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Federal Reserve Bank of Dallas l l★K HELEN E. HOLCOMB DALLAS, TEXAS 75265-5906 FIRST VICE PRESIDENT AND CHIEF OPERATING OFFICER August 16, 2002 Notice 02-43 TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT New Deposit Option Available to Financial Institutions DETAILS Effective September 15, 2002, the Federal Reserve Bank of Dallas will offer an explicit float pricing option on Other Fed and Mixed forward and return cash letter deposits. Financial institutions subscribing to Federal Reserve Bank Other Fed and Mixed products will have the option to choose explicit float pricing or continue receiving calculated funds availability. Explicit float pricing offers financial institutions many benefits, including: • • • 100 percent availability of deposit; simplified daily accounting with a single entry for the entire deposit; and application to both forward and return Mixed items and Other Fed items. Financial institutions participating in the explicit float pricing option will be billed monthly for the float charge—reduced by 10 percent—at the Federal Reserve Bank of New York federal funds rate. To ensure a smooth transition to this pricing option, institutions that choose explicit float will be phased in gradually throughout the remainder of 2002. Implementations will begin approximately two weeks after the Federal Reserve Bank receives the request forms for explicit pricing, which will take place the first and third Monday of each month. For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. -2MORE INFORMATION For more information on explicit float pricing, please contact one of the representatives listed below. Dallas Jim McCammon Susan Vice El Paso Lupe Edens Houston Michele Hitchings Kathy Waggoner San Antonio Rick Flansburg (214) 922-5491 (214) 922-5430 (915) 521-8248 (713) 652-9141 (713) 652-9146 (210) 978-1661 Paper copies of this notice or previous Federal Reserve Bank notices can be printed from our web site at http://www.dallasfed.org/banking/notices/index.html. Sincerely,
@FedFRASER