies
the categories of deposits to be included in or excluded from each item.
A glossary, which appears at the end of this booklet, defines in
alphabetical order important terras and phrases that appear in all capital
letters throughout the instructions booklet.

SECTION 1— GENERAL INSTRUCTIONS
A.

Who Must Report.
A Report of Certain Eurocurrency Transactions (FR 2950) must be submitted
each week to the Federal Reserve Bank In whose District the reporting
institution Is located by:
1.

2.

B.

Each U.S. commercial bank and other DEPOSITORY INSTITUTION with foreign
(NON-U.S.) branches or with outstanding borrowings from other NON-U.S.
institutions; and
EDGE ACT and AGREEMENT CORPORATIONS with foreign (NON-U.S.) branches
or with outstanding borrowings from other NON-U.S. institutions.

How to Report.
The report should be prepared in accordance with the following procedures:
B.l.

Consolidation.
a.

For commercial banks and other DEPOSITORY INSTITUTIONS except
EDGE ACT and AGREEMENT CORPORATIONS, a consolidated report must
be prepared combining accounts of the following entities:
(1)

the head office of the institution;

(2)

all branches of the institution located in the 50 states
of the United States or the District of Columbia; and

- 50 (3)

b.

all OPERATIONS SUBSIDIARIES of the Institution located
in the 50 states of the United States or the District of
Columbia.
Note, however, that Edge Act andAgreement
subsidiaries must report separately and should not be
consolidated as OPERATIONS SUBSIDIARIES.

For EDGE ACT and AGREEMENT CORPORATIONS, a report shall be
prepared that combines, on an aggregated basis, the accounts
of all offices of a corporation operating:
(1)

within the

same state, and

(2)

within the same Federal Reserve District.

This combination, which may be comprised of one or more offices,
is referred to as the "reporting institution".
This consolidation method is identical to that used for the Report of
Transaction Accounts, Other Deposits and Vault Cash (FR 2900).
Preparing a consolidated report involves two steps:
a.

Combining all comparable accounts of the individual entities
to be consolidated on an account-by-account basis; and

b.

eliminating all intrabank or intracorporation transactions
that reflect the existence of debtor-creditor relationships
among the entities to be consolidated.

B.2. Denomination. All balances should be rounded and reported to the
nearest thousand U.S. dollars.
B.3.
Foreign (NON-U.S.) currency-denominated transactions. Transactions
denominated in NON-U.S. currency should be valued initially in U.S. dollars
at the prevailing exchange rate at the time of the transaction and periodically
revalued in accordance with generally accepted accounting principles.
B.4.
Record-keeping. The amounts reported for each day should reflect the
amount outstanding at the "close of business" for that day.
The term "close
of business" refers to the time established by the reporting institution
as the cut-off time for posting transactions to its general ledger accounts
for that day.
The time designated as close of business should be reasonable
and applied consistently.
For any day on which the reporting institution
was closed, report the closing balance as of the preceding day.
For purposes of this report, the reporting institution is open when both
of the following criteria are met:
a.

a majority of all offices are open to conduct business; and

b.

entries are made to the general ledger accounts of the
institution for the day on which the transaction is conducted.

-

51 -

A more detailed discussion of record-keeping
I, Section 1, Subsection C.5 of this booklet.
C.

can be foundin Part

Amounts to be Reported.
The amount to be reported is the dollar amountoutstanding
business each day of:

1

.

at theclose of

Gross borrowings from NON-U.S. offices of other DEPOSITORY INSTITUTIONS
and from certain designated NON-U.S. entities;

2.

Gross balances due to own NON-U.S. branches;

3.

Gross balances due from own NON-U.S. branches;

4.

Assets sold to and held by own NON-U.S. branches that were acquired
from U.S. offices; and

5.

Credit extended by own NON-U.S. branches to U.S. residents (other
than to DEPOSITORY INSTITUTIONS).

The amounts reported will be used to assess reserve requirements
at ratios that the Board of Governors of the Federal Reserve System may,
from time to time, prescribe.
In order to avoid the inadvertent imposition
of duplicate reserve requirements, the amounts reported on this report should
not be included in any item on the Report of Transaction Accounts, Other
Deposits and Vault Cash (FR 2900).

- 52 -

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS

Commercial banks, EDGE ACT and AGREEMENT CORPORATIONS, and other
DEPOSITORY INSTITUTIONS that do not maintain branches outside the 50 states of
the United States and the District of Columbia but that had outstanding borrow­
ings from NON-U.S. offices of other U.S. and NON-U.S. DEPOSITORY INSTITUTIONS
or from certain other designated NON-U.S. entities need only complete Column 1
of this report.
Commercial banks, EDGE ACT and AGREEMENT CORPORATIONS, and
other DEPOSITORY INSTITUTIONS that have NON-U.S. branches should complete all
items and should enter zeros where appropriate.
A reporting institution that
has no outstanding balances to report in any column should check the box on
the upper left portion of the reporting form, sign the report, and return it
to the Federal Reserve Bank.
Column 1— Gross Borrowings from Non-U.S. Offices of Other Depository Institutions
and from Certain Designated Non-U.S. Entities. Report in this column all out­
standing borrowings with ORIGINAL MATURITIES of less than 4 years by the reporting
institution that were obtained from:
1.

NON-U.S. offices of other U.S. and NON-U.S. DEPOSITORY INSTITUTIONS;

2.

FOREIGN (NON-U.S.) NATIONAL GOVERNMENTS and FOREIGN OFFICIAL BANKING
INSTITUTIONS; and

3.

INTERNATIONAL INSTITUTIONS.

Include as borrowings:
1.

obligations such as promissory notes, ACKNOWLEDGEMENTS OF ADVANCE, or
similar obligations;

2.

DUE BILLS or similar obligations that remain uncollateralized after three
business days;

3.

overdrawn balances at NON-U.S. offices of other banks; and

4.

assets of the reporting institution— other than U.S. Government or
Federal agency securities— sold under agreements to repurchase.

Borrowings from NON-U.S. banking offices of other banks should be reported in
this column regardless of the terminology used to describe such borrowings,
including items that are referred to as "Federal funds." Report all borrowings
on a gross basis.

- 53 Column 2— Gross Balances Due to Own Non-U.S. Branches. Report In this column
the outstanding balance at the close of business each day of gross liabilities
of the reporting institution's U.S. offices to NON-U.S. branches of the reporting
institution.
Such gross liabilities may arise from clearing activities, foreign
exchange transactions, funds channeled to U.S. banking offices, etc.
These
liabilities include, among other items:
1.

funds placed on deposit at the head office or other U.S. offices of the
reporting institution by NON-U.S. branches, whether in the form of DEMAND
or TIME DEPOSITS;

2.

borrowings by the head office or other U.S. offices of the reporting
institution from the reporting institution's NON-U.S. branches;

3.

overdrawn deposit accounts of the head office or other U.S. offices of the
reporting Institution at NON-U.S. branches (note that such overdrawn
accounts should not be treated as negative balances in Column 3); and

4.

assets sold under agreement to repurchase by the head office or by other
U.S. offices to NON-U.S. branches.

Column 3— Gross Balances Due from Own Non-U.S. Branches. Report in this column
the outstanding balance at the close of business each day of gross claims of
the reporting institution's U.S. offices on NON-U.S. branches of the reporting
institution.
Such gross claims may arise from clearing activities, foreign
exchange transactions, unremitted branch earnings, funds channeled to NON-U.S.
offices, etc.
These claims include, among other items:
1.

funds placed on deposit by the head office and other U.S. offices of
the reporting institution at NON-U.S. branches, whether in the form
of DEMAND or TIME DEPOSITS;

2.

funds advanced by the head office and by other U.S. offices of the
reporting institution to NON-U.S. branches;

3.

overdrawn deposit accounts of the reporting institution's NON-U.S. branches
at the head office and at other U.S. offices of the reporting institution
(note that such overdrawn accounts should not be treated as negative
balances in Column 2); and

4.

assets purchased from NON-U.S. branches under agreements to resell.

Column 4— Assets Sold to and Held by Own Non-U.S. Branches Acquired from U.S.
Offices. Report in this column the amount of outstanding funds received by the
reporting institution for assets sold outright to, and still held by, the
reporting Institution's NON-U.S. branches or NON-U.S. offices of an affiliated
EDGE ACT or AGREEMENT CORPORATION that were acquired from the. reporting insti­
tution's U.S. offices.
The amount reported here includes assets that are claims on both U.S. and NONU.S. entities.

- 54 Include such assets as:
1.

loans and securities sold outright by U.S. offices of the reporting
institution to its own NON-U.S. branches; and

2.

participations In loans and other assets sold to the reporting insltutlon's
NON-U.S. branches.

Do not include In this column sales of assets under agreements to repurchase by
U.S. offices to the reporting institution's NON-U.S. branches.
Such transactions
should be reported in Column 2.
Column 5— Credit Extended by Own Non-U.S. Branches to U.S. Residents. Report in
this column the amount of credit extended directly by the reporting institution's
NON-U.S. branches to U.S residents. However, if the amount of credit extended
to U.S. residents by any single NON-U.S. branch did not exceed $1 million at
any time during the computation period, the amount for that branch should not
be reported.
In addition, if the aggregate amount of credit extended to any
particular U.S. resident by all NON-U.S. branches did not exceed $100,000, the
amount of credit to that U.S. resident should not be reported.
Also, do not
include as credit extended to U.S. residents:
1.

amounts reported in Column 4 representing credit to U.S. residents
acquired from U.S offices of the reporting Institution;

2.

credit extended to other DEPOSITORY INSTITUTIONS, to EDGE ACT and
AGREEMENT CORPORATIONS or to U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS;
and

3.

credit extended to a NON-U.S. branch, office, subsidiary, or AFFILIATE
controlled by one or more U.S. organizations if the proceeds of the credit
will be used in Its NON-U.S. business.

G-1

GLOSSARY OF TERMS
This section provides definitions, arranged in alphabetical order, for
terms that appear in all capital letters in Parts I and II of this manual.
These definitions are used for purposes of the Report of Transaction Accounts,
Other Deposits and Vault Cash and the Report of Certain Eurocurrency Trans­
actions. They may differ from definitions that appear in other rules, regula­
tions, statutes, or reports.
ACKNOWLEDGEMENT OF ADVANCE
A notification by a DEPOSITORY INSTITUTION of its liability for funds that
have been received.
Acknowledgements of advance may take the form of a
telegraphic advice, written receipt, Issuance of a credit memo or other
documentation, or simply an oral communication confirming the receipt of
funds under a borrowing-lending arrangement. Acknowledgements of advance are
PRIMARY OBLIGATIONS of the issuing DEPOSITORY INSTITUTION.
AFFILIATE
An affiliate is any corporation, association, or other similar organization:
1.

Of which the reporting depository institution directly or indirectly
owns or controls either a majority of the voting shares or more than
50 percent of the number of shares voted for the election of the
directors, trustees, or other persons exercising similar functions at
the preceedlng election, or controls in any manner the election of a
majority of the directors, trustees, or other persons exercising
similar functions; £ £

2.

Of which control is held directly or indirectly through stock owner­
ship, or in.any other manner, by shareholders of the reporting depository
institution who own or control either a majority of the shares of such
depository institution or more than 50 percent of the number of shares
voted for the election of directors of the reporting depository insti­
tution at the preceding election, or by trustees for the benefit of the
shareholders of any such depository institution; or

3.

Of which the majority of its directors, trustees, or other persons
exercising similar functions also are directors of any one depository
institution; or

4.

Which owns or controls directly or indirectly either a majority of the
shares of capital stock of the reporting depository institution or
more than 50 percent of the number of shares voted for the election
of directors, trustees, or other persons exercising similar functions
of the reporting depository institution or controls in any manner the
election of a majority of directors, trustees, or other persons exer­
cising similar functions of the reporting depository institution, or
for the benefit of whose shareholders or members all or substantially
all the capital stock of a depository institution is held by trustees.

G-2

AGREEMENT CORPORATION
A state-chartered corporation that has entered into an "agreement”
with the Federal Reserve Board under the provisions of Section 25 of
the Federal Reserve Act to limit its banking activities to those
permitted to an EDGE ACT CORPORATION.

ATS ACCOUNT
A SAVINGS DEPOSIT or account in which the entire beneficial interest
is held by one or more individuals and that is authorized for automatic
transfer to DEMAND DEPOSIT or other accounts pursuant to written agree­
ment arranged in advance between the reporting institution and the depositor.

BANKERS ACCEPTANCE
A draft or bill of exchange usually drawn under a LETTER OF CREDIT
issued by the reporting institution to a customer and "accepted" by the
reporting institution— i.e., the reporting institution assumes an
obligation to make payment at maturity.
Generally, a bankers acceptance
is eligible for discount by a Federal Reserve Bank if it is used to
finance the export or import of goods, the domestic shipment of goods,
and the foreign or domestic storage of goods and if it has a remaining
maturity of 90 days or less (or six months or less if for agricultural
purposes).
Bankers acceptances used to finance dollar exchange are also
eligible for discount by a Federal Reserve Bank if the remaining maturity
is 3 months or less.
Bankers acceptances Issued for other purposes,
such as "finance bills" and working capital acceptances, are ineligible
for discount at Federal Reserve Banks.
(See 12 U.S.C. § 346.)

BANKING BUSINESS
The business of accepting deposits, making loans, and providing
related services.
The banking business does not include the acceptance
of trus t fund s .

BILL OF LADING DRAFT
— See COMMODITY OR BILL OF LADING DRAFT.

BROKERS SECURITY DRAFT
A draft with securities or title to securities attached that Is drawn
to obtain payment for the securities.
This draft Is sent to a bank for
collection with instructions to release the securities only on payment
of the draft.

G-3

CASH COLLATERAL ACCOUNT
A liability account that is established typically in connection with
the issuance of a commercial LETTER OF CREDIT by the reporting Institution.
A cash collateral account appears on the books of the reporting institution,
either through transfer of funds from a customer's DEPOSIT account or a
deposit of cash, in an amount equal to all or some portion of the authorized
amount of the LETTER OF CREDIT.
As DRAFTS are drawn under the LETTER OF
CREDIT and presented to the reporting institution for payment, the amounts
of the DRAFTS are charged to the account.
After the LETTER OF CREDIT
expires, any balance remaining in the account is paid or credited to the
customer.

CASH ITEM
Any instrument, whether negotiable or not, for the payment of money
which is payable on demand.
Cash item includes checks in the process
of collection drawn on a DEPOSITORY INSTITUTION, U.S. Government checks,
and other items that are customarily cleared or collected by DEPOSITORY
INSTITUTIONS as cash items.

CERTIFICATE OF INDEBTEDNESS
An unsecured promissory note that represents borrowings by a credit
union from its members or nonmembers.

CERTIFIED, OFFICERS' and CASHIERS' CHECK
An unpaid CHECK or DRAFT, other than a trust department CHECK, drawn
on the reporting DEPOSITORY INSTITUTION by an authorized person for any
purpose, including repayment of "Federal funds" transactions or the
payment of dividends.

CHECK
An instrument drawn on a DEPOSITORY INSTITUTION and signed by the
maker or drawer promising to pay a certain sum of money on demand to the
order of a specified person or bearer.

CLUB ACCOUNTS
Christmas, vacation, or similar SAVINGS or TIME DEPOSITS for which
there are written contracts providing that no withdrawal can be made
until a certain number of periodic deposits have been made during a
period of not less than three months, even though some of the deposits
are made within 14 days of the end of the period.

G-4

COMMODITY OR BILL OF LADING DRAFT
A DRAFT that is issued in connection with the shipment of goods.
If
the commodity or bill of lading draft becomes payable only when the ship­
ment of goods against which it is payable arrives, it is an arrival draft.
Arrival drafts are usually forwarded by the shipper to the collecting
DEPOSITORY "INSTITUTION with instructions to release the shipping documents
(e.g., bill of lading) conveying title to the goods only upon payment of
the draft.
Payment, however, cannot be demanded until the goods have
arrived at the drawee's destination.
Arrival drafts provide a means of
insuring payment of shipped goods at the time that the goods are released.

CREDIT BALANCE
A balance booked by the reporting institution as a credit balance jar
maintained by the reporting institution and owed to a third party that
is incidental to or that arises from the exercise of banking powers.

DEALER RESERVE OR DEALER DIFFERENTIAL ACCOUNT
An account that arises when a merchant or dealer enters into an arrange­
ment with the reporting institution to furnish the dealer with financing
of installment loans by selling the loans to the reporting institution
at discount.
The proceeds of the sale that the dealer receives from the
institution represent only a portion (such as 90 per cent) of the amount
due on the Installment loans. Typical accounting entries by the reporting
institution are a debit to "loans" for the principal amount due on the
loans purchased, a credit to the dealer's "demand deposit" account for
90 percent of the amount, and a credit to a "dealer reserve" or a "dealer
differential" account for the remaining 10 percent.
Since the dealer
does not have access to the funds credited to the reporting institution's
dealer reserve or differential account and may not make withdrawals from
the account, no deposit liability arises until such time as the reporting
institution becomes liable to the dealer for any portion of the funds.

DEMAND DEPOSIT
A DEPOSIT described in Part I, Section 1, Subsection E.l, or a PRIMARY
OBLIGATION described in Part I, Section 1, Subsection E.3, that is
payable immediately on demand or issued in an original maturity of less
than 14 days, or that is payable with less than 14 days notice, or for
which the reporting institution does not reserve the right to require at
least 14 days written notice of an Intended withdrawal.

DEPOSITORY INSTITUTION
Any of the following institutions that is empowered to perform a
BANKING BUSINESS and that performs this business as a substantial part
of its operations and is insured or is eligible to apply to become insured:

G-5

1. U.S. commercial banks:
A. national banks;
B. state-chartered commercial banks;
C. trust companies that perform a commercial BANKING BUSINESS;
D. private banks or unincorporated banking
institutions organized as partnerships
or proprietorships and authorized to perform
commercial BANKING BUSINESS;
2. U.S. BRANCHES AND AGENCIES of FOREIGN (NON-U.S.) BANKS;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions; and
9. industrial banks, including Morris Plan banks, thrift and loan
companies, and industrial savings banks.
Please note that for purposes of these instructions, U.S. AGENCIES of
FOREIGN (NON-U.S.) BANKS, and EDGE ACT and AGREEMENT CORPORATIONS are
included in the term DEPOSITORY INSTITUTION.
The term DEPOSITORY INSTITUTION excludes the following:
1.

a trust company whose principal function is
to accept and execute
trust arrangements or act in a purely fiduciary capacity;

2.

a cash depository, cooperative exchange,
organization whose principal function is
institution;

or
similar depository
to serve as a safe deposit

3. a finance company, whether or not empowered to
receive deposits or sell certificates of deposit;
4. U.S. Government agencies and instrumentalities, such as the Federal
Home Loan Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Association, Student Loan Marketing
Association, Federal Financing Bank, National Credit Union Share

G-6

Insurance Fund, Federal Deposit Insurance Corporation, Federal
National Mortage Corporation, and National Credit Union Administration
Central Liquidity Facility;
5. Export-Import Bank of the U.S.;
6. Government Development Bank of Puerto Rico;
7. Minbanc Capital Corporation; and
8. Federal Reserve Banks.

DEPOSITS
— See Part I, Section 1, Subsection E.l and E.2, or Section 204.2 (a)
(1) (1 through iii) of Regulation D.

DIRECT SENT CASH ITEM
A CASH ITEM sent for collection directly by a DEPOSITORY INSTITUTION
in one Federal Reserve District for collection from a Federal Reserve
Bank located in another district.

DRAFT
An instrument signed by the drawer ordering the payment of a certain
sum of money on demand to the order of a specified person or bearer.

DUE BILL
An Instrument representing an obligation or promise to sell or deli­
ver at some future date securities, foreign exchange, etc.
Due bills
generally are issued in lieu of the item to be sold or delivered at
times when the Item is in short supply or otherwise currently unavailable.
The issuance of due bills may give rise to a reservable deposit (see
Part I, Section 1, Subsection E.3(c)).

EDGE ACT CORPORATION
A corporation chartered by the Federal Reserve Board under Section
25(a) of the Federal Reserve Act to engage in international banking and
f1nanci al ope ratlo n s .

EXEMPT ENTITIES
U.S. offices of the following:
1. U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;

G-7

2. a U.S. BRANCH or AGENCY of a bank organized under foreign (NONU.S.) law;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. industrial banks;
5. mutual and stock savings banks;
6. mutual and stock building or savings and loan associations and
homestead associations;
7. cooperative banks;
8. credit unions;
9. the U.S. Government and its agencies and instrumentalities, such as
the Federal Reserve Banks, Federal Home Loan Bank Board, Federal
Home Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Association, Federal Deposit Insurance Corporation, Federal National
Mortgage Corporation, National Credit Union Administration Central
Liquidity Facility, Federal Financing Bank, Student Loan Marketing
Association, and National Credit Union Share Insurance Fund.
10. Export-Import Bank of the U.S.;
11. Government Development Bank of Puerto Rico;
12. Minbanc Capital Corporation;
13. securities dealers, but only when the borrowing (a) has a
maturity of one day, (b) is in immediately-available funds,
and (c) is in connection with the clearance of securities; and
14. the U.S. Treasury (TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES).
15. New York State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING BUSINESS
and that are majority-owned by one or more NON-U.S. banks.

FEDERAL PUBLIC FUNDS
Funds of the U.S. Government and funds the deposit of which is subject
to the control and regulation of the United States or any of its officers,
agents, or employees.

FEDERAL RESERVE DRAFT
A DRAFT issued by a DEPOSITORY INSTITUTION that is drawn on its account
at a Federal Reserve Bank and that is payable by the Federal Reserve Bank.

G-8

FOREIGN (NON-U.S.) BANK
i

A bank organized under foreign (NON-U.S.) law.
Foreign banks include
commercial banks, merchant banks, discount houses, and similar depository
Institutions, including nationalized banks that perform essentially a
BANKING BUSINESS and do not perform, to any significant extent, official
functions of FOREIGN (NON-U.S.) GOVERNMENTS.

FOREIGN (NON-U.S.) GOVERNMENTS
Central, national, state, provincial, and local governments in foreign
(NON-U.S.) countries (including their ministries, departments, and agen­
cies) that perform functions similar to those performed in the United
States by government entities.
Foreign (NON-U.S.) governments also Include FOREIGN (NON-U.S.)
OFFICIAL BANKING INSTITUTIONS.

FOREIGN (NON-U.S.) NATIONAL GOVERNMENT
A central or national government that performs functions similar to
those performed by the Federal Government of the United States.
State,
provincial, and local governments are not included as foreign national
governments.

FOREIGN OFFICIAL BANKING INSTITUTIONS
Central banks, nationalized banks and other banking Institutions In
foreign (NON-U.S.) countries that are owned by central governments and
that have as a significant part of their function activities similar to
those of a treasury; central bank, development bank, exchange control
office, stabilization fund, monetary agency, currency board, etc.

HYPOTHECATED DEPOSITS
Funds received by the reporting institution that are recorded as
DEPOSITS generally in accordance with state law and that reflect periodic
payments by a borrower on an instalment loan.
These payments are accumulated
until the sum of the payments equals the entire amount of principal and
INTEREST on the loan, at which time the loan is considered paid in full.
The amounts received by the reporting institution are not immediately
used to reduce the unpaid balance of the note, but are assigned to the
reporting institution and cannot be reached by the borrower or the borrower's
creditors.
Hypothecated deposits are not to be reported as reservable
deposits.
DEPOSITS which simply serve as collateral for loans are not considered
hypothecated deposits for purposes of this report.

G-9

IMMEDIATELY-AVAILABLE FUNDS
Funds that the reporting institution can invest or dispose of on the
sane business day that the transaction giving rise to receipt of the
funds is executed.
Such funds are sometimes referred to as "collected",
"actually collected", "finally collected", or "good” funds.

INTEREST
Any payment to or for the account of a depositor as compensation for
the use of deposit funds.
Payments to a depositor that are not related
to the use of deposit funds by the reporting institution are not interest.
For example, if existing depositors are offered monetary or other compen­
sation for attracting new depositors, that compensation does not constitute
interest.
Similarly, one-time premiums (whether In the form of merchandise,
credit, or cash) that are used to attract new depositors represent adver­
tising or promotional expenses rather than a payment of interest, provided
that their wholesale cost does not exceed $5.00 per deposit under $5,000
and $10 per deposit of $5,000 or more. Finally, interest does not include
the cost of administrative or processing services absorbed by the reporting
institution in relation to deposit accounts.
For example, the reporting
Institution's payment of state personal property taxes on its deposits
or the market value of an advisory individual account analysis of the
depositor does not constitute interest.

INTERNATIONAL INSTITUTION
(1)
Any international entity of which the United States is a member,
such as the International Bank for Reconstruction and Development (World
Bank), International Monetary Fund, Inter-American Development Bank, and
the United Nations', and (2) other foreign, international, or supranational
entities of which the United States is not a member, such as the African
Development Bank, Central Treaty Organization, European Atomic Energy
Community, European Economic Community, European Development Fund,
Caribbean Development Bank, Bank for International Settlements, etc.
(See Regulation Q [12 CFR § 217.126].)

ITEMS PAYABLE THROUGH
— See PAYABLE THROUGH DRAFT.

LETTER OF CREDIT
A letter of advice from a DEPOSITORY INSTITUTION to its agent or corre­
spondent, requesting that a sum of money be made available to the person
named in the letter, under specified conditions.

G-10
l o a n - t o - l e :; d e r p r o g r a m

A loan-to-lender program involves the Issuance of tax-exempt bonds by
a state or local housing authority and the subsequent lending of the pro­
ceeds to a reporting institution with the condition that these funds be
used to make specified types of residential real estate loans.
The funds
advanced to institutions under the program are evidenced by a loan agreement
and a promissory note issued by the institution to the housing authority.

MONEY MARKET TIME DEPOSIT

A nonnegotiable TIME DEPOSIT that must be Issued in denominations of
$10,000 or more with an ORIGINAL MATURITY of exactly 26 weeks.
The maxi­
mum rate of INTEREST which DEPOSITORY INSTITUTIONS may pay on these deposits
is tied to the discount rate (auction average) on the most recently
issued six-month Treasury bills.
Compounding of interest is not permitted.

NATURAL PERSON
A NATURAL PERSON for purposes of this report is an individual or a sole
proprietorship.
The term does not mean a corporation owned by an individ­
ual, a partnership or other association.

NINOW ACCOUNT
A deposit or account, on which no INTEREST or dividend is paid, from
which withdrawals are made by negotiable or transferable Instruments for
the purpose of making payment to third parties.

NONCASH ITEM
Any item that is not a CASH ITEM.

NONEXEMPT ENTITY
Any entity that is not listed as an EXEMPT ENTITY.

NONPERSONAL SAVINCS DEPOSITS
A SAVINGS DEPOSIT that is not a TRANSACTION ACCOUNT and that represents
funds deposited to the credit of, or in which any beneficial Interest is
held by, a depositor which is not a NATURAL PERSON.

G -ll

NONPERSONAL TIME DEPOSIT
NO IMPERSONAL TIME DEPOSIT means:
(1)

a TIME DEPOSIT representing funds deposited to the credit of,
or in which any beneficial interest is held by, a depositor
that is not a NATURAL PERSON;.

(2)

(3)

a TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT issued
before October 1, 1980, to and held by a NATURAL PERSON; or
a TIME DEPOSIT issued on or after October 1, 1980, to and
held by a NATURAL PERSON that does not contain on its face a
statement that it is not TRANSFERABLE.

NON-U.S.
Any geographic location, including the Commonwealth of Puerto Rico and
U.S. territories and possessions, outside the 50 states of the United
States and the District of Columbia.

NON-U.S. BANK
—

See FOREIGN BANK.

NOW ACCOUNT
A deposit or account on which INTEREST and dividends are paid and the
customer is allowed to make withdrawals by negotiable or transferable
Instruments for the purpose of making transfer to third parties. On or
after December 31, 1980, all DEPOSITORY INSTITUTIONS are authorized to
offer NOW ACCOUNTS.
Prior to that date only DEPOSITORY INSTITUTIONS
in
certain states are authorized to offer NOW ACCOUNTS.
NOW ACCOUNTS are authorized by Federal law and are limited to accounts
in which the entire beneficial interest is held by:
1. one or more individuals; or
2. a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for
profit, such as church organizations, professional associations,
trade associations, labor unions, fraternities, sororities and
similar social organizations, and nonprofit recreational clubs.

G-12

OPERATIONS SUBSIDIARY
A subsidiary of a DEPOSITORY INSTITUTION (1) that serves in effect as
a separately incorporated department performing functions that the
DEPOSITORY INSTITUTION is empowered to perform at locations where the
DEPOSITORY INSTITUTION is authorized to engage in business and (2) that
satisfies the appropriate regulatory ownership requirements (see 12
C.F.R. §§ 7.7376 and 250.141).
Examples include credit card companies,
mortgage companies, leasing companies or safe deposit companies.

ORIGINAL MATURITY
The length of time from the date of deposit to the earliest date that
the funds may be withdrawn at the option of the depositor under the
terms of the deposit agreement. Where a deposit is withdrawable on a
specified date, the maturity is determined by the length of time between
the issue date and the specified maturity date. Where a deposit has no
specified maturity but can be withdrawn after written notice is provided
to the reporting institution, the maturity is determined by the length
of the required notice period.
ROLL-OVER CERTIFICATES OF DEPOSIT,
multiple maturity deposits, alternative maturity deposits, or deposits
providing other maturity combinations that permit a depositor the option
of withdrawing the deposit at different dates or periods of time should
be reported on the basis of the earliest allowable withdrawal date.

PAYABLE THROUGH DRAFT
A DRAFT drawn upon a nonbank payor, which states on its face that
it is payable through a particular bank.

PERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that represents funds deposited to the credit of or
in which the entire beneficial interest is held by a depositor who is a
NATURAL PERSON.

PERSONAL TIME DEPOSITS
A TIME DEPOSIT that represents funds deposited to the credit of or in
which the entire beneficial interest is held by a NATURAL PERSON, including
(a) a TIME DEPOSIT that was Issued before October 1, 1980 to and held by
a NATURAL PERSON, regardless of its transferability or (b) a TIME DEPOSIT
that is issued to or held by a NATURAL PERSON and that contains a statement
on its face that it is not TRANSFERABLE.

G-13
PREAUTHORIZED TRANSFERS
— See TELEPHONE and PREAUTHORIZED TRANSFERS.

PRIMARY OBLIGATIONS
— See Part I, Section 1, Subsections E.3 through E.6 of these instruc­
tions and Section 204.2, (a)(l)(iv), (a)(l)(v) and (a)(l)(vii) of Regu­
lation D.

REPURCHASE AGREEMENT
An arrangement involving the sale of a security or other asset under
a prearranged agreement to repurchase the same or similar security or
asset at a later date.

RETURNED ITEM
A CHECK or DRAFT that is returned by a drawee institution to the
presenting institution because of certain irregularities that, if waived,
might result in a loss to the drawee institution.
The item is returned
so that the presenting institution may correct the defect or take such
other action as may be necessary, such as charging the depositor's account.

ROLL-OVER CERTIFICATE OF DEPOSIT
A certificate of deposit transaction (sometimes referred to as a "rolypoly") where a depositor agrees to maintain funds on deposit with a
depository Institution at a specified rate for a certain period, usually
several years.
Instead of receiving one certificate of deposit matur­
ing at the end of the period, however, the depositor agrees to purchase
a series of short-term certificates of deposit.
The depositor initially
buys a short-term certificate, and when it matures, is required tinder the
terms of the deposit agreement to purchase another short-term certifi­
cate. This process continues until the long-term contract period expires.

SAVINGS DEPOSIT
A DEPOSIT described in Part I, Section 1, Subsection E.l, a PRIMARY
OBLIGATION described in Part I, Section 1, Subsection E.3, that is not
payable on a specified date or after a specified period of time from the
date of deposit, but for which the bank expressly reserves the right to
require at least 14 days written notice before an intended withdrawal.
Also see Section 204.2 of Regulation D.

G-14

SERVICE CORPORATION
A subsidiary corporation In which the majority of the capital stock Is
owned by one or more Institutions of the type Insured by the Federal
Savings and Loan Insurance Corporation (more precisely defined in paragraph
1077c of the Federal Home Loan Bank Board's Annotated Manual of Statutes
and Regulation).
These corporations may engage directly or indirectly
in any activities similar to activities defined In paragraph 847 of the
FHLBB's Manual.

SHARE ACCOUNT
Funds in the form of shares purchased by a member or other approved
depositor which are received or held by the credit union in its usual
course of business and for which the credit union has given, or Is
obligated to give, credit to the account of the depositor.
This account
is not payable on a specified date or after a specified period of time.
However, the credit union expressly reserves the right to require at
least 14 days written notice before an intended withdrawal of all or any
portion of the shares in an account.

SHARE CERTIFICATE
A TRANSFERABLE or nontransferable instrument or account which provides
on its face or in the underlying agreement that a specified amount of
shares is payable to the bearer or to any specified person:
1.

on a certain date, specified in the instrument or underlying
account, not less than 14 days after the purchase date of shares;
or

2.

at the expiration of a certain specified time not less than 14
days after the date the Instrument is issued or the account is
opened; or

3.

upon notice in writing which actually is required to be given by
the certificate holder not less than 14 days before the date of
repayment.

A share certificate earns a dividend, and a penalty is assessed for
early withdrawal.

SHARE DRAFT
A negotiable or nonegotiable DRAFT signed by the account holder directing
the credit union on which the draft Is drawn to pay a certain sum of
money on demand to the order of a specified person or bearer.
Such
drafts are used to withdraw funds from a SHARE DRAFT ACCOUNT.

G-15

SHARE DRAFT ACCOUNT
A SHARE ACCOUNT from which funds may be withdrawn or transferred to
third parties by issuance of a negotiable or transferable instrument or
other order.

SUBORDINATED NOTE AND DEBENTURE
An obligation satisfying all of the following requirements:

1. is not insured by a Federal agency;
2. is subordinated to the claims of depositors;
3. has an ORIGINAL MATURITY of at least seven years, or, in the case
of an obligation or serial issue that provides for any type of
scheduled repayment of principal, has a weighted average maturity
of all scheduled repayments of at least four years with no note
having a maturity of less than five years;
4. is issued by a DEPOSITORY INSTITUTION with the approval or under
the rules and regulations of Its primary Federal supervisor.

TELEPHONE AND PREAUTHORIZED TRANSFER
DEPOSITS or accounts under the terms of which a depositor is permitted
to make more than three preauthorized or telephone transfers per month
(whether to another account of the depositor or to a third party), and
accounts that permit a depositor to make payments to third parties through
automated teller machines or remote service units.
Whether an account
is a TRANSACTION ACCOUNT by virtue of the number of telephone or
preauthorized transfers (excluding loan repayments) permitted is to be
determined based upon the terms of the account contract or by practice of
the DEPOSITORY INSTITUTION and not on the basis of the actual number of
transfers made in a particular calendar month.

TIME DEPOSIT, OPEN ACCOUNT
A deposit other than a TIME CERTIFICATE OF DEPOSIT, with respect to which
there Is in force a written contract with the depositor that neither the
whole nor any part of such deposit may be withdrawn prior to the date of
maturity, which shall be not less than 14 days after the date of deposit,
or prior to the expiration of the period of notice which must be given by
the depositor in writing not less than 14 days in advance of withdrawal.

