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Federal R eserve Bank
OF DALLAS
W ILL IA M

H. WALLACE

DALLAS, TEXAS 75222

FIRST V IC E P R ES ID EN T
AND C H IE F O PER ATING O FFIC ER

Apri l 3, 1989
Circular 89-21

TO:

All financial institutions in the
Eleventh Federal Reserve District
that receive ACH transactions
SUBJECT
Instructions for proper completion of paper government NOC forms
DETAILS

On December 23, 1988, we issued Federal Reserve Bank of Dallas
circular 88-93, Instructions for proper completion of paper government NOC
f o r m s . Since that time we have been asked by the T r easury to revise some of
the documentation they provided for that circular.
We have agreed to make
those revisions, correcting some errors and oversights in that circular.
Therefore, please discard all copies of circular 88-93 and use this circular
so that employees preparing paper government NOC forms will have the most
complete and correct guide.
The Tr e a s u r y has chosen to use the commercial NOC process for
submitting government payment data changes to agencies originating those
payments.
Effective January 1989 Eleventh District financial institutions
that do not automate government NOCs may submit government payment data
changes to their local Federal Reserve Office using the commercial NOC form.
However, there are a number of critical differences in data
requirements for government NOCs than have been required in the past for
completing commercial NOCs.
Failure to fully and properly meet government
agency requirements for data when preparing an NOC will cause the NOC to be
rejected.
This will result in a delay in applying the requested changes and
may cause a significant delay in availability of funds to your customer.
The
following is designed to help you avoid such a delay.
We will first provide a general overview of agency requirements and
then discuss each requirement in detail.
Frequent reference, for
clarification, will be made to the attached examples.

For additional copies of any c ircula r please c on tact the Public A ffa irs D epartm ent at (214) 651-6289. Banks and others are
encouraged to use the fo llo w in g incom ing WATS numbers in c on tacting th is 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 GENERAL OVERVIEW
1)

ATJ_ information referenced in the attachments must be entered on the NOC
form.
Data elements considered discretionary for inclusion on commercial
NOCs are not d i scretionary for government NOCs.

2)

Government agencies use the claim number (Individual ID) as one of the
keys to identifying a payment recipient on their files.
Each agency has
one or more specific structures for claim numbers.
All claim numbers are
15 characters including required blanks.
A failure to exactly follow a
correct claim number structure willcause the NOC to reject.

3)

To identify a specific payment for an
individual who m a y receive multiple
payments, government agencies use the type of account (demand or savings)
to which the payment is sent.
This type of account must be indicated on
the NOC.

4)

Government agencies require that depositor account numbers (termed "DFI
Acc o u n t Number" on the NOC form) contain no embedded blanks.

5)

Government agencies only accept four change codes and the changes
associated with those codes.
This is discussed later (see page 5 &
Changes other than these types cannot be handled with the paper NOC

6)

6).
form.

Because the Federal Reserve will apply editing and processing steps to a
government NOC different from those required for a commercial NOC, a
notation must be made on the NOC form to indicate the NOC is for a
G OVERNMENT payment.

DETAILED INFORMATION
The following information references numbered items on the attached
sample entry register and sample completed NOC forms.
You must enter all information referenced on the sample Entry
Register on the NOC f o r m .
Items 1-8, 10-13 and 15 should be entered on the NOC form exactly as
presented on the Entry Register.
Please note that data fields may be located
in different positions on the entry register provided by yo u r software or
service bureau.
Institutions should determine if their software or service
bureau changes the data in any field from the way the data are sent by the
originating agency;
if any such changes are made, the data must be restored
to the original form so the NOC can be properly completed.
Please review with
yo u r data processing staff or service bureau the possibility that payment data
ma y have been changed in sequence or form from that in which the government
agency sent the data and request changes if n e c e s s a r y . All data entered
should be complete and left-justified when entered on the NOC form, but care
must be taken to not miss leading blanks when copying Individual ID numbers.
Several other fields also require special attention; a detailed discussion
follows.
Item 3 --Company D i scretionary D a t a . Government agencies that send
this element require that it be returned on the NOC form.
This

