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Bank

federal reserve

DALLAS, TE X A S

of

Dallas

75222

Circular No. 80-189
October 2, 1980

P O L IC Y

TO

A LL

STA TEM EN T

M EM B ER

A N D

O THERS

The

a c c o u n ts .
th a t

o ffe r

FED ER A L

NOW

to

m a rk e tin g

re c e iv in g

th a t

a ll a d v e rtis e m e n ts

n a tu re

of

be

s e rv ic e

o rd ers

a re

of

m a te ria ls

NOW

to

c o n v e rte d

t h e ir c o n v e rs io n
a c c o u n ts

of

NOW

has

a p p ro v e d

N e g o tia b le

re g u la to rs

to

or

NOW

a

p o lic y

O rd e r

of

s ta te m e n t

W ith d ra w a l

on

(N O W )

F e d e ra l F in a n c ia l In s titu tio n s

of

banks

and

m ay

u n d er F e d e ra l la w , N O W

on

or

Decem ber

31,

on

a fte r

th rift

in s titu tio n s

w h ic h

Any
1980,

a c c o u n t s e rv ic e s

a re

31,

31,

1980.

as to

n e g o tia b le

th e

A c c o u n ts

im p ly

p rio r
th a t

to
th e

or

tra n s fe ra b le
p ro m o tio n a l

p ro m in e n tly

n o t a v a ila b le

s h o u ld

or

a d v e rtis e m e n ts

s h o u ld

th e

d e s c r ib e

c h a ra c te riz e d ,

way

to

a c c o u n ts .

1980,

a c c u ra te ly

be

such

ad h ere

b e a rin g

Decem ber

not

in

upon

m ust

d iv id e n d

Decem ber

s h o u ld

d ra w n .

or

m a te ria ls

o r d e s c r ib e d

a c c o u n ts
be

in s titu tio n s

in te re s t

a u th o r ity

a c c o u n ts

a c c o u n ts

b e fo re

a ll

p ro m o tio n a l

o ffe re d

in te re s t-b e a rin g

is s u e d

to

account

be

as N O W

w ith d ra w a l

a c c o u n ts ,

a p p lic a b le

In s titu tio n s

w ill

B o ard

F ed e ra l

en su re

th a t

D IS T R IC T :

w as re c o m m en d ed by th e

th e

re q u ire m e n ts

th e

A C C O U N TS

a c c o u n ts .

W hen
a d v e rtis in g

"N O W "

TH E

in s titu tio n s

s ta te m e n t

C o u n c il

IN

RESERVE

R e s e rv e

fin a n c ia l

The

E x a m in a tio n

OF

BANKS

F ed e ra l

by

A D V E R T IS IN G

C O N C E R N E D

ELEVENTH

a d v e rtis in g

ON

b e fo re

in d ic a te

th a t,

Decem ber

31,

1980.

P rin te d
and

m a te ria l

on

th e

s u b m itte d

pag es m o re fu lly e x p la in
s ta te m e n t
S u p e rv is io n

s h o u ld
and

be

fo llo w in g
fo r

th e

is a c o p y o f t h e
in

B o a r d 's a c t io n .

d ir e c te d

R e g u la tio n s

pages

p u b lic a tio n

to

th e

th e

p ress r e le a s e

R e g is te r.

A n y q u e s tio n s c o n c e rn in g

Consum er

D e p a rtm e n t,

B o a rd 's

F ed e ra l

E x t.

A ffa irs

S e c tio n

of

These

th e
our

p o lic y
Bank

6169.

S in c e re ly

y o u rs ,

R o b e rt

H.

B o y k in

F ir s t

V ic e

P r e s id e n t

Banks and others are encouraged to use the following incoming WATS 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)

r.-a a r

FEDERAL RESERVE press release

For

im m e d ia te

re le a s e

The

F ed e ra l

s ta te m e n t

c o n c e rn in g

o f W ith d ra w a l

(N O W )

The
In s titu tio n s

and
In

t h r if t
v ie w

M o n e ta ry

o f

S e p te m b e r

R e s e rv e

a d v e rtis in g

In s titu tio n s

C o n tro l

c o n m e rc ia l

banks,

th ro u g h o u t

th e
The

was

E x a m in a tio n

fa c t

a d o p te d

th e

m em ber b an ks

o f

th a t

a tta c h e d

o f

p o lic y

N e g o tia b le

O rd e rs

to

o ffe r

th e

by

th e

F e d e ra l

F ed e ra l

F in a n c ia l

re g u la to rs

NOW a c c o u n t s .