G-16
TIME DEPOSIT, TIME CERTIFICATE OF DEPOSIT
A DEPOSIT described in Part I, Section 1, Subsection E.l, or a PRIMARY
OBLIGATION described in Part I, Section 1, Subsection E.3, that is pay­
able on a specified date, after a specified period of time from the date
of deposit, or after a specified notice period, which in all cases may
be not less than 14 days from the date of deposit.
A TIME DEPOSIT may be represented by a TRANSFERABLE or nontransferable,
or a negotiable or nonnegotiable, certificate, instrument, passbook or
statement.
A nonnegotiable TIME DEPOSIT is distinguished from a non­
transferable TIME DEPOSIT in that the transferee of a nonnegotiable TIME
DEPOSIT would not be a holder in due course and would not have the ability
to cut off certain defenses of an obligor even though an exchange for value
can be made.
A nontransferable TIME DEPOSIT allows no exchange for value
to be made.

TRANSACTION ACCOUNT
A DEPOSIT or account on which the depositor or account holder is per­
mitted to make withdrawals by negotiable or transferable instrument,
payment orders of withdrawal, telephone transfers, or other similar
device for the purpose of making payments or transfers to third persons
or others.
"Transaction account" Includes:
(1)

DEMAND DEPOSITS;

(2)

deposits or accounts subject to negotiable orders of withdrawal
(NOW or SHARE DRAFT ACCOUNTS);

(3)

SAVINGS DEPOSITS or accounts in which withdrawals may be made
automatically (ATS ACCOUNTS) through payment to the DEPOSITORY
INSTITUTION itself or through transfer of credit to a DEMAND
DEPOSIT or other account in order to cover checks or drafts
drawn upon the institution or to maintain a specified balance
in, or to make periodic transfers to, such accounts; and

(4)

DEPOSITS or accounts in which withdrawals may be made by pre­
authorized transfer or payment, by telephone transfer or payment,
or by payment to third parties by means of an automated teller ma­
chine, remote service unit or other electronic device.
Regulation D
permits up to three TELEPHONE or PREAUTHORIZED TRANSFERS a month
(to another account of the depositor in the same Institution or to
a third party) before such accounts are regarded as TRANSACTION
ACCOUNTS.
Accounts that permit more than three such transfers
monthly are regarded as TRANSACTION ACCOUNTS even if not actively
used.
Transfers authorized in connection with loans made by the
Institution holding the deposit do not make the account a
TRANSACTION ACCOUNT.

G-17
TRANSFERABLE
The transferee of a transferable TIME DEPOSIT may be a holder in
due course and would have the ability to cut off certain defenses of
an obligor.
A TIME DEPOSIT is not considered a transferable TIME
DEPOSIT merely because it can be pledged as collateral for a loan from
any lender, or merely because the title or beneficial interest in the
deposit or account can be passed on in circumstances arising from death,
bankruptcy, divorce, marriage, incorapetency, attachment, or otherwise by
operation of law.
In addition, the reissuance of a TIME DEPOSIT by an
institution in the name of another or the addition or subtraction of
names on the TIME DEPOSIT will not be regarded as a transfer.

UNPOSTED CREDITS
Items that have been received for deposit and that are in process of
collection but that have not been posted to individual or general ledger
deposit accounts.
These credits should be reported as DEPOSITS.

UNPOSTED DEBITS
CASH ITEMS drawn on the reporting institution that have been "paid"
or credited by the institution and that are chargeable but that have not
been charged against DEPOSITS as of the close of business.
These items
should be reported as "cash items in process of collection" until they
have been charged to either individual or general ledger deposit accounts.

U.S.
The 50 states of the United States and the District of Columbia.

U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS
Branches and agencies of foreign (NON-U.S.) banks operate as a U.S.
office of their foreign (NON-U.S.) parent bank.
The branch or agency
may be licensed by the U.S. government, or by a state of the U.S.
As
defined by the International Banking Act of 1978 a "branch" means any
office or any plac4 of business of a foreign bank located in any state
of the United States at which DEPOSITS are received; an "agency" means
any office or any place of business of a foreign bank located in any
state of the United States at which CREDIT BALANCES are maintained incidental
to or arising out of the exercise of banking powers, CHECKS are paid, or
money is lent but at which DEPOSITS may not be accepted from citizens or
residents of the United States.

G-18
U.S. TREASURY GENERAL ACCOUNT
A Treasury account maintained at the reporting institution to which
government officers deposit funds obtained in connection with special
collections, such as customs fees or other tax collections.

U.S. TREASURY TAX AND LOAN ACCOUNT
A Treasury DEMAND DEPOSIT account maintained at the reporting DEPOSITORY
INSTITUTION through which the Treasury receives DEPOSITS (receipts),
principally of Federal tax payments and proceeds from the sale of savings
bonds.
The account does not include TREASURY TAX AND LOAN ACCOUNT NOTE
RALANCES.

U.S. TREASURY TAX AND LOAN ACCOUNT NOTE BALANCE
That balance representing the total amount outstanding of open-ended
interest-bearing notes issued by the reporting DEPOSITORY INSTITUTION to
the U.S. Treasury under the TREASURY TAX AND LOAN ACCOUNT note option
program.
A depository authorized to accept U.S. TREASURY TAX AND LOAN ACCOUNT
DEPOSITS may administer such accounts under either of two options:
(1)
the remittance option or (2) the note option.
Under the remittance
option, depositories must send the previous day's tax and loan account
balance as of the close of business to the Federal Reserve Banks.
Under
the note option, depositories will automatically convert the previous
day’s close-of-business balance in their tax and loan account to an
interest-bearing demand note, which must be fully collaterized.

CORRECTIONS TO THE INSTRUCTIONS FOR THE PREPARATION OF:

•Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900)
•Report of Certain Eurocurrency Transactions (FR 2950)
FO U BY
R SE :
•Building and Loan Associations
•Savings and Loan Associations
Page 22:
(1) The n ex t-to-last paragraph on the page should be deleted and replaced
with the following paragraph:
All demand balances due to an in stitu tio n that is lis te d in 1. above may
be reported net of balances due from" those in stitu tio n s (see calculations of
net reciprocal balances below), except for demand deposits due to New York
State Investment Companies. A due from deduction (in item 8 - Demand Balances
Due From Depository Institutions) i s not allowed for balances due from N
ew
York State Investment Companies (see page 32). Therefore balances due to N
ew
York State Investment Companies must be reported on gross basis. If i t is
burdensome for a reporting in stitu tio n to report reciprocal balances with the
above in stitu tio n s on a net basis, for purposes of th is report, such balances
may be reported gross. All demand balances due to the in stitu tio n s l is te d in
2. above should be reported gross. Due b i l l s that remain uncollateralized by
a similar security a fte r three business days that are issued to banks should
be reported in item l . a . Uncollateralized due b i l l s are the only primary
obligations that are reported in th is item, and must be reported gross.
Page 24:
(1) A new paragraph will be inserted on this page before the statement,
"Exclude from this item the balances of all D M N DEPOSITS in the form of
E AD
DEPOSITS due to banks included under Report Item l . a . above." The new
paragraph will state:
Due b i l l s that remain uncollateralized by a similar security a fte r three
business days th at are issued to Other Depository In stitutions should be
reported in item l . b . Uncollateralized due b i l l s are the only primary
obligations th at are reported in th is item, and must be reported gross.

CORRECTIONS TO THE INSTRUCTIONS FOR THE PREPARATION OF:

•Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900)
•Report of Certain Eurocurrency Transactions (FR 2950)
FO U BY
R SE :
•Commercial Banks
•Edge Act and Agreement Corporations
•Industrial Banks
Page 22:
(1) Item 2.c. Foreign Official Banking Institutions should be deleted.
Demand balances due to Foreign Official Banking Institutions should be
reported in Item 3 - Other Demand Deposits, as correctly indicated on page 27,
(item 1 .G.).
(2) The l a s t paragraph on the page should be deleted and replaced with the
following paragraph:
All demand balances due to an in stitu tio n that is l is te d in 1. above may
be reported net of balances "due from" those in stitu tio n s (see calculations of
net reciprocal balances below), except for demand deposits due to New York
State Investment Companies. A due from deduction (in item 8 - Demand Balances
Due From Depository Institutions) is not allowed for balances due from N
ew
York State Investment Companies (see page 32). Therefore balances due to N
ew
York State Investment Companies must be reported on gross basis. If i t is
burdensome for the reporting in stitu tio n to report reciprocal balances with
the above in stitu tio n s on a net basis, for purposes of this report, they may
report such balances gross. All transactions with the Clearing House
Interbank Payment System (CHIPS) must be reported on a net-by-bank-basis. All
demand balances due to the in stitu tio n s l is t e d in 2. above should be reported
on a gross basis. Due b i l l s th a t remain uncollateralized by a similar
security a f te r three business days that are issued to banks should be reported
in item l . a . Uncollateralized due b i l l s are the only primary obligations that
are reported in this item, and must be reported gross.
Page 24:
(1) A new paragraph will be inserted on this page before the statement,
"Exclude from this item the balances of all D M N DEPOSITS in the form of
E AD
DEPOSITS due to banks included under Report Item l . a . above." The new
paragraph will state:
Due b i l l s that remain uncollateralized by a similar security a fte r three
business days that are issued to Other Depository Institutions should be
reported in item l . b . Uncollateralized due b i l l s are the only primary
obligations th a t are reported in th is item, and must be reported gross.

Summary Instructions for the Preparation of the Report of Transaction
Accounts, Other Deposits and Vault Cash (FR 2900)

Under the Monetary Control Act of 1980, a depository institution that
has transaction accounts or nonpersonal time deposits is required to file with
the Federal Reserve System a Report of Transaction Accounts, Other Deposits and
Vault Cash (FR 2900).
These summary instructions provide a general description
of the items to be reported and focus on those transactions that are more common
to smaller depository institutions. More detailed instructions, including a
comprehensive discussion of the items to be reported, a discussion of certain
special topics, and a glossary that defines important terms, are provided in
the Detailed Instructions for the Preparation of the Report of Transaction
Accounts, Other Deposits and Vault Cash that is available from the Federal
Reserve Banks. 1/
This report is used for the calculation of Federal required reserves
and for construction of the monetary aggregates used by the Federal Reserve
System in the formulation and conduct of monetary policy. Efficient manage­
ment of required reserves begins with the accurate and timely preparation
of this report.
Rules governing the reserve requirement provisions of the
Monetary Control Act are contained in the Federal Reserve's Regulation D,
"Reserve Requirements of Depository Institutions,” which is available from the
Federal Reserve Banks.
GENERAL INSTRUCTIONS
Who must report. The following depository institutions that have
transaction accounts or nonpersonal time deposits must submit the Report of
Transaction Accounts, Other Deposits and Vault Cash;
1.

2.

mutual or stock savings banks;

3.

building, savings and loan, or homestead associations
and cooperative banks that are members of a Federal
Home Loan Bank or that are insured by the FSLIC (or
any institution that is eligible to apply for FSLIC
insurance);

4.

T7

Federally-insured commercial or Industrial banks (or
any bank that is eligible to apply for FDIC insurance);

credit unions that are Insured by the NCUA Board (or
any credit union that is eligible to apply for such
insurance);

Every depository institution that obtains funds from a non-U.S. source or
that has non-U.S. offices (excluding those located on U.S. military facilities
outside the U.S.) must also file with the Federal Reserve a Report of Certain
Eurocurrency Transactions. Forms and instructions for this report may be
obtained from the Federal Reserve Banks.

-2 -

5.

Edge Act and Agreement corporations;

6.

U.S. branches and agencies of foreign banks with con­
solidated worldwide bank assets in excess of $1 billion; and

7.

other U.S. branches of foreign banks that
to apply for FDIC insurance.

are eligible

Frequency of report. Commercial or industrial banks, mutual or
stock savings banks, savings and loan associations, and credit unions with
total deposits of less than $5 million as of December 31, 1979, may file
one weekly report each calendar quarter as specified by the Federal Reserve
Bank. All such institutions with total deposits of $5 million or more, as
well as all U.S. branches and agencies of foreign banks, and all Edge Act
and Agreement corporations, must file a report each week. 1/
How to report. The reporting (or computation) period is the seven-day
period that begins on Thursday and ends the following Wednesday.
The report
shall reflect amounts outstanding as of the close of business each day of the
reporting period.
For any day on which the reporting institution was closed,
the institution should report the closing balances as of the preceding day.
Amounts reported should be rounded and reported to the nearest thousand U.S.
dollars.
Banks, savings and loan associations, and credit unions shall prepare
and file a report that consolidates the head office and all branches (and
operations subsidiaries or service corporations, if applicable) located in the
50 states of the United States or the District of Columbia. U.S. branches
and agencies of foreign banks and Edge Act and Agreement corporations shall
prepare and file a report that combines all offices located within the same
state and within the same Federal Reserve District.
Negative or overdrawn balances in any account should be regarded as
zero when computing deposit totals.
Similarly, balances "due from’ or "due
*
to” other depository institutions must not be regarded as negative when such
accounts are overdrawn; rather, these accounts should be regarded as having
a zero balance when computing deposit totals.
DEFINITIONS
U.S./non-U.S . For purposes of this report, the term "United States"
(or "U.S.") is defined as the 50 states of the United States and the District
of Columbia. The terms "non-U.S." and "foreign" are defined as Puerto Rico,
territories and possessions of the United States, and all countries other than
the United States.

17

A temporary deferral of reserve and reporting requirements has been granted
for nonmember commercial or industrial banks, mutual or stock savings banks,
savings and loan associations, and credit unions that have total deposits of
less than $1 million as of December 31, 1979.

-3 -

Peposlt8. The term "deposits" has a special meaning in Regulation D
and in this report. Deposits include not only funds received by the depository
institution for which credit has been or is obligated to be given to a deposit
account maintained by the institution, but also certain other liabilities of
the institution.
Such liabilities arise from "primary obligations” that are
issued or undertaken by the depository institution as a means of obtaining
funds, and consist of:
(1) promissory notes (Including commercial paper,
credit union certificates of Indebtedness, and mortgage-backed bonds), acknowl­
edgements of advance, and other similar obligations that are issued to "non­
exempt entities" (as defined below); (2) repurchase agreements entered into
with "nonexempt entities" on any asset other than an obligation of, or fully
guaranteed as to principal and interest by, the U.S. Government or Federal
agencies; and (3) due bills, regardless of to whom issued, that have not been
collateralized within three business days from the date of issuance by a simi­
lar security. Primary obligations undertaken with "exempt entities" are not
deposits under Regulation D. Note, however, that those liabilities which your
institution books as deposits (or shares) are always deposits, regardless of
the status of the depositor.
Many of the transactions giving rise to a deposit liability are
described in the Instructions for specific items to be reported.
There
are, however, many deposit liabilities, such as those arising from "primary
obligations" described above, that are not discussed in detail in these sum­
mary instructions.
For a thorough discussion of deposits and these types of
transactions, please refer to the Detailed Instructions for the Preparation
of the Report of Transaction Accounts, Other Deposits and Vault Cash.
Exempt entitles. The term "exempt entities" that is used in these
instructions consists of U.S. offices of the following institutions:
1.

U.S. commercial banks and trust companies and their opera­
tions subsidiaries;

2.

U.S. branches or agencies of a bank organized under foreign
(non-U.S.) law;

3.

Edge Act and Agreement corporations;

A.

industrial banks;

5.

mutual and stock savings banks;

6.

building or savings and loan associations and homestead
associations;

7.

cooperative banks;

8.

credit unions;

-4 -

9.

the U.S. Government and its agencies and instrumentalities,
such as the Federal Reserve Banks, Federal Home Loan Bank
Board, Federal Home Loan Banks, Federal Intermediate Credit
Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation, Federal Deposit
Insurance Corporation, Federal National Mortgage Association,
National Credit Union Administration Central Liquidity
Facility, Federal Financing Bank, Student Loan Marketing
Association, and National Credit Union Share Insurance Fund;

10.

Export-Import Bank of the U.S.;

11.

Government Development Bank of Puerto Rico;

12.

Minbanc Capital Corporation;

13.

securities dealers, but only when the borrowing (a) has
a maturity of one day, (b) is in immediately-available
funds, and (c) is in connection with the clearance of
securities;

14.

the U.S. Treasury (Treasury Tax and Loan Account note
balances); and

15.

New York State investment companies (chartered under Article
XII of the New York State Banking Code) that perform a
banking business.

Nonexempt entities. The term "nonexempt entities” includes any
Institution other than those listed above under "exempt entities.”
Personal deposits. Personal savings and time deposits Include
nontransferable deposits in which the entire beneficial interest is held
by a natural person (an individual or a sole proprietorship).
For any such
deposit issued on or after October 1, 1980, the document that evidences
the account (the certificate, passbook, or statement) must contain a state­
ment indicating that the deposit is nontransferable; however, a deposit
issued to and held by a natural person prior to October 1, 1980, regardless
of its transferability, is also a personal deposit. Any deposit in
which the entire beneficial interest is held by a natural person in an
Individual Retirement Account or Keogh Plan Account, in an escrow account,
or in an account held by a trustee or other fiduciary is also a personal
time deposit.
Nonpersonal deposits. Nonpersonal savings and time deposits are
defined to include deposits in which any beneficial interest is held by a
depositor other than a natural person, or any deposit issued on or after
October 1, 1980, that does not specifically state that it is nontransferable.
A depositor other than a natural person includes a partnership, a governmental
unit, and any corporation, even if owned solely by an individual.

-5 -

Treatment of pass-through balances. A depository institution may
satisfy reserve requirements by holding vault cash or by holding its required
reserve balance at the Federal Reserve. A depository institution that is not
a member of the Federal Reserve System, a U.S. branch or agency of a foreign
bank, or an Edge Act or Agreement corporation ("respondent") is authorized to
hold its required reserve balance at the Federal Reserve in one of two ways.
The respondent may deposit its required reserve balance directly with the
Federal Reserve Bank or Branch which serves the territory in which it is
located. Alternatively, in accordance with procedures adopted by the Board,
the respondent may elect to pass its required reserve balance through a
"correspondent." The correspondent may be a Federal Home Loan Bank, the NCUA
Central Liquidity Facility, a depository institution that holds a required
reserve balance directly at a Federal Reserve Bank or Branch, or an institution
that has been authorized by the Board to pass through required reserve balances.
The correspondent must pass through these required reserve balances to the
Federal Reserve Bank or Branch in the territory in which the main office of the
nonmember respondent institution is located.
The correspondent institution shall exclude from this report all
balances received from nonmember respondent institutions and subsequently
passed through to the appropriate Federal Reserve Bank or Branch. A respon­
dent institution shall exclude from this report all balances that the corre­
spondent passes through to the Federal Reserve Bank or Branch on behalf of
the respondent.
ITEM-BY-ITEM INSTRUCTIONS
Transaction Accounts (Items 1 through 7)
Transaction accounts include all demand deposits and all other accounts
from which the depositor or account holder is permitted to make withdrawals by
(1 ) negotiable or transferable instruments (such as checks, drafts, negotiable
orders of withdrawal, or share drafts); (2) the use of a debit card; (3) tele­
phone or preauthorized transfers to third parties or to another account when
more than three such transfers per month are permitted; and (4) transfers to
third parties through the use of an automated teller machine (ATM) or remote
service unit (RSU). Transaction accounts are reported in Items 1 through 7 as
defined below.
Demand deposits, to be reported in Items 1 through 3, are defined as
deposits that are payable immediately on demand or issued in original maturities
of less than 14 days, or that are payable with less than 14 days notice, or for
which the depository institution does not reserve the right to require at least
14 days written notice of an intended withdrawal. For purposes of this report,
demand deposits include, but are not limited to, (1) checking accounts (exclud­
ing NOW or share draft accounts); (2) certified, officers', bank, tellers', and
cashiers' checks drawn on the reporting institution; (3) unremitted funds from
the sale of travelers' checks or money orders; (4) taxes, insurance premiums or
other funds withheld from the salaries of employees of the reporting institutution; (5) matured time deposits or credit union share certificates (unless
the deposit agreement specifically provides for automatic renewal at maturity
or for transfer of the funds to a savings or share account); (6 ) credit balances

-6 -

that meet the definition of demand deposits; (7) funds received or held In
connection with letters of credit sold to customers; and (8 ) funds received
or held in escrow or trust accounts that may be withdrawn on demand or within
14 days from the date of deposit.
Demand deposits also include those liabilities referred to as
"primary obligations" that are described earlier under Definitions, and that
are Issued in original maturities of less than 14 days or payable with less
than 14 days notice.
Item l.a; Demand Deposits Due to Banks. Report in this item the balance of
all demand deposits (excluding "primary obligations” as described earlier)
that are due to U.S. offices of the following institutions located in the
United States: (1) commercial or industrial banks and trust companies con­
ducting a commercial banking business; (2) U.S. branches and agencies of
foreign banks; (3) Edge Act and Agreement corporations; and (4) New York State
investment companies (chartered under Article XII of the New York State Bank­
ing Code) that perform a banking business. All demand balances due to these
institutions may be reported gross or net (on an Instltutlon-by-lnstitution
basis) of balances due from these institutions.
Also include in this item all demand balances due to non-U.S. offices of
other U.S. banks, of other Edge Act and Agreement corporations, and of foreign
banks. All demand balances due to these institutions must be reported gross.
Item l.b: Demand Deposits Due to Other Depository Institutions. Report in this
item the balance of all demand deposits (excluding "primary obligations" as
described earlier) that are due to mutual and stock savings banks; building or
savings and loan associations, homestead associations, or cooperative banks;
and credit unions (including corporate central credit unions). All demand
balances due to these institutions must be reported gross.
Item 2: U.S. Government Demand Deposits. Report in this item the balance of
all demand deposits (excluding "primary obligations” as described earlier)
that are subject to control or regulation by the U.S. Government, including
U.S. Treasury Tax and Loan Accounts (such as Federal Income tax payments,
social security tax deposits, other Federal tax payments, and the proceeds
from the sale of U.S. Savings Bonds); U.S. Treasury general accounts; U.S.
Treasury compensating balance accounts; Postmaster's demanddeposit accounts;
and demand deposits of the Tennessee Valley Authority and disbursing officers
of the Department of Defense and the Department of the Treasury.
Exclude demand deposits due to U.S. Government agencies and Instrumental­
ities and demand deposits due to state or local governments or their political
subdivisions (reported in Item 3). Exclude from this item and from this
report Treasury Tax and Loan Account note balances.
Item 3: Other Demand Deposits. Report in this item the balance of all demand
deposits (excluding "primary obligations" except as described in the following
paragraph) that are held for individuals, partnerships, and corporations; state
and local governments and their political subdivisions; U.S. Government agencies
and instrumentalities; foreign governments and International institutions;

-7 -

nondeposit or limited purpose trust companies; and trust departments of
the reporting Institution and of other Institutions.
This item should also
Include withheld state and local government taxes, Insurance premiums and
similar items; certified, officers', bank, tellers', and cashiers' checks;
unremitted funds from the sale of travelers' checks and money orders; and
noninterest-bearing deposits subject to negotiable orders of withdrawal
(NINOWS).
Also include in this item those liabilities referred to as "primary
obligations" that are described earlier under Definitions, and that are issued
in original maturities of less than 14 days or payable with less than 14 days
notice.
Item 4; ATS Accounts. Report in this item the balance of all savings deposits
of individuals that are authorized for automatic transfer to demand deposit or
other accounts pursuant to written agreement arranged In advance between the
reporting institution and the depositor.
Item 5: Telephone or Preauthorized Transfer Accounts. Report in this item the
balance of savings deposits, share accounts, or time deposits from which the
depositor is permitted or authorized to make more than three withdrawals per
month for purposes of transferring funds to another account or for making a
payment to a third party by means of preauthorized or telephone agreement,
order, or Instruction. An account that permits or authorizes more than three
such withdrawals in a calendar month Is included in this item whether or not
more than three such withdrawals actually are made.
Also report in this item the balance of all savings deposits and time
deposits (Including share and share certificate accounts) from which payments
may be made to third parties by means of a debit card, an automated teller
machine, remote service unit, or other electronic device.
An account is not a transaction account merely by virtue of an arrangement
that permits withdrawals for the purpose of repaying loans and associated
expenses at the same reporting Institution (as originator or servicer). In
addition, an account Is not a transaction account merely because withdrawals
to be paid directly to the depositor can be effected by telephone or preautho­
rized order.
Exclude from this item those accounts that permit no more than three tele­
phone or preauthorized transfers a month, and all demand deposits, ATS accounts,
and NOW accounts, even if telephone or preauthorized transactions are permitted
from such accounts.
Item 6 ; NOW Accounts/Share Drafts. Report in this item the balance of all
interest-bearing negotiable order of withdrawal (NOW) accounts and all share
draft accounts.
Item 7: Total Transaction Accounts. Report In this item the sum of Items l.a,
l.b, 2, 3, 4, 5, and 6 .

-8-

Deductions (Items 8 and 9)

Item 8 : Demand Balances Due From Depository Institutions in the U.S. Report in
this item the balance of all demand deposits (excluding "primary obligations"
as described earlier) subject to immediate withdrawal that are due from U.S.
offices of the following institutions located in the U.S.: (1) commercial or
Industrial banks and trust companies conducting a commercial banking business;
(2) Edge Act and Agreement corporations; (3) U.S. branches and agencies of
foreign (non-U.S.) banks; (4) mutual or stock savings banks; (5) credit unions;
and (6 ) building or savings and loan associations, homestead associations, or
cooperative banks.
Exclude from this item all balances due from Federal Reserve Banks, includ­
ing (1) your institution's reserve balances held directly with the Federal Reserve
(2) your institution's reserve balances that were passed through to the Federal
Reserve by a correspondent; (3) reserve balances of another institution for which
your Institution is serving as pass-through agent (correspondent) and that were
passed through by your institution to the Federal Reserve; and (4) your institu­
tion's clearing balances maintained at a Federal Reserve Bank (see the para­
graph above under Definitions on "Treatment of pass-through balances”).
Also exclude (1) all balances due from any non-U.S. office of a U.S. deposi­
tory institution; any non-U.S. office of a foreign bank; trust companies that do
not conduct a commercial banking business; and New York State investment companies
(chartered under Article XII of the New York State Banking Code) that perform a
banking business; (2 ) balances due from other depository institutions that are
pledged by your institution; (3) time and savings deposit balances held at other
depository institutions; (4) trust funds deposited in other depository institu­
tions by your institution's trust department; and (5) cash items in process of
collection.
Item 9: Cash Items in Process of Collection. Report in this item the balance of
all cash items In process of collection, Including:
1. Checks or share drafts in the process of collection, drawn on
a bank or other depository institution, that are payable
immediately upon presentation in the United States, including
checks or drafts forwarded to a Federal Reserve Bank in pro­
cess of collection and checks or drafts on hand that will be
presented for payment or forwarded for collection on the
following business day.
2. Government checks drawn on the Treasury of the United States
that are in the process of collection.
3. Such other items in the process of collection that are payable
immediately upon presentation in the United States and that
are customarily cleared or collected by depository institutions
as cash Items, including (a) drafts payable through another
depository institution; (b) NOW or NINOW account drafts;
(c) credit union share drafts; (d) redeemed bonds and coupons;

-9-

(e) food coupons and certificates; (f) postal and other money
orders, and traveler's checks; (g) amounts credited to deposit
accounts in connection with automated payment arrangements
where such credits are made one business day prior to the
scheduled payment date to Insure that funds are available on
the payment date; (h) returned items and unposted debits; and
(i) broker security drafts.
Exclude from cash items in process of collection any items handled as
noncash collections, credit card sales slips and drafts, and debit slips.
Other Savings Deposits (Items 10 and 11)
Savings deposits (including credit union regular share accounts) are
defined as deposits (including "primary obligations" as described earlier)
that are not payable on a specified date or after a specified period of
time from the date of deposit, but for which the depository institution
expressly reserves the right to require at least 14 days written notice
before an intended withdrawal.
Report in Item 10 or 11 the balance of all savings deposits not reported
as transaction accounts in Items 1 through 6 . Other savings deposits include:
(1) savings deposits subject to telephone or preauthorized transfer where the
depositor is not permitted or authorized to make more than three withdrawals
per calendar month for purposes of transferring funds to another account or
for making a payment to a third party; (2) savings deposits in the form of IRA
or Keogh Plan Accounts; (3) escrow and trust accounts that meet the criteria for
savings deposits; (4) credit balances that meet the criteria for savings
deposits; (5) matured time deposits if the contract calls for conversion to
a savings deposit upon maturity; and (6 ) interest or dividends paid by credit­
ing savings deposits accounts.
All club accounts or special purpose accounts, such as Christmas, vacation,
or similar accounts (whether In the form of savings or time deposits), should
be reported as savings deposits by all Edge Act and Agreement corporations and
by all commercial banks that were members of the Federal Reserve System (1) on
September 1, 1980 or (2) on or after July 1, 1979 but that withdrew from member­
ship prior to September 1, 1980. For all other depository institutions, only
those club accounts in the form of savings deposits should be reported as savings
deposits; those club accounts in the form of time deposits should be reported as
time deposits (Item 13 or 14).
Note that for commercial banks, Edge Act and Agreement corporations, and
U.S. branches and agencies of foreign banks, savings deposits held by a corpora­
tion, association, or other organization operated for profit are limited to
$150,000. "Savings" deposits in excess of this amount must be reported as
demand deposits.
Exclude from other savings deposits any NOW or share draft accounts
(reported in Item 6 ); NIN0W accounts (reported in Item 3); ATS accounts
(reported In Item 4); special passbook or statement accounts, such as "ninetyday notice accounts," "golden passbook accounts", or savings certificates,
that have a specified original maturity or required notice period of 14 days

-10-

or more (reported in Items 13 or 14); and interest or dividends accrued but not
yet paid or credited to a savings deposit or share account.
Item 10: Other Savings Deposits— Personal. Report in this item the balance of
all other savings deposits or share accounts that represent funds in which the
entire beneficial interest is held by one or more natural persons. Also include
as "personal" savings deposits: (1) all Individual Retirement Accounts (IRA)
and Keogh Plan Accounts in the form of savings deposits, and (2) trust funds
held in the name of
a trustee
or other fiduciary if theentire beneficial inter­
est is held by a natural person and other conditions of
a savings deposit are
met. In addition, escrow accounts are regarded as "personal" savings deposits
if the depositor is
a natural
person and the other conditions of a savings depos­
it are met, even if
the funds
are held by the reportinginstitution as escrow
agent.
Item 11: Other Savings Deposits— Nonpersonal. Report in this item the balance
of all other savings deposits or share accounts that are transferable and that
represent funds in which any beneficial interest is held by a depositor that
is not a natural person*
Item 12:
and 11.

Total Other Savings Deposits. Report in this item the sum of Items 10

Time Deposits (Items 13 through 16)
Time deposits are defined as deposits that are payable on a specified date,
after a specified period of time from the date of deposit, or after a specified
notice period, which in all cases may not be less than 14 days from the date
of deposit. Time deposits may be interest-bearing or noninterest-bearing. For
purposes of this report, time deposits include, but are not limited to, (1 ) time
certificates of deposit or share certificate accounts (whether negotiable or non­
negotiable); (2) time deposit or share certificate open accounts; (3) savings
certificates, notice accounts, and passbook accounts; (4) money market time
deposits; (5) escrow funds or trust accounts that meet the criteria of time
deposits; (6 ) credit balances that meet the definition of time deposits; (7) all
Individual Retirement Accounts (IRA) and Keogh Plan Accounts held in the form of
time deposits; (8 ) time deposits or share certificates maintained as compensat­
ing balances or pledged as collateral for loans; and (9) all interest or divi­
dends paid by crediting time deposit accounts.
Time deposits also include those liabilities referred to as "primary obliga­
tions" that are described earlier, and that are issued in an original maturity
or with a required notice period of 14 days or more.
In addition, all depository institutions other than Edge Act and Agreement
corporations, commercial banks that were members of the Federal Reserve System
on September 1, 1980, and commercial banks that were members of the System on
or after July 1, 1979 but withdrew before September 1, 1980, should
include
as time deposits those club accounts in the form of time deposits (see para­
graph under "Other Savings Deposits” for treatment of club accounts).

-11-

Exclude from time deposits matured time deposits that are not auto­
matically renewed (to be reported as a demand or savings deposit, as appro­
priate). Exclude from time deposits and from this report subordinated notes and
debentures, borrowings from "exempt entities", and interest or dividends accrued
but not yet paid or credited to a time deposit or share certificate account.
Item 13; Time Deposits— Personal. Report in this item all time deposits, regard­
less of maturity, that meet the criteria for "personal” deposits as specified in
the Definitions section.
Item 14; Time Deposits—-Nonpersonal. Report in Item 14.a the balance of all
time deposits that meet the criteria for "nonpersonal" time deposits as
speci­
fied in the Definitions section with original maturities of less than 4
years.
Report in Item 14.b the balance of all time deposits that meet the criteria for
"nonpersonal” time deposits as specified in the Definitions section with original
maturities of 4 years or more.
Item 15; Total Time Deposits. Report in this item the sum of Items 13, 14.a,
and 14.b.
Item 16; All time deposits in denomination of $100,000 or more. Report in
this item the balance of all time deposits (including share certificate accounts),
both personal and nonpersonal, of $100,000 or more reported in Item 13 or 14.
Include deposits issued in denominations of less than $100,000 that, because
of interest or dividends paid or credited, have a current balance of $100,000 or
or more. Also Include all "primary obligations" that are reported in Item 13 or
14.
In determining if a time deposit is $100,000 or more, do not combine
separate accounts or certificates, even if held by the same customer.
Item 17; Vault Cash (tellers' cash, cash working funds). Include as vault
cash only U.S. currency and coin owned and held by the reporting Institution,
whether or not held on the premises, that may, at any time, be used to satis­
fy depositors' claims; U.S. currency and coin in transit to a Federal Reserve
Bank or a correspondent depository institution if the reporting Institution
has not yet received credit; and U.S. currency and coin in transit from a
Federal Reserve Bank or a correspondent depository institution if the report­
ing institution has already been charged.
Exclude foreign currency and coin; currency and coin whose numismatic
or bullion value is in excess of face value; and currency and coin that the
reporting institution does not have the full right to use, such as coin collec­
tions held for safekeeping, or currency and coin sold under a repurchase agree­
ment or purchased under a resale agreement.
Schedule A; Other Reservable Obligations by Remaining Maturity. For a discus­
sion of the items to be reported in this schedule (obligations by affiliates
and ineligible acceptances), refer to the Detailed Instructions for the Prepara­
tion of the Report of Transaction Accounts, Other Deposits and Vault Cash.

Federal
Reserve
Bank of
Dallas

Instructions for the Preparation of:

• Report of Transaction Accounts,
Other Deposits and Vault Cash
(FR 2900)
• Report of Certain Eurocurrency Transactions
(FR 2950)

For Use By:

• Building and Loan Associations
• Savings and Loan Associations

DETAILED INSTRUCTIONS
FOR
PREPARATION OF THE
REPORT OF TRANSACTION ACCOUNTS
OTHER DEPOSITS AND VAULT CASH
(FR 2900)

For Building or Savings and Loan Associations
Mutual Savings Banks; Cooperative Banks;
Homestead Associations; and Savings Banks.

CONTENTS

Instructions for the Report of Transaction Accounts,
Other Deposits and Vault Cash (FR 2900)

INTRODUCTION

............................................