- 3 20-position data field must be entered in the Company Discretionary
Data field on the NOC form exactly as it was sent out by the
originating agency.
Item 5--Company Descriptive D a t e . This date must be returned.
It
must also be in the same order/format in which it was sent by the
originating agency.
Item 6--Receiving Depository Financial Institution Transit/Routing
N u m b e r . The transit/routing number addressed in the payment must be
placed in this field.
This is true even if the institution has been
merged, assumed by new owners or closed.
Item 9--Chanqe F i e l d s . See the Table of Change Codes later in this
circular (page 6).
Note that only in case of Change Code C03 are
both fields used.
In the case of Change Code C05, note that you will
need to enter the correct two-digit Transaction Code in Change Field
1; see the Transaction Codes section of the NACHA Operating Rules
(pages OR 78-79 in the 1989 Rules) for information on these codes.
(If you do not have a recent copy of the NACHA Rules, contact SWACHA
or y o u r Federal Reserve office to secure a copy.)
Please see page 4
for a matrix of transaction codes.
Item 10--Individual ID Number (Claim N u m b e r ) . This alphanumeric data
element must be returned in the proper format.
The structure of the
Individual ID number is so important to the originating agencies that
it will be the subject of a special discussion later in this circular
(see page 5).
Please give this discussion yo u r special attention.
Item ll--Discretionary D a t a . Use of this one- or two-character field
is discretionary only to the originating agency.
If the
discretionary data field in the original item contains data, then
that one- or two-character field must be returned.
Fill in the field
on the NOC with the one or two characters sent.
It must be
1eft-justi fied.
* Itern 15--T,ype of A c c o u n t . The type of account (DEMAND or SAVINGS) to
which the original payment was sent must be reported to the
o riginating agency when submitting the NOC.
Since there is no place
on the current NOC form for indicating the type of account, it must
be written on the form in the open space next to the Company
Descriptive Date field.
(See Item 15 on attached figures 1 through
3.)
* Item 16--Government/Commercial I n d i c a t o r . Since editing and
processing are different for government NOCs than for commercial
NOCs, it is necessary that the notation "GOVERNMENT" be made on
government NOCs in the open space next to the Debit/Credit indicator
boxes.
(See Item 16 on attached figures 2 and 3.)
*Revised NOC forms will be issued by the Southwestern Automated Clearinghouse
A ssociation and the Federal Reserve Bank of Dallas as financial institutions
exhaust current supplies and order more.
The new forms will contain boxes to
indicate "Type of Account" and "GOVERNMENT".
(Please see the attached Figure
4.)

- 4 Transaction Code Matrix
.Payment Type

Transaction Account Type

Transaction Code

Credit

Demand
Saving

22
32

Debit

Demand
Saving

27
37

Please note that changing the type of account to which a payment is
directed (Change Code C05) must be indicated on the NOC as follows.
.Payment Type is: Current account receiving
the payment is:
Credit
'Debi t

Demand (Tran Code 22)
Saving (Tran Code 32
Demand (Tran Code 27)
Saving (Tran Code 37)

NOC Change Field
1 must be:
32
22
37

........... _27

1

Claim Number Structures
G overnment Agencies' use of the claim number (Individual ID n u m b e r ) .
Since government agencies send out millions of payments each month, the claim
number (Individual ID number) is critical to identifying the payment recipient
whose payment information needs changing.
Several originating agencies have
special structures for the claim number and have no tolerance for a claim
number returned in a format that is not consistent with their structure.
For
y o u r use and information, the Treasury has provided all known claim number
"structures" and has advised the Federal Reserve that these structures are
always used by the agencies listed below.
In any case, the claim number
included in payment information must be returned on an NOC referencing that
payment in exactly the format used by the originating agency.
(Note that, if
you receive government payments from any of the agencies listed below with
claim number structures different from those indicated, this could be evidence
that some payment data are being changed by yo u r software or yo u r service
bureau.)

- 5 Sample Claim Number Structures
Agency

Claim Number Structures

Example

Social Security Administration

999999999XXbSSA
999999999XbbSSA
999999999bbbSSI
999999999XXbMBb

123456789C1 SSA
123456789A SSA
123456789
SSI
234567890LW MB

Office of Personnel M anagement

X b9999999bXbXXX
Xb9999999b9bXXX

F 1234567 W CSF
A 1234567 0 CSA

Veteran's Administration

999999999b99b99
b 99999999b99b99

162306890 10 01
12345678 00 06

Railroad Retirement Board

XXX999999999b9b
X bb999999bbbb9b

WCA123456789 7
A 123456
1

Key:

