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federal

R eserve Bank of Dallas

DALLAS, TEXAS

75222

Circular No. 83-87
July 12, 1983

NEW SERVICE
SIGHT DRAFT COLLECTION
TO ALL DEPOSITORY INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Eleventh Federal Reserve D istrict has been granted authority to
collect sight d rafts and other noncash collections in a pilot program beginning
August 10, 1983. This new service will be offered in addition to the collection
services for municipal coupons and bonds which are presently offered.
The Dallas office has conducted a te st study with automobile sight
d ra fts since February with a local credit union. Following successful te s t results,
the service is now being broadened to include all financial institutions a t a cost
of $5 per item.
The basic procedure to be used for the collection of sight d rafts and
other noncash item s excluding coupons and bonds is as follows:
1.

The sending institution sends the items to the local office of the
Federal Reserve Bank of Dallas using its collection form.

2.

The item s are received by this Bank and sorted to the paying
institution. No inspection is made to verify the transaction is in
good order.

3.

A collection le tte r is prepared by this Bank covering the item and
sent to the paying institution by ordinary mail unless other
arrangem ents have been made by the paying institution.

4.

The paying institution returns the last copy of our collection le tte r
to this Bank, bearing a "paid" stamp. C redit and debit entries are
then made to the sending and paying institutions, respectively,
either to the reserve or clearing account of each institution or to
th a t of a correspondent bank as requested. Auto charge will not
apply to this service.

5.

If the item is refused by the paying institution, it is returned to
this Bank with the collection le tte r and an explanation for the
refusal.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
Banks and others are encouraged to use the follow ing incom ing WATS numbers in con tacting 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.

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Questions regarding this
(214) 651-6263 a t the Head Office;
Paso Branch; Andrew W. Hogwood,
Tony G. Valencia, (512) 224-2141 a t

2

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service should be directed to C. L. Vick,
William L. Wilson, (915) 544-4730 a t the El
(713) 659-4433 a t the Houston Branch; or
the San Antonio Branch.

Additional copies of this circular will be furnished upon request to the
Public Affairs D epartm ent, Extension 6289.
Sincerely yours,

William H. Wallace
First Vice President

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