SECTION 1— GENERAL INSTRUCTIONS...........................
Who Must R e p o r t ........................................
Frequency to Report .....................................
How to R e p o r t ..........................................
What Liabilities Are Reservable Under Regulation D . . . .
Deposits as Defined Under Regulation D .................
Treatment of Pass-Through Balances . . ..................
Treatment of Trust F u n d s ......................... .
Treatment of Escrow F u n d s ............................... 13

1
4
4
5
5
8
8
12
13

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS .....................
15
Transaction Accounts ...................................
15
Summary of Transaction Account Classifications........... 16
Demand Deposits................................... .
17
Demand Deposits Due to Depository Institutions .........
21
Demand Deposits Due to B a n k s ........................ 22
Demand Deposits Due to OtherDepository Institutions . . 24
U.S. Government Demand Deposits .........................
25
Other Demand Deposits................................. . 27
Other Transaction A c c o u n t s ..................... .
29
ATS A c c o u n t s ................................. . . . . . 29
Telephone or Preauthorized Transfer Accounts ...........
29
NOW A c c o u n t s .......................................... 30
D e d u c t i o n s ............................................ 31
Demand Balances Due From Depository Institutions......... 31
Cash Items in Process of Collection............. .
33
Other Savings Deposits .................................
36
Other Savings Deposits — Personal .....................
38
Other Savings Deposits — Nonpersonal ...................
38
Time Deposits.......................................... 39
Time Deposits — Personal............................... 42
Time Deposits — N on p e rs o na l ........................... 43
Time Deposits inDenomination of $100,000 or M o r e ........ 43
Vault C a s h ............................................ 44
Schedule A - Other Reservable Accounts ...................
45
Amounts Outstanding of Funds Obtained Through Issuance
of Obligations of Affiliates and through Use of
Ineligible Acceptances .................................
45
Amounts Maturing in less than 14 d a y s ................... 48
Amounts Maturing in 14 days or more— Personal............48
Amounts Maturing in 14 days or More— N o n p e r s on a l........48
GLOSSARY

G-1

INTRODUCTION

Under the Monetary Control Act of 1980, every depository institu­
tion that has transaction accounts or nonpersonal time deposits is required
to file a Report of Transaction Accounts, Other Deposits and Vault Cash.
Every depository institution that obtains funds from foreign (non-U.S.)
sources or that maintains foreign branches is also required to file with
the Federal Reserve a Report of Certain Eurocurrency Transactions.1/ These
reports are used for the calculation of Federal required reserves and
for construction of the monetary aggregates. Rules governing the reserve
requirment provisions of the Monetary Control Act are contained in
Federal Reserve Regulation D, "Reserve Requirements of Depository
Institutions”.2/
The report forms listed below are provided for the following
institutions:
Report of Transaction Accounts, Other Deposits and Vault Cash
FR 2900— For all commercial banks, Edge Act and Agreement
corporations and their branches, industrial banks, and
U.S. branches and agencies of foreign banks; for
mutual or stock savings banks, cooperative banks,
building or savings and loan associations and homestead
associations; and for credit unions.
Report of Certain Eurocurrency Transactions
FR 2950— For all depository institutions except U.S. branches and
agencies of foreign banks;
FR 2951— For U.S. branches and agencies of foreign banks.
This booklet presents detailed instructions for preparation of
the FR 2900 by the following institutions, regardless of their size:
(1 ) building or savings and loan associations, (2 ) mutual savings banks,
(3) cooperative banks, (4) homestead associations, and (5) savings banks.
Separate instruction booklets are provided for commmercial
banks, industrial banks, Edge Act and Agreement corporations, U.S. branches
and agencies of foreign banks, and for credit unions. These booklets
may be obtained upon request from the Federal Reserve Banks.
1/ Any reporting institution that has obtained funds from a foreign (non-U.S.)
source or that has foreign (non-U.S.) offices (excluding those located on
U.S. military facilities outside the U.S.) should contact the Federal
Reserve Bank for the District in which it is located to obtain forms and
instructions for the Report of Certain Eurocurrency Transactions (FR 2950).
2J The Federal Reserve Board has deferred reporting and reserve requirements
for those depository Institutions (other than Edge Act and Agreement corpora­
tions, U.S. branches and agencies of foreign banks and member commercial
banks) with total deposits of less than $1 million as of December 31, 1979.

-

2

-

Subsequent sections of this booklet provide detailed instructions
for preparation of the Report of Transaction Accounts, Other Deposits
and Vault Cash (FR 2900). A glossary, which appears at the end of
the booklet, defines in alphabetic order important terms and phrases that
appear in all CAPITAL LETTERS in this booklet. The booklet has been
printed in looseleaf form to allow for any future changes.
In order to avoid the imposition of unnecessary reserve require­
ments^ and to provide accurate monetary statistics, the amounts reported
on any one of the above "reserve requirement" reports should not be
reported in any item on the other reports.
Accurate preparation of these reports is an important first step
in the reserve maintenance cycle. Based on the deposit levels that
your depository institution reports each reporting period, the Federal
Reserve calculates the level of reserves that must be maintained at or
passed through to a Federal Reserve Bank on these deposits two weeks later.
Efficient reserve management begins with accurate deposit reporting.
Errors in reporting may result in higher reserve requirements, which
could reduce your institution’s potential earnings, or in insufficient
reserves, which may subject your institution to the assessment of penalties.
In addition to their use in the calculation of required reserves,
the data from these reports are basic to the construction of the monetary
aggregates that are used by the Federal Reserve System in the formulation
and conduct of monetary policy. Inaccurate reporting can result in
deterioration in the quality of the monetary aggregate estimates.
This booklet has been designed to facilitate accurate preparation
of the report. The instructions that follow are intended to provide a
comprehensive presentation of applicable regulations, interpretations,
and legal opinions governing the classification of deposits subject to
reserve requirements. Each reporting institution is urged to review this
material carefully and to use it as the basic guide in preparing the report.
The following instructions are based on Regulation D of the Board
of Governors of the Federal Reserve System (12 CFR §204). These instructions
in no way alter or modify the requirements of Regulation D. While every
effort has been made to incorporate all existing regulatory provisions,
applicable regulations, interpretations, and legal opinions governing
the classification of deposits subject to reserve requirements, this
booklet should not be considered the final authority on the deposit status
of all instruments, obligations, or transactions. Final authority rests

37

As used in this instruction booklet, the terms "reserve" and "reserve
requirement” refer to those amounts maintained directly at or passed
through to a Federal Reserve Bank to satisfy the provisions of the Monetary
Control Act of 1980 and Federal Reserve Regulation D. The Act and Regulation
require that a percentage of total TRANSACTION ACCOUNTS and total NONPERSONAL
TIME DEPOSITS of a DEPOSITORY INSTITUTION be placed or deposited with the
Federal Reserve. The terms do not refer to surplus, undivided profit,
net worth, liquidity, or other similar terms.

-

3 -

with the Board of Governors of the Federal Reserve System. Inquiries
concerning specific Instruments, obligations, or transactions, as well
as suggestions for improving the content of this booklet, may be directed
to the Federal Reserve Bank in your District.

- 4 -

INSTRUCTIONS FOR PREPARATION OF REPORT OF TRANSACTIONS ACCOUNTS, OTHER
DEPOSITS AND VAULT CASH (FR 2900)
i

Section 1 contains general instructions and guidelines which
provide the basic framework for reporting on the Report of Transactions
Accounts, Other Deposits and Vault Cash (FR 2900) and which describe, in
general, the nature of reservable liabilities and the specific procedures
for reporting these liabilities.
Section 2 contains item-by-item instructions for completing the
report. This section describes the coverage of each item to be reported
and specifies the categories of deposits to be included in or excluded
from each item. As these instructions and the associated reporting form
are designed for use by several different types of institutions, not all
items or transactions may be applicable to each reporting institution.
SECTION 1— GENERAL INSTRUCTIONS
A.

Who Must Report.
This report is required from each of the following depository institu­
tions located in the U.S. that has TRANSACTIONS ACCOUNTS or NONPERSONAL
TIME DEPOSITS:4/
A.I. any savings bank or mutual savings bank as defined in section 3
of the Federal Deposit Insurance Act (12 USC 1813(f) and (g));
A.2. any member of a Federal Home Loan Bank as defined in section 2
of the Federal Home Loan Bank Act (12 USC 1422(2)); and
A.3. any institution insured by or eligible to apply for Insurance
from the Federal Savings and Loan Insurance Corporation as defined
in sections 401 and 403 of the National Housing Act (12 USC
1724(a) and 1726). Institutions eligible to apply for such
insurance include Federally-chartered savings and loan associations
Federally-chartered mutual savings banks; building and loan,
savings and loan, and homestead associations; and cooperative
banks.

4/ Terms and phrases appearing in CAPITAL LETTERS are defined and described
in the glossary section of this manual.

- 5 B.

Frequency of Report.
5

B.l. All depository institutions listed in A above having total deposits
of $5 million and above as of December 31, 1979, shall submit the
Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) each week.
B.2. All depository institutions listed in A above having total deposits
of less than $5 million (except those discussed in 3.3 below) shall
file a Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) once each calendar quarter for a seven-day computation
period that begins on the third Thursday of a given month during
the calendar quarter, and maintain reserves on such deposits over
the subsequent three-month period beginning 8 days after the close
of the computation period. Those institutions that have less than
$5 million in total deposits as of December 31, 1979, shall qualify
under this paragraph until they report total deposits of $5 million
or more for two consecutive calendar quarters. An institution that
qualifies under this paragraph may elect at the beginning of a calendar
year to report deposits and maintain reserves on a weekly basis.
The quarterly reporting system will commence in January 1981.
B.3. All depository institutions listed in A above having total deposits
of less than $1 million as of December 31, 1979, have reporting and
reserve requirements temporarily deferred by the Board of Governors
of the Federal Reserve System.
C.

How To Report.
This report shall reflect amounts outstanding as of the close of business
each day during the reserve computation period. The computation period
is the seven-day period that starts on Thursday and ends on the following
Wednesday. If your institution had no outstanding balances of reservable
liabilities during the computation period, please check the box designated
at the top of the reporting fora, sign the report and return it to your local
Federal Reserve Bank.
The report should be prepared in accordance with the following procedures.
C.l. Consolidation. A consolidated report must be prepared that combines
all deposits, vault cash, and allowable deductions of the following
entities:
a.

the head office;

b.

all branches located in the 50 states of the United States
or the District of Columbia;

c.

all SERVICE CORPORATION subsidiaries located in the 50 states
of the United States or the District of Columbia; and

d.

all OPERATIONS SUBSIDIARIES located in the 50 states of the
United States or the District of Columbia.

- 6 -

This consolidation may differ from that used on the^savings bank
Report of Condition (FDIC 8040/18) or the savings and loan semi-annual
Industry Condition Report (FHLBB 774a, associated sections and monthly
reports).
f
Preparing a consolidated report Involves two steps:
a.

combining all comparable accounts of the individual entities to
be consolidated on an account-by-account basis; and

b.

eliminating all intra-office transactions that reflect the existence
of debtor-creditor relationships among the entitles to be consolidated.

EXAMPLE: "Checks on hand” received at a reporting Institution's
OPERATIONS SUBSIDIARY or SERVICE CORPORATION should be combined with
the reporting Institution's "CASH ITEMS in process of collection",
and demand accounts of a reporting institution's OPERATIONS SUBSIDIARY
or SERVICE CORPORATION at institutions other than the parent, should
be combined with the reporting institution's balance "due from other
depository institutions". Similarly, obligations of an OPERATIONS
SUBSIDIARY or SERVICE CORPORATION that meet the definition of "deposits"
should be included as deposit liabilities of the parent reporting
institution.
C.2. Denomination. Amounts should be rounded and reported to the nearest
thousand U.S. dollars.
C.3. Foreign (NON-U.S.) currency-denominated deposits. Deposits denominated
in NON-U.S. currency should be valued Initially in U.S. dollars at
the prevailing exchange rate at the time of deposit and periodically
revalued in accordance with generally accepted accounting principles.
C.4. Overdrafts or negative balances. Unless covered by the exemption
described in the following paragraph, all deposit accounts having a
negative balance as of the close of business each day (whether result­
ing from prearranged or unplanned overdrafts or from operating or
other factors) should be regarded as having a zero balance when
computing deposit totals. Overdrawn deposit accounts of customers
should be regarded as loans made by the reporting institution and
should not be reported as negative deposits.
Similarly, deposit
accounts that the reporting institution maintains at another institu­
tion that have negative balances should be regarded as having a zero
balance when computing "due from" totals and considered a borrowing
(not "due to's”) by the reporting institution.
Overdrawn accounts of a depositor who maintains more than one
TRANSACTION ACCOUNT at the reporting Institution may be offset by
accounts with positive balances if a bona fide cash management function
is served. For purposes of this report, a bona fide cash management
arrangement must also be evidenced by a prior written agreement
between the reporting institution and the depositor authorizing
transfers between such TRANSACTION ACCOUNTS.

- 7 -

C.5. Record-keeping. The amounts reported for each day should
reflect th$ amount outstanding at the "close of business" for
that day. ^The term "close of business" refers to the time
established by the reporting institution as the cut-off time
for posting transactions to its general ledger accounts for
that particular day. The time designated as close of business
should be reasonable and applied consistently. For any day on
which the reporting institution was closed, report the closing
balance as of the preceding day.
For purposes of this report, the reporting institution is open
when both of the following criteria are met:
a.

a majority of all domestic offices are open to conduct
business; and

b.

entries are made to the general ledger accounts of the
reporting institution for that day.

The posting of a transaction to the general ledger account means
that both debit and credit entries must be recorded as of the same
date. Reservable obligations for which settlement is in clearing-*
house or uncollected funds should be reported as of the date that
the transaction is executed and not as of the settlement date or
the date that collected funds are to be received. Transactions that
result from prior commitments should be reported on the date that
the transaction is executed, not as of the commitment date. However,
when payment information (such as that contained on magnetic tape,
direct deposit payments, ACH services, paper listings, and similar
items involving automated arrangements) is sent to the reporting
institution prior to the effective payment date, the Institution
may credit its depositors' accounts one day prior to the effective
payment date in order to ensure that the deposit will be available
to the depositor at the opening of business on the payment date.
When such prior credit to deposit accounts is given in connection
with automated arrangements, the credits should be offset by appro­
priate debit entries to "cash Items in process of collection."
C.6 . UNPOSTED DEBITS and CREDITS. UNPOSTED DEBITS consist of cash items
drawn on the reporting institution that have been "paid” or credited
by the institution and that are chargeable but that have not been
charged against deposits as of the close of business. These items
should be reported as "cash items in process of collection" until
they have been charged to either individual or general ledger deposit
accounts.
UNPOSTED CREDITS consist of items that have been received for
deposit and that are in process of collection but that have not been
posted to individual or general ledger deposit accounts. These
credits should be reported as deposits.

- 8 -

C.7. Rejected items. Rejected items (resulting from mutilated documents,
incorrect account numbers or other factors) that would otherwise
have resulted in credit to deposit accounts should be included in
deposit totals for the day on which offsetting charges have been
posted. Rejected items that represent withdrawals from deposit
accounts and for which corresponding credits have already been
recorded should be deducted from deposits as of the close of business
for that day.
D . What Liabilities Are Reservable Under Regulation D .
Under the Monetary Control Act of 1980, TRANSACTION ACCOUNTS and NONPERSONAL
TIME DEPOSITS (including NONPERSONAL SAVINGS DEPOSITS) are subject to Federal
reserve requirements. Rules governing reserve requirements are contained in
Federal Reserve Regulation D.
TRANSACTION ACCOUNTS Include DEMAND DEPOSITS; NOW ACCOUNTS; ATS ACCOUNTS;
accounts that permit a depositor to make payments to third parties through
automated teller machines, remote service units or by means of a debit card;
accounts under the terms of which a depositor is permitted to make more than
3 PREAUTHORIZED or TELEPHONE TRANSFERS per month; and those obligations
maturing in less than 14 days if they take the form of ineligible acceptances
(see BANKERS ACCEPTANCES) and obligations Issued by the reporting institution's
AFFILIATES.
Nonpersonal time deposits include NONPERSONAL SAVINGS and NONPERSONAL
TIME DEPOSITS and those obligations maturing in 14 days or more if they take
the form of ineligible acceptances and obligations issued by the reporting
institution's AFFILIATES.
Detailed instructions defining TRANSACTION ACCOUNTS, NONPERSONAL SAVINGS
DEPOSITS, and NONPERSONAL TIME DEPOSITS can be found in the appropriate
item-by-item instructions. DEPOSITS as defined by Regulation D are described
in paragraph E immediately below. Please note, however, that in addition
to reservable liabilities, certain nonreservable liabilities are also
reported as separate items on the Report of Transaction Accounts, Other
Deposits and Vault Cash.
E . Deposits as Defined Under Regulation D .
In general, Regulation D defines deposits to Include both deposits and
obligations Issued. For purpose of these instructions, deposits are divided
into two broad categories of liabilities: DEPOSITS and PRIMARY OBLIGATIONS
that are undertaken as a means of obtaining funds, regardless of the use of
the proceeds.
E.l. DEPOSITS to be reported In Items 1-16 of the Report of Transaction
Accounts, Other Deposits and Vault Cash consist of:
a.

Funds received or held by the reporting institution for which
credit has been given or is obligated to be given to a DEMAND,
NOW, ATS, TELEPHONE or PREAUTHORIZED TRANSFER, or other SAVINGS
or TIME DEPOSIT account.

- 9 b.

Funds received or held by the reporting institution (other than
In Its trust department) for a special or specific purpose,
such as escrow funds, funds held as security for securities
loaned by the reporting institution, funds deposited as advance
payments or subscriptions to U.S. government securities, and
funds held to meet the reporting institution’s acceptances.

c.

Outstanding CERTIFIED, OFFICERS’, BANK, TELLERS' AND CASHIERS'
CHECKS, and other DRAFTS (including PAYABLE THROUGH DRAFTS)
issued by the reporting institution in the usual course of
business for any purpose, including payment for services, stock
dividends, or purchases, unless drawn on a deposit account
maintained at another DEPOSITORY INSTITUTION or at a Federal
Reserve Bank.

d. Liabilities arising from the sale of travelers checks and money
orders sold to customers unless the proceeds are remitted daily
to another party under a consignment arrangement.
e.

Funds received or held in connection with LETTERS OF CREDIT
Issued to customers, including funds credited to CASH COLLATERAL
ACCOUNTS and similar accounts.

f.

Any obligation to pay a check, such as a CERTIFIED CHECK drawn
on the reporting institution, that has been presented for collection
by a third party when the depositor's account at the reporting
institution has already been charged and settlement of the check
has not been made.

g. Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by the AFFILIATE in
the form of a DEMAND, SAVINGS, or TIME DEPOSIT.

E.2. For purposes of this report, DEPOSITS do not include:
a. Trust funds received or held by the reporting institution that
it keeps properly segregated as trust funds and apart from its
general assets or which it deposits in another institution to
the credit of itself as trustee or other fiduciary. If trust
funds are deposited with another department of the reporting
institution or otherwise mingled with its general assets, a
deposit liability of the reporting institution is created.
b. An obligation that represents a conditional, contingent or
endorser's liability.
c. Obligations, the proceeds of which are not used by the reporting
institution for purposes of making loans, investments, maintaining
liquid assets (such as cash or "due from" DEPOSITORY INSTITUTIONS),
or other similar purposes. An obligation issued for the purpose of
raising funds to purchase business premises, equipment, supplies, or
similar assets is not a deposit.

-lO c.
i

Accounts payable.

e.

HYPOTHECATED DEPOSITS created by payments on an Installment loan
where (1 ) the amounts received are not used immediately to reduce
the unpaid balance due on the loan until the sum of payments
equals the entire amount of the loan principal and INTEREST; and
(2 ) where such amounts are irrevocably assigned to the reporting
institution and cannot be reached by the borrowed or creditors of
the borrower. Please note that for purposes of chis report,
deposits simply serving as collateral for loans do not constitute
HYPOTHECATED DEPOSITS.

f.

A stock dividend declared by the reporting institution for the
intervening period between the date of the declaration of the
dividend and the date on which it Is paid.

E.3. PRIMARY OBLIGATIONS to be reported as deposits in Items 1-16 of
Report of Transaction Accounts, Other Deposits and Vault Cash;

the

a.

Promissory notes (including commercial paper), ACKNOWLEDGEMENTS OF
ADVANCE, and other similar obligations (written or oral) that are
issued by the reporting institution to NONEXEMPT ENTITIES as a means
of obtaining funds, regardless of the use of the proceeds.
(NOTE:
Purchases of "Federal funds" from NONEXEMPT ENTITIES are PRIMARY
OBLIGATIONS.)

b.

REPURCHASE AGREEMENTS entered into with NONEXEMPT ENTITIES on any
asset other than an obligation of, or fully guaranteed as to principal
and Interest by, the U.S. Government or a Federal agency.

c.

Liabilities arising from the issuance of DUE BILLS or similar
instruments that are Issued by the reporting institution to any
customer (including another DEPOSITORY INSTITUTION), regardless
of the use of the proceeds, or a debit to an account of the customer
before the securities are delivered, unless collateralized within
three business days from date of issuance by a security similar
to the security purchased by the reporting institution's customer.
A security is similar if it is of the same type and If it is of
comparable maturity to that purchased by the customer. In the
absence of such collateral, DUE BILLS become reservable deposits
beginning on the fourth business day after the date of issuance,
without regard to the purpose of the DUE BILL or to whom Issued.

d.

Mortgage-backed securities that are Issued and sold by the reporting
Institution to NONEXEMPT ENTITIES and that represent sales of partic­
ipation certificates in pools of one-to-four family mortgages when
the reporting institution retains more than a ten percent interest
in the pool. In such a case, all proceeds from such participation
certificates are reservable, not just the reporting institution's
Interest in the pool. Institutions holding a 10 percent or less
Interest in such pools shall exclude these obligations from this
report since such securities are not deposits.

- 11 -

e.

Mortgage-backed bonds that are liabilities of the reporting
institution and that are issued and sold by the reporting institution
to NONEXEMPT ENTITIES.

E.4, PRIMARY OBLIGATIONS to be Reported in Schedule A of the Report of Trans­
action Accounts, Other Deposits and Vault Cash:
a.

Any liability of the reporting institution's nondepository AFFILIATE,
on any promissory note (including commercial paper), ACKNOWLEDGEMENT
OF ADVANCE, DUE BILL, or similar obligation (written or oral), with a
maturity of less than 4 years, to the extent that the proceeds are
used to supply or maintain the availability of funds (other than
capital) to the reporting institution, if the AFFILIATE'S liability
would have been regarded as reservable if Issued by the reporting
institution, and if the proceeds from the AFFILIATE'S liability
are channeled to the reporting institution in the form of a non­
reservable transaction (e.g., a sale of the reporting Institution’s
assets to its AFFILIATE).
(NOTE: If the proceeds from the AFFILIATE'S liability (whether
regarded as reservable or nonreservable if Issued by the reporting
institution) are channeled to the reporting institution in the
form of a DEMAND, SAVINGS, or TIME DEPOSIT, such funds are reported
by the reporting institution as a DEMAND, TIME or SAVINGS DEPOSIT
(see Subsection E.l, paragraph (g) above). If the AFFILIATE'S
liability would have been regarded as nonreservable if issued by
the reporting institution, and if the proceeds from the AFFILIATE'S
liability are channeled to the reporting institution in the form
of a nonreservable transaction, such funds are excluded from
the Report of Transaction Accounts, Other Deposits and Vault Cash.)

b.

Liabilities arising from BANKERS ACCEPTANCES that are created
and discounted by the reporting institution and that are sub­
sequently sold to NONEXEMPT ENTITIES, and that are ineligible
for discount at Federal Reserve Banks, Including so-called
"finance bills" and "working capital acceptances."

E.5. PRIMARY OBLIGATIONS to be reported on other "reserve requirement" reports:
Borrowings from NON-U.S. offices of other DEPOSITORY INSTITUTIONS and
from certain designated NON-U.S. entities. These transactions are reported
on the Report of Certain Eurocurrency Transactions (FR 2950).

E.6 . Except for DUE BILLS, PRIMARY OBLIGATIONS issued to EXEMPT ENTITIES
are not subject to reserve requirements. Such obligations are excluded
from both the Report of Transaction Accounts, Other Deposits and Vault
Cash and the Report of Certain Eurocurrency Transactions.

- 12 -

NOTE: Regulations may require certain balances that are not classified as
deposits on other reports to be treated as deposits subject to reserve
requirements and therefore included in this report. For example, certain
debt obligations Issued to NONEXEMPT ENTITIES are defined as deposits for
purposes of Regulation D and this report, but are reported as borrowings
on condition reports. Consequently, the deposit balances on this report
may differ from deposit totals reported on your institution's Report of
Condition and on certain other reports submitted to the Federal Reserve,
the Federal Deposit Insurance Corporation, the Federal Home Loan Bank
Board, or state regulators.
In general, funds received by an institution that are immediately
applied to reduce or extinquish a customer's indebtedness to that Institution
do not constitute deposits since no liability is incurred. Certain DEALER
RESERVE or DIFFERENTIAL ACCOUNTS, such as those that arise when financing a
merchant's accounts receivable (such as home Improvement contractors, auto
dealers, or mobile home dealers), and which provide that the dealer may not
have access to the funds in the account until the installment loans are
repaid, are exempt from reserve requirements until the reporting institution
becomes obligated to the merchant for the full amount or any portion of the
funds. Similarly, funds that have been irrevocably assigned to the reporting
institution and cannot be reached by its customer or by the customer's
creditors, are not subject to reserve requirements. Finally, certain other
liabilities that do not result in a receipt of funds, such as accrued
liabilities and accounts payable, are not regarded as reservable liabilities.
F.

Treatment of Pass-Through Balances.
A DEPOSITORY INSTITUTION may satisfy reserve requirements by holding vault
cash or by holding its required reserve balance at the Federal Reserve.
The Monetary Control Act of 1980 authorizes a DEPOSITORY INSTITUTION that
is not a member of the Federal Reserve System ("respondent") to hold its
required reserve balance at the Federal Reserve in one of two ways. The
respondent may deposit its required reserve balance directly with the
Federal Reserve Bank or Branch which serves the territory in which it is
located. Alternatively, in accordance with procedures adopted by the
Federal Reserve Board, the respondent may elect to pass its required reserve
balance through a "correspondent." The correspondent may be a Federal
Home Loan Bank, the National Credit Union Administration Central Liquidity
Facility, a DEPOSITORY INSTITUTION which holds a required reserve balance
directly at a Federal Reserve Bank or Branch, or an institution that
has been authorized by the Federal Reserve Board to pass through required
reserve balances. The correspondent shall pass through these required
reserve balances to the Federal Reserve Bank or Branch in the territory in
which the main office of the nonmember respondent institution is located.
The correspondent Institution shall exclude from this report all
balances received from nonmember respondent institutions and subsequently
passed through by the correspondent to the appropriate Federal Reserve
Bank or Branch. Respondent institutions shall exclude from this report
all balances that the correspondent passes through to the Federal Reserve
Bank or Branch on behalf of the respondent.

G.

13 -

Treatment of Trust Funds.
Trust funds that a reporting institution receives or holds but keeps
segregated from its general assets and that are not available for general
lending or investment do not constitute deposits and should not be reported
in any item of this report. However, trust funds should be reported as
deposits of the reporting institution when:
G.l. deposited by the trust department of the reporting institution
in the commercial or other department of the reporting institution;
G.2. deposited in the commercial or other department of the reporting
institution by the trust department of another depository institu­
tion; or
G.3. mingled with the general assets of the reporting institution,
regardless of where held.
NOTE: Items such as bonds, stocks, jewelry, coin collections, etc.
that are left with the reporting institution for safekeeping, sometimes
referred to as "special deposits," should not be included as deposits
on this report.

H.

Treatment of Escrow Funds.
Escrow funds consist of funds deposited with a depository institution
under an agreement that requires the depository institution to pay all
or some portion of the funds to a third party at a certain time or upon
fulfillment of certain conditions. The obligations of the reporting
depository institution on the funds maintained may constitute a deposit
liability against which reserves must be held. If escrow funds are
held in the reporting institution's own trust department as part of
the trust department's fiduciary activities, they are to be treated
as trust funds and, for reporting purposes, are subject to the provisions
noted above under "Treatment of Trust Funds.”
Escrow funds should be classified as TIME DEPOSITS when deposited
with the reporting institution pursuant to a written agreement that all
funds must remain on deposit for at least 14 days before any payment can
be made. For reporting purposes, however, escrow funds shall be reported
as SAVINGS DEPOSITS if the written agreement provides that payments may
be made after a certain number of deposits have been received during a
period of not less than 3 months, even though some deposits may have
been received within 14 days from the payment date. In addition, when
the escrow agreement provides that a reporting institution may simply
reserve the right to require at least 14 days written notice before a
payment can be made, escrow funds should be classified as SAVINGS
DEPOSITS.

- 14 The classification of escrow funds as TIME or SAVINGS DEPOSIT^
does not depend on whether or not interest Is paid on the funds.
Escrow agreements entered into by depository institutions in states
where the payment of interest on such accounts is required by law
must comply with the notice or maturity provisions applicable to
TIME and SAVINGS DEPOSITS. Agreements that do not meet the specific
conditions stipulated above for TIME and SAVINGS DEPOSITS must be
classified as DEMAND DEPOSITS.

C

- 15 -

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS
Transaction Accounts (Items 1 through 7)
Items 1 through 7 of the report collect data on TRANSACTION
ACCOUNTS by component. Provided below is a general description of TRANS­
ACTION ACCOUNTS, followed by a summary of transaction account classifica­
tions. These broad descriptions are followed by detailed instructions
for each item to be reported under TRANSACTION ACCOUNTS.
General Description of TRANSACTION ACCOUNTS
Report in these items deposits or accounts from which the depositor
or account holder is permitted to make withdrawals by negotiable or
transferable instruments, payment orders of withdrawal, telephone transfers,
or other similar devices for the purpose of making payments or transfers
to third parties or others.

Include as TRANSACTION ACCOUNTS:
1.

DEMAND DEPOSITS.

2.

DEPOSITS or accounts subject to withdrawal by CHECK, DRAFT,
negotiable order, SHARE DRAFT, or similar Instrument.

3.

SAVINGS DEPOSITS or accounts from which withdrawals may be
made automatically through payment to the reporting institu­
tion or through transfer of credit to a DEMAND DEPOSIT or
other account in order to cover CHECKS or DRAFTS drawn upon
the institution or to maintain a specified balance in, or
to make periodic transfers to, such accounts.

4.

DEPOSITS or accounts from which payments may be made to third
parties by means of an automated teller machine, remote
service unit or other electronic device.

5.

DEPOSITS or accounts from which payments may be made to third
parties by means of a debit card.

6.

DEPOSITS or accounts under the terms of which, or which by
practice of the reporting institution, the depositor is per­
mitted or authorized to make more than three withdrawals per
month for purposes of transferring funds to another account
or for making a payment to a third party by means of preauthor­
ized or telephone agreement, order or instruction. An account
that permits or authorizes more than three such withdrawals
in a calendar month is a TRANSACTION ACCOUNT whether or not
more than three such withdrawals actually are made in a calendar
month. A PREAUTHORIZED TRANSFER includes any arrangement by
the reporting institution to pay a third party from the account

- 16 of a depositor upon written or oral instruction (including an
order received through an automated clearing house (ACH)), or
any arrangement by a depository institution to pay a third party
from the account of the depositor at a perdetermined time or on
a fixed schedule. An account is not a TRANSACTION ACCOUNT by
virtue of an arrangement that permits withdrawals for the
purpose of repaying loans and associated expenses at the same
depository institution (as originator or servicer).
Exclude from TRANSACTION ACCOUNTS those PRIMARY OBLIGATIONS maturing
in less than 14 days if they take the form of ineligible acceptances or of
obligations issued by the reporting institution's AFFILIATES described in
Section 1, Subsection E.4 (to be reported in Item 1 of Schedule A).
Summary of Transaction Account Classifications
A.

Always Regarded as TRANSACTION ACCOUNTS
1

.

DEMAND DEPOSITS.

2.

NOW ACCOUNTS.

3.

SHARE DRAFT accounts.

4.

ATS ACCOUNTS.

5.

Accounts that permit third party payments through ATMs or RSUs.

6.

Accounts that permit third party payments through use of CHECKS,
DRAFTS, negotiable instruments, debit cards or other similar items.

B . Accounts Regarded as TRANSACTION ACCOUNTS If More Than Three of the
Following Transactions Per Calendar Month Are Permitted To Be Made By
TELEPHONE OR PREAUTHORIZED TRANSFER Order or Instruction
1. Payments or transfers or third parties.
2. Transfers to another account of the depositor at the same institution.
3. Transfers to an account at another DEPOSITORY INSTITUTION.
C.

Not Regarded as TRANSACTION ACCOUNTS (Unless Specified Above)
1.

Accounts that permit TELEPHONE OR PREAUTHORIZED TRANSFERS or
transfers by ATMs or RSUs to repay loans made or serviced
by the same depository institution.

2.

Accounts that permit telephone or preauthorized withdrawals
where the proceeds are to be mailed to or picked up by the depositor.

3.

Accounts that permit transfers to other accounts of the depositor
at the same Institution through ATMs or RSUs.

4.

Accounts that permit three or less telephone or preauthorized
payments or transfers to third parties or to other accounts.

- 17 Demand Deposits (Items 1 through 3)

For Items 1, 2, and 3 of the report, DEMAND DEPOSITS Include
DEPOSITS described In Section 1, Subsection E.l, and PRIMARY OBLIGATIONS
described In Section 1, Subsection E.3, that are payable Immediately on
demand or Issued In ORIGINAL MATURITIES of less than 14 days, or that
are payable with less than 14 days notice, or for which the depository
institution does not reserve the right to require at least 14 days written
notice of an intended withdrawal.

Include as DEMAND DEPOSITS:
1.

All checking accounts, including those pledged as collateral
for loans or maintained as compensating balances. However,
do not include NOW ACCOUNTS, which are reported in Item 6.

2.

All DEPOSIT accounts that are subject to Immediate withdrawal
by negotiable or TRANSFERABLE instruments for the purpose
of making transfers to third parties and that are noninterestbearing (e.g. NINOW accounts). However, do not include
NOW ACCOUNTS, which are reported in Item 6.

3.

Outstanding CERTIFIED, OFFICERS’, BANK, TELLERS' AND CASHIERS'
CHECKS and DRAFTS (including PAYABLE THROUGH DRAFTS) issued
by the reporting institution (including checks Issued by
the reporting institution in payment of stock dividends)
unless drawn on a deposit account maintained at another
DEPOSITORY INSTITUTION or
at a Federal Reserve Bank.

4.

Outstanding travelers checks and money orders sold to customers
unless the proceeds are remitted daily to another party under
a consignment arrangement or unless already booked as a reserv­
able deposit.

5.

Funds received or held in connection with LETTERS OF CREDIT
sold to customers, including funds credited to CASH COLLATERAL
ACCOUNTS and similar accounts.

6.

Withheld taxes, withheld insurance premiums, and other funds
withheld from salaries of the reporting institution's employees

7.

Funds received or held in escrow accounts that may be with­
drawn on demand or within 14 days from the date of deposit,
except escrow funds held as TIME or SAVINGS DEPOSITS. (See
Section 1, Subsection H, for general treatment of escrow funds)

8.

All matured TIME CERTIFICATES OF DEPOSIT, even if interest
is paid after maturity, unless the deposit agreement
specifically provides for automatic renewal (automatically
renewable time deposits remain TIME DEPOSITS until redeemed)
or for conversion to SAVINGS DEPOSITS at maturity.

- 18 NOTE: Recent rulings by the Depository Institutions Dereg­
ulation Committee allow DEPOSITORY INSTITUTIONS to continue
paying interest on a TIME DEPOSIT certificate for the
first 7 days following the date of maturity.
9.

All matured TIME DEPOSIT OPEN ACCOUNTS that have not been
redeemed in conformance with a written notice by the depositor
indicating an intention to withdraw the deposit at the
expiration of the notice period, unless the deposit agreement
specifically provides for the funds to be transferred to a
SAVINGS DEPOSIT.

10.

An obligation to pay on demand or within 14 days a check
(or other instrument, device, or arrangement for the transfer
of funds) drawn on the reporting institution, where the account
of the Institution's customer already had been debited.

11.