The

o f

a c tio n

banks

was

th e

D e p o s ito ry

In s titu tio n s

D e re g u la tio n

1980

a u th o r iz e s

th e

o f

m u tu a l

n a tio n

reco m n end ed

C o u n c il

th a t

A ct

p o lic y

by

has

1980

a c c o u n ts .

s ta te m e n t

th e

B o ard

25,

s a v in g s

on

banks

Decem ber

s ta te m e n t

#

#

#

and

31,

#

#

#

by

#

#

s a v in g s

th e

B o ard

and

is

and

NOW a c c o u n t s

1980.

a d o p te d

#

is s u a n c e

ta k e n

lo a n

by

a s s o c ia tio n s

a tta c h e d .

P o lic y

S ta te m e n t

A d v e rtis in g

The
In s u ra n c e

C o m p tro lle r
banks

and

o ffe rin g
a d h e re
appear

o f

or

S e c tio n

3 2 9 .8

a ll

Home

S a v in g s

and

2 1 7 .6

o f

th e

Loan
Loan

account

o f

S y s te m

a g e n c ie s
th e

on

tim e

31,

to

tis e m e n t,

a n n o u n c e m e n t,

or

b e fo re

th e

Decem ber

31,

s e rv ic e s

not

1980

s h o u ld

th a t

n a tu re

of

a ll

th e

s e rv ic e

th a t

to

c o n v e rs io n ,

th e

a c c o u n ts

o rd ers

o f

w ill
a re

to

be

c o m p ly
o f

1/
in
and

w ith

in te re s t

to

th e
on

m ay

M o n e ta ry

NOW a c c o u n t

and

a re
New

C o n tro l

a

of

o ffe r

Act

In

of

1980

a c c o u n ts

c o n n e c tio n ,
th a t

e tc .)
or

on

,If

no

or

or

o f

or

in s u re d

th e

F e d e ra l

w ith

F S L IC ,

resp ect
or

S y s te m ,
NOW a c c o u n t
advance

w ill

in

be

re p re s e n ta tio n
re s p e c t

b e in g

F D IC

fo r

th e

th e

c o n v e rte d

a g e n c ie s

m ay b e

a ll

w ith

banks;

d ra w
an

in a c c u ra te

o ffe re d .

any

or

F ed e ra l

be

la w ,

or

m is le a d in g

C o n s is te n t

w ill

NOW

ad v e r­

in te re s t

p ro m o tio n a l m a t e r ia ls
th a t

to

s p e c ia l

(e .g .,

to

NOW

w ith
is s u e s

c o n v e rte d

to

NOW a c c o u n t

1980.

a u th o r ity

on

m a te ria ls

a fte r

NOW a c c o u n t s
or

th e

under

31,

n a tio n a l

engage

th a t

a c c o u n ts

th a t,

a ll

by

2 1 7 .6 )

re c e iv in g

m ay

made w i t h

s e rv ic e

CFR

5 6 3 .2 7

Bank

re q u ire m e n ts

(1 2
fo r

m ust

d iv id e n d

CFR 5 6 3 . 2 7 )

in s u re d

Loan

c o m m e rc ia l

a c c o u n ts

or

R e g u la tio n s

in s titu tio n s

31,

s h o u ld
in

31,

not

such

upon w h ic h

Decem ber

31,

a c c u ra te ly

Decem ber

d e s c r ib e d

a c c o u n ts

re m in d e d

th a t,

NOW a c c o u n t
th e

i f

a u th o r iz e d

T itle
1980

e ffe c tiv e

is

a g e n c ie s '

a d d itio n ,

c u rre n tly

a u th o r ity ,

th o s e

p ro m o tio n a l

to

a re

on

J e rs e y .

Home

Q

D e p o s it

th e

in s titu tio n

a d v e rtis in g

3 2 9 .8 )

(1 2

o f

1980.

be

1980

d e s c rib e
In

th is

s h o u ld
th e
re g a rd ,

c h a ra c te riz e d ,

a way

as

n e g o tia b le

to

or

im p ly

p rio r
th a t

tra n s fe ra b le

d raw n *

a ls o

d e p o s its .

