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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)

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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

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