X = alphanumeric, 9 = numeric, b = blank

(Please note that at least one Veterans Administration structure begins with a
blank.
Include this blank when left-justifying this structure in the
Individual ID field of the NOC.)
Embedded Blanks
Embedded blanks in Depositor Account N u m b e r . For years government
agencies have refused to accept depositor account numbers with
embedded blanks.
Most financial institutions are aware of this, but
some institutions fail to note this requirement to personnel
completing change documents.
Please reiterate this requirement to
yo u r ACH personnel, since in many institutions these personnel do not
handle the 1199 form used to sign up payment recipients for direct
deposit and may not be aware of this requirement.
Change Reason Codes
Government agencies only accept four change reason codes.
Government
agencies will only accept the four codes listed in the table on the
next page and, of course, data changes associated with those four
codes.
Agencies will also edit data associated with the four codes
in order to ensure the changed data 1) differs from the original data
and 2) corresponds to the code used.
Example 1: An NOC with a change
reason code of C01 with the same number in both the DFI Account
Number field (old account number) and Change Field 1 (new account
number) will be rejected.
Example 2: An NOC with a change reason
code of C05 containing a depositor account number in Change Field 1
will be rejected.
Particular attention should also be paid to the
Change Field used.
Data in Change Field 2 of any NOC with a change
reason code other than C03 may be rejected.
(See the following page
for the table of change codes.)

- 6 TABLE OF CHANGE CODES FOR FEDERAL PAYMENTS

=
:

CHANGE
REASON
CODE
*

CHANGE
REASON

ENTER CORRECT
DATA IN
CHANGE FIELD

j
EXAMPLES

-

COl

Incorrect
Depositor
Account
Number

1

To correct : a data
entry error or to
modify the account
numbering structure
( e . g . , to drop a
branch code; or to
issue a new number
to an account)

C02

Incorrect
Transit/
Routing
Number (TRN)

1

To accommodate a
me rger or system
consolidation; to
change the TRN to
the correct TRN
for the FI.

C03

Incorrect
Transit/
Routi ng
Number and
Incorrect
Depositor
Account
Number

1 & 2

To accommodate a
merger or system
consolidation.
This code requires
that both Change
Fields 1 and 2 be
used: the new TRN
goes in Change
Field 1 and the new
account number goes ]
in Change Field 2 1
J

C05

Incorrect
Transaction
Code

1

To change the
]
depositors account ]
from savings to
]
demand or demand to ]
savings.
]

’

=

’

’

.

’

.

[

«

=

J

*Use of any other NACHA change codes for government agency payments is not
authorized.

- 7 Correct Government NOC Identification
Government NOCs should be identified for correct p r o c e s s i n g . Since
government NOCs are subject to different rules for processing than are
commercial NOCs, it is important to identify a government NOC by writing
"GOVERNMENT" at the top of the NOC form in the space next to the debit/credit
boxes.
(See Item 16 on figures 2-3 attached.)
Failure to provide this
indication may cause incorrect processing by the Fed and result in the
requested changes being delayed or rejected.
(A box will be provided for
indicating the NOC is for a government payment when the NOC form is revised;
see Figure 4.)
Data Requirement to be Left-justified
Finally, all data must be entered 1eft-justifed in each field.
There
should be no embedded spaces in any data except spaces placed in data fields
by the originating government agency.
(See details of the previous discussion
on Government agencies' use of the claim number.)
NOCs should contain only
change data.
They should not contain instructions or messages we have seen,
such as "s/b" for "should be" in Change Field 1 or 2.
When Errors Occur
Paper government NOCs deposited with the Dallas Fed's four offices by
Eleventh District financial institutions will be edited for all government
agency requirements and will be rejected by the Fed if those requirements are
not met.
Whenever an NOC fails our edits, a letter will be sent to the
submitting financial institution restating all data on the NOC.
It will
contain clear statements describing the error or errors found and instructions
on what must be done to correct those errors.
Since the NOC form will not be
returned to the financial institution, corrections may be made by marking
necessary changes to the data in the letter and returning the letter to the
local Fed office or directly to the Houston Branch at the address stated in
the letter.
Processing Time
We expect to process and deliver NOCs to the originating government
agency within two business days of the deposit date of the NOC at any Eleventh
District Fed Office.
NOCs prepared within a few days of receipt of the
payment or transaction requiring a change should be processed by the
o riginating government agency prior to the next payment date, but we cannot
guarantee the change will be reflected in the next payment in all cases, since
the larger agencies usually prepare their payments up to one month ahead of
the payment date.
ATTACHMENTS
See the attached examples of an entry register and completed NOC
forms which have been referenced in this circular.

- 8 MORE INFORMATION
For more information on these instructions for proper completion of
paper government NOCs, please contact:
SWACHA at (214) 954-0585
Tracy Whitten or B.B. Sessions at the Dallas Office
Local: (214) 698-4349 or (214) 651-6403
Toll Free:
TX (800) 442-7140, LA (800) 527-9200
Eloise Guinn or Jane Pyke at the El Paso Office
Local: (915) 544-4730
Toll
Free: TX (800) 592-1631, NM (800)351-1012
Louis Moore or Lilia Hice at theHouston
Local: (713) 659-4433
Toll
Free: (800) 392-4162

Office

Carrie Perkins or Jennifer Pruitt at the San Antonio Office
Local: (512) 224-2141
Toll
Free: (800) 292-5810
Sincerely yours,

Attachment
Figure 1.
Sample Entry Register.

