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F ederal R e se r v e B ank OF DALLAS WILLIAM H. WALLACE FIR S T V ICE P R E S ID E N T December 17, 1986 DALLAS, TEXAS 75222 Circular 86-113 TO: The Chief Executive Officer of all depository institutions in the Eleventh Federal Reserve District SUBJECT Paying Bank's N o t if ic a t io n Agreement DETAILS As announced in Circular 85-109, dated August 12, 1985, Regulation J was amended to strengthen the current requirement that payor depository institutions provide notice when they are returning unpaid large dollar checks presented through the Federal Reserve. Attached is Exhibit III from Bulletin 8, "Collection of Cash Items". Exhibit III is the Paying Bank's Notification Agreement form letter. The agreement letter should have been executed and forwarded to the return item division of your local Federal Reserve prior to the implementation date of October 1, 1985. If your financial institution is utilizing FederalReserve notification services and wishes to revise, has not sent, or is not sure that an executed Paying Bank's Notification Agreement letter has been sent to us, please send one as soon as possible. A financial institution that requests to utilize all three Federal Reserve notification services should check all three boxes on the form. These services include the following: ° returning the physical item to us ° telephone notification to us ° Fedwire System (RESPONSE Network) As stated in Circular 85-109, notifications by telephone, on-line, or initiated from the special return item letters from items handled for collection by the Federal Reserve will be handled at no extra charge for the duration of the Eleventh District Return Item pilot. For return items not handled for collection by the Federal Reserve, the Reserve Bank has made the necessary operational changes to receive notifications on such items from Eleventh District paying institutions and will pass those notifications on to For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800) 527-9200 (interstate). This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - the institution of first deposit. A fee of $2.25 for wire and $4.25 for telephone origination of the notification will be assessed for the service. Payor institutions will be responsible for the timeliness of notifications. MORE INFORMATION For further information on the amendment, please contact the following individuals: Robert L. Whitman, (214) 698-4357 at the Head Office; Robert W. Schultz, (915) 544-4730 at the El Paso Branch; Vernon L. Bartee, (713) 659-4433 at the Houston Branch; or John A. Bullock, (512) 224-2141 at the San Antonio Branch. Sincerely yours BULLETIN 8 FEDERAL RESERVE BANK OF DALLAS EXHIBIT m Paying Bank’s Notification Agreement (to be typed on paying bank’s letterhead) (Date) Federal Reserve Bank of ___________ Attention: Payments Mechanism Department [ ] Head Office [ ] Houston Branch [ ] El Paso Branch [ j San Antonio Branch Gentlemen: We request that, in accordance with your Bulletin 8, you provide notice of nonpayment for large dollar cash items that we decide not to pay. We elect to provide the information required by: □ returning the physical item to you □ telephone notification to you □ Fedwire System (RESPONSE Network) We authorize you to charge our billing account maintained or used by us on your books and to make other appropriate adjustments with this service. (Name of Paying Bank) (Nine Digit ABA Number) By: ---------------------------------------------------(Authorized Signature) (Title) 10-85