The reporting institution's liability on PRIMARY OBLIGATIONS
described in Section 1, Subsection E.3(a), (b), (d),and (e),
that are issued by the reporting institution in ORIGINAL
MATURITIES of less than 14 days.

12.

DUE BILLS described in Section 1, Subsection E.3(c), that
are issued by the reporting institution in ORIGINAL MATURITIES
of less than 14 days.

• 3 Any funds received by the reporting institution's AFFILIATE
1.
and later channeled to the reporting institution by the
AFFILIATE in the form of a DEMAND DEPOSIT.
Exclude from DEMAND DEPOSITS the following categories of liabilities
that have an ORIGINAL MATURITY of less than 14 days:
1. HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include DEPOSITS simply serving as collateral
for loans.
2. Funds received and credited to DEALER RESERVE or DEALER
DIFFERENTIAL ACCOUNTS that the reporting institution is not
obligated to make available to either the dealer or the
dealer's creditors. Such funds arise from financing accounts
receivable for a merchant (such as home improvement contractors,
auto dealers, or mobile home dealers).
3. CHECKS or DRAFTS drawn by the reporting Institution on the
Federal Reserve or on a deposit account maintained at
another DEPOSITORY INSTITUTION.
4.

REPURCHASE AGREEMENTS involving obligations of, or fullyguaranteed as to principal and interest by, the U.S. Govern
ment or a Federal agency.

- 19 -

5.

DUE BILLS Issued to any entity that are collateralized within
three business days by securities similiar to the securities
purchased. (See Section 1, Subsection E.3(c)).

6.

Except for DUE BILLS, any PRIMARY OBLIGATION issued or under­
taken as a means of obtaining funds, regardless of the use
of the proceeds, when transacted with a U.S. office of the
following EXEMPT ENTITIES:
A.

U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;

B.

a U.S. BRANCH OR AGENCY of a bank organized under foreign
(NON-U.S) law (including U.S. BRANCHES AND AGENCIES of FOREIGN
OFFICIAL BANKING INSTITUTIONS);

C.

EDGE ACT and AGREEMENT CORPORATIONS;

D.

mutual and stock savings banks;

E.

building or savings and loan associations and homestead
associations and their SERVICE CORPORATIONS;

F.

cooperative banks;

G.

industrial banks;

H.

credit unions;

I.

the U.S. Government and its agencies and instrumentalities
such as the Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal
Land Banks, Banks for Cooperatives, the Federal Home
Loan Mortgage Corporation, Federal Deposit Insurance
Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Association,
National Credit Union Share Insurance Fund, and the National
Credit Union Administration Central Liquidity Facility;

J.

Export-Import Bank of the U.S.;

K.

Government Development Bank of Puerto Rico;

L.

Mlnbanc Capital Corporation;

M.

securities dealers, but only when the borrowing (a) has
a maturity of one day, (b) is in IMMEDIATELY-AVAILABLE
FUNDS, and (c) is in connection with the clearance of
securities;

- 20 N.

the U.S. Treasury (U.S. TREASURY TAX AND LOAN ACCOUNT
NOTE BALANCES); and

0.

New York State investment companies (chartered under Article
XII of the New York State Banking Code) that perform a BANK­
ING BUSINESS.

7.

Funds obtained from state and municipal housing authorities
under LOAN-T0-LENDER PROGRAMS involving the issuance of tax
exempt bonds and the subsequent lending of the proceeds to the
reporting institution for housing finance purposes.

8.

Borrowings from a Federal Reserve Bank.

9.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting
institution and that are ineligible for discount at Federal
Reserve Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4(b)). These transactions are reported in
Schedule A, Item 1.

10.

Certain obligations issued by the reporting institution's
nondepository AFFILIATES (PRIMARY OBLIGATIONS described in
Section 1, Subsection E.4(a)). These transactions are reported
in Schedule A, Item 1.

NOTE: Unless created as a result of a bona fide cash management
arrangement, overdrafts in DEMAND DEPOSIT accounts are not to
be treated as negative DEMAND DEPOSITS and should not be netted
against positive balances. Overdrafts are properly reflected
on an institution's books as loans.

- 21 Report Item 1— Demand Deposits Due to Depository Institutions.

Report in Item l.a DEMAND DEPOSITS due to banks, EDGE ACT AND
AGREEMENT CORPORATIONS located in both the U.S. and abroad, and U.S.
BRANCHES AND AGENCIES of NON-U.S. BANKS. Report in Item l.b DEMAND
DEPOSITS due to other DEPOSITORY INSTITUTIONS. Except for DUE BILLS,
PRIMARY OBLIGATIONS issued to U.S. DEPOSITORY INSTITUTIONS are not subject
to reserve requirements.
Exclude from both Items l.a and l.b:
1. DEMAND DEPOSITS due to:
A.

Nonmember "respondent" DEPOSITORY INSTITUTIONS to the extent
that such deposits represent reserve balances that your inst­
itution, serving as a pass-through agent or correspondent,
has passed through to the Federal Reserve Bank for "respondents".

B.

Nondeposit and limited purpose trust companies (reported in
Item 3).

C.

Trust departments of the reporting institution and of other
DEPOSITORY INSTITUTIONS (reported in Item 3).

D.

Nondepository AFFILIATES of the reporting institution and
of other DEPOSITORY INSTITUTIONS (reported in Item 3).

E.

the U.S. Government and its agencies and instrumentalities
(reported in Item 2 or 3), such as the Federal Home Loan
Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives,
the Federal Home Loan Mortgage Corporation, Federal Deposit
Insurance Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Assocation,
National Credit Union Share Insurance Fund, the National
Credit Union Administration Central Liquidity Facility,
and the Export-Import Bank of the U.S.

2.

A DEMAND DEPOSIT due to a DEPOSITORY INSTITUTION that is negative
(i.e. overdrawn). The amount of such negative balance should be
regarded as zero when computing the deposit total.

3.

Any negative "due from" balance which results from the reporting
Institution overdrawing a deposit account at another DEPOSITORY
INSTITUTION. Such a balance should be classified as a borrowing.

4.

Any PRIMARY OBLIGATIONS issued to NON-U.S. offices of U.S.
DEPOSITORY INSTITUTIONS and of foreign (NON-U.S.) banks (reported
on the Report of Certain Eurocurrency Transactions.

- 22 Report Item l.a— Demand Deposits Due to Banks

Include in this item the balance of all DEMAND DEPOSITS in
DEPOSITS due to:

the form of

1. U.S offices of the following institutions:
A.

B.

U.S BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS;
(including BRANCHES AND AGENCIES of FOREIGN OFFICIAL
BANKING INSTITUTIONS);

C.

EDGE ACT and AGREEMENT CORPORATIONS;

D.

Industrial banks; and

E.

2.

U.S. commercial banks and trust companies conducting
a commercial BANKING BUSINESS;

New York State investment companies (chartered under
Article XII of the New York State Banking Code) that
perform a BANKING BUSINESS.

NON-U.S. offices of:
A.

U.S banks and EDGE ACT and AGREEMENT CORPORATIONS; and

B.

commercial banks, merchant banks, discount houses,
and similar banking institutions organized under
the laws of a foreign country, Puerto Rico, Guam,
American Samoa, the Virgin Islands or another territory
of the United States.

All demand balances due to an institution that is listed in 1.
above may be reported net of balances "due from" those institutions (see
calculations of net reciprocal balances below). If it is burdensome for
a reporting institution to report reciprocal balances with the above
institutions on a net basis, for purposes of this report, such balances
may be reported gross. All demand balances due to the institutions
listed in 2. above should be reported gross.
Exclude from this item DEMAND DEPOSITS due to mutual and stock savings
banks, credit unions, building or savings and loan associations, homestead
associations, and cooperative banks (reported in Item l.b.).

- 23 -

Calculation of net reciprocal balances:
Reciprocal balances arise when two "institutions" maintain deposit
accounts with each other; that is, each institution has both a "due to"
and a "due from" balance with the other. If the demand balance "due from"
one institution is greater than the demand deposit "due to" that same
institution, the "due to" balance should be subtracted from the "due from”
resulting in a net amount "due from" that institution, which should be
included in Item 8. On the other hand, if the balance "due to" one
Institution is greater than the balance "due from" that same institution,
the "due from" balance should be subtracted from the "due to" balance,
resulting in a net amount "due to" that institution. To arrive at the
net reciprocal balance, the net amount "due to" each institution should
be summed, and the sum should be included in Item l.a.
All net reciprocal balances should be computed only after adjust­
ment is made for overdrawn accounts by placing those accounts at zero
balance.
Example:

Calculation of Net Reciprocal Balances

"Due from" Banks

“Due to” Banks
Institution A
Institution B
Institution C
B

Net "Due to" Banks
Institution A
Institution B
Institution C

C

$200,000
$500,000
$1,700,000

$

0
200,000
0

$1,000,000
$ 300,000
$2,500,000
Net "Due from" Banks
$
$

800,000
0
800,000

Sum of Net Reciprocal Balances
"Due to" Banks
$ 200,000
(Report in Item l.a)

'Due from” Banks
$1,600,000
(Report in Item 8)

- 24 Report Item l.b— Demand Deposits Due to Other Depository Institutions
Include in this item DEMAND DEPOSITS, in the form of DEPOSITS, issued to:
1.

mutual and stock savings banks;

2.

building or savings and loan associations, homestead associations
and cooperative banks; and

3.

credit unions.

All reciprocal balances with the above institutions should be reported
gross.
Exclude from this item the balances of all DEMAND DEPOSITS in the form of
DEPOSITS due to banks included under Report Item l.a above.

- 25 Report Item 2— U.S. Government Demand Deposits

Include In this item the balance of all DEMAND DEPOSIT accounts In the
form of DEPOSITS that are designated as FEDERAL PUBLIC FUNDS for which
the reporting institution serves as
depository, such as:
1.

U.S. TREASURY TAX AND LOAN ACCOUNTS, Including withheld Federal
income tax deposits, social security tax deposits and other
Federal tax payments, and the proceeds from sales of U.S. Savings
Bonds. (Exclude TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES.)

2.

U.S. TREASURY GENERAL ACCOUNTS and special collection accounts.

3.

U.S. Treasury compensating

4.

Postmaster's DEMAND DEPOSIT accounts.

5.

DEMAND DEPOSITS accounts of the Tennessee Valley Authority and
disbursing officers of the Department of Defense and Department
of the Treasury.

6.

DEMAND DEPOSIT accounts of other public funds that are subject
to control or regulation by the United States Government,
including accounts of military organizations, such as post
exchanges, military clubs and similar entities.

balance DEMAND DEPOSIT accounts.

Please note that, for purpose of reporting this item, DEMAND DEPOSITS
include only DEPOSITS held for the credit of the U.S. Government, and
exclude all PRIMARY OBLIGATIONS to the U.S. Government. Such PRIMARY
OBLIGATIONS are exempt from reserve requirements.
Exclude from this item:
1.

DEMAND DEPOSITS due to U.S. Government agencies and instrumental­
ities, such as the Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, Student
Loan Marketing Association, National Credit Union Share Insurance
Fund, the National Credit Union Administration Central Liquidity
Facility, and the Export-Import Bank of the U.S. (reported in
Item 3).

2.

DEMAND DEPOSITS held for state or local governments or their
political subdivisions (reported in Item 3).

3.

TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES (see below).

4.

PRIMARY OBLIGATIONS.

- 26 -

TREASURY TAX AND LOAN ACCOUNT— Treatment of Note Option and Remittance
Option:
Only the deposits credited to U.S. TREASURY TAX AND LOAN demand
deposit accounts that represent funds received as of the close of business
of the current day should be reported as TREASURY TAX AND LOAN Demand
Deposits. Funds credited to Tax and Loan Demand Deposit Accounts as of
the close of business on previous days should already have been remitted
to the Federal Reserve Bank or automatically converted into open-ended
interest-bearing notes, depending on the option selected by the reporting
institution. Interest-bearing TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES
are exempt from reserve requirements and should not be reported as deposits.

- 27 Item 3— Other Demand Deposits

Include in this item the balance of all other DEMAND DEPOSITS, in the form
of DEPOSITS (including NINOW ACCOUNTS) and PRIMARY OBLIGATIONS, including:
1.

DEMAND DEPOSITS in the form of DEPOSITS held for:
A.

individuals, partnerships, and corporations, wherever located;

B.

states and local governments and their political subdivisions;

C.

U.S. Government agencies and instrumentalities, such as:
the Federal Home Loan Bank Board, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks,
Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation,
Federal National Mortgage Association, Federal Financing
Bank, Student Loan Marketing Association, National Credit
Union Share Insurance Fund, the National Credit Union
Administration Central Liquidity Facility, and the ExportImport Bank of the U.S.;

D.

nondeposit and limited purpose trust companies;

E.

trust departments of the reporting institution and of other
DEPOSITORY INSTITUTIONS (see Section 1, Subsection G, for
"Treatment of Trust Funds”);

F.

nondepository AFFILIATES of the reporting institution and
of other DEPOSITORY INSTITUTIONS; and

G.

FOREIGN (NON-U.S.) GOVERNMENTS, both national and regional
and INTERNATIONAL INSTITUTIONS.

2.

Withheld state and local government taxes, insurance premiums,
and similar items (but not withheld Federal tax payments, which are
reported in Item 2).

3.

Outstanding CERTIFIED, OFFICERS', BANK, TELLERS' AND CASHIERS'
CHECKS and DRAFTS issued by the reporting institution, unless
drawn on an account maintained at another DEPOSITORY INSTITUTION
or at a Federal Reserve Bank.

4.

Outstanding travelers' checks and money orders sold to customers,
unless the proceeds are remitted daily to another party under a
consignment arrangement or unless already booked as a reservable
deposit.

5.

Funds received in connection with LETTERS OF CREDIT issued to
customers, including funds credited to CASH COLLATERAL ACCOUNTS
or similar accounts.

- 28 6. Funds deposited to the credit of the reporting institution's own
trust department where the funds involved
are utilized to cover
CHECKS or DRAFTS.
7. Funds received or held in escrow accounts
that may be withdrawn
on demand or within 14 days from the date of deposit, except escrow
fundsheld as TIME or SAVINGS DEPOSITS.
(See Section 1, Subsection
H, for the general treatment of escrow funds.)
8.

PRIMARY OBLIGATIONS issued to NONEXEMPT ENTITIES, excepts
A.

B.

Funds received from sales of BANKERS ACCEPTANCES that
are created and discounted by the reporting institution
and that are Ineligible for discount at Federal Reserve
Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4.b). These transactions are reported
in Schedule A, Item 1.

C.

9.

Those issued to FOREIGN NATIONAL GOVERNMENTS, FOREIGN
(NON-U.S.) OFFICIAL BANKING INSTITUTIONS, and INTER­
NATIONAL INSTITUTIONS (to be reported on the Report of
Certain Eurocurrency Transactions).

Certain obligations issued by the reporting institution's
nondepository AFFILIATES (PRIMARY OBLIGATIONS described
in Section 1, Subsection E.4.a). These transactions are
reported in Schedule A, Item 1.

Noninterest-bearing deposits subject to negotiable orders of
withdrawal (NINOWS).

- 29 Ocher Transaction Accounts (Items 4, 5, and 6)

Report as "Other Transaction Accounts" those DEPOSITS authorized
for automatic transfer (ATS), those subject to TELEPHONE TRANSFER or
PREAUTHORIZED TRANSFER, and those subject to negotiable orders of with­
drawal (NOW ACCOUNTS).

Report Item 4— ATS Accounts
Report in Item 4 the balance of all ATS ACCOUNTS. ATS ACCOUNTS are
SAVINGS DEPOSITS of individuals that are authorized for automatic transfer
to DEMAND DEPOSIT or other accounts pursuant to written agreement arranged
in advance between the reporting institution and the depositor.

Report Item 5— Telephone or Preauthorized Transfer Accounts
Report in Item 5 the balance of SAVINGS DEPOSITS, TIME DEPOSITS, or
accounts under the terms of which, or from which, by practice of the reporting
institution, the depositor is permitted or authorized to make more than three
withdrawals per month for purposes of transferring funds to another account
or for making a payment to a third party by means of preauthorized or tele­
phone agreement, order or instruction.
An account that permits or authorizes more than three such withdrawals
in a calendar month is a TRANSACTION ACCOUNT whether or not more than three
such withdrawals actually are made in a calendar month.
A PREAUTHORIZED TRANSFER includes any arrangement by the reporting
institution to pay a third party from the account of a depositor upon
written or oral instruction (including an order received through an
automated clearing house (ACH)), or any arrangement by the reporting
institution to pay a third party from the account of the depositor at a
predetermined time or on a fixed schedule.
Also report in this item the balance of SAVINGS DEPOSITS, TIME DEPOSITS
or accounts in which payments may be made to third parties by means of a
debit card, an automated teller machine, remote service unit or other
electronic device.
An account is not a ’TRANSACTION ACCOUNT" merely by virtue of an
’
arrangement that permits withdrawals for the purpose of repaying loans
and associated expenses, such as insurance or escrow requirements, at
the same reporting institution (as originator or servicer). In addition,
an account is not a TRANSACTION ACCOUNT because withdrawals to be paid
directly to the depositor could be effected by telephone or preauthorized
order.

-

30 -

Exclude from this item those accounts that permit no more than three
telephone or preauthorized transfers a month to another account of the
depositor in the same institution or to a third party, and all DEMAND DEPOSITS,
ATS ACCOUNTS, and NOW ACCOUNTS, even if TELEPHONE OR PREAUTHORIZED TRANSFERS
are permitted from such accounts.
Report Item 6— NOW Accounts
Report the balance of all NOW (Negotiable Order of Withdrawal)
ACCOUNTS. NOW ACCOUNTS represent interest-bearing DEPOSITS that can be
withdrawn or transferred to third parties by issuance of a negotiable or
transferable instrument. NOW ACCOUNTS are authorized by Federal law and
are limited to accounts in which the entire beneficial interest is held

1.

one or more individuals; or

2.

a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for
profit. These include such organizations as churches; pro­
fessional associations; trade associations; labor unions; frater­
nities, sororities and similar social organizations; and non­
profit recreational clubs.

Report Item 7— Total Transaction Accounts
Report in this item the sum of Items l.a, l.b, 2, 3, 4, 5, and 6.

-

31 -

Deductions (Items 8 and 9 )

Report Item 8— Demand Balances Due from Depository Institutions
Report in this item all DEMAND DEPOSIT balances in the form of DEPOSITS
(exclude PRIMARY OBLIGATIONS) that are due from U.S. offices of the following
institutions located in the U.S. Do not include in this item any deposits
due from these institutions that are negative (i.e., overdrawn).
1.

U.S. commercial banks and trust companies conducting a commercial
BANKING BUSINESS;

2.

EDGE ACT and AGREEMENT CORPORATIONS;

3.

industrial banks;

4.

U.S. BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS (including
U.S. BRANCHES AND AGENCIES of FOREIGN OFFICIAL BANKING INSTITUTIONS);

5.

mutual and stock savings banks;

6.

building or savings and loan associations, homestead associations
and cooperative banks; and

7.

credit unions.

Also include in this item DEMAND DEPOSIT balances due from a correspond­
ent DEPOSITORY INSTITUTION that have not been passed through to the Federal
Reserve hy the correspondent institution.
Reporting Instructions: For purposes of this report, the reporting institution
may report reciprocal demand balances with the institutions listed in 1. through
4. of the paragraph above either on a net-by-institution basis or on a gross
basis, whichever method proves to be less burdensome. Those institutions
reporting reciprocal demand balances on a net basis should see the sample
calculation under Reporting Item l.a. All demand balances with the institutions
listed in 5. through 7. of the paragraph above should be reported gross of
balances "due to” those institutions.
Exclude from Item 8:
1.

all balances due from Federal Reserve Banks, including:
A.

your institution's reserve balances held directly with the
Federal Reserve;

B.

your Institution’s reserve balances that were passed through
to the Federal Reserve by a correspondent;

C.

reserve balances of another institution for which your institution
is serving as pass-through agent (correspondent) and that were
passed through by your institution to the Federal Reserve;

- 32 -

D.

your institution's clearing balance maintained at a Federal
Reserve Bank.

Note, however, that if your institution passes its reserves to the
Federal Reserve through a correspondent, any DEMAND DEPOSIT balances
that you have at the correspondent that were not passed through by
the correspondent to the Federal Reserve should be reported in this
item.
DEMAND DEPOSIT balances due from other DEPOSITORY INSTITUTIONS
that are pledged by the reporting institution and are not
available for immediate withdrawal.
TIME and SAVINGS DEPOSIT balances held at other DEPOSITORY
INSTITUTIONS.
Trust funds deposited in other DEPOSITORY INSTITUTIONS by the
reporting institution's thist department.
Amounts at other DEPOSITORY INSTITUTIONS that represent balances
that will not be available for immediate withdrawal until a future
date but that have been booked by the reporting institution in
advance.
Cash items in process of collection (reported in Item 9).
Any deposit account due to a correspondent or other DEPOSITORY
INSTITUTION that is overdrawn, or amounts that, if charged against
a correspondent account by the reporting institution, would
result in an overdraft in that account.
Any deposit account due from a correspondent or other institution
that is negative (i.e., overdrawn). The amount of such negative
balances should be regarded as zero when computing the deposit
total.
DEMAND DEPOSIT balances that are due from:
A.

any NON-U.S. office of any U.S. DEPOSITORY INSTITUTION;

B.

trust companies that do not conduct a commercial BANKING
BUSINESS;

C.

any NON-U.S. office of any foreign (NON-U.S.) banks; and

D.

N.Y. State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING
BUSINESS.

- 33 -

Report Item 9— Cash Items in Process of Collection
Include as CASH ITEMS in process of collection:
1.

CHECKS or DRAFTS in process of collection that are drawn on
another DEPOSITORY INSTITUTION and that are payable immediately
upon presentation in the U.S. This includes CHECKS or drafts in
the process of collection with:
A.
B.

other DEPOSITORY INSTITUTIONS; or

C.
2.

Federal Reserve Banks;

clearing houses.

CHECKS or DRAFTS on hand that will be presented for payment or
forwarded for collection on the following business day.

3. CHECKS or DRAFTS drawn
that are In process of

on the Treasury of the
collection.

United States

4. Other items in process of collection that are payable immediately
upon presentation In the U.S. and that are customarily cleared
or collected by DEPOSITORY INSTITUTIONS as CASH ITEMS, such as:
A.

redeemed U.S. savings bonds if shipped for collection at
least every other day;

B.

money orders and travelers checks;

C.

NOW (Negotiable Order of Withdrawal),or NINOW (noninterestbearing NOW) ACCOUNT drafts;

D.

credit union SHARE DRAFTS;

E.

bank DRAFTS and FEDERAL RESERVE DRAFTS;

F.

PAYABLE THROUGH DRAFTS that have been received by the reporting
Institution and that will be forwarded to another DEPOSITORY
INSTITUTION;

G. BROKERS SECURITY DRAFTS and COMMODITY OR BILL OF LADING DRAFTS
(including arrival drafts) that are payable immediately
upon presentation in the U.S.;
H.

amounts associated with automated payment arrangements In
connection with payroll deposits, Federal recurring
payments, and other items that are credited to a depositor's
account prior to the payment date to ensure that the funds
are available on the payment date;

-

34 -

I.

RETURNED ITEMS drawn on other DEPOSITORY INSTITUTIONS; and

J.

UNPOSTED DEBITS.

NOTE: CHECKS and DRAFTS that have been credited to a DEPOSIT
account are considered CASH ITEMS in process of collection
only when the depositor is given immediate credit by the
forwarding institution, regardless of any right of charge
back or limited availability.
Exclude from this item and from this report:
1.

Items handled as NONCASH ITEMS, whether or not cleared through
Federal Reserve Banks.

2.

Items not payable in the U.S.

3.

Items for which the reporting institution has already received
credit.

4.

COMMODITY OR BILL OF LADING DRAFTS (including arrival drafts) not yet
payable (because the merchandise against which the draft was drawn
has not yet arrived), whether or not deposit credit has been given.

5.

ITEMS PAYABLE THROUGH received by the reporting institution if
acting in the capacity of clearing agent for a nondepository
institution that have not been collected from that nondepository
institution which is the drawer of the draft.

6.

Credit card or debit slips in process of collection, whether or
not deposit credit has been given.

- 35 -

Treatment of CASH ITEMS forwarded to Federal Reserve Banks
CASH ITEMS forwarded to a Federal Reserve Rank for collection and for
credit should continue to be reported as CASH ITEMS until such time as
credit actually has been given by a Federal Reserve Bank in accordance
with the appropriate time schedules established pursuant to Federal
Reserve Bank "Operating Circulars."
CASH ITEMS in process of collection also should reflect the actual
availability of funds received for DIRECT SENT CASH ITEMS.
Adjustment should be made to:
1.

Retain as CASH ITEMS in process of collection the amounts for items
sent directly to Federal Reserve Banks in other districts that will
arrive when those Federal Reserve offices are closed for a local
or regional holiday.

2.

Remove from CASH ITEMS in process of collection
sent directly to Federal Reserve Banks in other
arrive when the reporting institution's Federal
closed. Credit for such items will be given on
by the local Federal Reserve Office.

the amounts for items
districts that will
Reserve offices are
a back-valued basis

- 36 Other Savings Deposits (Items 10 and 11)

For these items, SAVINGS DEPOSITS include DEPOSITS described in Section 1,
Subsection E.l, and PRIMARY OBLIGATIONS described in Section 1, Subsection
E.3., that are not payable on a specified date or after a specified period
of time from the date of deposit, but for which the reporting institution
expressly reserves the right to require at least 14 days written notice
before an intended withdrawal.

Status of SAVINGS DEPOSITS when notice is required. If the reporting insti­
tution exercises its right to require written notice of an intended with­
drawal in connection with a SAVINGS DEPOSIT, the DEPOSIT continues to be
a SAVINGS DEPOSIT and should not be classified as a TIME DEPOSIT. Where
written notice actually is required by the reporting institution and
such notice is received from a depositor, the SAVINGS DEPOSIT becomes a
DEMAND DEPOSIT after expiration of the notice period and should be reported
in Item 1, 2, or 3, as appropriate.
Include as other SAVINGS DEPOSITS:

1.

Interest-bearing and noninterest-bearing SAVINGS DEPOSITS.

2.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFERS
where the depositor is not permitted or authorized to make more than
three withdrawals per month for purposes of transferring funds
to another account or for making a payment to a third party by
means of preauthorized or telephone agreement, order, or instruction.

3.

SAVINGS DEPOSITS maintained as compensating balances or pledged as
collateral for loans. For purposes of this report, such SAVINGS
DEPOSITS are not defined as HYPOTHECATED DEPOSITS.

4.

Escrow deposits where the reporting institution reserves the right
to require at least 14 days written notice before payment can be
made (see Section 1, Subsection H, for the general treatment of
escrow funds).

5. INTEREST paid by crediting SAVINGS DEPOSIT accounts.
6.

SAVINGS DEPOSITS in the form of Individual Retirement Accounts
(IRA) or Keogh Plan Accounts.

7. CLUB ACCOUNTS, such as Christmas, vacation or similar accounts, in
the form of SAVINGS DEPOSITS (CLUB ACCOUNTS in the form of TIME
DEPOSITS are reported in Item 13 or 14).
8. Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by its AFFILIATE
in the form of a SAVINGS DEPOSIT.

- 37 Exclude from Other SAVINGS DEPOSITS:

1.

NOW (Negotiable Order of Withdrawal) ACCOUNTS (reported in item 6).

2.

NINOW (Noninterest-bearing Negotiable Order of Withdrawal)
ACCOUNTS (reported in Item 3).

3.

ATS ACCOUNTS (reported in Item 4).

4.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFER
(reported in Item 5), unless the depositor is not permitted
or not authorized to make more than three withdrawals per month
for purposes of transferring funds to another account or for making
a payment to a third party by means of preauthorized or telephone
agreement, order or Instruction.

5.

Special passbook or statement accounts, such as "ninety-day notice
accounts," "golden passbook accounts," or deposits labeled as
"saving certificates," that have a specified ORIGINAL MATURITY
of 14 days or more (reported in Item 13 or 14).

6.

INTEREST accrued on SAVINGS DEPOSITS but not yet paid or credited
to a deposit account.

7.

HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include deposits serving simply as collateral
for loans.

8.

CLUB ACCOUNTS, such as Christmas, vacation, and other similiar
accounts, in the form of TIME DEPOSITS.

9.

Funds deposited to the credit of the reporting institution's own
trust department where the funds involved are utilized to cover
CHECKS or DRAFTS. Such funds are TRANSACTION ACCOUNTS and are
reported in Item 3.

10.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting
institution and that are ineligible for discount at Federal
Reserve Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4(b)). These transactions are reported in Schedule A.

11.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Section
1, Subsection E.4(a)). These transactions are reported in
Schedule A.

- 38 Report Item 10— Other Savings Deposits— Personal

Report in Item 10 the balance of all SAVINGS DEPOSITS other than those
reported under TRANSACTION ACCOUNTS that represent funds in which the entire
beneficial interest is held by a depositor who is a NATURAL PERSON.
Include as PERSONAL SAVINGS DEPOSITS:
1. Individual Retirement Accounts (IRA) and Keogh Plan Accounts in
the form of SAVINGS DEPOSITS.
2. Escrow accounts, such as funds held for tax or insurance payments,
if the depositor is a NATURAL PERSON and other conditions of a
SAVINGS DEPOSIT are met.
3. Trust funds held in the name of a trustee or other fiduciary,
whether or not a NATURAL PERSON, of the entire beneficial interest
is held by NATURAL PERSONS and other conditions of a SAVINGS
DEPOSIT are met.
4. CLUB ACCOUNTS, such as Christmas, vacation and similar accounts,
the form of SAVINGS DEPOSITS held by NATURAL PERSONS.

in

Item 11— Other Savings DEPOSITS— Nonpersonal
Report in Item 11 the balance of all SAVINGS DEPOSITS other than those
reported under TRANSACTION ACCOUNTS that represent funds deposited to the
credit of, or in which any beneficial interest is held by, a depositor who
is not a NATURAL PERSON.

Item 12— Total Other Savings Deposits
Report in item 12 the sum of Items 10 and 11.

- 39 Time Deposits (Items 1 3 t 14, 15, and 16)

Include in Items 13, 14, and 15 the balance of all TIME DEPOSITS, in
the form of both DEPOSITS and PRIMARY OBLIGATIONS, that are outstanding
at the close of business each day. Item 13 includes PERSONAL TIME DEPOSITS;
Item 14 NONPERSONAL TIME DEPOSITS; Item 15 is the total of Items 13 and
14; and Item 16 includes all TIME DEPOSITS, whether personal or nonpersonal,
that are in denominations of $100,000 or more.

For these items, TIME DEPOSITS include DEPOSITS described in Section 1,
Subsection E.l, and PRIMARY OBLIGATIONS described in Section 1, Subsection
E.3, that are payable on a specified date, after a specified period of
time from the date of deposit, or after a specified notice period, which
in all cases may not be less than 14 days from the date of deposit.

Reporting of DEPOSITS Issued on a Discount Basis or on Which Interest is
Prepaid
TIME DEPOSITS Issued on a discount basis should be reported initially
on the basis of the amount of funds actually received by the reporting
Institution. For example, if the reporting institution received $96,000
in exchange for a certificate of deposit issued at face value of $100,000,
only the $96,000 received at the time of issuance should be reported
initially as a TIME DEPOSIT. However, as the institution's obligation to
the depositor increase over the life of the deposit, representing INTEREST
earned on the deposit, the incremental amounts as credited to the
certificate also should be reported as TIME DEPOSITS.
TIME DEPOSITS for which INTEREST has been prepaid should be reported
on the basis of the face value of the deposit issued by the reporting
institution without deduction for the amount of prepaid INTEREST. For
example, if the reporting institution received $10,000 in exchange for
a certificate of deposit issued at a face value of $10,000 and prepaid
$500 of INTEREST, the institution should report as a TIME DEPOSIT the
$10,000 received at the time of Issuance. For reporting purposes, the
$500 prepaid INTEREST should not be deducted from the face amount of the
certificate.
Include as TIME DEPOSITS:
1.

TIME CERTIFICATES OF DEPOSIT, whether evidenced by negotiable or
nonnegotiable instruments.

2.

TIME DEPOSITS, OPEN ACCOUNT, evidenced by written contracts.

3.

CLUB ACCOUNTS, such as Christmas, vacation, and other similiar
accounts, in the form of TIME DEPOSITS.

- 40 -

4.

Savings certificates, notice accounts, and passbook accounts (but
not SAVINGS DEPOSITS).

5.

MONEY MARKET TIME DEPOSITS (certificates).

6.

Funds received or held in escrow accounts that may be withdrawn
after not less than 14 days from the date of deposit or after
not less than 14 days written notice of an intended withdrawal
(see Section 1, subsection H, for the general treatment of
escrow funds).

7.

Interest-bearing and noninterest-bearing TIME DEPOSITS.

8.

DEPOSITS in time accounts of Individual Retirement Account (IRA)
funds or Keogh Plan Accounts (reported in Item 13).

9.

TIME DEPOSITS maintained as compensating balances or pledged as
collateral for loans.

10.

ALL INTEREST paid by crediting TIME DEPOSIT accounts.

11.

The reporting institution's liability on PRIMARY OBLIGATIONS
described in Section 1, Subsection E.3(a), (b), (d), and (e),
that are issued in ORIGINAL MATURITIES of 14 days or more to
NONEXEMPT ENTITIES.

12. DUE BILLS described in Section 1, Subsection E.3(c) that
issued in ORIGINAL MATURITIES of 14 days or more.

are

13. Any funds received by the reporting institution's AFFILIATE
and later channeled to the reporting institution by the
AFFILIATE in the form of a TIME DEPOSIT.
Exclude from TIME DEPOSITS the following categories of liabilities
that have an ORIGINAL MATURITY of 14 days or more.
1.

HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include DEPOSITS serving simply as collateral
for loans.

2.

Funds received and credited to DEALER RESERVE OR DEALER DIFFERENTIAL
ACCOUNTS that the reporting institution is not obligated to make
available to either the dealer or the dealer's creditors. Such funds
arise from the financing of accounts receivable for a merchant
(such as home improvement contractors, auto dealers, or mobile
home dealers).

3.

REPURCHASE AGREEMENTS involving obligations of, or fully guaranteed
as to principal and interest by, the U.S. Government or a Federal
agency.

- 41 -

4.

DUE BILLS Issued to any entity that are collateralized within three
business days by securities similar to the securities purchased
(see Section 1, Subsection E.3(c)).

5.

Except for DUE BILLS, any PRIMARY OBLIGATION issued or undertaken
to obtain funds, regardless of the use of the proceeds, when trans­
acted with U.S. offices of EXEMPT ENTITIES.

6.

SUBORDINATED NOTES AND DEBENTURES.

7.

Funds obtained from state and local housing authorities under
LOAN-TO-LENDER PROGRAMS involving the issuance of tax exempt
bonds and the subsequent lending of the proceeds to the reporting
institution for housing finance purposes.

8.

Borrowings from a Federal Reserve Bank.

9.

DEPOSITS for which the reporting institution merely reserves
the right to require at least 14 days written notice of an intended
withdrawal.

10.

ATS and NOW accounts (reported in Items 4 and 6, respectively).

11.

SAVINGS DEPOSITS or accounts authorized for TELEPHONE OR
PREAUTHORIZED TRANSFER (reported in Item 5, 10 or 11).

12.

Other SAVINGS DEPOSITS reported in Items 10 and 11.

13.

Matured TIME CERTIFICATES OF DEPOSIT, even if INTEREST is paid
after maturity, unless the deposit provides for automatic
renewal at maturity.

14.

