Full text of District Notices (Federal Reserve Bank of Dallas) : [ABA/FRS Task Force Program to Reduce Check Processing Exception Items by Adding Check Digit], Circular No. 77-116

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal

reserve

Ba n k

DALLAS, TEXAS

of

Dallas

7S222

Circular No. 77-116
October 19, 1977

TO ALL BANKS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
A new program developed by a joint ABA/FRS Task Force to reduce
check pro cessin g exception items is scheduled for implementation on July 1, 1978.
The program calls for the removal of the dash in the routing number portion of the
MICR line at the bottom of the check; and the insertion of a modulus-10, weights 3,
7, 1, check digit as the last digit in the routing num ber field. The check digit for
each financial depository institution can be found in 1975 or later editions of the
Rand McNally Key to Routing Numbers (see example in Appendix 1) , and is c u r ­
rently being used to route t r a n s f e r of funds and securities over the Federal Reserve
Communications Network.
The p rim ary p u rp o se of adding the check digit in the MICR line of checks
is to enable automated banks and processing cen te rs to reg en erate a single digit
which cannot be read by the r e a d e r / s o r t e r . The check digit will also enable an
automated bank or pro cessin g center to detect and reject m isreads as is c u r re n tly
done by many banks and processing cen ters in the account num ber field.
The program will not impact the large inventories of checks c u rren tly
held in stock. T hese may be used until the supplies a r e e x h a u s te d —even after the
July 1, 1978 implementation date. However, all financial depository institutions a re
requested to specify the n in e -d ig it routing symbol on all new o r d e r s placed for
checks which a r e to be used after Ju ly 1, 1978. Commercial check p r in te rs have
been notified of this change in specifications and should be able to a s s is t all finan­
cial depository institutions in the o rd erin g of checks with the new nine-d ig it rout­
ing num ber. Your customers who r e o rd e r th eir own supply of checks directly with
commercial check p r i n te r s should be notified of the new routing number format. In
any event, caution should be exercised to e n s u re that checks with the MICR encoded,
n in e-digit routing symbols a r e not circulated p r io r to the official July 1, 1978
implementation date.
Automated banks and p ro cessing cen ters will also be r e q u ired to make a
software change in th eir check processing system to accommodate the new nine­
digit format. It is essential that software changes be made and tested in advance of
the July 1, 1978 implementation date to permit the efficient processing of an intermix
of eig h t- and n in e-d ig it routing nu m b ers. Financial institutions and data processing
cen ters who fail to make the ap p ro p ria te software changes p rio r to July 1, 1978 will
experience an e v e r increasing reject rate as nine-digited items a re introduced in the
check collection system. It is suggested that institutions using a v en d o r-s u p p lied
software package contact their vendor to determine if the software modifications will
be vendor su pplied.
Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-492-4403 (intrastate) and 1-800-527-4970 (interstate). For calls placed locally, please use 651 plus
the extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

-2

-

A recent American Bankers Association publication, Routing Number
E xcerpts from the Final Report of the ABA/FRS Check Digit T ask F orce, may be
helpful to automated banks and processing cen ters in p re p a rin g for the new p ro ­
g ram . The publication (#069700) costs $5 and is available from the ABA Order
Processing Department, 1120 Connecticut Avenue, N.W., Washington, D.C. 20036.
Any questio ns on the new program should be directed to L arry J . Reck,
A ssistant Vice P re sid e n t of this Bank, Ext. 6337, or the a p p ro p ria te officer at our
El Paso, Houston, or San Antonio Branch.
Sincerely y o u rs,
Robert H . Boykin
First Vice P re sid en t