DATE 0 1 /0 2 / 8 9

A U T O M A T E D C L EA R I N G AND S E T T L E M E N T F A C I L I T Y
C I TY , S T A T E
ZIP

PA GE
9999-9998-3

ENTRY REGISTER
R E C E I V I N G P O I N T 9 9 9 9 - 99 90- 3
STREET CORNER FINA NC IAL INSTITUT
RECEIVING INSTITUTION
9999-9998-3
STREET CORNE R FINAN CI AL INSTITUTION
COMPANY

T R E A S U R Y 394
S O C SEC

C U S T O M E R NAME

3062036096

EEEEEEEEEEEEEEEEEEEE

ENTRIES EFFECTIVE 01-03-89
ID N U M B E R

TRACE NUMBER

PPD

O R I G I N NO.

0620-3609

B A T C H ID NO. 0 0 0 0 0 5 7

E N T R Y T Y P E A C C O U N T NO D I S C D E B I T AMT C R E D I T AMT

JOHN J JONES
1 2 34 5 6 7 8 9 A B SSA 0 6 2 0 3 6 0 9 1 2 3 4 5 6 7 DE MA N D
CR 4 4 6 8CP3 5 7 9
1
SUE E L L E N SM IT H 1 2 34 5 6 7 8 9 A
SSA 0 6 2 0 3 6 0 9 1 2 3 4 5 6 9 S AVING
CR 4 4 6 8 1 3 4 5 6
E R I C J. B R O W N
1 2 3 4 5 6 7 8 D E M A N S S A CR 2 0 3 6 0 9 9 8 7 1
234574 9C1 D
06 44 81
N
•••BATCH TOTALS***

t

010289

E N T R Y -/ A _ D E_N D A C O U N T
TRY -/ A D _

<
b

I
©

(I)

0.00
0.00
0.00

346.00
261.00
579.00

TOT DEBIT TOT CREDIT
0.00

1186.00

Attachment
Figure 2.
Examples of Completed Government
NOC forms for Change Reason
Codes COl and C02.

Attachment
Figure 3.
Examples of Completed Government
NOC forms for Change Reason
Codes C03 and C05.

Attachment
Figure 4.
Example of Revised NOC form SW222

N O T IF IC A T IO N O F C H A N G E

T rac e N u m b e r

I___ I___I___I___I___I___I___I___I___I___I___I___I___I___I__

S W 2 2 2 (R e v . 1 - 8 9 )
Effective Entry Date I___I___LnJ___I___I ~ I___I___
Month
Day
Yeai

S o u t h w e s t e r n A u t o m a t e d C le a r in g H o u s e A s s o c ia tio n
□

Debit

□

Credit

(Please Print Legibly)

Q

Demand

□

Savings

This posted e n try c o n tain ed invalid or outdated Inform ation.
Please revalid ate this in fo rm a tio n w ith yo u r c u s to m er/em p lo yee.
D e s c rip tio n of c h a n g e requested.

O R IG IN A T E D BY:
_ _
I_ l_ I___ I__ L J ____ I__ I
C o m p a n y Name

I

I___ I_ I_ l_ I___ I
_ _ _

I

I
I____ I____ I___ l_ I____ I___ I __ I___ I____ I___l____ I___ I___ I____I___ I
_
_

l

I

I

I

I

I

I

I

I

C hange Field 1
I_ I_ I___ I_ I___ l___ I__ I____I___I___ I_ I_ I_ I___ I_ I___ I____________ I_i_________ I_________ I
_ _
_
_ _ _
_
I
I
I
I I
I I
I I
I I
I
I I
I I I
I
C o m p a n y Discretionary Data
C hange Field 2 (R equired for C ha nge Codes 03 ,0 8 , and 12)
I_ I_ L.....L. I___ I ___I__ I____I_ I___ I
_ _
_
_
C om pa ny ID

FOR T H E A C C O U N T OF:
I

I

I

I

I

I

I

I

I

I

I

I

I

I

l

I

I

Individual ID
_
I___ I___I___I___I___I __I
C om pa ny Descriptive Date

I

I

I

I

I

I

Disc. Data
I

I

I

I

I

I

I

I

I

I

I

I

I

I

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Individual N am e
R E T U R N E D BY:
DFI A cco un t N um be r
Receiving Depository Financial Institution

IC |

Tran sit/Ro uting N um ber

C h a n g e R eas on C o d e

|

I

C h e c k only If
U.S. Governm en

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