FHLBB,

a d v e rtis e m e n ts

o ffe re d

be

p a id

th e

NOW a c c o u n t ,

NOW a c c o u n t s

p ro v is io n s

NOW a c c o u n t s
New Y o r k

be

by

NOW a c c o u n t

in te re s t-b e a rin g

w ith d ra w a l

d iv id e n d s )

be

CFR

S e c tio n

Decem ber

or

c o n v e rte d
as

In s titu tio n s
(o r

re c e iv in g

(1 2

such

(N O W )

in c lu d in g

and

in d ic a te

b e fo re

b a s ic

R e g u la tio n

R e g u la tio n s

NOW a c c o u n t s

a d v e rtis e m e n ts

a c c o u n ts
th e ir

fo r

a v a ila b le

a

any

These

F ed e ra l

re m in d

in te re s t

F H L B B 's

th is

c o n tra c t

p ro m in e n tly

In s titu tio n s
e n s u re

as

a ll

5 2 6 .6 )

th a t
m ay

w ith d ra w a l
to

th e

F ed e ra l

In

o f

o f

re q u ire m e n ts

account

any

R e s e r v e 's

Decem ber

and

re q u ire m e n ts ,

NOW a c c o u n t s
a re

on

such

to

th a t

o rd er

5 2 6 .6

s o lic ita tio n ,

a c c o u n t,

re g u la to ry

th e

1980.

re g u la to ry

e a rn in g

m is re p re s e n t

th e s e

o f

w is h

R e g u la tio n s

CFR

th e

O ffic e

th e

a g e n c ie s " )

m em ber b a n k s ,

c h a rte re d

p ro g ram s

a tte n tio n

d iv id e n d

th e

(1 2

re c o g n iz e

f ir s t

Decem ber

and

S y s te m ,
and

B o ard

ju ris d ic tio n

a p p lic a b le

C o r p o r a tio n 's

m em bers

fo r

S y s te m

R e serve

Bank

NOW a c c o u n t s .

S e c tio n

in s titu tio n s

o th e rw is e

"th e

F ed e ra l

R u le s

and

F ed e ra l

n e g o tia b le

th e

R e g a rd in g

NOW A c c o u n t s

Loan

th e ir

re q u ire m e n ts

In s u ra n c e

p ro m o tio n a l

a c c o u n ts

o ffe r

F D IC

The
a u th o r ity

under

R e serve

Bank

th e
Home

(h e re a fte r

when m a rk e tin g

F ed e ra l

s a v in g s
a re

to

o f

F ed e ra l

C u rren cy

in s titu tio n s ;

F ed e ra l

w h ic h

th e

a d v e rtis in g

S e c tio n

to

a ll

G o v e rn o rs

in s titu tio n s

a c c o u n ts
in

nonm em ber

o f

p re p a rin g

th e

re s p e ct

to

th e

t h r ift

to

e a rn in g

B o ard

C o rp o ra tio n ,

of

I I I

(P .L .

of

a

s p e c ific

re g u la tio n s

c o n d itio n s

o n ly
th e

9 6 -2 2 1 ,

Decem ber

i f

a d v e rtis e d ,

31,

in

th e

or

94

S ta t.

1980.

charges

New

o f
th e

w ill

E n g la n d

In s titu tio n s
146)

in te re s t

a d v e rtis e m e n ts

re g a rd in g

s ix

D e p o s ito ry

ra te

such

p ro v id e s

m ust

a d v e rtis in g
be

im p o s e d

s ta te s

and

D e re g u la tio n
n a tio n w id e

-

on

th e

a c c o u n t,

m a te ria l.
its
is

c u s to m e r
c o n v e rte d

p a y in g
a

not
to

in te re s t

s ta te d

th a t

fa c t

C o n s is te n t

re tu rn

la te r
a

s h o u ld

w ith
th a n

th e

on
and

th e

tim e
o f

a c c o u n t,

charges

d is c lo s e d

a g e n c ie s '

th e

NOW a c c o u n t ,

be

th a t

th e

a

in

th e

NOW a c c o u n t
m e th o d

be

a d v e rtis e m e n t

re g u la tio n s ,

in c lu d in g
m ay

2-

th a t

is

be

th a t

a g a in s t

or

in s titu tio n

opened,

w ill

c o n d itio n s

assessed

an

or

used

an

p ro m o tio n a l
s h o u ld

e x is tin g

in fo rm
account

in

c o m p u tin g

and

m ust be

s a tis fie d

to

th e

a c c o u n t.

e a rn


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102