APPENDIX 1
88—689
1119

TEXAS— Prefix No. 88

1119-0689 (9 ) National Security Bank, Tyler.
1131-0690 (l) First National Bank, Schulenburg.*
1120-0691 (8) First International Bank in El Paso, National
Association, El Paso.*
1149-0693 (5) Western National Bank, Austin.*
1130-0696 (2 ) First National Bank of West University Place,
West University Place.*
1119-0699 (6) First State Bank, Grandview.*
1119-0702 (l) Farmers & Merchants Bank, De Leon.*
1131-0703 (6) Continental State Bank, Alto.*
1119-0705 (o) First National Bank, Canton.*
1119-0708 (9) State Bank of De Kalb, De Kalb.*
1119-0710 (2) First National Bank, Emory.*
1149-0711 (2) Hays County National Bank, San Marcos.*
1113-0713 (9) First National Bank in Higgins, Higgins.*
1119-0717 (3) Lewisville State Bank, Lewisville.*
1119-0720 (9) First National Bank in Mount Calm, Mount Calm.
1123-0722 (2) First National Bank, Stanton.*
1113-0725 (2) First National Bank, Sterling City.*
1113-0726 (S) First National Bank, Tahoka.*
1119-0729 (6) Thom dale State Bank, Thorndale.*
1119-0730 (6) Grand Prairie State Bank, Grand Prairie.*
1119-0734 (8) First National Bank, Moody.*
1113-0738 (8) First State Bank, Burnet.*
1131-0740 (5) First State Bank, Liberty.*
1119-0741 (6) First National Bank, Gorman.*
1113-0743 (o) First National Bank in Munday, Munday.*
1119-0745 (8) The First State Bank of Kerens, Kerens.*
1113-0748 (5) Roscoe State Bank, Roscoe.*
1119-0749 (o) Oakwood State Bank, Oakwood.*
1131-0751 (5) Hill Bank & Trust Co., Weimar.*
1131-0752 (8) First State Bank, Weimar.*
1113-0758 (2) First State Bank, Miami.*
1119-0759 (7) First National Bank, Wortham.*
1131-0761 (2 ) Flatonia State Bank, Flatonia.*
1119-0765 (2) First National Bank in Midlothian, Midlothian.*
1119-0769 (4) First National Bank, Saint Jo.*
1119-0771 (7) First National Bank, Celeste.*
1119-0774 (6) First National Bank in Garland, Garland.*
1119-0777 (s) First National Bank, Dawson.
1119-0778 (8) First National Bank in Burkburnett, Burkburnett.
1119-0780 (l) The First National Bank of Deport, Deport.*
1119-0782 (7) First National Bank, Edgewood.*
1113-0784 (l) First National Bank, Eldorado.*
1119-0788 (5) First National Bank in Glen Rose, Glen Rose.*
1119-0792 (4) First National Bank, Roxton.*
1119-0794 (o) First National Bank, Holland.*
1119-0797 (9) First State Bank, Milford.*
1119-0800 (4) First National Bank in Whitney, Whitney.*
1113-0805 (7) First National Bank, Perryton.*
1119-0809 (l) First State Bank, Celina.*
1119-0812 (7) Bosque County Bank of Meridian, Meridian.*
1119-0814 (3) Citizens State Bank, Frost.*
1113-0819 (6) First National Bank in Pampa, Pampa.*
1113-0827 (7) First National Bank, Claude.*
1119-0829 (5) First National Bank, Mesquite.*
1119-0833 (4 ) First State Bank, Thornton.*
1113-0835 (8) First National Bank, Floydada.*
1119-0840 (2) First State Bank, Rising Star.*
1113-0842 (6) First State Bank, Loraine.*
1113-0844 (2) American National Bank in McLean, McLean.*
1119-0850 (9) First National Bank, Gordon.*
1119-0851 (2) Commercial State Bank, Palmer.*
1113-0855 (2 ) Wellington State Bank, Wellington.*
1113-0857 (8) City State Bank in W ellington, W ellington.*
1119-0858 (3) First National Bank, Trenton.*
1113-0861 (7) Panhandle Bank & Trust Company, Borger.*
1113-0863 (3) The First State Bank of Stratford, Stratford.*
1119-0866 (4) First State Bank, Coolidge.*
1113-0872 (7) First National Bank, Lamesa.*
* Member A. B. A.