INTEREST accrued on TIME DEPOSITS but not yet paid or credited
to a DEPOSIT account.

15.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting in­
stitution and that are ineligible for discount at Federal Reserve
Banks (PRIMARY OBLIGATIONS described in Section 1, Subsection
E.4(b)). These transactions are reported in Schedule A.

16.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Section
1, Subsection E.4(a)). These transactions are reported in
Schedule A.

- 42 -

Report Item 13— Time Deposits— Personal

Report asPERSONAL TIME DEPOSITS, regardless of ORIGINAL MATURITY, funds
in whichtheentire beneficial interest is held
by,
a depositor who is a
a NATURAL PERSON, including:
1.

A TIME DEPOSIT that was issued before October 1, 1980, to
and held by a NATURAL PERSON, regardless of its transferability.

2.

A TIME DEPOSIT that is issued to and held by a NATURAL PERSON
and that contains a statement on the
document that evidences
the account (whether in certificate, passbook, statement or
book-entry form) that it is not TRANSFERABLE or that it is
TRANSFERABLE only on the books of, or with the permission
of, the reporting institution.

3.

Individual Retirement Account (IRA) and Keogh Plan TIME
DEPOSITS.

4.

Nontransferable TIME DEPOSITS held by a trustee or other
fiduciary, whether or not a NATURAL PERSON, if the entire
beneficial interest in the TIME DEPOSIT is held by a NATURAL
PERSON. A nontransferable TIME DEPOSIT that is an asset of a
pension fund would normally be regarded as a PERSONAL TIME
DEPOSIT since the entire beneficial interest of such funds
normally is held by NATURAL PERSONS.

5.

Escrow accounts, such as funds held for tax or Insurance payments,
if the depositor is a NATURAL PERSON, and the other conditions
of a TIME DEPOSIT are met, notwithstanding that the funds
are held by the reporting institution or other organization
as escrow agent.

6.

CLUB ACCOUNTS, such as Christmas, vacation and similar accounts,
held in the form of TIME DEPOSITS.

Report Item 14— Time Deposits— Nonpersonal
Report the outstanding balance of all NONPERSONAL TIME DEPOSITS.
Include as NONPERSONAL TIME DEPOSITS:
1.

Funds in which any beneficial interest is held by a depositor
who is not a NATURAL PERSON, other than a deposit to the credit
of a trustee or other fiduciary if the entire beneficial interest
in the deposit is held by a NATURAL PERSON.

2.

A TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT
Issued before October 1, 1980, to or held by a NATURAL PERSON.

- 43 -

3.

A TIME DEPOSIT that is issued on or after October 1, 1980, to and
held by a NATURAL PERSON that does not contain on its face a
statement that it is not TRANSFERABLE.

Exclude from this item
on or after October 1,
is not TRANSFERABLE or
the permission of, the

a TIME DEPOSIT issued to and held by a NATURAL PERSON
1980, if it includes on its face a statement that it
if it is TRANSFERABLE only on the books of, or with
reporting institution.

Report Item 14.a.— Original Maturities of less than 4 years
Report in this item the balance of all NONPERSONAL TIME DEPOSITS with
ORIGINAL MATURITIES of 14 days or more but less than 4 years.

Report Item 14.b.— Original Maturities of 4 years or more
Report in this item the balance of all NONPERSONAL TIME DEPOSITS with
ORIGINAL MATURITIES of 4 years or more.

Report Item 15— Total Time Deposits
Report in this item the sum of Items 13, 14.a and 14.b.
Report Item 16— Amount of Time Deposits in Denominations of $100,000 or more
(included in Items 13 and 14)
Report in this item the balance of all TIME DEPOSITS (both PERSONAL and
NONPERSONAL) of $100,000 or more that are reported in Items 13 and 14.
Include:
1.

Negotiable and nonnegotiable, TRANSFERABLE and nontransferable,
CERTIFICATES OF DEPOSIT issued in denominations of $100,000 or
more, and TIME DEPOSITS, 0PEN-ACC0UNT, and other TIME DEPOSITS
having balances of $100,000 or more.

2.

TIME DEPOSITS originally issued in denominations of less than
$100,000 but that, because of INTEREST paid or credited, or
because of additional deposits, now have a balance of $100,000
or more.

3.

The balance of all PRIMARY OBLIGATIONS of $100,000 or more
that are reported in Items 13 and 14.

In determining if a TIME DEPOSIT is $100,000 or more, do not combine
deposits that are represented by separate certificates or accounts, even
if held by the same customer.
Exclude from this item DEMAND DEPOSITS, SAVINGS DEPOSITS, NOW ACCOUNTS,
NIN0W ACCOUNTS, ATS ACCOUNTS, TELEPHONE TRANSFER accounts or PREAUTHORIZED
TRANSFER accounts with balances of $100,000 or more.

- 44 -

Report Item 17— Vault Cash

Include as vault cash (such as tellers' cash, cash working funds):
1.

United States currency and coin owned and held by the reporting
institution, whether or not held on the premises, that may, at any
any time, be used to satisfy depositors' claims.

2.

United States currency and coin in transit t£ a Federal Reserve
Bank for which the reporting institution has not yet received
credit, and in transit from a Federal Reserve Bank when the
reporting institution has already been charged.

3. United States currency and coin in transit t > a correspondent
<
DEPOSITORY INSTITUTION if the reporting institution's account
at the correspondent institution has not yet been credited, and in
transit from a correspondent institution if the reporting insti­
tution's account at the correspondent institution has already
been charged.
Exclude from vault cash:
1. Foreign (NON-U.S.) currency and coin.
2.

Silver and gold coin and other currency and coinwhose numismatic
or bullion value is in excess of face value.

3. United Sates currency and coin that the reporting institution
does not have full and unrestricted right to use, such as coin
collections held for safekeeping for customers, currency and coin
pledged as collateral by the reporting institution or by
customers, or currency and coin sold under a REPURCHASE AGREEMENT
or purchased under a resale agreement.

- 45 -

Schedule A— Other Reservable Obligations by Remaining Maturity
This schedule includes a breakdown, by maturity, of amounts outstanding
of funds obtained (1) through the use of ineligible acceptances ("finance bills")
and (2) through the issuance of obligations by AFFILIATES.

Itema 1 and 2— Amounts Outstanding of Funds Obtained Through Use
of Ineligible Acceptances and Through Issuance of Obligations by Affiliates
Report the following transactions in this item:
1.

Amounts outstanding of funds obtained through use of ineligible
acceptances ("finance bills"): Report the dollar amounts outstanding
of funds obtained by the reporting institution (or its OPERATIONS
SUBSIDIARIES or SERVICE CORPORATIONS) through Its sale of any
ineligible acceptances (acceptances not eligible for discount by
Federal Reserve Banks— see Section 13 of the Federal Reserve Act
[12 U.S.C. 346 and 372]) when the obligation is issued or under­
taken and discounted by the reporting institution (or its SERVICE
CORPORATIONS or OPERATIONS SUBSIDIARIES) as a means of obtaining
funds and is Issued to NONEXEMPT ENTITIES. Ineligible acceptances
are sometimes referred to as finance bills. The amounts to be
reported are the funds received, and not necessarily the face amounts
of the ineligible acceptances issued or undertaken. Therefore,
the amounts outstanding reported in this item may differ from the
face amounts of outstanding ineligible acceptances.

2.

Amounts outstanding of funds obtained through issuance of
obligations by affiliates: Report the dollar amounts outstanding
of the funds obtained by the reporting institution (or its OPERATIONS
SUBSIDIARIES or SERVICE CORPORATIONS) when Its nondepository
AFFILIATES use the proceeds of the obligations that they issue to
supply or to maintain the availability of funds to the reporting
institution. Such obligations may be in the form of promissory
notes (including commercial paper), ACKNOWLEDGEMENTS OF ADVANCE,
DUE BILLS, or similar obligations (written or oral), with maturities
of less than 4 years. However, such obligations should be reported
only to the extent that they would have constituted "DEPOSITS" as
described in Section 1, Subsection E.l, or "PRIMARY OBLIGATIONS"
as described In Section 1, Subsection E.3, had they been issued
directly by the reporting institution.
DUE BILLS issued by the reporting institution's AFFILIATES are
reservable deposits without regard to the purpose of the DUE BILLS
or to whom issued unless collateralized within three business days
from the date of issuance by a security similiar to the security pur­
chased from the customer of the reporting institution's AFFILIATE.
The dollar amounts outstanding of DUE BILLS that are not so collat­
eralized are to be reported, depending on their maturity, in Item 1
or 2 of this schedule.

-

46-

Exclude from Schedule A funds obtained by the reporting institu­
tion through obligations issued by AFFILIATES and deposited at the
reporting institution in the form of DEMAND, SAVINGS, or TIME
DEPOSITS. Such funds should be reported in the body of the
Report of Transaction Accounts, Other Deposits and Vault Cash
as DEMAND, SAVINGS, or TIME DEPOSITS, as appropriate.
If the AFFILIATE'S obligation is determined to be a DEPOSIT or
PRIMARY OBLIGATION to be reported in Schedule A, then the appropriate
maturity category is determined by the shorter of (1) the maturity
of the AFFILIATE'S obligation or (2) the maturity of the obligation
issued by the reporting institution to the AFFILIATE, or, in the
case of assets purchased from the reporting institution, the
remaining maturity of the assets purchased.
The following chart summarizes the conditions under which
the proceeds from the issuance of an obligation by an AFFILIATE
would be a DEPOSIT or PRIMARY OBLIGATION, and indicates the
appropriate section of the FR 2900 in which the funds would
be reported.

AFFILIATE'S obligation

Funds received by the
reporting institution
are in the form of a
DEPOSIT or a PRIMARY
OBLIGATION

Funds received by the
reporting institution
are not in the form
of a DEPOSIT or
PRIMARY OBLIGATION

1

AFFILIATE'S obligation-would have been a DEPOSIT
or a PRIMARY 0BIGATI0N if
issued by the reporting
institution

To be reported on
FR 2900 as a DEMAND
SAVINGS, or TIME
DEPOSIT, as
appropriate. (See
Example 1 below)

To be reported on
FR 2900, Schedule A.
(See Example 2 below)

2

AFFILIATE'S obligation—
would not have been a
DEPOSIT or a PRIMARY
OBLIGATION if issued by
the reporting institution

To be reported on
FR 2900 as a DEMAND,
SAVINGS, or TIME
DEPOSIT, as
appropriate.
(See
Example 3 below)

To be excluded from
both the body and
Schedule A of the
FR 2900. (See
Example 4 below)

Example 1:
The AFFILIATE issues commercial paper with a maturity of 6 months to
a nonfinancial corporation and immediately supplies the proceeds to the
reporting Institution by buying from the reporting institution a time
certificate of deposit (CD) with an original maturity of one year. While
both the AFFILIATE'S and the reporting institution's obligations are
reservable, reserves need not be maintained against both obligations.

- 47 -

Thus, reserves should be held against the amount of funds supplied to the
reporting Institution, I.e., the dollar amount of the CD. The appropriate
reserve ratio Is determined by the shorter of the maturity of the
AFFILIATE'S commmer’ lal paper or the reporting institution's CD. In this
c
example, reserves would be held for a TIME DEPOSIT with a 6-month maturity.
The funds received by the reporting institution would be reported in Item
14.a (Nonpersonal Time Deposits with an Original Maturity of less than 4
years).
Example 2:
The AFFILIATE issues an unsecured DUE BILL to a NONEXEMPT entity with a
maturity of 3 months and supplies the proceeds to the reporting institution
when the DUE BILL has a remaining maturity of 2 months. The AFFILIATE supplies
the proceeds of the DUE BILL to the reporting institution by purchasing from
the reporting institution assets maturing in 1 month. The AFFILIATE'S obligation
is reservable, but the sale of the assets by the reporting Institution to the
AFFILIATE is not. The reporting Institution must hold reserves on the transac­
tion because the AFFILIATE'S obligation is subject to reserve requirements.
The maturity category is determined by the remaining maturity of the assets
sold by the reporting institution to the AFFILIATE (1 month), which is shorter
than the remaining maturity of the DUE BILL (2 months). In this example, the
reserve requirement would be on the AFFILIATE'S DUE BILL (a PRIMARY OBIGATION)
and the appropriate maturity would be 1 month, which is the remaining maturity
of the assets purchased. The funds received by the reporting institution
should be reported in Item 2.b. of Schedule A.
Example 3:
The AFFILIATE sells commercial paper with a maturity of 3 months to
a commercial bank and supplies the proceeds to the reporting Institution
by depositing such funds in the reporting institution in a DEMAND DEPOSIT
account. The AFFILIATE'S sale of commercial paper to a commercial bank
is not subject to reserve requirements, but the DEMAND DEPOSIT account
is. Thus, the reporting institution would hold reserves on the DEMAND
DEPOSIT account as a TRANSACTION ACCOUNT. The funds received by the
reporting institution should be reported in Item 3 (Other Demand Deposits).
Example 4:
The AFFILIATE sells U.S. Government securities under an agreement to
repurchase and uses the proceeds to purchase assets from the reporting
institution. Neither the sale of the U.S. Government securities under an
agreement to repurchase nor the purchase of assets is subject to reserve
requirements. Thus, the reporting institution would not hold reserves
against this transaction. The funds received by the reporting institution
should be excluded entirely from the Report of Transaction Accounts,
Other Deposits and Vault Cash.

- 48 -

The maturities to be reported in Items 1 and 2 are the remaining
maturities of the obligations at the time the proceeds are supplied to
the reporting institution.
Item 1— Maturing in less than 14 days
Report in Item 1 the amounts outstanding of funds obtained through the
use of ineligible acceptances and from issuance obligations by AFFILIATES
maturing in less than 14 days.

Item 2— Maturing in 14 days or more but less than 4 years
Report in Item 2 the amounts outstanding of funds obtained through the use
of ineligible acceptances and from Issuance of obligations of AFFILIATES matur­
ing in 14 days or more but less than 4 years.
In Item 2.a, report such funds
that are personal, and in Item 2.b, report those that are nonpersonal.

Item 2.a— Personal
Report in Item 2.a all personal obligations that mature in 14 days or more
but less than 4 years including:
Funds in which the entire beneficial interest Is held by a
depositor who is a NATURAL PERSON, including:
1. an obligation that is issued before October 1, 1980 to and
held by a NATURAL PERSON, regardless of its transferability; and
2. an obligation that is issued on or after October 1, 1980, to
or held by a NATURAL PERSON and that contains a statement on
Its face that it is not TRANSFERABLE.

Item 2.b— Nonpersonal
Report in Item 2.b all nonpersonal obligations that mature in 14 days
days or more but less than 4 years including:
1.

funds in which any beneficial interest is held by a depositor
who is not a NATURAL PERSON; other than a deposit to the credit
of a trustee or other fiduciary if the entire beneficial interest
in the deposit is held by a NATURAL PERSON;

2. an obligation that is TRANSFERABLE, except an
issued before October 1, 1980, to and held by
PERSON; and
3.

obligation
a NATURAL

an obligation that is issued on or after October 1, 1980,
to and held by a NATURAL PERSON that does not
contain on
its face a statement that it is not TRANSFERABLE.

G-1

GLOSSARY OF TERMS

This section provides definitions, arranged in alphabetical order, for
terms that appear in all capital letters in Sections 1 and 2 of this manual.
These definitions are used for purposes of the Report of Transaction Accounts,
Other Deposits and Vault Cash. They may differ from definitions that appear
in other rules, regulations, statutes, or reports.
ACKNOWLEDGEMENT OF ADVANCE
A notification by a DEPOSITORY INSTITUTION of its liability for funds that
have been received. Acknowledgements of advance may take the form of a
telegraphic advice, written receipt, issuance of a credit memo or other
documentation, or simply an oral communication confirming the receipt of
funds under a borrowing-lending arrangement. Acknowledgements of advance are
PRIMARY OBLIGATIONS of the issuing DEPOSITORY INSTITUTION.
AFFILIATE
An affiliate is any corporation, association, or other similar organization:
1.

Of which the reporting depository institution directly or indirectly
owns or controls either a majority of the voting shares or more than
50 percent of the number of shares voted for the election of the
directors, trustees, or other persons exercising similar functions at
the preceeding election, or controls in any manner the election of a
majority of the directors, trustees, or other persons exercising
similar functions; o£

2.

Of which control is held directly or indirectly through stock owner­
ship, or in any other manner, by shareholders of the reporting depository
institution who own or control either a majority of the shares of such
depository institution or more than 50 percent of the number of shares
voted for the election of directors of the reporting depository instit­
ution at the preceding election, or by trustees for the benefit of the
shareholders of any such depository institution; or

3.

Of which the majority of its directors, trustees, or other persons
exercising similar functions also are directors of any one depository
institution; or

4.

Which owns or controls directly or indirectly either a majority of the
shares of capital stock of the reporting depository institution or
more than 50 percent of the number of shares voted for the election
of directors, trustees, or other persons exercising similar functions
of the reporting depository institution or controls in any manner the
election of a majority of directors, trustees, or other persons exer­
cising similar functions of the reporting depository institution, or
for the benefit of whose shareholders or members all or substantially
all the capital stock of a depository institution is held by trustees.

G-2

AGENCIES
— See U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS.

AGREEMENT CORPORATION
A state-chartered corporation that has entered into an "agreement”
with the Federal Reserve Board under the provisions of Section 25 of
the Federal Reserve Act to limit Its banking activities to those
permitted to an EDGE ACT CORPORATION.

ATS ACCOUNT
A SAVINGS DEPOSIT or account in which the entire beneficial interest
Is held by one or more individuals and that Is authorized for automatic
transfer to DEMAND DEPOSIT or other accounts pursuant to written agree­
ment arranged in advance between the reporting institution and the
depositor.

BANKERS ACCEPTANCE
A draft or bill of exchange usually drawn under a LETTER OF CREDIT
Issued by the reporting Institution to a customer and "accepted" by the
reporting Institution— i.e., the reporting institution assumes an obligation
to make payment at maturity. Generally, a bankers acceptance is eligible
for discount by a Federal Reserve Bank if it is used to finance the
export or import of goods, the domestic shipment of goods, and the foreign
or domestic storage of goods and if it has a remaining maturity of 90
days or less (or six months or less if for agricultural purposes).
Bankers acceptances used to finance dollar exchange are also eligible
for discount by a Federal Reserve Bank if the remaining maturity is 3
months or less. Bankers acceptances issued for other purposes, such as
"finance bills" and working capital acceptances, are ineligible for
discount at Federal Reserve Banks. (See 12 USC §346.)

BANKING BUSINESS
The business of accepting deposits, making loans, and providing
related services. The banking business does not include the acceptance
of trust funds.

BILL OF LADING DRAFT
— See COMMODITY OR BILL OF LADING DRAFT.

G-3

BRANCHES
--See U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS.

BROKERS SECURITY DRAFT
A draft with securities or title to securities attached that Is drawn
to obtain payment for the securities. This draft is sent to a bank for
collection with instructions to release the securities only on payment
of the draft.

CASH COLLATERAL ACCOUNT
A liability account that is established typically in connection with
the Issuance of a commercial LETTER OF CREDIT by the reporting institution.
A cash collateral account appears on the books of the reporting institution,
either through transfer of funds from a customer's DEPOSIT account or a
deposit of cash, in an amount equal to all or some portion of the authorized
amount of the LETTER OF CREDIT. As DRAFTS are drawn under the LETTER OF
CREDIT and presented to the reporting institution for payment, the amounts
of the DRAFTS are charged to the account. After the LETTER OF CREDIT
expires, any balance remaining in the account is paid or credited to the
customer.

CASH ITEM
Any instrument, whether negotiable or not, for the payment of money
which is payable on demand. Cash item Includes CHECKS in the process
of collection drawn on a DEPOSITORY INSTITUTION, U.S. Government checks,
and other items that are customarily cleared or collected by DEPOSITORY
INSTITUTIONS as cash items.

CERTIFIED, OFFICERS', BANK, TELLERS' AND CASHIERS' CHECK
An unpaid CHECK or DRAFT, other than a trust department CHECK, drawn
on the reporting depository institution by an authorized person for any
purpose, including repayment of "Federal funds" transactions or the
payment of dividends.

CHECK
A negotiable instrument drawn on a DEPOSITORY INSTITUTION and signed
by the maker or drawer promising to pay a certain sum of money on demand
to the order of a specified person or bearer.

G-4

CLUB ACCOUNTS

Christmas, vacation, or similar SAVINGS or TIME DEPOSITS for which
there are written contracts providing that no withdrawal can be made
until a certain number of periodic deposits have been made during a
period of not less than three months, even though some of the deposits
are made within 14 days of the end of the period.

COMMODITY OR BILL OF LADING DRAFT
A DRAFT that is issued in connection with the shipment of goods. If
the commodity or bill of lading draft becomes payable only when the ship­
ment of goods against which it is payable arrives, it is an arrival draft.
Arrival drafts are usually forwarded by the shipper to the collecting
DEPOSITORY INSTITUTION with instructions to release the shipping documents
(e.g., bill of lading) conveying title to the goods only upon payment of
the draft. Payment, however, cannot be demanded until the goods have
arrived at the drawee's destination. Arrival drafts provide a means of
insuring payment of shipped goods at the time that the goods are released.

CREDIT BALANCE
A balance booked by the reporting institution as a credit balance o£
maintained by the reporting institution and owed to a third party that
is incidental to or that arises from the exercise of banking powers.

DEALER RESERVE OR DEALER DIFFERENTIAL ACCOUNT
An account that arises when a merchant or dealer (such as a home
improvement contractor, mobile home dealer or car dealer) enters into
an arrangement with the reporting institution to furnish the dealer
with financing of installment loans by selling the loans to the reporting
institution at discount. The proceeds of the sale that the dealer receives
from the reporting institution represent only a portion (such as 90 per
cent) of the amount due on the installment loans. Typical accounting
entries by a reporting institution are a debit to "loans" for the principal
amount due on the loans purchased, a credit to the dealer's "DEMAND
DEPOSIT" account for 90 percent of the amount, and a credit to a "dealer
reserve" or a "dealer differential" account for the remaining 10 percent.
Since the dealer does not have access to the funds credited to the reporting
institution's dealer reserve or differential account and may not make
withdrawals from the account, no deposit liability arises until such
time as the reporting institution becomes liable to the dealer for any
portion of the funds.

DEMAND DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l, or a PRIMARY OBLIGA­
TION described in Section 1, Subsection E.3, that is payable immediately

G-5

on demand or Issued in an ORIGINAL MATURITY of less than 14 days, or
Chat is payable with less than 14 days notice, or for which the reporting
institution does not reserve the right to require at least 14 days written
notice of an intended withdrawal.

DEPOSITORY INSTITUTION
Any of the following institutions that is empowered to perform a
BANKING BUSINESS and that performs this business as a substantial part
of its operations and is insured or is eligible to apply to become insured
1. U.S. commercial banks:
A. national banks;
B. state-chartered commercial banks;
C. trust companies that perform a commercial BANKING BUSINESS; and
D. private banks or unincorporated banking institutions organized
as partnerships or proprietorships and authorized to perform
commercial BANKING BUSINESS;
2. U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions; and
9. industrial banks, including Morris Plan banks, thrift and loan
companies, and industrial savings banks.
Please note that for purposes of these instructions, U.S. BRANCHES
AND AGENCIES OF FOREIGN (NON-U.S.) BANKS, and EDGE ACT and AGREEMENT
CORPORATIONS are included in the term DEPOSITORY INSTITUTION.
The term DEPOSITORY INSTITUTION excludes the following:
1. a trust company whose principal function is to accept and execute
trust arrangements or act in a purely fiduciary capacity;

G-6

2. a cash depository, cooperative exchange, or similar depository
organization whose principal function is to serve as a safe deposit
institution;
3. a finance company, whether or not empowered to receive deposits or
sell certificates of deposit;
4. U.S. Government agencies and instrumentalities, such as the Federal
Home Loan Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation, Federal Deposit insurance
Corporation, Federal National Mortage Association, the Federal
Financing Bank, Student Loan Market Association, National Credit
Union Share Insurance Fund, and the National Credit Union Adminis­
tration Central Liquidity Facility;
5. Export-Import Bank of the U.S;
6. Government Development Bank of Puerto Rico;
7. Minbanc Capital Corporation; and
8. Federal Reserve Banks.

DEPOSITS
— See Section 1, Subsection E.l and E.2, or Section 204.2 (a)
(l)(i through iii)) of Federal Reserve Regulation D.

DIRECT SENT CASH ITEM
A CASH ITEM sent for collection directly by a DEPOSITORY INSTITUTION
in one Federal Reserve District for collection from a Federal Reserve
Bank located in another district.

DRAFT
A instrument signed by the drawer ordering the payment of a certain
sum of money on demand to the order of a specified person or bearer.

DUE BILL
An instrument representing an obligation or promise to sell or deli­
ver at some future date securities, foreign exchange, etc. Due bills
generally are issued in lieu of the item to be sold or delivered at
times when the item is in short supply or otherwise currently unavailable.
The issuance of due bills may give rise to a reservable deposit (see
Section 1, Subsection E.3(c)).

G-7

EDGE ACT CORPORATION

A corporation chartered by the Federal Reserve Board under Section
25(a) of the Federal Reserve Act to engage in international banking
and financial operations.

EXEMPT ENTITIES
U.S. offices of the following:
1. U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES; .
2. a U.S. BRANCH or AGENCY of a bank organized under foreign (NONU.S.) law;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. industrial banks;
5. mutual and stock savings banks;
6. mutual or stock building or savings and loan associations and
homestead associations;
7. cooperative banks;
8. credit unions;
9. the U.S. Government and its agencies and instrumentalities, such as the
Federal Reserve Banks, Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks,
Banks for Cooperatives, the Federal Home Loan Mortgage Corporation,
Federal Deposit Insurance Corporation, Federal National Mortgage
Association, Federal Financing Bank, Student Loan Marketing Assoc­
iation, National Credit Union Share Insurance Fund, and the National
Credit Union Administration Central Liquidity Facility;
10. Export-Import Bank of the U.S.;
11. Government Development Bank of Puerto Rico;
12. Mlnbanc Capital Corporation;
13. securities dealers, but only when the borrowing (a) has a maturity
of one day, (b) is in immediately-available funds, and (c) is in
connection with the clearance of securities;
14. the U.S. Treasury (TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES); and
15. New York State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING BUSINESS.

G-8

FEDERAL PUBLIC FUNDS

Funds of the U.S. Government and funds the deposit of which is subject
to the control and regulation of the United States or any of its officers,
agents, or employees.

FEDERAL RESERVE DRAFT
A DRAFT issued by a DEPOSITORY INSTITUTION that is drawn on its account
at a Federal Reserve Bank and that is payable by the Federal Reserve Bank.

FOREIGN (NON-U.S.) BANK
A bank organized under foriegn (NON-U.S.) law. Foreign banks include
commercial banks, merchant banks, discount houses, and similar depository
institutions, including nationalized banks that perform essentially a
BANKING BUSINESS and do not perform, to any significant extent, official
functions of FOREIGN (NON-U.S.) GOVERNMENTS.

FOREIGN (NON-U.S.) GOVERNMENTS
Central, national, state, provincial, and local governments in foreign
(NON-U.S.) countries (including their ministries, departments, and agen­
cies) that perform functions similar to those performed in the United
States by government entities.
Foreign (NON-U.S.) governments also include FOREIGN (NON-U.S.)
OFFICIAL BANKING INSTITUTIONS.

FOREIGN (NON-U.S.) NATIONAL GOVERNMENT
A central or national government that performs functions similar to
those performed by the Federal Government of the United States. State,
provincial, and local governments are not included as foreign national
governments.

FOREIGN (NON-U.S.) OFFICIAL BANKING INSTITUTIONS
Central banks, nationalized banks and other banking institutions in
foreign (NON-U.S.) countries that are owned by central governments and
that have as a significant part of their function activities similar to
those of a treasury, central bank, development bank, exchange control
office, stabilization fund, monetary agency, currency board, etc.

G-9

HYPOTHECATED DEPOSITS

Funds received by the reporting institution that are recorded as
DEPOSITS generally in accordance with state law and that reflect periodic
payments by a borrower on an instalment loan. These payments are accumulated
until the sum of the payments equals the entire amount of principal and
INTEREST on the loan, at which time the loan is considered paid in full.
The amounts received by the reporting institution are not immediately
used to reduce the unpaid balance of the note, but are assigned to the
reporting institution and cannot be reached by the borrower or the borrower's
creditors. Hypothecated deposits are not to be reported as reservable
deposits.
For purpose of this report, hypothecated deposits do not include
DEPOSITS serving simply as collateral for loans.
IMMEDIATELY-AVAILABLE FUNDS
Funds that the reporting institution can either use or dispose of on
the same business day that the transaction giving rise to receipt of the
funds is executed. Such funds are sometimes referred to as "collected,"
"actually collected," "finally collected," or "good" funds.

INTEREST
Any payment to or for the account of a depositor as compensation for
the use of deposit funds. Payments to a depositor that are not related
to the use of deposit funds by the reporting institution are not interest.
For example, if existing depositors are offered monetary or other compen­
sation for attracting new depositors, that compensation does not constitute
interest. Similarly, one-time premiums (whether in the form of merchandise,
credit, or cash) that are used to attract new depositors represent advertising
or promotional expenses rather than a payment of interest, provided that
their wholesale cost does not exceed $5.00 per deposit under $5,000 and
$10 per deposit of $5,000 or more. Finally, interest does not include
the cost of administrative or processing services absorbed by the reporting
institution in relation to deposit accounts. For example, the reporting
institution's payment of state personal property taxes on its deposits
or the market value of an advisory individual account analysis of the
depositor does not constitute Interest.

INTERNATIONAL INSTITUTION
(1)
Any international entity of which the United States is a member,
such as the International Bank for Reconstruction and Development (World
Bank), International Monetary Fund, Inter-American Development Bank, and
the United Nations, and (2) other foreign, international, or supranational
entities of which the United States Is not a member, such as the African
Development Bank, Central Treaty Organization, European Atomic Energy

G-10

Community, European Economic Community, European Development Fund,
Caribbean Development Bank, Bank for International Settlements, etc.
(See Federal Reserve Regulation Q [12 CFR § 217.126].)

ITEMS PAYABLE THROUGH
— See PAYABLE THROUGH DRAFT.

LETTER OF CREDIT
A letter of advice from a DEPOSITORY INSTITUTION to its agent or
correspondent, requesting that a sum of money be made available to the
person named in the letter under specified conditions.

LOAN-TO-LENDER PROGRAM
A loan-to-lender program involves the issuance of tax-exempt bonds by
a state or local housing authority and the subsequent lending of the pro­
ceeds to a reporting institution with the condition that these funds be
used to make specified types of residential real estate loans. The funds
advanced to Institutions under the program are evidenced by a loan agree­
ment and a promissory note issued by the institution to the housing
authority.

MONEY MARKET TIME DEPOSIT
A nonnegotiable TIME DEPOSIT that must be issued in denominations of
$10,000 or more with an ORIGINAL MATURITY of exactly 26 weeks. The maxi­
mum rate of INTEREST which DEPOSITORY INSTITUTIONS may pay on these deposits
is tied to the discount rate (auction average) on the most recently
issued six-month Treasury bills. Compounding of INTEREST is not permitted.

NATURAL PERSON
For purposes of this report, a NATURAL PERSON is an individual or a sole
proprietorship. The term does not mean a corporation owned by an individual,
a partnership or other association.

NINOW ACCOUNT
A deposit or account on which no INTEREST or dividend is paid and from
which withdrawals are mads by negotiable or TRANSFERABLE instruments for
the purpose of making payments to third parties.

G-ll

NONCASH ITEM

Any item that is not a CASH ITEM.

NONEXEMPT ENTITY
Any entity that is not listed as an EXEMPT ENTITY.

NONPERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that is not a TRANSACTION ACCOUNT and that represents
funds deposited to the credit of, or in which any beneficial interest is
held by, a depositor that is not a NATURAL PERSON or persons.

NONPERSONAL TIME DEPOSIT
NONPERSONAL TIME DEPOSIT means:
(1) a TIME DEPOSIT representing funds in which any beneficial interest
is held by a depositor that is not a NATURAL PERSON or persons,
other than a deposit to the credit of a trustee or other fiduciary
if the entire beneficial interest in the deposit is held by a
NATURAL PERSON.
(2)

a TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT issued
before October 1, 1980, to and held by a NATURAL PERSON or persons
or

(3) a TIME DEPOSIT issued on or after October 1, 1980, to and
held by a NATURAL PERSON or persons that does not contain on its
face a statement that it is not TRANSFERABLE.

NON-U.S.
Any geographic location, Including the Commonwealth of Puerto Rico and
U.S. territories and possessions, outside the 50 states of the United
States and the District of Columbia.

NON-U.S. BANK
— See FOREIGN (NON-U.S.) BANK.

G-12

NOW ACCOUNT

A deposit or account on which INTEREST or dividends are paid and the
customer is allowed to make withdrawals by negotiable or TRANSFERABLE
instruments for the purpose of making transfer to third parties. On or
after December 31, 1980, all DEPOSITORY INSTITUTIONS are authorized to
offer NOW ACCOUNTS. Prior to that date, only DEPOSITORY INSTITUTIONS in
certain states are authorized to offer NOW ACCOUNTS.
NOW ACCOUNTS are authorized by Federal law and are limited to accounts
in which the entire beneficial interest is held by:
1. one or more individuals; or
2. a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for
profit, such as church organizations; professional associations;
trade associations; labor unions; fraternities, sororities and
similar social organizations; and nonprofit recreational clubs.

OPERATIONS SUBSIDIARY
A subsidiary of a DEPOSITORY INSTITUTION (1) that serves in effect
as a separately incorporated department performing functions that the
DEPOSITORY INSTITUTION is empowered to perform at locations where the
DEPOSITORY INSTITUTION is authorized to engage in business and (2) that
satisfies the appropriate regulatory ownership requirements (see 12 CFR
§ 7.7376 and 250.141). Examples include credit card companies, mortgage
companies leasing companies, or safe deposit companies. While similar,
OPERATIONS SUBSIDIARIES do not have the same powers that are granted to
SERVICE CORPORATIONS.

ORIGINAL MATURITY
The length of time from the date of deposit to the earliest date that
the funds may be withdrawn at the option of the depositor under the
terms of the deposit agreement. Where a deposit is withdrawable on a
specified date, the maturity Is determined by the length of time between
the Issue date and the specified maturity date. Where a deposit has no
specified maturity but can be withdrawn after written notice is provided
to the reporting Institution, the maturity is determined by the length
of the required notice period. ROLL-OVER CERTIFICATES OF DEPOSIT,
multiple maturity deposits, alternative maturity deposits, or deposits
providing other maturity combinations that permit a depositor the option
of withdrawing the deposit at different dates or periods of time should
be reported on the basis of the earliest allowable withdrawal date.

G-13

PAYABLE THROUGH DRAFT

A DRAFT drawn upon a nonbank payor which states on its face that
it is "payable through" a particular bank.

PERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that represents funds in which the entire beneficial
interest is held by a depositor who is a NATURAL PERSON.

PERSONAL TIME DEPOSIT
A TIME DEPOSIT that represents funds in which the entire beneficial
interest is held by a NATURAL PERSON; including a TIME DEPOSIT (a) that
was issued before October 1, 1980, to and held by a NATURAL PERSON, regard
less of its transferability, or (b) that is Issued to or held by a
NATURAL PERSON and that contains a statement on its face that it is not
TRANSFERABLE.

PREAUTHORIZED TRANSFERS
— See TELEPHONE and PREAUTHORIZED TRANSFERS.

PRIMARY OBLIGATIONS
— See Section 1, Subsections E.3 through E.6 of these instructions and
Section 204.2, (a)(l)(iv, v, and vii) of Regulation D.

REPURCHASE AGREEMENT
An arrangement involving the sale of a security or other asset under
a prearranged agreement to repurchase the same or similar security or
asset at a later date.

RETURNED ITEM
A CHECK or DRAFT that Is returned by a drawee Institution to the
presenting institution because of certain irregularities that, if waived,
might result in a loss to the drawee institution. The item is returned
so that the presenting institution may correct the defect or take such
other action as may be necessary, such as charging the depositor's account

G-14

ROLL-OVER CERTIFICATE OF DEPOSIT

A certificate of deposit transaction (sometimes referred to as a "rolypoly") where a depositor agrees to maintain funds on deposit with a
DEPOSITORY INSTITUTION at a specified rate for a certain period, usually
several years. Instead of receiving one certificate of deposit matur­
ing at the end of the period, however, the depositor agrees to purchase
a series of short-term certificates of deposit. The depositor initially
buys a short-term certificate, and when it matures, is required under the
terms of the deposit agreement to purchase another short-term certifi­
cate. This process continues until the long-term contract period expires.

SAVINGS DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l, a PRIMARY OBLIGATION
described in Section 1, Subsection E.3, that is not payable on a specified
date or after a specified period of time from the date of deposit, but
for which the reporting institution expressly reserves the right to require
at least 14 days written notice before an intended withdrawal. Also see
Section 204.2 of Regulation D.

SERVICE CORPORATION
A subsidiary corporation in which the majority of the capital stock
is owned by one or more institutions of the type insured by the Federal
Savings and Loan Insurance Corporation (more precisely defined in para­
graph 1077c of the Federal Home Loan Bank Board's Annotated Manual
of Statuates and Regulation). These corporations may engage directly or
indirectly in any activities defined in paragraph 847 of the FHLBB's
Manual.

SHARE ACCOUNT
Funds in the form of shares purchased by a member or other approved
depositor which are received or held by the credit union in its usual
course of business and for which the credit union has given, or is
obligated to give, credit to the account of the depositor. This account
Is not payable on a specified date or after a specified period of time.
However, the credit union expressly reserves the right to require at
least 14 days written notice before an Intended withdrawal of all or any
portion of the shares in an account.

G-15

SHARE CERTIFICATE ACCOUNT

A TRANSFERABLE or nontransferable instrument or account which provides
on its face or in the underlying agreement that a specified amount of
shares is payable to the bearer or to any specified person:
1. on a certain date, specified in the instrument or underlying account,
not less than 14 days after the purchase date of shares or the
account is opened; or
2. at the expiration of a certain specified time not less than 14
days
after the date the instrument is issued; or
3. upon notice in writing which actually is required to be given by
the certificate holder not less than 14 days before the date of
repayment.
A share certificate earns a dividend, and a penalty is assessed for
early withdrawal.

SHARE DRAFT
A negotiable or nonnegotiable DRAFT signed by the account holder
directing the credit union on which the draft is drawn to pay a certain
sum of money on demand to the order of a specified person or bearer.
Such drafts are used to withdraw funds from a SHARE DRAFT ACCOUNT.

SHARE DRAFT ACCOUNT
A SHARE ACCOUNT from which funds may be withdrawn or transferred to
third parties by issuance of a negotiable or TRANSFERABLE instrument or
other order such as a SHARE DRAFT.

SUBORDINATE NOTE AND DEBENTURE
An obligation satisfying all of the following requirements:
1. is not insured by a Federal agency;
2. is subordinated to the claims of depositors;
3. has an ORIGINAL MATURITY of at least seven years, or, in the case
of an obligation or serial issue that provides for any type of
scheduled repayment of principal, has a weighted average maturity
of all scheduled repayments of at least seven years with no note
having a maturity of less than five years;

G-16

4. is issued by a DEPOSITORY INSTITUTION with the approval or under
the rules and regulations of its primary Federal supervisor.

TELEPHONE AND PREAUTHORIZED TRANSFER
A DEPOSIT or account under the terms of which a depositor is permitted to
make more than three preauthorized or telephone transfers per month
(whether to another account of the depositor or to a third party), and
accounts that permit a depositor to make payments to third parties through
automated teller machines or remote service units. Whether an account is
a TRANSACTION ACCOUNT by virtue of the number of telephone or preauthorized
transfers (excluding loan repayments) permitted is to be determined based
upon the terms of the account contract or by practice of the DEPOSITORY
INSTITUTION and not on the basis of the actual number of transfers made
in a particular calendar month.

TIME CERTIFICATE OF DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l, or a PRIMARY OBLIGA­
TION described in Section 1, Subsection E.3, that is payable on a speci­
fied date, after a specified period of time from the date of deposit, or
after a specified notice period, which in all cases may not be less than
14 days from the date of deposit.
A TIME DEPOSIT may be represented by a TRANSFERABLE or nontransferable,
or a negotiable or nonnegotiable, certificate, instrument, passbook or
statement. A nonnegotiable TIME DEPOSIT is distinguished from a non­
transferable TIME DEPOSIT in that the transferee of a nonnegotiable TIME
DEPOSIT would not be a holder in due course and would not have the ability
to cut off certain defenses of an obligor even though an exchange for
value can be made. A nontransferable TIME DEPOSIT allows no exchange for
value to be made.

TIME DEPOSIT, OPEN ACCOUNT
A deposit, other than TIME CERTIFICATE OF DEPOSIT, for which there is
in force a written contract with the depositor that neither the whole nor
any part of such deposit may be withdrawn prior to the date of maturity,
which shall not be less than 14 days after the date of the deposit, or
prior to the expiration of a period of notice which must be given by the
depositor in writing not less than 14 days in advance of withdrawal.

TRANSACTION ACCOUNT
A DEPOSIT or account on which the depositor or account holder is per
mitted to make withdrawals by negotiable or TRANSFERABLE instrument,

G-17

payment orders of withdrawal, telephone transfers, or other similar
device for the purpose of making payments or transfers to third persons
or others• "Transaction account" includes:
(1) DEMAND DEPOSITS;
(2)

DEPOSITS or accounts (including NOW, NINOW, and SHARE DRAFT ACCOUNTS)
subject to negotiable orders of withdrawal;

(3)

SAVINGS DEPOSITS or accounts in which withdrawals may be
made
automatically (ATS ACCOUNTS) through payment to the DEPOSITORY
INSTITUTION Itself or through transfer of credit to a DEMAND
DEPOSIT or other account in order to cover CHECKS or DRAFTS
drawn upon the institution or to maintain a specified balance
in, or to make periodic transfers to, such accounts; and

(4)

DEPOSITS or accounts in which withdrawals may be made by
PRE­
AUTHORIZED TRANSFER or payment, by TELEPHONE TRANSFER or payment,
or by payment to third parties by means of an automated teller
machine, remote service unit or other electronic device. Federal
Reserve Regulation D permits up to three TELEPHONE OR PREAUTHORIZED
TRANSFERS a month (to another account of the depositor in the same
institution or to a third party) before such accounts are regarded
as TRANSACTION ACCOUNTS. Accounts that permit more than three such
transfers monthly are regarded as TRANSACTION ACCOUNTS even If not
actively used. Transfers authorized in connection with loans made
by the institution holding the deposit do not make the account a
TRANSACTION ACCOUNT.

TRANSFERABLE
The transferee of a transferable TIME DEPOSIT may be a holder in due
course and would have the ability to cut off certain defenses of an
obligor. A TIME DEPOSIT is not considered a transferable TIME DEPOSIT
merely because it can be pledged as collateral for a loan from any
lender, or merely because title or beneficial interest in the DEPOSIT
or account can be passed on in circumstances arising from death, bank­
ruptcy, divorce, marriage, incompetency, attachment or otherwise by
operation of law. In addition, the reissuance of a TIME DEPOSIT by an
institution in the name of another or the addition or subtraction of
names on the TIME DEPOSIT will not be regarded as a transfer.

UNPOSTED CREDITS
Items that have been received for deposit and that are in process of
collection but that have not been posted to individual or general ledger
deposit accounts. These credits should be reported as DEPOSITS.

G-18

UNPOSTED DEBITS

CASH ITEMS drawn on the reporting institution bank that have been "paid"
or credited by the institution and that are chargeable but that have not
been charged against DEPOSITS as of the close of business. These items
should be reported as "cash items in process of collection" until they have
been charged to either individual or general ledger deposit accounts.

U.S.
The SO states of the United States and the District of Columbia.

U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS
Branches and agencies of foreign (NON-U.S.) banks that operate as a U.S.
office of their foreign (NON-U.S.) parent bank. The branch or agency may
be chartered by the U.S. Government, by any of the 50 states of the U.S.
As defined by the International Banking Act of 1978, a "branch” means
any office or any place of business of a foreign bank located in any state
of the United States at which DEPOSITS are received; an "agency" means any
office or any place of business of a foreign bank located in any state of
of the United States at which CREDIT BALANCES are maintained incidental to
to or arising out of the exercise of banking powers, CHECKS are paid, or
money is lent but at which DEPOSITS may not be accepted from citizens or
residents of the United States.

U.S. TREASURY GENERAL ACCOUNT
A Treasury account maintained at the reporting institution to which
government officers deposit funds obtained in connection with special
collections, such as customs fees or other tax collections.

U.S. TREASURY TAX AND LOAN ACCOUNT
A Treasury DEMAND DEPOSIT account maintained at the reporting DEPOSITORY
INSTITUTION through which the Treasury receives DEPOSITS (receipts),
principally of Federal tax payments and proceeds from the sale of savings
bonds. The account does not Include TREASURY TAX AND LOAN ACCOUNT NOTE
BALANCES.

U.S. TREASURY TAX AND LOAN NOTE BALANCE
That balance representing the total amount outstanding of open-ended
interest-bearing notes issued by the reporting DEPOSITORY INSTITUTION to
the U.S. Treasury under the TREASURY TAX AND LOAN ACCOUNT note option
program.

G-19

A depository authorized to accept U.S. TREASURY TAX AND LOAN ACCOUNT
DEPOSITS may administer such accounts under either of two options:
(1) the remittance option or (2) the note option. Under the remittance
option, depositories must send the previous day's tax and loan account
balances as of the close of business to the Federal Reserve Banks. Under
the note option, depositories will automatically convert the previous
day's close-of-buslness balance in their tax and loan account to an
interest-bearing demand note, which must be fully collateralized.

Federal
Reserve
Bank of
Dallas

In s t r u c t i o n s f o r t h e P r e p a r a t i o n of:

• R e p o r t of T r a n s a c t i o n A c c o u n t s ,
O t h e r D e p o s i t s a n d V ault C a s h
( F R 2900)
• R e p o r t of Certain E u r o c u r r e n c y T r a n s a c t i o n s
( F R 2950)

F o r U s e By:

• Credit U n i o n s

DETAILED INSTRUCTIONS
FOR
PREPARATION OF THE
REPORT OF TRANSACTION ACCOUNTS,
OTHER DEPOSITS AND VAULT CASH
(FR 2900)

For Use by Credit Unions

CONTENTS
page
INTRODUCTION ..........................................................

SECTION 1~GENERAL INSTRUCTIONS ................................... 3
A. Who Must R e p o r t .............................................. 3
B. Frequency of Report ...........................................
C. How to R e p o r t ................................................ 4
1. Consolidation ...............................................
2. Denomination
...............................................
3. Overdrafts orNegative Balances ...............................
4. Record-keeping ..............................................
5.
Unposted Debits and Credits .................................
6. Rejected I t e m s ...................................... .. . .
D. What Liabilities AreReservableUnder Regulation D ...............
E. Deposits as DefinedUnderRegulation D ...........................
F.
Treatment of Pass-Through Balances ............................
G.
Treatment of Special D e p o s i t s .............. ................. 9
H.
Treatment of Escrow F u n d s ........................ .......... 9

1

3
4
4
4
5
5
6
6
6
9

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS ................................ 11
TRANSACTION ACCOUNTS ............................................. 11
Demand Deposits ................................................. 12
Items 1— Demand Deposits Due to Depository Institutions........ 15
Item l.a— Due to B a n k s ....................................... 16
Item l.b— Due to Other Depository Institutions ................ 17
Item 2— U.S. Government Demand Deposits ....................... 17
Item 3— Other Demand D e n o s i t s ................................. 19
Other Transaction Accounts ..................................... 20
Item 4— ATS Accounts........................................... 20
Item 5— Telephone and Preauthorized Transfer Accounts............20
Item 6— Share Draft Accounts . . . . . ......................... 20
Item 7— Total Transaction Accounts ............................. 20
DEDUCTIONS FROM TRANSACTION ACCOUNTS ............................. 21
Item 8— Demand Balances Due from Depository Institutions ........ 21
Item 9— Cash Items in Process of C o l l e c t i o n ....................22
OTHER SAVINGS AND TIME D E P O S I T S ................................. 25
Other Savings Deposits ......................................... 25
Item 10— P e r s o n a l ............................................. 26
Item 11— Nonpersonal........................................... 29
Item 12— Total Other Savings D e p o s i t s .......... . ............. 26
Time Deposits.......... ............................ .......... 27
Item 13— P e r s o n a l ............................................. 29
Item 14— Nonpersonal........................................... 29
Item 14.a— Original Maturities of less than 4 y e a r s ............ 30
Item 14.b— Original Maturities of 4 years or m o r e ..............30
Item 15— Total Time Deposits................................... 30
Item 16— Amount of Time Deposits In Denomination of $100,000
or M o r e .............. .................. ............ 30
Item 17— Vault C a s h ........................................... 31
SCHEDULE A— OTHER RESERVABLE OBLIGATIONS BY REMAINING MATURITY . . . 32
GLOSSARY........................................................... G-1

INTRODUCTION

Under the Monetary Control Act of 1980, every depository insti­
tution located in the United States that has transaction accounts or
nonpersonal time deposits is required to hold reserves and to file with
the Federal Reserve a Report of Transaction Accounts, Other Deposits and
Vault Cash (FR 2900). Every depository institution that obtains funds
from foreign (non-U.S.) sources or that maintains foreign (non-U.S.) branches
is also required to file with the Federal Reserve a Report of Certain
Eurocurrency Transactions.!/ Rules governing the reporting and the reserve
requirement provisions of the Monetary Control Act are contained in Federal
Reserve Regulation D, "Reserve Requirements of Depository Institutions."2/
This booklet provides detailed instructions for preparation of
the Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900)
by all credit unions. This booklet is organized into two sections followed
by a glossary. Section 1 contains general Instructions and guidelines;
Section 2 contains item-by-item instructions; and the glossary defines in
alphabetic order important terms and phrases that appear in all capital
letters In Sections 1 and 2. This booklet has been printed In looseleaf
form to allow for any future changes.
This booklet has been designed to facilitate accurate preparation
of the Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900). The instructions that follow in Sections 1 and 2 are Intended
to provide a comprehensive presentation of applicable regulations, inter­
pretations, and legal opinions governing the classification of deposits
subject to reserve requirements. Each credit union is urged to review
this material carefully and to use it as the basic guide in preparing the
report.
Accurate preparation of these reports is an Important first
step in the reserve maintenance cycle. Based on the deposit levels that
your credit union reports for each reporting period, the Federal
Reserve calculates the level of reserves that must be deposited directly
with or passed through to a Federal Reserve Bank on these deposits two
weeks later. Efficient reserve management begins with accurate deposit
reporting. Errors in reporting may result in higher reserve requirements,
which could reduce your institution's potential earnings, or in Insufficient
reserves, which may subject your institution to the assessment of penalties.

17 Any credit union that has obtained funds from a foreign (non-U.S.)
source or that has foreign (non-U.S.) offices (excluding those located on
U.S. military facilities) should contact the Federal Reserve Bank for the
District in which it is located to obtain forms and instructions for the
Report of Certain Eurocurrency Transactions (FR 2950).
2/ The Federal Reserve Board has deferred reporting and reserve require­
ments for all credit unions (and for certain other depository institutions)
with total deposits of less than $1 million as of December 31, 1979.

In addition to their use in the calculation of required reserves,
data from these reports are basic to the construction of the monetary
aggregates that are used by the Federal Reserve System in the formulation
and conduct of monetary policy. Inaccurate reporting results in deterior­
ation in the quality of the monetary aggregate estimates.
The following instructions are based on Regulation D of the Board
of Governors of the Federal Reserve System [12 CFR §204] and in no way
alter or modify the requirements of Regulation D> While every effort has
been made to incorporate all existing regulatory provisions, this booklet
should not be considered the final authority on the deposit status of all
Instruments, obligations, or transactions. Final authority rests with the
Board of Governors of the Federal Reserve System. Inquiries concerning
specific instruments, obligations, or transactions, as well as suggestions
for improving the content of this booklet, may be directed to the Federal
Reserve Bank in your District.

SECTION 1— GENERAL INSTRUCTIONS

Section 1 contains general Instructions and guidelines which
provide credit unions with the basic framework for reporting on the Report
of Transaction Accounts, Other Deposits and Vault Cash (FR 2900) and
which describe, in general, the nature of reservable liabilities and the
specific procedures for reporting these liabilities.
These instructions are Intended to be comprehensive and to provide
for all types of transactions that a credit union could conceivably have
within the scope of this report. However, it is likely that not all of
the transactions described in this section may be applicable to every
credit union.
A.

Who Must Report. Any credit union located in the U.S. that has
TRANSACTION ACCOUNTS 1/ or NONPERSONAL TIME DEPOSITS must file the
Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900).
NOTE: For those credit unions described above that have total
shares and deposits of less than $1 million as of December 31,
1979, reporting and reserve requirements have been deferred.

B.

Frequency of Report.
B.l. Those credit unions with total shares and deposits of $5 million
or more as of December 31, 1979 shall submit the report each
week.
B.2. Those credit unions with total shares and deposits of less than
$5 million as of December 31, 1979 shall submit the report once
each calendar quarter for a seven-day computation period that
begins on the third Thursday of a given month during the calendar
quarter. The specific reporting month during the quarter for
each respondent shall be designated by the Federal Reserve Bank
in whose District the respondent is located.
Those credit unions eligible for quarterly reporting retain
the option of reporting on a weekly rather than quarterly basis.
A credit union will remain eligible for quarterly rather than
weekly reporting until its total shares and deposits are $5
million or more for two consecutive quarterly reports.

T 7 Terms and phrases appearing in all capital letters are defined and
described in alphabetical order in the glossary section at the end of
this manual.

-4-

G.

How to Report. The report shall reflect amounts outstanding as of the
close of business each day during the reserve computation period. The
computation period is the seven-day period that starts on Thursday and
ends on the following Wednesday. If your credit union had no outstand­
ing balances to report during the computation period, please indicate
this by checking the box at the top of the reporting form, sign the
report, and send it to your local Federal Reserve Bank or Branch.
NOTE: If a credit union that reports weekly had reservable liabilities
during a computation period but subsequently did not have reservable
liabilities for a period of four consecutive weeks, the credit union
need not continue to submit a report until such time as it again has
reservable liabilities to report.
The report shall be prepared in accordance with the procedures
described below.
C.l. Consolidation. Each credit union must prepare a consolidated
report that combines all deposits, vault cash, and allowable
deductions of the following entities:
a.
b.

the principal office of the credit union; and
all branch offices located in the 50 states or the District
of Columbia.
c

Preparing a consolidated report involves combining all comparable
accounts of the principal office and any branch offices to be con­
solidated on an account-by-account basis.
v
.
C.2. Denomination. Amounts should be rounded and reported to the
nearest thousand dollars.
C.3. Overdrafts or Negative Balances. All share or deposit accounts,
including SHARE DRAFT ACCOUNTS, having a negative balance as of
the close of business each day (whether resulting from prearranged
or unplanned overdrafts or from operating or other factors) should
be regarded as having a zero balance when computing deposit totals.
Overdrawn share or deposit accounts of customers should be con­
sidered loans made by the credit union and should not be reported
as negative deposits. Similarly, share or deposit accounts that
the credit union maintains at a correspondent bank that have negative
balances should be regarded as having a zero balance when computing
"due from" totals and should be considered a borrowing by the credit
union.
However, overdrawn accounts of a depositor who maintains more
than one TRANSACTION ACCOUNT at the credit union may be offset by
accounts with positive balances if a bona fide cash management

-

5 -

function is served. For purposes of this report, a bona fide cash
management arrangement must be evidenced by a written agreement
between the credit union and the depositor authorizing transfers
between the depositor's TRANSACTION ACCOUNTS.
C.4. Record-keeping. The amounts reported for each day should reflect
the amounts outstanding at the "close of business" for that day.
The term "close of business" refers to the time established by the
credit union as the cut-off time for posting transactions to its
accounting records for that particular day. The time designated
as close of business should be reasonable and applied consistently.
For any day on which the credit union was closed, report the closing
balance as of the preceding day.
For purposes of this report, the credit union is open when both
of the following criteria are met:
a. a majority of all the credit union's offices are open to conduct
business; and
b. entries are made to the accounting records of the credit
union for that particular day.
NOTE: If, according to your standard accounting practices, closing
balances for accounts reported on this report are not available
on a daily basis, you may report the same closing balance for
subsequent days provided that your closing balances for these
accounts are updated at least once a week. For example, a
credit union that uses a weekly batch system may have closing
balances only as of each Friday. In this case, the balances
for the preceding Friday should be reported for Thursday of the
current computation week; the balances for Friday of the current
computation week should be reported not only for Friday hut
also for the following Saturday, Sunday, Monday, Tuesday, and
Wednesday, and for the first Thursday of the next computation
perlod.
C.5. UNPOSTED DEBITS and CREDITS. UNPOSTED DEBITS consist of cash items
drawn on the credit union that have been "paid” or credited by the
credit union and that are chargeable, but that have not been charged
against deposits as of the close of business. These items should
be reported as "cash items in process of collection” until they
have been charged to either individual or general ledger deposit
accounts.
UNPOSTED CREDITS consist of items that have been received for
deposit and that are in process of collection but that have not
been posted to individual or general ledger deposit accounts.
These credits should be reported as deposits.

-6-

C.6. Rejected Items. Rejected Items (resulting from mutilated documents,
Incorrect account numbers or other factors) that would otherwise
have resulted in credit to deposit accounts should be included in
deposit totals for the day on which offsetting debits have been
posted. Rejected items that represent withdrawals from deposit
accounts, for which appropriate corresponding credits have already
been recorded, should be deducted from deooslts as of the close of
business for that day.
D.

What Liabilities Are Reservable Under Federal Reserve Regulation D .
Under the Monetary Control Act of 1980, TRANSACTION ACCOUNTS and NON­
PERSONAL TIME DEPOSITS (including NONPERSONAL SAVINGS DEPOSITS) are
subject to Federal reserve requirements. Rules governing reserve
requirements are contained in Federal Reserve Regulation D.
TRANSACTION ACCOUNTS include DEMAND DEPOSITS: ATS ACCOUNTS;
SHARE DRAFT ACCOUNTS; accounts that permit a depositor to make pay­
ments to third parties through automated teller machines, remote
service units or by means of a debit card; accounts that permit a
depositor to make more than three TELEPHONE or PREAUTHORIZED TRANSFERS
per calendar month; and other reservable obligations including certain
borrowings that mature in less than 14 days.
NONPERSONAL TIME DEPOSITS include NONPERSONAL SAVINGS and NONPERSONAL
TIME DEPOSITS (including SHARE ACCOUNTS, SHARE CERTIFICATE ACCOUNTS, and
CERTIFICATES OF INDEBTEDNESS), and other reservable obligations including
certain borrowings that mature in 14 days or more. Detailed instructions
defining TRANSACTION ACCOUNTS and NONPERSONAL TIME DEPOSITS can be found
in the appropriate item-by-item instructions.

E.

Deposits as Defined Under Federal Reserve Regulation D . In general,
Regulation D defines "deposits to include both shares and deposits, and
certain other obligations including certain borrowings of the credit
union. For purposes of these instructions, "deposits" are divided into
two broad categories of liabilities: DEPOSITS and PRIMARY OBLIGATIONS
that are undertaken as a means of obtaining funds, regardless of the
use of the proceeds.
E.l. DEPOSITS to be included In Items 1 through 16 of this report con­
sist of:
,
a.

Funds received or held by the credit union for which credit
has been given or is obligated to be given to a DEMAND, SAV­
INGS (including SHARE, SHARE DRAFT, ATS, and TELEPHONE and
PREAUTHORIZED TRANSFER ACCOUNTS), or TIME DEPOSIT (including
SHARE CERTIFICATE) account.

b.

Funds received or held by the credit union for a special or
specific purpose, including escrow funds, funds held as

-7-

security for securities loaned by the credit union, and funds
deposited with the credit union as advance payment on subscrip­
tions to U.S. Government securities.
c.

Outstanding CERTIFIED AND CASHIER'S CHECKS and DRAFTS (including
PAYABLE THROUGH DRAFTS) issued by the credit union in the usual
course of business for any purpose, including payment for ser­
vices, DIVIDENDS, or purchases, unless drawn on a deposit account
maintained at another DEPOSITORY INSTITUTION or at a Federal
Reserve Bank.

d.

Liabilities arising from the sale of travelers checks and money
orders sold to customers unless the proceeds are remitted daily
to another party under a consignment arrangement.

e.

Any obligation to pay a CHECK or SHARE DRAFT, such as a
CERTIFIED CHECK drawn on the credit union, that has been
presented for collection by a third party when the depositor's
account at the credit union has already been charged, but
when settlement of the CHECK has not been made.

f.

E.2.

Any funds received by the credit union's AFFILIATE and channeled
to the credit union by the AFFILIATE in the form of a DEMAND,
SAVINGS, or TIME DEPOSIT.
I
PRIMARY OBLIGATIONS to be reported as deposits in Items 1 through
16 of this report consist of:
£
a. Liabilities of the credit union arising from the Issuance of
promissory notes (including CERTIFICATES OF INDEBTEDNESS),
ACKNOWLEDGEMENTS OF ADVANCE, or other similar obligations,
(written or oral) that are issued by the credit union to
NONEXEMPT ENTITIES as a means of obtaining funds, regardless
of the use of the proceeds. (NOTE: Purchases of so-called
"Federal funds” from NONEXEMPT ENTITIES are PRIMARY OBLIGA­
TIONS.)

b.

Liabilities of the credit union arising from the 9ale to a
NONEXEMPT ENTITY of a security or other similar asset under
a prearranged agreement to repurchase the same or similar
security or asset at a later date (REPURCHASE AGREEMENTS).
(NOTE: REPURCHASE AGREEMENTS entered into with EXEMPT ENTI­
TIES and those involving obligations of, or fully guaranteed
as to principal and interest by, the U.S. Government or a
Federal agency are not regarded as PRIMARY OBLIGATIONS for
purposes of this report.)

c.

d.

E.3.

Mortgage-backed securities that are Issued and sold by the
credit union to NONEXEMPT ENTITIES and that represent sales
of participation certificates in pools of one-to-four family
mortgages when the credit union retains more than a ten
percent interest in the pool. The proceeds from such partici­
pation certificates, as well as the credit union's interest
in the pool, are reservable. (Credit unions holding Interest
of ten percent or less in such pools shall exclude these obli­
gations from this report since such securities are not deposits.
Liabilities of the credit union in the form of mortgage-backed
bonds that are issued and sold by the credit union.

PRIMARY OBLIGATIONS to be reported in Schedule A of this report:
Any liability of the credit union's nondepository AFFILIATE on any
promissory note (including a CERTIFICATE OF INDEBTEDNESS), ACKNOW­
LEDGEMENT OF ADVANCE, or similar obligation (written or oral),
with a maturity of less than four years, to the extent that the
proceeds are used to supply or maintain the availability of funds
to the credit union, _ f the AFFILIATE'S liability would have
i_
been regarded as reservable if issued by the credit union, and
if the proceeds from the AFFILIATE'S liability are channeled
to the credit union in the form of a nonreservable transaction
(e.g., a sale of the credit union's assets to its AFFILIATE).
NOTE: If the proceeds from the AFFILIATE'S liability (whether
regarded as reservable or nonreservable if Issued by the credit
union) are channeled to the credit union in the form of a DEMAND
SAVINGS, or TIME DEPOSIT such funds are reported by the credit
union as a DEMAND, TIME, or SAVINGS DEPOSITS. (See Subsection
E.l, paragraph f. above.) If the AFFILIATE'S liability would
have been regarded as nonreservable if issued by the credit
union, and if the proceeds from the AFFILIATE'S liability are
channeled to the credit union in the form of a nonreservable
transaction, such funds are excluded from this report.

E.4.

PRIMARY OBLIGATIONS issued to EXEMPT ENTITIES are not subject
to reserve requirements and are excluded from this report.

Regulations may require certain obligations that are not classi­
fied as deposits on other reports to be treated as deposits on this
report. Consequently, the deposit totals on this report may differ
from deposit totals reported on your credit union's report of con­
dition and on other reports submitted to the National Credit Union
Administration or the state regulatory supervisors.

-9In general, funds received by an Institution that are Immediately
applied to reduce or extinguish a customer's Indebtedness to that Insti­
tution do not constitute deposits since no liability Is incurred. Funds
that have been Irrevocably assigned to the credit union and cannot be
reached by Its customer or the customer's creditors are not subject to
reserve requirements.
Finally, certain other liabilities
that do not
result in a receipt of funds, such as accrued liabilities and accounts
payable, are not regarded as reservable liabilities.
F.

Treatment of Pass-through Balances. A DEPOSITORY INSTITUTION may
satisfy reserve requirements by holding vault cash or by placing a
balance at the Federal Reserve. The Monetary Control Act
of 1980
authorizes a DEPOSITORY INSTITUTION that is not a member of the
Federal Reserve System to hold its required reserve balances at the
Federal Reserve in one of two ways. Such an institution may deposit
its required reserve balance directly with the Federal Reserve Bank
or Branch which serves the territory in which its main office is
located. Alternatively, in accordance with procedures adopted by
the Federal Reserve Board, the DEPOSITORY INSTITUTION may elect to
pass Its required reserve balance through a "correspondent." Under
this alternative, the DEPOSITORY INSTITUTION who chooses to pass-through
its reserve balances is referred to as the "respondent.” A "correspon­
dent" may be a Federal Home Loan Bank, the National Credit Union Adminis­
tration Central Liquidity Facility, or a DEPOSITORY INSTITUTION which
holds a required reserve balance directly at a Federal Reserve Bank or
Branch. In addition, the Federal Reserve Board reserves the right to
permit other institutions, on a case-by-case basis, to serve as a pass­
through correspondent. The "correspondent” will pass through these
reserve balances dollar-for-dollar to the Federal Reserve Bank or Branch
in the territory in which the principal office of the "respondent" is
located.
For purposes of this report, the "correspondent" institution shall
exclude from this report all reserve balances received from "respondent"
institutions and subsequently passed through to the appropriate Federal
Reserve Bank or Branch. All "respondent" institutions shall exclude
from this report all reserves balances which the "correspondent" passes
through to the Federal Reserve Bank or Branch on behalf of the "respon­
dent ."

G.

Treatment of Special Deposits. Special deposits, such as bonds,
stocks, jewelry, coin collections, etc., that are left for safekeeping
with the credit union, should not be included as deposits on this
report.

H.

Treatment of Escrow Funds. Escrow funds consist of funds deposited
with the credit union under an agreement that requires the credit
union to pay all or some portion of the funds to a third party at a
certain time or upon fulfillment of certain conditions. Depending

-1 0 -

on Che classification of escrow funds, the obligation of the credit
union on the funds maintained may constitute a deposit liability
against which reserves must be held.
Escrow funds should be classified as TRANSACTION ACCOUNTS, SAVINGS
DEPOSITS, or TIME DEPOSITS, depending on the terms of the underlying
agreement. Escrow funds will be regarded as PERSONAL SAVINGS DEPOSITS
or PERSONAL TIME DEPOSITS if the depositor Is a NATURAL PERSON and
the other conditions of a SAVINGS or TIME DEPOSIT are met, notwith­
standing that the funds are held by the credit union as an escrow
agent. The classification of escrow funds as TIME or SAVINGS DEPOSITS
does not depend on whether Interest is paid on the funds. Escrow
agreements entered Into by the credit union In states where the
payment of interest on such accounts is required by law must comply
with the payment provisions applicable to TIME or SAVINGS DEPOSITS.
Agreements that do not meet the specific conditions for TIME and
SAVINGS DEPOSITS must be classified as TRANSACTION ACCOUNTS.

-11-

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS

Section 2 contains item-by-item instructions for completing the
FR 2900. This section describes the coverage of each item to be reported
and specifies the categories of deposits to be included in or excluded
from each item.
These instructions are intended to be comprehensive and to
provide for all transactions that a credit union could conceivably have
within the scope of this report. However, it is likely that not all of
the items or transactions may be applicable to every credit union. In
those cases where the item to be reported is not applicable to your credit
union, enter a zero for that item.

TRANSACTION ACCOUNTS
Report as TRANSACTION ACCOUNTS those deposits or accounts on which the
depositor or account holder is permited to make withdrawals by negotiable
or transferable instrument, payment order of withdrawal, telephone transfer
or other similar device for the purpose of making payments or transfers
to third parties or to other accounts of the same depositor.
Include as TRANSACTION ACCOUNTS:
1.

DEMAND DEPOSITS;

2.

DEPOSITS or accounts subject to withdrawal by CHECK, DRAFT,
negotiable order, or SHARE DRAFT;

3.

SAVINGS DEPOSITS or accounts from which withdrawals may be made
automatically through payment to the credit union itself or through
transfer of credit to a DEMAND DEPOSIT, SHARE DRAFT or other
account in order to cover CHECKS or DRAFTS drawn upon the institution
or to maintain a specified balance in such accounts (ATS ACCOUNTS);

4.

DEPOSITS or accounts in which payments may be made to third parties
by means of a debit card, an automated teller machine (ATM), remote
service unit (RSU), or other electronic device;

5.

DEPOSITS or accounts from which the depositor is permitted or
authorized to make more than 3 withdrawals per month for purposes
of transferring funds to another account or making payment to a
third party by means of TELEPHONE or PREAUTHORIZED TRANSFER;

6.

INTEREST or DIVIDENDS paid by crediting a TRANSACTION ACCOUNT.

NOTE: An account is not regarded as a TRANSACTION ACCOUNT merely
because it permits the depositor to make loan repayments and pay asso
dated expenses to the credit union.

-1.2Exclude from TRANSACTION ACCOUNTS those PRIMARY OBLIGATIONS maturing
In less than 14 days If they take the form of Ineligible acceptances or of
obligations issued by the credit union's AFFILIATES described In Section 1,
Subsection E.3. (to be reported In Schedule A, Item 1).
Summary of Transaction Account Classifications
A.

Always Regarded as TRANSACTION ACCOUNTS
1.
2.

SHARE DRAFT ACCOUNTS.

3.

ATS ACCOUNTS.

4.

Accounts that permit third party payments through ATMs or RSUs.

5.

B.

DEMAND DEPOSITS.

Accounts that permit third party payments through use of CHECKS,
DRAFTS, negotiable instruments, debit cards or other similar items.

Accounts Regarded as TRANSACTION ACCOUNTS If More Than Three of the
Following Transactions Per Calendar Month Are Permitted to Be Made By
Telephone or Preauthorized Order or Instruction
1.
2.

Transfers to another account of the depositor at the same institution.

3.
C.

Payments or transfers to third parties.

Transfers to an account at another DEPOSITORY INSTITUTION.

Not Regarded as TRANSACTION ACCOUNTS (Unless Specified Above)
1.

Accounts that permit TELEPHONE or PREAUTHORIZED TRANSFERS or transfers
by ATMs or RSUs to repay loans made or serviced by the same DEPOSITORY
INSTITUTION.

2.

Accounts that permit TELEPHONE or PREAUTHORIZED
TRANSFERS or with­
drawals where the proceeds are to be mailed to or picked up by the
depositor.