Check d ig it appears in parenthesis—See rules

1113-0873 (o)
1119-0875 (8)
1119-0878 (7)
1119-0894 (9)
1119-0896 (5)
1149-0899 (l)
1113-0903 (o)
1131-0912 (8)
1131-0913 (l)
1149-0918 (l)
1119-0919 (7)
1119-0921 (0)
1113-0923 (4)
1119-0926 (s)
1149-0930 (l)
1119-0931 (7)
1131-0937 (7)
1119-0939 (l)
1119-0944 (3)
1149-0948 (2)
1119-0951 (l)
1149-0954 (7)
1119-0961 (8)
1149-0962 (8)
1131-0965 (2)
1119-0966 (3)
1119-0967 (6)
1131-0973 (3)
1113-0974 (2)
1119-0976 (0)
1119-0977 (3)
1131-0983 (0)
1119-0984 (l)
1119-0985 (4)
1119-0986 (7)
1131-0989 (8)
1119-0995 (l)
1131-0998 (2 )
1119-0999 (3)
1119-1000 (5)
1149-1008 (6)
1113-1014 (2)
1119-1016 (0)
1149-1022 (2 )
1131-1023 (0)
1131-1024 (3)
1149-1028 (o)
1113-1029 (4)
1141-1031 (0)
1131-1033 (7)
1113-1034 (6)
1131-1037 (9)
1113-1039 (l)
1119-1041 (6)
1119-1049 (o)
1149-1052 (3)
1113-1056 (6)
1119-1060 (7)
1131-1061 (2 )
1131-1064 (l)
1131-1066 (7)
1119-1076 (2 )
1131-1078 (o)
1113-1080 (9)
1131-1081 (6)
1113-1084 (l)
1119-1085 (6)
1113-1087 (0)
K375

88— 1087
1113

Lamesa National Bank, Lamesa.*
First National Bank, Lipan.*
First State Bank, Maypearl.*
First State Bank, Riesel.*
Citizens State Bank, Buffalo.*
First National Bank, Nordheim.*
First State Bank, Abernathy.*
Security State Bank, Anahuac.*
First National Bank, Anderson.*
First State Bank, Aransas Pass.*
First State Bank, Archer City.*
Arp State Bank, Arp. *
First National Bank, Aspermont.*
First State Bank, Avinger.*
First State Bank, Bandera.*
First State Bank, Bangs.*
First State Bank, Bedias.*
First National Bank, Bells.*
First State Bank, Ben Wheeler.*
Blanco National Bank, Blanco.*
Bloomburg State Bank, Bloomburg.*
Boerne State Bank, Boerne.*
Continental State Bank, Boyd.*
First State Bank, Brackettville.*
Bank of Brazoria, Brazoria.*
First National Bank in Breckenridge,
Breckenridge. *
First State Bank, Bremond.*
Farmers State Bank, Brookshire.*
Brownfield State Bank and Trust Company,
Brownfield.*
First State Bank, Bryson.*
Buckholts State Bank, Buckholts.
Burton State Bank, Burton.*
First National Bank, Byers.*
First National Bank, Bynum.*
State National Bank, Caddo Mills.*
Carmine State Bank, Carmine.*
Centerville State Bank, Centerville.*
Farmers State Bank, Chappell Hill.*
Chandler State Bank, Chandler.*
First State Bank, Chilton.
Comfort State Bank, Comfort.*
Coupland State Bank, Coupland.*
First Security State Bank, Cranfills Gap.*
Zavala County Bank, Crystal City.*
First National Bank, Cushing.*
Dayton State Bank, Dayton.*
Dilley State Bank, Dilley.*
First State Bank, Dimmitt.*
Citizens State Bank, Donna.*
First State Bank, Colmesneil.*
First State Bank, Dumas.*
Union State Bank, East Bernard.*
Eden State Bank, Eden.*
Electra State Bank and Trust Company, Electra.*
First State Bank, Eustace.
Falls City National Bank, Falls City.*
Union State Bank, Florence.*
First State Bank, Blooming Grove.*
First State Bank, Frankston.*
Citizens State Bank, Ganado.*
Commercial State Bank, Garrison.*
First National Bank, Graford.*
First State Bank, Grapeland.*
State National Bank, Groom.*
First Bank in Groveton, Groveton.*
First National Bank, Hale Center.*
First State Bank, Hallsville.*
First State Bank, Happy.*
• Member A. B. A.