3.

Accounts that permit transfers to other accounts of the depositor
at the same institution through ATMs or RSUs.

4.

Accounts that permit three or less TELEPHONE or PREAUTHORIZED
TRANSFERS or payments to third parties or to other accounts.

Demand Deposits (Items 1, 2, and 3)
Report in Items 1, 2, and 3 the balance of all DEMAND DEPOSITS, in
the form of both DEPOSITS and PRIMARY OBLIGATIONS, that are outstanding
at the close of business each day of the computation period.

-13-

For Items 1, 2, and 3, DEMAND DEPOSITS include DEPOSITS described in
Section 1, Subsection E.l, and PRIMARY OBLIGATIONS isued to NONEXEMPT
ENTITIES described in Section 1, Subsection E.2, that are payable imme­
diately on demand or issued in ORIGINAL MATURITIES of less than 14 days,
or that are payable with less than 14 days notice, or for which the
credit union does not reserve the right to require at least 14 days
written notice of an Intended withdrawal.
Include as DEMAND DEPOSITS:
1.

All checking accounts, including those pledged as collateral for
loans or maintained as compensating balances.
However, do not
include SHARE DRAFT ACCOUNTS, which are reported in Item 6.

2.

Outstanding CERTIFIED AND CASHIERS’ CHECKS and DRAFTS (including
PAYABLE THROUGH DRAFTS) Issued by the credit union unless drawn on
a deposit account maintained at another DEPOSITORY INSTITUTION or
at a Federal Reserve Bank.

3.

Outstanding travelers checks and money orders sold to customers
unless the proceeds are remitted dally to another party under a
consignment arrangement.

4.

Withheld taxes, withheld Insurance premiums, and other funds with­
held from salaries of the credit union's employees until such
funds are remitted.

5.

Funds received or held in escrow accounts that may be withdrawn on
demand or within 14 days from the date of deposit (excluding those
escrow accounts classified as SAVINGS DEPOSITS or TIME DEPOSITS).
(See Section 1, Subsection H, for general treatment of escrow funds.)

6.

All matured TIME DEPOSITS (including SHARE CERTIFICATE ACCOUNTS and
CERTIFICATES OF INDEBTEDNESS), unless the deposit agreement specif­
ically provides for (a) transfer to a SAVINGS DEPOSIT or SHARE
ACCOUNT at maturity, or (b) automatic renewal at maturity.
(Auto­
matically renewable time deposits remain TIME DEPOSITS until redeemed.)

7.

All matured TIME DEPOSITS, open account, (including SHARE CERTIFICATE
ACCOUNTS and CERTIFICATES OF INDEBTEDNESS) for which the depositor
has provided a written notice Indicating an intention to withdraw
the deposit at the expiration of the notice period, but that have
not been redeemed by the depositor.

8.

"Other liability" accounts that are established to recognize the
Institution's obligation to pay a check or DRAFT (including a SHARE
DRAFT) when the depositor's account has been charged but when
settlement of the check has not yet been made.

-14-

9.

An obligation to pay on demand or within 14 days a CHECK or
SHARE DRAFT (or other instrument, device, or arrangement for
the transfer of fund) drawn on the credit union, when the
depositor's account has already been debited.

10. Any funds received by the credit union's AFFILIATE and later
channeled to the credit union by the AFFILIATE in the form of
a DEMAND DEPOSIT.
Exclude from DEMAND DEPOSITS the following categories of liabilities
that have an ORIGINAL MATURITY of less than 14 days:
1.

HYPOTHECATED DEPOSITS (does not Include shares or deposits pledged
as collateral for loans).

2.

CHECKS or DRAFTS drawn by the credit union on the Federal Reserve
or on a deposit account maintained at another DEPOSITORY INSTITUTION.

3.

Liabilities of the credit union that arise from REPURCHASE AGREEMENTS
involving obligations of, or fully guaranteed as to principal and
interest by, the U.S. Government or a Federal agency.

4.

Any PRIMARY OBLIGATION issued or undertaken as a means of obtain­
ing funds, regardless of the use of the proceeds, when transacted
with a U.S. office of the following EXEMPT ENTITIES:
a.

U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;

b.

a U.S. branch or agency of a bank organized under foreign (NONU.S.) law (including branches and agencies of FOREIGN OFFICIAL
BANKING INSTITUTIONS);

c.

EDGE ACT AND AGREEMENT CORPORATIONS;

d.

mutual and stock savings banks;

e.

building or savings and loan associations;

f.

cooperative banks;

g.

industrial banks;

h.

other credit unions (including corporate central credit
unions);

1.

New York State investment companies (chartered under Article
XII of the New York State Banking Code) that perform a BANK­
ING BUSINESS;

-15-

j.

U.S. Government agencies and Instrumentalities, such as the
Central Liquidity Facility, National Credit Union Share
Insurance Fund, Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, and
Student Loan Marketing Association;

k.

Export-Import Bank of the U.S.;

1.

Government Development Bank of Puerto Rico;

m.

Minbanc Capital Corporation;

n.

securities dealers, but only when the borrowing (a) has
a maturity of one day, (b) is in IMMEDIATELY-AVAILABLE
FUNDS, and (c) is in connection with the clearance of
securities; and

o.

the U.S. Treasury (U.S. TREASURY TAX AND LOAN ACCOUNT note
balances).

5.

Funds obtained from state and municipal housing authorities
under LOAN-TO-LENDER PROGRAMS.

6.

Borrowings from a Federal Reserve Bank.

7.

Certain obligations issued by the credit union's nondepository
AFFILIATES, described in Section 1, Subsection E.3.
(These
transactions are to be reported in Schedule A, Item 1.)

8.

Shares of credit union held by the National Credit Union
Administration (NCUA) or the NCUA Central Liquidity Facility.

N OTE: Unless created as a result of a bona fide cash management arrange­
ment, overdrafts in DEMAND DEPOSIT accounts are not to be treated as
negative DEMAND DEPOSITS since overdrafts are properly reflected on an
Institution's books as loans.

Item 1— Demand Deposits Due to Depository Institutions.
Report in Item l.a DEMAND DEPOSITS due to banks and EDGE ACT AND AGREE­
MENT CORPORATIONS located in the U.S. and abroad.
Report in Item l.b
DEMAND DEPOSITS due to other DEPOSITORY INSTITUTIONS.
PRIMARY OBLIGATIONS
issued to DEPOSITORY INSTITUTIONS in the U.S. are not subject to reserve
requirements and should not be reported in this item.

-16-

Exclude from both Items l.a and l.b:
1.

DEMAND DEPOSITS due to:
a.

b.

c.

d.

"Respondent" DEPOSITORY INSTITUTIONS to the extent that
such deposits represent balances that your credit union
serving as pass-through agent or correspondent has passed
through to the Federal Reserve Bank for the "respondent."
Nondeposit and limited purpose trust companies (reported
in Item 3).
Nondepository AFFILIATES of the credit union and of other
DEPOSITORY INSTITUTIONS (reported in Item 3).
U.S. Government agencies and instrumentalities, such as the
Central Liquidity Facility, National Credit Union Share Insurance
Fund, Federal Home Loan Bank Board, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks, Banks
for Cooperatives, Federal Home Loan Mortgage Corporation,
Federal Deposit Insurance Corporation, Federal National Mortgage
Association, Federal Financing Bank, and Student Loan Marketing
Association (reported in Item 3).

2.

Any DEMAND DEPOSIT due to a DEPOSITORY INSTITUTION that is negative
(i.e., overdrawn).
The
amount of such negative balance should be
regarded as zero when computing the deposit total.

3.

Any negative "due from"
balance that results when the reporting
institution overdraws a
deposit account at a correspondent.
Such
a balance should be classified as a borrowing.

4.

Any PRIMARY OBLIGATIONS issued to NON-U.S. offices of U.S. DEPOSITORY
INSTITUTIONS and of foreign (NON-U.S.) banks (reported on the Report
of Certain Eurodollar Transactions (FR 2950).

Item l.a.— Due to Banks
Include In this Item the balance of all DEMAND DEPOSITS In the form of
DEPOSITS (exclude PRIMARY OBLIGATIONS) due to the following:
1.

U.S. offices of the following institutions:
a.

b.

U.S. commercial banks and trust companies conducting
a commercial BANKING BUSINESS;
BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS
(including branches and agencies of FOREIGN OFFICIAL RANK­
ING INSTITUTIONS);

-17c.
d.

Industrial banks; and

e.

2.

EDGE ACT AND AGREEMENT CORPORATIONS;

New York State investment companies (chartered under
Article XII of the New York State Banking Code) that
perform a BANKING BUSINESS.

NON-U.S. offices of:
a.

U.S. banks and EDGE ACT AND AGREEMENT CORPORATIONS; and

b.

Commercial banks, merchant banks, savings banks, discount
houses, and similar banking institutions organized under
the laws of a foreign country, a territory of the United
States, Puerto Rico, Guam, American Samoa, or the Virgin
Islands.

Item l.b— Due to Other Depository Institutions
Include in this item DEMAND DEPOSITS in the form of DEPOSITS (exclude
PRIMARY OBLIGATIONS) due to:
1.

mutual and stock savings banks;

2.

building or savings and loan associations, homestead associations,
and cooperative banks; and

3.

other credit unions (including corporate central credit unions).

Item 2— U.S. Government Demand Deposits
Include in this item the balance of all DEMAND DEPOSIT accounts in the
form of DEPOSITS that are designed as FEDERAL PUBLIC FUNDS for which
your institution serves as depository, such as funds held in:
1. U.S. TREASURY TAX AND LOAN ACCOUNTS, including withheld Federal
income tax‘deposits, social security tax deposits and other
Federal tax payments, and the proceeds from sales of U.S. Savings
Bonds (exclude TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES.);
2. U.S. TREASURY GENERAL ACCOUNTS and special collection accounts;
3. U.S. Treasury compensating balance DEMAND DEPOSIT accounts;
4. Postmaster's DEMAND DEPOSIT accounts;

-18-

5.

DEMAND DEPOSIT accounts of the following:
a.

b.

6.

the Tennessee Valley Authority and other government-owned
corporations, and
disbursing officers of the Department of Defense and
Department of the Treasury;

DEMAND DEPOSIT accounts of other public funds that are subject
to control or regulation by the United States Government,
including accounts of military organizations, such as post
exchanges, military clubs and similar entities.

Please note that, for this item, DEMAND DEPOSITS include only DEPOSITS
held for the credit of the U.S. Government, and exclude any PRIMARY OBLI­
GATIONS to the U.S. Government.
Such PRIMARY OBLIGATIONS are not subject
to reserve requirements and are not to be reported on this report.
Exclude from this item:
1.

DEMAND DEPOSITS due to U.S. Government agencies and instrumental­
ities, such as the Central Liquidity Facility, National Credit
Union Share Insurance Fund, Federal Home Loan Bank Board,
Federal Home Loan Banks, Federal Intermediate Credit Banks,
Federal Land Banks, Banks for Cooperatives, Federal Home Loan
Mortgage Corporation, Federal Deposit Insurance Corporation,
Federal National Mortgage Association, Federal Financing Bank,
and Student Loan Marketing Association (reported in Item 3).

2.

DEMAND DEPOSITS held for state or local governments or their
political subdivisions (reported in Item 3).

3.

TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES (see below).

4.

PRIMARY OBLIGATIONS.

Treatment of Note Option and Remittance Option:
Only the deposits credited to the U.S. TREASURY TAX AND LOAN demand
deposit ACCOUNT that represent funds received as of the close of business
of the current day should be reported as TREASURY TAX AND LOAN Demand
Deposits.
Funds credited to Tax and Loan Demand Deposit Accounts as of
the close of business on previous days should already have been remitted
to the Federal Reserve Basnk or automatically converted into open-ended
interest-bearing notes, depending on the option selected by the reporting
institution.
Interest-bearing Treasury Tax and Loan Account note balances
are exempt from reserve requirements and should not be reported as deposits.

-19Item 3— Other Demand Deposits
Include in this item the balance of all other DEMAND DEPOSITS in the
form of DEPOSITS and PRIMARY OBLIGATIONS, including:
1.

DEMAND DEPOSITS in the form of DEPOSITS held for:
a.

individuals, partnerships, and corporations, wherever
located;

b.

state and local governments and their political sub­
divisions;

c.

U.S. Government agencies and instrumentalities, such as
the Central Liquidity Facility, National Credit Union Share
Insurance Fund, Federal Home Loan Bank Board, Federal Horae
Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, and
Student Loan Marketing Association (reported in Item 3);

d.

nondeposit and limited purpose trust companies;

e.

nondepository AFFILIATES of the credit union and of other
DEPOSITORY INSTITUTIONS; and

f.

INTERNATIONAL INSTITUTIONS.

2.

Withheld state and local government taxes, insurance premiums,
and similar items, but not withheld Federal tax payments
(reported in Item 2).

3.

Outstanding CERTIFIED AND CASHIERS' CHECKS and DRAFTS issued by
the credit union, unless drawn on an account maintained at another
another DEPOSITORY INSTITUTION or at a Federal Reserve Bank.

4.

Outstanding travelers checks and money orders sold to customers
unless the proceeds are remitted on the same day to another
party under a consignment arrangement.

5.

Funds received or held in escrow accounts that may be withdrawn
on demand, or within 14 days from the date of deposit (excluding
escrow acccounts classified as SAVINGS DEPOSITS).
(See Section 1,
Subsection H, for general treatment of escrow funds.)

6.

PRIMARY OBLIGATIONS issued to NONEXEMPT ENTITIES except:
a.

Those issued to INTERNATIONAL INSTITUTIONS.

b.

Certain obligations issued by the credit union's nondeposi­
tory AFFILIATES, as described in Section 1, Subsection E.3.
(These transactions are reported in Schedule A, Item 1.)

-2 0 Other Transaction Accounts (Items 4, 5, and 6)

Item 4— ATS Accounts
Report in Item 4 the balance of all ATS ACCOUNTS.
ATS ACCOUNTS are
SAVINGS DEPOSITS or SHARE ACCOUNTS of individuals that are authorized
for automatic transfer to DEMAND DEPOSIT or other accounts pursuant to
written agreement arranged in advance between the credit union and the
depositor.

Item 5— Telephone and Preauthorized Transfer Accounts
Report in Item 5 the balance of SAVINGS DEPOSITS, SHARE ACCOUNTS, or
TIME DEPOSITS under the terms of which, or which by practice of the credit
union, the depositor is permitted or authorized to make more than three
withdrawals per month for purposes of transferring funds to another account
or for making a payment to a third party by means of TELEPHONE or PRE­
AUTHORIZED TRANSFER, agreement, order or instruction.
An account that
permits or authorizes more than three such withdrawls in a calendar month
is a TRANSACTION ACCOUNT, whether or not more than three such withdrawals
actually are made in a calendar month.
Also report in this item the balance of SAVINGS DEPOSITS, TIME DEPOSITS
or accounts in which payments may be made to third parties by means of a
a debit card, an automated teller machine, remote service unit or other
electronic device.
An account is not a "TRANSACTION ACCOUNT” by virtue of an arrangement
that permits withdrawals for the purpose of repaying loans and associated
expenses, such as Insurance and escrow requirements, at the credit union
itself.
In addition, an account is not a TRANSACTION ACCOUNTS because
withdrawals to be paid directly to the depositor could be effected by
TELEPHONE or PREAUTHORIZED TRANSFER or order.
Exclude from this item those accounts that permit no more than three
TELEPHONE or PREAUTHORIZED TRANSFERS a month to another account of the
depositor in the same institution or to a third party.
T

Item 6— SHARE DRAFT Accounts
Report in Item 6 the balance of all SHARE DRAFT ACCOUNTS.
SHARE DRAFT
ACCOUNTS represent SAVINGS DEPOSITS that can be withdrawn or transferred
to third parties by issuance of a negotiable or TRANSFERABLE instrument.

Item 7— Total Transaction Accounts
Report in this item the sum of Items l.a, l.b, 2, 3, 4, 5, and 6.

-21DEDUCTIONS FROM TRANSACTION ACCOUNTS (Items 8 and 9)

Item 8 ~ D e m a n d Balances Due from Depository Institutions
Report in this item all DEMAND DEPOSIT balances due from U.S. offices
of banks and other DEPOSITORY INSTITUTIONS.
Include in this item all DEMAND DEPOSIT balances of the credit union
in the form of DEPOSITS (exclude PRIMARY OBLIGATIONS) due from U.S.
offices of the following institutions:
1.

U.S. commercial banks and trust companies conducting a commercial
BANKING BUSINESS;

2.

BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS
branches and agencies of FOREIGN OFFICIAL BANKING

3.

EDGE ACT AND AGREEMENT CORPORATIONS;

4.

industrial banks;

5.

mutual and stock savings banks;

6.

building or savings and loan associations, homestead associations
and cooperative banks; and

7.

other credit unions (including corporate central credit unions).

(including
INSTITUTIONS);

Also include in this item DEMAND DEPOSIT balances due from a corres­
pondent that have not been passed through to the Federal Reserve by the
correspondent.
(However, as noted below, any DEMAND DEPOSIT balances
that were passed through to the Federal Reserve by the correspondent are
to be excluded from this item.)
Exclude from this item:
1.

DEMAND DEPOSIT balances due from Federal Reserve Banks representing:
a.

your credit union's reserve balances held directly with the
Federal Reserve;

b.

your credit union's reserve balances that were passed through to
the Federal Reserve by a correspondent;

c.

reserve balances of another institution for which your credit
union is serving as a pass-through agent (correspondent) and
that were passed through by your credit union to the Federal
Reserve Bank; and

d.

your credit union's clearing balances maintained at a Federal
Reserve Bank.

-2 2 -

2.

DEMAND DEPOSIT balances due from other DEPOSITORY INSTITUTIONS
that are pledged by the respondent institution and are not
available for immediate withdrawal.

3.

TIME and SAVINGS DEPOSIT balances held at other DEPOSITORY
INSTITUTIONS.

4.

5.

Amounts at other DEPOSITORY INSTITUTIONS that represent future
payment balances or balances that will not be available for
immediate withdrawal until a future date but that have been
booked by the credit union in advance.
»
.
CASH ITEMS in process of collection (reported in Item 9).

6.

Any deposit account due to a correspondent or other DEPOSI­
TORY INSTITUTION that is overdrawn, or amounts that, if charged
against a correspondent account by the respondent institution,
would result in an overdraft in that account.

7.

Any deposit account due from a correspondent or other institution
that is negative (i.e., overdrawn).
The amount of such negative
balances should be regarded as zero when computing the deposit
total.

8.

DEMAND DEPOSIT balances that are due from:
a.

any NON-U.S. office of any U.S. DEPOSITORY INSTITUTION;

b.

any NON-U.S. office of any FOREIGN (NON-U.S.) BANK;

c.

trust companies that do not conduct a commercial BANKING
BUSINESS;

d.

N.Y. State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING
BUSINESS.

Item 9— Cash Items in Process of Collection
Report in Item 9 the balance of all CASH ITEMS in process of collection.
Include as CASH ITEMS in process of collection:
1.

CHECKS or SHARE DRAFTS in process of collection that are drawn on
another DEPOSITORY INSTITUTION and that are payable immediately
upon presentation in the U.S.
This includes CHECKS in the process
of collection with:
a. Federal Reserve Banks,
b. other DEPOSITORY INSTITUTIONS, or
c. clearing houses.

-23-

2.

CHECKS or SHARE DRAFTS on hand that will be presented for payment
or forwarded for collection on the following business day.

3.

CHECKS drawn on the Treasury of the United States that are in
process of collection.

4.

Other items in process of collection that are payable immediately
upon presentation in the U.S. and that are customarily cleared or
collected by DEPOSITORY INSTITUTIONS as CASH ITEMS, such as:
a.

redeemed U.S. savings bonds and food coupons and certificates,
if shipped at least every other day;

b.

money orders and travelers checks;

c.

SHARE DRAFTS;

d.

bank DRAFTS and FEDERAL RESERVE DRAFTS;

e.

PAYABLE THROUGH DRAFTS that have been received by the credit
union and that will be forwarded to another DEPOSITORY INSTITUTION

f.

BROKERS SECURITY DRAFTS and COMMODITY OR BILL OF LADING DRAFTS
(including arrival drafts) that are payable immediately upon
presentation in the U.S.;

g.

amounts associated with automated payment arrangements
in connection with payroll deposits, Federal recurring
payments, and other items that are credited to a deposi­
tor's account prior to the payment date to ensure that
the funds are available on the payment date;

h.

RETURNED ITEMS drawn on other DEPOSITORY INSTITUTIONS; and

i.

UNPOSTED DEBITS.

NOTE:
CHECKS and DRAFTS
credited to a DEPOSIT account are considered
CASH ITEMS in process of collection only when the depositor is given
immediate credit by the forwarding institution.
Exclude from this item and from this report:
1.

Items handled as NONCASH ITEMS, whether or not cleared through
Federal Reserve Banks.

2.

Items not payable in the U.S.

3.

Items for which the credit union has already received credit.

-24-

4.

COMMODITY OR BILL OF LADING DRAFTS (arrival drafts) not yet
payable (because the merchandise against which the draft was
drawn has not yet arrived), whether or not deposit credit has •
been given.

5.

ITEMS PAYABLE THROUGH received by the credit union if acting in
the capacity of a clearing agent for a nondepository institution
that have not been collected from that nondepository institution
which is the drawer of the draft.

6.

Credit card slips in process of collection, whether or not
deposit credit has been given.

Treatment of CASH ITEMS forwarded to Federal Reserve Banks
CASH ITEMS forwarded to a Federal Reserve Bank for collection and
for credit should continue to be reported as CASH ITEMS until such time
as credit has been actually given by a Federal Reserve Bank in accor­
dance with the appropriate time schedules established pursuant to
Federal Reserve Bank "Operating Circulars."
CASH ITEMS in process of collection also should reflect the actual
availability of funds received for DIRECT SENT CASH ITEMS. Adjustment
should be made to:
1.

Retain as CASH ITEMS in process of collection the amounts for items
sent directly to Federal Reserve Banks in other districts that
will arrive when those Federal Reserve offices are closed for a
local or regional holiday.

2.

Remove from CASH ITEMS in process of collection the amounts for
items sent directly to Federal Reserve Banks in other districts
that will arrive when the local Federal Reserve offices are closed.
Credit for such items will be given on a back-valued basis by the

-25OTHER SAVINGS AND TIME DEPOSITS

Other Savings Deposits (Items 10, 11, and 12)
For Items 10, 11, and 12, SAVINGS DEPOSITS
or
SHARE ACCOUNTS include
DEPOSITS described in Section 1, Subsection E.l, and PRIMARY OBLIGATIONS
issued to NONEXEMPT ENTITIES described in Section 1, Subsection E.2,
that are not payable on a specified date or after a specified period of
time from the date of deposit, but for which the credit union expressly
reserves the right to require at least 14 days written notice before an
intended withdrawal.
Status of SAVINGS DEPOSITS when notice is required.
If the credit union
should use its right to require written notice of an intended withdrawal
in connection with a SAVINGS DEPOSIT or SHARE ACCOUNT, the deposit continues
to be a SAVINGS DEPOSIT or SHARE ACCOUNT and should not be
classified as
a TIME DEPOSIT.
Where written notice actually is
requiredby the credit
union and such notice is received from a depositor, the SAVINGS DEPOSIT
or SHARE ACCOUNT becomes a DEMAND DEPOSIT if not redeemed after expiration
of the notice period and should be reported in Item 1, 2, or 3, as appropriate.
Include the following as SAVINGS DEPOSITS, regardless of whether or not
they earn INTEREST or DIVIDENDS:
1.

SHARE ACCOUNTS.

2.

SAVINGS DEPOSITS or SHARE ACCOUNTS maintained as compensating
balances or pledged as collateral for loans.

3.

Escrow deposits where the credit union reserves the right to
require at least 14 days written notice before payment can be
made.
(See Section 1, Subsection H, for the general treatment of
escrow funds.)

4.

Individual Retirement Account (IRA) or Keogh Plan Accounts that are
held in the form of regular SHARE ACCOUNTS or SAVINGS DEPOSITS.

5.

CLUB ACCOUNTS, or other special purpose accounts, that are in the form
of regular SHARE ACCOUNTS or SAVINGS DEPOSITS.

6.

SAVINGS DEPOSITS or SHARE ACCOUNTS that permit the depositor
to make no more than three TELEPHONE or PREAUTHORIZED TRANSFERS
per month for purposes of transferring funds to another account
or for making a payment to a third party.
(NOTE:
SAVINGS DEPOSITS
or SHARE ACCOUNTS that permit the depositor to make more than three
TELEPHONE or PREAUTHORIZED TRANSFERS per month are regarded as
TRANSACTION ACCOUNTS and are reported in Item 5.)

7.

Any funds received by the credit union's nondepository AFFILIATE
and later channeled to the credit union by its AFFILIATE in the
form of a SAVINGS DEPOSIT.

8.

INTEREST or DIVIDENDS paid by crediting SAVINGS DEPOSIT or SHARE
ACCOUNTS.

-26Exclude from other SAVINGS DEPOSITS:
1.

SHARE DRAFT ACCOUNTS (reported in Item 6).

2.

ATS ACCOUNTS (reported in Item 4).

3.

SAVINGS DEPOSITS or SHARE ACCOUNTS subject tomore than 3 TELEPHONE
and PREAUTHORIZED TRANSFERS per month (reported in Item 5).

4.

Special passbook or statement accounts, such as "ninety-day notice
accounts," "golden passbook accounts," or deposits labeled as "saving
certificates," that have a specified ORIGINAL MATURITY of 14 days or
more (reported in Items 13 and 14).

5.

INTEREST or DIVIDENDS accrued on SAVINGS DEPOSITS or SHARE ACCOUNTS
but not yet paid or credited to a deposit account.

6.

HYPOTHECATED EEPOSITS.

7.

Certain obligations issued by the credit union's nondepository
AFFILIATES described in Section 1, Subsection E.3.
(These trans­
actions are to be reported in Schedule A.)

Item 10— Other Savings Deposits— Personal
Report in Item 10 the balance of all other SAVINGS DEPOSITS or SHARE
ACCOUNTS that represent funds deposited to the credit of, or in which the
entire beneficial interest is held by, a depositor that is a NATURAL PERSON.
Also include as PERSONAL SAVINGS DEPOSITS:
1.

Escrow accounts, such as funds
held for tax or insurance payments,
if the depositor is a NATURAL PERSON and other conditions of a
SAVINGS DEPOSIT are met, not withstanding that the funds are held
by the credit union as an escrow agent.

2.

Individual Retirement Accounts
(IRA) and Keogh Plan Accounts In
form of regular SHARE ACCOUNTS or SAVINGS DEPOSITS.

the

Item 11— Other Savings Deposits— Nonpersonal
Report in Item 11 the balance of all other SAVINGS DEPOSITS or SHARE
ACCOUNTS that represent funds deposited to the credit of, or in which any
beneficial interest is held by, a depositor that is not a NATURAL PERSON

Item 12— Total Other Savings Deposits

Report in this item the sum of Items 10 and 11.

-27-

Time Deposits (Items 13, 14, 15, and 16)
Include in Items 13, 14, 15, and 16 the balance of all TIME DEPOSITS,
in the form of both DEPOSITS and PRIMARY OBLIGATIONS, that are outstanding
at the close of business each day.
TIME DEPOSITS include DEPOSITS described
in Section 1, Subsection E.l, and PRIMARY OBLIGATIONS issued to NONEXEMPT
ENTITIES described in Section 1, Subsection E.2, that are payable on a
specified date, after a specified period of time from the date of deposit,
or after a specified notice period, which in all cases may not be less than
14 days from the date of deposit.
Reporting of Deposits Issued on a Discount Basis or on Which Interest is
Prepaid
TIME DEPOSITS, including SHARE CERTIFICATES and CERTIFICATES OF INDEBT­
EDNESS, Issued on a discount basis should be reported initially on the
basis of the amount of funds actually received by the credit union.
For
example, if the credit union received $96,000 in exchange for
a certificate
of deposit Issued at face value of $100,000, only the $96,000 received at
the time of issuance should be reported initially as a TIME DEPOSIT.
However, as the credit union's obligation to the depositor increases
over the life of the deposit, representing INTEREST or DIVIDENDS earned
on the deposit, the incremental amounts as credited to the certificate
also should be reported as TIME DEPOSITS.
TIME DEPOSITS, including SHARE CERTIFICATES and CERTIFICATES OF INDEBT­
EDNESS, for which INTEREST or DIVIDENDS have been prepaid should be reported
on the basis of the face value of the deposit Issued by the credit union
without deduction for the amount of prepaid INTEREST or DIVIDENDS.
For
example, if the credit union received $10,000 in exchange for
a certificate
of deposit issued at a face value of $10,000 and prepaid $500 in INTEREST or
DIVIDENDS, the credit union should report as a TIME DEPOSIT the $10,000
received at the time of Issuance.
For reporting purposes, the $500 prepaid
INTEREST or DIVIDENDS should not be deducted from the face amount of the
certificate.
Include the following as TIME DEPOSITS, regardless of whether or not
they earn INTEREST or DIVIDENDS:
1.

TIME CERTIFICATES of DEPOSIT or SHARE CERTIFICATE ACCOUNTS, whether
evidenced by negotiable or nonnegotiable instruments.

2.

TIME DEPOSITS or SHARE CERTIFICATE ACCOUNTS, open-account, evidenced
by written contracts, including CLUB ACCOUNTS or other special purpose
accounts.

3.

Savings certificates, notice accounts, passbook accounts (but not
SAVINGS DEPOSITS or SHARE ACCOUNTS).

4.

MONEY MARKET TIME DEPOSITS (certificates).

-28-

5.

Funds received or held in escrow accounts that nay be withdrawn
after not less than 14 days from the
date of deposit or after not
less than 14 days written notice of an intended (see Section 1,
Subsection H, for the general treatment of escrow funds).

6.

Individual Retirement Account (IRA) or Keogh Plan Accounts that
are held in the form of TIME DEPOSITS or SHARE CERTIFICATE ACCOUNTS.

7.

TIME DEPOSITS or SHARE CERTIFICATE ACCOUNTS maintained as compensating
balances or pledged as collateral for loans.

8.

All INTEREST or DIVIDENDS paid by crediting TIME DEPOSIT or SHARE
CERTIFICATE ACCOUNTS.

9.

Any funds received by the credit union's AFFILIATE and later channeled
to the credit union by the AFFILIATE
in the form of a TME DEPOSIT.

Exclude from TIME DEPOSITS the following categories of liabilities that
have an ORIGINAL MATURITY of 14 days or more:
1.

HYPOTHECATED DEPOSITS (does not_ include DEPOSITS serving as collateral
for loans).

2.

Liabilities of the credit union arising from REPURCHASE AGREEMENTS
involving obligations of, or fully guaranteed as to principal and
interest by, the U.S. Government or a Federal agency.

3.

Any PRIMARY OBLIGATION (including CERTIFICATES OF INDEBTEDNESS and
other borrowed funds) issued or undertaken to obtain funds, regardless
of the use of the proceeds, when transacted with U.S. offices of
EXEMPT ENTITIES.

4.

Funds obtained from state and local housing authorities under LOAN-TOLENDER PROGRAMS involving the Issuance of tax exempt bonds and the
subsequent lending of the proceeds to the credit union for housing
finance purposes.

5.

Borrowings from the Central Liquidity Facility or the National Credit
Union Share Insurance Fund, or shares held by the National Credit
Union Administration (NCUA) or the NCUA Central Liquidity Facility
under a statutorily authorized assistance program.

6.

Borrowings from a Federal Reserve Bank.

7.

DEPOSITS for which the credit union merely reserves the right to
require at least 14 days written notice of an intended withdrawal.

8.

ATS and SHARE DRAFT ACCOUNTS (reported in Items 4 and 6, respectively).

9.

SAVINGS DEPOSITS or SHARE ACCOUNTS authorized for TELEPHONE or PRE­
AUTHORIZED TRANSFER (reported in Items 5, 10, or 11, as appropriate).

-2910.

Other SAVINGS DEPOSITS (reported in Items 10 and 11).

11.

Matured TIME DEPOSITS, which are to be reported as DEMAND DEPOSITS in
Item 1, 2, or 3, unless the deposit provides for automatic renewal
at maturity.

12.

INTEREST or DIVIDENDS accrued on TIME DEPOSITS but not yet paid or
credited to a DEPOSIT account.

13.

Certain obligations Issued by the credit union's nondepository
AFFILIATES as described in Section 1, Subsection E.3.
(These trans­
actions are to be reported in Schedule A, Item 2.)

Item 13— Time Deposits— Personal
Report in Item 13 the balance of all PERSONAL TIME DEPOSITS, regardless
of ORIGINAL MATURITY.
Include as PERSONAL TIME DEPOSITS funds deposited to the credit of, or in
which the entire beneficial interest is held by, a NATURAL PERSON such as:
1.

A TIME DEPOSIT (including a SHARE CERTIFICATE or CERTIFICATE OF
INDEBTEDNESS) issued before October 1, 1980, to and held by a NATURAL
PERSON, regardless of whether or not it is TRANSFERABLE.

2.

A TIME DEPOSIT (including a SHARE CERTIFICATE or CERTIFICATE
INDEBTEDNESS) that is issued to and held by a NATURAL PERSON
that contains on its face (or in the underlying agreement) a
that it is not TRANSFERABLE (or that is TRANSFERABLE only on
of, or with the permission of the credit union).

3.

CLUB ACCOUNTS and other special purpose accounts that are in the
form of TIME DEPOSITS or SHARE CERTIFICATE ACCOUNTS.

4.

Individual Retirement Account (IRA) and Keogh Plan Accounts in the
form of TIME DEPOSITS or SHARE CERTIFICATE ACCOUNTS.

5.

Escrow accounts in the form of TIME DEPOSITS or SHARE CERTIFICATE
ACCOUNTS if the depositor is a NATURAL PERSON, notwithstanding that
the funds are held by the credit union as escrow agent.

OF
and
statement
the books

Item 14— Time Deposits— Nonpersonal
Report in Item 14 the balance of all NONPERSONAL TIME DEPOSITS.
Include as NONPERSONAL TIME DEPOSITS:
1.

Funds deposited to the credit of, or in which any beneficial interest
is held by, a depositor that is not a NATURAL PERSON.

-302.

A TIME DEPOSIT (including a SHARE CERTIFICATE or CERTIFICATE OF INDEBT­
EDNESS) that is issued on or after October 1, 1980, and that does not
contain on its face a statement that it is not TRANSFERABLE, regardless
of to whom it is issued.

3.

A TIME DEPOSIT (including a SHARE CERTIFICATE or
a CERTIFICATE OF
INDEBTEDNESS) that is TRANSFERABLE, except those
issued before October
1, 1980, to and held by a NATURAL PERSON (to be reported in Item 13).

Item 14.a.— Original Maturities of less than 4 years
Report in this item the balance of all NONPERSONAL TIME DEPOSITS with
ORIGINAL MATURITIES of 14 days or more but less than 4 years.

Item 14.b.— Original Maturities of 4 years or more
Report in this item the balance of all NONPERSONAL TIME DEPOSITS
with ORIGINAL MATURITIES of 4 years or more.

Item 15— Total Time Deposits
Report in this item the sum of Items 13, 14.a, and 14.b.

Item 16— Amount of TIME DEPOSITS in Denominations of $100,000 or More (included
in Items 13 and 1 4 )
Report in this item the balance of all PERSONAL and NONPERSONAL TIME
DEPOSITS of $100,000 or more that are reported in Items 13 and 14. Include:
1.

Negotiable and nonnegotiable, TRANSFERABLE and nontransferable
certificates of deposit or SHARE CERTIFICATES issued in denomina­
tions of $100,000 or more, and openaccount and other TIME DEPOSITS
or SHARE CERTIFICATE ACCOUNTS having balances of $100,000 or
more.

2.

TIME DEPOSITS or SHARE CERTIFICATES originally issued in denomina­
tions of less than $100,000 but that, because of INTEREST or DIVIDEND
paid or credited, or because of additional deposits, now have a
balance of $100,000 00 or
more.

3.

The balance of all PRIMARY OBLIGATIONS (including CERTIFICATES OF
INDEBTEDNESS) of $100,000 or more that are reported in Items 13
and 14.

In determining if a TIME DEPOSIT is $100,000 or more, do not combine
DEPOSITS that are represented by separate certificates or accounts, even
if held by the same customer.
Exclude from this item DEMAND DEPOSITS, SAVINGS DEPOSITS or SHARE
ACCOUNTS, ATS ACCOUNTS, TELEPHONE TRANSFER or PREAUTHORIZED TRANSFER accounts,
and SHARE DRAFT AC00UNTS, with balances of $100,000 or more.

-31-

Iten-17— Vault Cash (U.S. Currency and Coin)
Include as vault cash:
1.

United States currency and coin owned and held
by the credit union
(regardless of whether or not held on the premises) that may, at any
time, be used to satisfy depositors' claims.

2.

United States currency and coin in transit _to a
Federal Reserve Bank
for which the credit union has not yet received credit, and in transit
from a Federal Reserve Bank when the credit union has already been
charged.

3.

United States currency and coin in transit ^ o a
correspondent DEPOSI­
TORY INSTITUTION If the correspondent institution's account at the
credit union has not yet been charged, and In transit from a corres­
pondent Institution If the credit union's account at the correspondent
institution has already been charged.

Exclude as currency and coin:
1.

Foreign (NON-U.S.) currency and

2.

Silver and gold coin, and other currency and coin whose numismatic
or bullion value is In excess of face value.

3.

United States currency and coin that the credit union
does not
have full and unrestricted right to use, such as coin
collections
held for safekeeping for customers, currency and coin pledged
as collateral by the credit union or by customers, or currency
and coin sold under a REPURCHASE AGREEMENT or purchased under a
resale agreement.

<

coin..

-32-

SCHEDULE A — OTHER RESERVABLE OBLIGATIONS BY REMAINING MATURITY
Please note that Schedule A is applicable only to those few DEPOSITORY
INSTITUTIONS that obtain funds (1) through the use of ineligible acceptances
and (2) through the issuance of obligations by AFFILIATES.
No credit union
is likely to have ineligible acceptances.
However, it Is possible that a
few credit unions will have AFFILIATES and, therefore, may have received
funds through the issuance of obligations by AFFILIATES.
If your credit
union does obtain funds through the use of ineligible acceptances or the issu­
ance of obligations by AFFILIATES, you must complete Schedule A. Otherwise,
please check the box which precedes Schedule A on the reporting form indicating
that you have no ineligible acceptances or obligations by AFFILIATES.
This schedule includes a breakdown, by maturity, of amounts outstanding
of funds obtained (1) through the use of ineligible acceptances ("finance
bills") or (2) through the issuance of obligations by AFFILIATES.
Ineligible Acceptances and Obligations by Affiliates (Items 1 and 2)
Report the following transactions in this schedule:
1.

Amounts outstanding of funds obtained through use of ineligible
acceptances ("Finance Bills"): Report the dollar amounts outstand­
ing of funds obtained by the reporting Institution through its sale
of any Ineligible acceptances (acceptances not eligible for discount
by Federal Reserve Banks— see Section 13 of the Federal Reserve Act
[12 U.S.C. §346 and §372]) when the obligation is issued or under­
taken and discounted by the reporting Institution as a means of
obtaining funds and is issued to NONEXEMPT ENTITIES.
Ineligible
acceptances are sometimes referred to as FINANCE BILLS.
The amounts
to be reported are the funds received, and not necessarily the face
amounts of the ineligible acceptances issued or undertaken.
Therefore,
the amounts outstanding reported in this item may differ from the
face amounts of outstanding ineligible acceptances.

2•

Amounts outstanding of funds obtained through issuance of obligations
by affiliates: Report the dollar amounts outstanding of the funds
obtained by the reporting institution when its nondepository AFFILIATES
use the proceeds of their obligations issued to supply or maintain
the availability of funds to the reporting institution.
Reservable
obligations may be in the form of promissory notes, ACKNOWLEDGEMENTS
OF ADVANCE, due bills, or similar obligations (written or oral), with
maturities of less than four years.
However, such obligations are
reservable only to the extent that they would have constituted DEPOSITS
as described in Section 1, Subsection E.l, or PRIMARY OBLIGATIONS as
described in Section 1, Subsection E.2, had they been issued directly
by the reporting DEPOSITORY INSTITUTION.

Exclude from Schedule A funds obtained by the credit union through
obligations Issued by AFFILIATES and deposited at the credit union in the
form of DEMAND, SAVINGS, or TIME DEPOSITS.
Such funds should be reported on
this report as DEMAND, SAVINGS or TIME DEPOSITS,

-33-

If the AFFILIATE'S obligation is determined to be a reservable
DEPOSIT or PRIMARY OBLIGATION to be reported in Schedule A, then the
appropriate reserve requirement is determined by the shorter of (1)
the maturity of the AFFILIATE'S obligation or (2) the maturity of the
obligation issued by the reporting institution to the AFFILIATE or, in
the case of assets purchased from the reporting institution, the remaining
maturity of the assets purchased.
The following chart summarizes the conditions under which the
proceeds from the issuance of an obligation by an AFFILIATE would be
reservable and indicates the appropriate section of this report in
which the funds should be reported:

Funds received by
reporting institution
in the form of a
DEPOSIT or a PRIMARY
OBLIGATION

Funds received by
reporting institu­
tion in the form of
a DEPOSIT or PRIMARY
OBLIGATION

1.

AFFILIATE'S Obligation—
would have been a DEPOS­
IT or a PRIMARY OBLIGA­
TION if issued by the
reporting institution

To be reported as a
DEMAND, SAVINGS, or
TIME DEPOSIT, as
appropriate.
(See
Example 1 below)

To be reported
on Schedule A
(See Example 2
below)

2.

AFFILIATE'S Obligation—
would not have been a
DEPOSIT or a PRIMARY OBLI
GATION if issued by the
reporting institution

To be reported as a
DEMAND, SAVINGS, or
TIME DEPOSIT, as
appropriate.
(See
Example 3 below)

To be excluded from
this report (See
Example 4 below)

Example 1:
The AFFILIATE Issues commemrcial paper with a maturity of 6 months
to a nonfinancial corporation and immediately supplies the proceeds to the
reporting institution by buying from the reporting institution a time certi­
ficate of deposit (CD) with an original maturity of one year.
While both
the AFFILIATE'S and the reporting institution's obligation are reservable,
reserves need not be maintained against both obligations.
Thus, reserves
should be held against the amount of funds supplied to the reporting institu­
tion i.e., the dollar amount of the CD; but the appropriate reserve ratio Is
determined by the shorter of the maturity of the AFFILIATE'S commercial paper
or the reporting institution's CD.
In this example, reserves would be held
for a TIME DEPOSIT with a 6 month maturity.
The funds received by the report­
ing institution would be reported in Item 14.a, "Nonpersonal Time Deposits
with Original Maturity of less than 4 years.”

-34-

Example 2:
The AFFILIATE Issues an unsecured DUE BILL to a NONEXEMPT entity with
a maturity of 3 months and supplies the proceeds to the reporting Institu­
tion when the DUE BILL has a remaining maturity of 2 months.
The AFFILIATE
supplies the proceeds of the DUE BILL by purchasing assets from the report­
ing Institution maturing in 1 month.
The AFFILIATE'S obligation is
reservable and the sale of the assets by the reporting Institution to the
AFFILIATE is not. Thus, the reporting Institution must hold reserves
because the AFFILIATE'S obligation is subject to reserve requirements.
The
maturity category is determined by the remaining maturity of the assets sold
by the reporting institution to the AFFILIATE (1 month), which is shorter
than the REMAINING MATURITY of the DUE BILL (2 months).
In this example,
the reserve requirement would be for the AFFILIATE'S due bill (a PRIMARY
OBLIGATION) and the appropriate maturity would be one month, which is the
remaining maturity of the assets purchased.
The funds received by the report­
ing institution should be reported In Item 2.b of Schedule A.

Example 3:
The AFFILIATE sells commercial paper with a maturity of 3 months to a
commercial bank and supplies the proceeds to the reporting institution by
depositing such funds with the reporting institution in a DEMAND DEPOSIT.
The AFFILIATE'S sale of commercial paper to a commercial bank Is not subject
to reserve requirements, but the DEMAND DEPOSIT is. Thus, the reporting
Institution would hold reserve requirements against the DEMAND DEPOSIT as a
TRANSACTION ACCOUNT.
The funds received by the reporting Institution should
be reported in Item 3, "Other Demand Deposits."

Example 4:
The AFFILIATE sells U.S. government securities under an agreement to
repurchase and uses the proceeds to purchase assets from the reporting
institution.
Neither the sale of U.S. government security RP nor the purchase
of assets are subject to reserve requirements.
Thus, the reporting institution
would not hold reserve against this transaction.
The funds received by the
reporting Institution should be excluded entirely from this report.
The maturities to be reported in Items 1 and 2 are the REMAINING
MATURITIES of the obligations at the time the proceeds are supplied to the
reporting institution.

Item 1— Maturing In less than 14 days
Report in Item 1 amounts outstanding of funds obtained through the use
of ineligible acceptances and from issuance of obligations by AFFILIATES
maturing in less than 14 days.

-35-

Item 2— Maturing in 14 days or more but less than 4

years

Report in Item 2 amounts outstanding of funds
obtained through the use
of ineligible acceptances and from Issuance of obligations by AFFILIATES
maturing in 14 days or more.
In Item 2.a, report those that arepersonal,
and in Item 2.b, report those that are nonpersonal.

Item 2.a.— Personal
Report in Item 2.a. all personal obligations maturing in 14 days
or more including:
1.

Funds deposited to the credit of, or in which the entire beneficial
interest is held by, a depositor that is a NATURAL PERSON.

2.

An obligation that is issued before October 1, 1980, to and
held by a NATURAL PERSON, regardless of its transferability.

3.

An obligations that is Issued to or held by a NATURAL PERSON and
that contains a statement on its face that it is not TRANSFERABLE.

Item 2.b.— Nonpersonal
Report in Item 2.b. all nonpersonal obligations that mature in 14
days or more but less than 4 years including:
1.

Funds deposited to the credit of, or in which any beneficial
interest is held by a depositor that is not a NATURAL PERSON.

2.

An obligations that is TRANSFERABLE, except an obligation issued
before October 1, 1980, to and held by a NATURAL PERSON.

3.

An obligation that is issued on or after October 1, 1980, to and
held by a NATURAL PERSON and that does not contain on its face a
statement that it is not TRANSFERABLE.

G-1

GLOSSARY OF TERMS

This section provides definitions, arranged in alphabetical order, for
terms that appear in all capital letters in Sections 1 and 2 of this manual.
These definitions are used for purposes of reserve requirements only.
They
may differ from definitions that appear in other rules, regulations, statutes,
or reports.
ACKNOWLEDGEMENT OF ADVANCE
A notification by a DEPOSITORY INSTITUTION of its liability for funds that
have been received.
Acknowledgements of advance may take the form of a
telegraphic advice, written receipt, issuance of a credit memo or other
documentation, or simply an oral communication confirming the receipt of
funds under a borrowing-lending arrangement.
Acknowledgements of advance are
PRIMARY OBLIGATIONS of the issuing DEPOSITORY INSTITUTION.
AFFILIATE
An affiliate is any corporation, association, or other similar organization
of which:
1.

of which the reporting institution, directly or indirectly owns or
controls either a majority of the voting shares or more than 50 percent
of the number of shares voted for the election of the directors,
trustees, or other persons exercising similar functions at the preceeding
election or controls in any manner the election of a majority of the
directors, trustees, or other persons exercising similar functions; £r

2.

of which control is held, directly or indirectly, through stock owner­
ship or in any other manner, by shareholders of the reporting institution
who own or control either a majority of the shares of the reporting
institution or more than 50 percent of the number of shares voted for
the election of directors of the reporting institution at the preceding
election, or by trustees for the benefit of the shareholders of the
reporting institution; £r

3.

of which the majority of its directors, trustees, or other persons
exercising similar functions also are directors of the reporting
Institution.

ATS ACCOUNT
A SAVINGS DEPOSIT or SHARE ACCOUNT in which the entire beneficial interest
is held by one or more individuals and that is authorized for automatic trans­
fer to a DEMAND DEPOSIT or other account pursuant to a written agreement
arranged in advance between the reporting institution and the depositor.

G-2

BANKING BUSINESS
The business of accepting DEPOSITS, making loans, and providing
related services.
The banking business does not include the acceptance
of trust funds.

BILL OF LADING DRAFT
— See COMMODITY OR BILL OF LADING DRAFT.

BROKERS SECURITY DRAFT
A DRAFT with securities or title to securities attached that is drawn
to obtain payment for the securities.
This DRAFT is sent to a DEPOSITORY
INSTITUTION for collection with instructions to release the securities
only on payment of the draft.

CASH ITEM
Any instrument, whether negotiable or not, for the payment of money
which is payable on demand.
Cash items include CHECKS or DRAFTS in the
process of collection drawn on a DEPOSITORY INSTITUTION, U.S.
Government
CHECKS, and other items that are customarily cleared or collected by
DEPOSITORY INSTITUTIONS as cash items.

CERTIFICATE OF INDEBTEDNESS
An unsecured promissory note that represents borrowings by a credit
union from its members or nonmembers.

CERTIFIED and CASHIERS' CHECK
An unpaid CHECK or DRAFT, drawn on the reporting institution by an
authorized person for any purpose, including repayment of "Federal funds"
transactions or the payment of dividends.

CHECK
An instrument drawn on a DEPOSITORY INSTITUTION and signed by the
maker or drawer promising to pay a certain sum of money on demand to the
order of a specified person or bearer.

CLUB ACCOUNTS (special purpose accounts)
Christmas, vacation, or other similar special purpose accounts In the
form of SAVINGS DEPOSITS, SHARE ACCOUNTS, TIME DEPOSITS, or SHARE CERTIFICATE
ACCOUNTS for which there are written contracts providing that no withdrawal
can be made.

G-3

COMMODITY OR BILL OF LADING DRAFT
A DRAFT that is issued in connection with the shipment of goods.
If
the commodity or bill of lading draft becomes payable only when the ship­
ment of goods against which it Is payable arrives, it is an arrival draft.
Arrival drafts are usually forwarded by tha shipper to the collecting
DEPOSITORY INSTITUTION with instructions to release the shipping documents
(e.g., bill of lading) conveying title to the goods only upon payment of
the draft.
Payment, however, cannot be demanded until the goods have
arrived at the drawee's destination.
Arrival drafts provide a means of
Insuring payment of shipped goods at the time that the goods are released.

DEMAND DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l; or a PRIMARY OBLIGA­
TION described in Section 1, Subsection E.2, that is payable immediately
on demand or Issued in an original maturity of less than 14 days, or that
is payable with less than 14 days notice, or for which the reporting insti­
tution does not reserve the right to require at least 14 days written
notice of an Intended withdrawal.

DEPOSITORY INSTITUTION
Any of the following institutions that is empowered to accept DEPOSITS,
make loans, or provide related services; and that is Insured or is eligible
to apply to become insured:
1. U.S. commercial banks:
A. national banks,
B. state-chartered commercial banks,
C. trust companies that are authorized
to perform a commercial BANKING
BUSINESS, and
D. private banks or unincorporated banking
Institutions organized as partnerships
or proprietorships and authorized to perform
commercial BANKING BUSINESS;

G-4

2. U.S. BRANCHES AND AGENCIES of FOREIGN (NON-U.S.) BANKS;
3. EDGE ACT AND AGREEMENT CORPORATIONS;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions (including corporate central credit unions);
9. industrial banks, including Morris Plan banks, thrift and loan
companies, and industrial savings banks.
The term DEPOSITORY INSTITUTION excludes the following:
1. A trust company whose principal function is to accept and execute
trust arrangement or act in a purely fiduciary capacity.
2. A cash depository, cooperative exchange, or similar depository
organization whose principal function is to serve as a safe deposit
institution.
3. A finance company, whether or not empowered to receive deposits or
sell certificates of deposit.
4.

U.S. Government agencies and instrumentalities, such as the
Central
Liquidity Facility, National Credit Union Share Insurance Fund,
Federal Home Loan Bank Board, Federal Home Loan Banks, Federal
Intermediate Credit Banks, Federal Land Banks, Banks for Cooperatives,
Federal Home Loan Mortgage Association, Federal Deposit Insurance
Corporation, Federal National Mortage Corporation, Federal Financing
Bank, and Student Loan Marketing Association.

5. Export-Import Bank of the U.S.
6. Government Development Bank of Puerto Rico.
7.

Minbanc Capital Corporation.

8.

Federal Reserve

Banks.

DEPOSITS
— See Section 1, Subsection E.l, or Section 204.2 (a) of Regulation D.

G-5

DIRECT SENT CASH ITEM
A CASH ITEM sent for collection directly by the reporting institution
in one Federal Reserve District for collection from a Federal Reserve
Bank located in another district.

DRAFT
A negotiable instrument signed by the maker or drawer ordering the
payment of a certain sum of money on demand to the order of a specified
person or bearer.

EDGE ACT AND AGREEMENT CORPORATIONS
Corporations organized under Section 25(a) of the Federal Reserve Act
or under state law whose principal purpose is to engage in international
banking or foreign financial operations under limitations established by
the Federal Reserve Board.

EXEMPT ENTITIES
U.S. offices of the following:
1. U.S. commercial banks and trust companies and their operations
subsidiaries;
2. a U.S. BRANCH OR AGENCY OF A FOREIGN (NON-U.S.) BANK;
3. EDGE ACT AND AGREEMENT CORPORATIONS;
4. industrial banks;
5. mutual and stock savings banks;
6. building or savings and loan associations and homestead associations
7. cooperative banks;
8. credit unions (Including corporate central credit unions);
9. New York State investment companies (chartered under Article XII of
the New York State Banking Code) that perform a BANKING BUSINESS;
10. U.S. Government agencies and instrumentalities, including the
Central Liquidity Facility, National Credit Union Share Insurance
Fund, Federal Reserve Banks, Federal Home Loan Bank Board, Federal
Home Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal National
Mortgage Association Federal Financing Bank, and Student Loan
Marketing Association;

G-6

11. Export-Import Bank of the U.S.;
12. Government Development Bank of Puerto Rico;
13. Mlnbanc Capital Corporation;
14. securities dealers, but only when the borrowing (a) has a
maturity of one day, (b) is in immediately-available funds,
and (c) is in connection with the clearance of securities; and
15. the U.S. Treasury (TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES).

FEDERAL PUBLIC FUNDS
Funds of the U.S. Government and funds the deposit of which is subject
to the control and regulation of the United States or any of its officers,
agents, or employees.

FEDERAL RESERVE DRAFT
A DRAFT issued by a DEPOSITORY INSTITUTION that is drawn on its account
at a Federal Reserve Bank and that is payable by the Federal Reserve Bank.

FOREIGN (NON-U.S.) BANK
A bank organized under foreign (NON-U.S.) law.
Foreign banks include
commercial banks, merchant banks, discount houses, and similar DEPOSITORY
INSTITUTIONS, including nationalized banks that perform essentially a
BANKING BUSINESS and do not perform, to any significant extent, official
functions of FOREIGN (NON-U.S.) GOVERNMENTS.

FOREIGN (NON-U.S.) GOVERNMENTS
Central, national, state, provincial, and local governments in foreign
(NON-U.S.) countries (including their ministries, departments, and agen­
cies) that perform functions similar to those performed in the United
States by government entities.
Foreign governments also include FOREIGN OFFICIAL BANKING INSTITUTIONS.

FOREIGN (NON-U.S.) NATIONAL GOVERNMENT
A c&ntral or national government that performs functions similar to
those performed by the Federal Government of the United States.
State,
provincial, and local governments are not included as foreign national
governments.

G-7

FOREIGN OFFICIAL BANKING INSTITUTIONS
Central banks, nationalized banks and other banking institutions in
foreign (NON-U.S.) countries that are owned by central governments and
that have as a significant part of their fuction activities similar to
those of a treasury, central bank, exchange control office, stabilization
fund, etc.

HYPOTHECATED DEPOSITS
Funds received by a reporting institution that are recorded as DEPOSITS
generally in accordance with state law and that reflect periodic payments
by a borrower on an instalment loan.
These payments are accumulated
until the sum of the payments equals the entire amount of principal and
interest on the loan, at which time the loan is considered paid in full.
The amounts received by the reporting institution are not immediately
used to reduce the unpaid balance of the note, but are assigned to the
reporting institution and cannot be reached by the borrower or the borrower's
creditors.
Hypothecated deposits are not to be reported as reservable
deposits.
.
DEPOSITS which simply serve as collateral for loans are not considered
hypothecated deposits for purposes of this report.
*
•
IMMEDIATELY-AVAILABLE FUNDS
Funds that the reporting institution can invest or dispose of on the
same business day that the transaction giving rise to receipt of the
funds is executed.
Such funds are sometimes referred to as "collected,"
"actually collected," "finally collected," or "good" funds.

INTEREST or DIVIDENDS
Any payment to, or for the account of, a depositor as compensation for
the use of deposit funds.
Payments to a depositor that are not related
to the use of deposit funds by the reporting institution are not interest.
For example, if existing depositors are offered monetary or other compen­
sation for attracting new depositors, that compensation does not constitute
interest or dividends.
Similarly, one-time premiums (whether in the
form of merchandise, credit, or cash) that are used to attract new depositors
represent advertising or promotional expenses rather than a payment of
interest or dividend, provided that their wholesale cost does not exceed
$5.00 per deposit under $5,000 and $10 per deposit of $5,000 or more.
Finally, interest or dividends do not include the cost of administrative
or processing services absorbed by the reporting institution in relation
to deposit accounts.
For example, the reporting institution's payment
of state personal property taxes on bank deposits or the market value of
an advisory individual account analysis of the depositor does not constitute
interest or dividends.

G-8

INTERNATIONAL INSTITUTION
(I)
Any international entity of which the United States is a member,
such as the International Bank for Reconstruction and Development (World
Bank), International Monetary Fund, Inter-American Development Bank, and
the United Nations, and (2) other foreign, international, or supranational
entities of which the United States is not a member, such as the African
Development Bank, Central Treaty Organization, European Atomic Energy
Community, European Economic Community, European Development Fund,
Caribbean Development Bank, Bank for International Settlements, etc.
(See Regulation Q [12 CFR § 217.126].)

ITEMS PAYABLE THROUGH
— See PAYABLE THROUGH DRAFT.

LOAN-TO-LENDER PROGRAM
A loan-to-lender program involves the issuance of tax-exempt bonds by
a state or local housing authority and the subsequent lending of the pro­
ceeds to a reporting institution with the condition that these funds be
used to make specified types of residential real estate loans.
The funds
advanced to institutions under the program are evidenced by a loan agreement
and a promissory note issued by the institution to the housing authority.

MONEY MARKET TIME DEPOSITS
A nonnegotiable TIME DEPOSIT that must be Issued in denominations of
$10,000 or more with an ORIGINAL MATURITY of exactly 26 weeks.
The maxi­
mum rate of INTEREST which DEPOSITORY INSTITUTIONS may pay on these deposits
is tied to the discount rate (auction average) on the most recently issued
six-month Treasury, bills.
Compounding of INTEREST is not permitted on these
deposits.

NATURAL PERSON
For purposes of this report, a natural person is an individual or sole
proprietorship.
The term excludes a corporation owned by one or more
individuals, a partnership or other association.

NONCASH ITEM
Any item that is not a CASH ITEM.

NONEXEMPT ENTITY
Any entity that Is not listed as an EXEMPT ENTITY.

G-9

NONPERSONAL SAVINGS DEPOSITS
A SAVINGS DEPOSIT that is not a TRANSACTION ACCOUNT and that represents
funds deposited to the credit of, or in which any beneficial Interest is
held by, a depositor that is not a NATURAL PERSON.

NONPERSONAL TIME DEPOSITS
NONPERSONAL TIME DEPOSITS means:
(1)

a TIME DEPOSIT representing funds deposited to the credit of,
or in which any beneficial interest Is held by, a depositor
which is not a NATURAL PERSON;

(2)

a TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT in
issued before October 1, 1980, to and held by a NATURAL PERSON;
and

(3)

a TIME DEPOSIT Issued on or after October 1, 1980, to and
held by a NATURAL PERSON that does not contain on its face a
statement that it is not TRANSFERABLE.

NON-U.S .
Any geographic location, including the Commonwealth of Puerto Rico and
U.S. territories and possessions, outside the 50 states of the United
States and the District of Columbia.

NON-U.S. BANK
— See FOREIGN (NON-U.S.) BANK.

ORIGINAL MATURITY
The length of time from the date of deposit to the earliest date that
the funds may be withdrawn under the terms of the deposit agreement.
Where a deposit Is withdrawable on a specified date, the maturity is
determined by the length of time between the issue date and the specified
maturity date. Where a deposit has no specified maturity but can be
withdrawn after written notice is provided to the reporting institution,
the maturity is determined by the length of the required notice period.
ROLL-OVER CERTIFICATES OF DEPOSIT, multiple maturity deposits, alternative
maturity deposits, or deposits providing other maturity combinations
that permit a depositor the option of withdrawing the deposit at different
dates or periods of time should be reported on the basis of the earliest
allowable withdrawal date.

G-10

PAYABLE THROUGH DRAFT
A DRAFT drawn upon a nonbank payor, which states on its face that
it is payable through a particular bank.

PERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that represents funds deposited to the credit of, or
in which the entire beneficial interest is held by, a depositor that is
a NATURAL PERSON.

PERSONAL TIME DEPOSIT
A TIME DEPOSIT that represents funds deposited to the credit of, or in
which the entire beneficial interest is held by, a depositor that is a
NATURAL PERSON, including (a) a TIME DEPOSIT that was issued before
October 1, 1980, to and held by a NATURAL PERSON, regardless of its trans­
ferability, or (b) a TIME DEPOSIT that is issued to or held by a NATURAL
PERSON and that contains on its face a statement that it is not, TRANSFERABLE.

PREAUTHORIZED TRANSFERS
— See TELEPHONE and PREAUTHORIZED TRANSFERS.

PRIMARY OBLIGATIONS
— See Section 1, Subsections E.2, E.3, and E.4 of these instructions and
Section 204.2, (a)(l)(iv), (a)(l)(v), and (a)(l)(vii) of Regulation D.

REPURCHASE AGREEMENT
An arrangement involving the sale of a security or other asset under
a prearranged agreement to repurchase the same or similar security or
asset at a later date.

RETURNED ITEM
A CHECK or DRAFT that is returned by a drawee institution to the
presenting institution because of certain irregularities that, if waived,
might result in a loss to the drawee institution.
The item is returned
so that the presenting institution may correct the defect or take such
other action as may be necessary, such as.charging the depositor's account.

ROLL-OVER CERTIFICATE OF DEPOSIT
A certificate of deposit transaction (sometimes referred to as a "rolypoly") where a depositor agrees to maintain funds on deposit with a

G-ll

DEPOSITORY INSTITUTION at a specified rate for a certain period, usually
several years.
Instead of receiving one certificate of deposit maturing
at the end of the period, however, the depositor agrees to purchase
a series of short-term certificates of deposit.
The depositor initially
buys a short-term certificate, and when it matures, is required under the
terms of the deposit agreement to purchase another short-term certifi­
cate.
This process continues until the long-term contract period expires.

SAVINGS DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l; or a PRIMARY OBLIGA­
TION described In Section 1, Subsection E.2, that Is not payable on a
specified date or after a specified period of time from the date of
deposit, but for which the bank expressly reserves the right to require
at least 14 days written notice before an Intended withdrawal.

SHARE ACCOUNT
Funds in the form of shares purchased by a member or other approved
depositor which are received or held by the credit union in its usual
course of business and for which the credit uion has given, or Is obligated
to give, credit to the account of the depositor.
This account is not
payable on a specified date or after a specified period of time. However,
the credit union expressly reserves the right to require at least 14 days
written notice before an intended withdrawal of all or any portion of the
shares in an account.

SHARE CERTIFICATE ACCOUNT
A TRANSFERABLE or nontransferable instrument or account which provides
on its face or in the underlying agreement that a specified amount of
shares is payable:
1.

on a certain date, specified in the Instrument or underlying
agreement, not less than 14 days after the purchase date of shares;
or

2.

at the expiration of a certain specified time not less than 14
days after the date the instrument is Issued or the account is
opened; or

3.

upon notice in writing which actually is required to be given by
the account holder not less than 14 days before the date of
repayment.

A share certificate account earns a dividend, and a penalty is assessed
for early withdrawal.

G-12

SHARE DRAFT
A negotiable or nonnegotiable DRAFT signed by the account holder
directing the credit union on which the draft is drawn to pay a certain
sum of money on demand to a specified person or bearer.
Such drafts are
used to withdraw shares from a SHARE DRAFT ACCOUNT.

SHARE DRAFT ACCOUNT
A SHARE ACCOUNT from which shares may be withdrawn or transferred to
third parties by means of a negotiable or TRANSFERABLE instrument or
other order such as a SHARE DRAFT.

TELEPHONE AND PREAUTHORIZED TRANSFER
Any arrangement by the DEPOSITORY INSTITUTION to pay a third party
from the account of a depositor (1) upon written or oral instruction
(including an order received through an automated clearing house (ACH)),
or (2) at a predetermined time or on a fixed schedule or (3) by telephone
transfer.
Under such agreements, the depositor may make withdrawals by
preauthorized transfer or payment, by telephone transfer or payment, or
by payment to third parties by means of a debit card, an automated teller
machine (ATM), remote service unit (RSU), or other electronic device.

TIME DEPOSIT, OPEN ACCOUNT
A deposit other than a TIME CERTIFICATE OF DEPOSIT with respect to
which there is in force a written contract with the depositor that
neither the whole nor any part of such deposit may be withdrawn prior
to the date of maturity, which shall be not less than 14 days after
the date of deposit, or prior to the expiration of the period of notice
which must be given by the depositor in writing not less than 14 days
in advance of withdrawal.

TIME DEPOSIT, TIME CERTIFICATE OF DEPOSIT
A DEPOSIT described in Part I,, Section 1, Subsection E.l; or a PRIMARY
OBLIGATION described in Part I, Section 1, Subsection E.2, that is payable
on a specified date, after a specified period of time from the date of
deposit, or after a specified notice period, which in all cases may be not
less than 14 days from the date of deposit.
A TIME DEPOSIT may be represented by a TRANSFERABLE or nontransferable,
or a negotiable or nonnegotiable, certificate, Instrument, passbook or
statement.
A nonnegotiable TIME DEPOSIT is distinguished from a non­
transferable TIME DEPOSIT in that the transferee of a nonnegotiable TIME
DEPOSIT would not be a holder in due course and would not have the ability
to cut off certain defenses of an obligor even though an exchange for value
to be made.

G-13

TRANSACTION ACCOUNT
A DEPOSIT or account on which the depositor or account holder is per­
mitted to make withdrawals by negotiable or TRANSFERABLE Instrument
(SHARE DRAFTS), payment orders of withdrawal, telephone transfers, or
other similar device for the purpose of making payments or transfers to
third persons or others.
"Transaction account" includes:
(1)

DEMAND DEPOSITS;

(2)

DEPOSITS or accounts subject to withdrawal by CHECK, DRAFT,
negotiable order, or SHARE DRAFT;

(3)

SAVINGS DEPOSITS or SHARE ACCOUNTS in which the entite beneficial
interest is held by one or more individuals and that are autho­
rized for automatic transfer to a DEMAND DEPOSIT or other account
pursuant to a written agreement arranged in advance between the
reporting institution and the depositor (ATS ACCOUNTS);

(4)

DEPOSITS or accounts in which payment may be made to third parties
by means of a debit card, an automated teller machine (ATM),
remote service unit (RSU), or other electronic device; and

(5)

DEPOSITS or accounts from which the depositor is permitted or
authorized to make more than 3 withdrawals per month for purposes
of transferring funds to another account or making a payment to
a third party by means of TELEPHONE or PREAUTHORIZED TRANSFER
or payment.

NOTE:
An account is not regarded as a transaction account merely
because it permits transfers in connection with loans made by the
institution itself.

TRANSFERABLE
The transferee of a transferable TIME DEPOSIT would be a holder in
due course and would have the ability to cut off certain defenses of
an obligor.
A TIME DEPOSIT is not considered a transferable TIME
DEPOSIT if it can be pledged as collateral for a loan from any lender,
or if the title or beneficial Interest in the deposit or account can
be passed on in circumstances arising from death, bankruptcy, divorce,
marriage, incompetency, attachment, or otherwise by operation of law.
In addition, the relssuance of a TIME DEPOSIT by an institution in
the name of another or the addition or subtraction of names on the
TIME DEPOSIT will not be regarded as a transfer.

UNPOSTED CREDITS
Items that have been received for DEPOSIT and that are in process of
collection but that have not been posted to individual or general ledger
deposit accounts.
These credits should be reported as DEPOSITS.

G-14

UNPOSTED DEBITS
CASH ITEMS drawn on the reporting institution that have been "paid"
or credited by the DEPOSITORY INSTITUTION and that are chargeable but
that have not been charged against DEPOSITS as of the close of business.
These items should be reported as "cash items in process of collection”
until they have been charged to either individual or general ledger
deposit accounts.

U.S.
The 50 states of the United States and the District of Columbia.

U.S. BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS
Branches and agencies of foreign (NON-U.S.) banks operate as a U.S.
office of their foreign (NON-U.S.) parent bank.
A branch or agency may be
licensed by the U.S. government, or by a state of the U.S.
As defined
by the International Banking Act of 1978, a "branch” means any office or
any place of business of a foreign bank located in any state of the
United States at which DEPOSITS are received; an "agency" means any office
or any place of business of a foreign bank located in any state of the
United States at which CREDIT BALANCES are maintained incidental to or
arising out of the exercise of banking powers, CHECKS are paid, or money
is lent but at which DEPOSITS may not be accepted from citizens or
residents of the United States.

U.S. TREASURY GENERAL ACCOUNT
A Treasury account maintained at the reporting institution to which
government officers deposit funds obtained in connection with special
collections, such as customs fees or other tax collections.

U.S. TREASURY TAX AND LOAN ACCOUNT
A Treasury DEMAND DEPOSIT account maintained at the reporting DEPOSITORY
INSTITUTION through which the Treasury receives DEPOSITS (receipts),
principally of Federal tax payments and proceeds from the sale of savings
bonds.
The account does not include TREASURY TAX AND LOAN ACCOUNT NOTE
BALANCES.

U.S. TREASURY TAX AND LOAN ACCOUNT NOTE BALANCE
That balance representing the total amount outstanding of open-ended
interest bearing notes issued by the reporting DEPOSITORY INSTITUTION to
the U.S. Treasury under the TREASURY TAX AND LOAN ACCOUNT note option
program.

G-15

A depository authorized to accept U.S. TREASURY TAX AND LOAN ACCOUNT
DEPOSITS may administer such accounts under either of two options:
(1)
the remittance option and (2) the note option.
Under the remittance option,
depositories must send the previous day's tax and loan account balance as
of the close of business to the Federal Reserve Banks.
Under the note option,
depositories will automatically convert the previous day's close-of-business
balance In their tax and loan account to an interest-bearing demand note,
which must be fully collateralized.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102