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F ederal r e s e r v e Bank
O F DALLAS
W IL LIA M

H. W ALLACE

DALLAS, TEXAS 7 5 2 2 2

F IR S T V IC E P R E S ID E N T
A N D C H IE F O P E R A T IN G O F F IC E R

September 5, 1990
C i r c u l a r 90-54
TO:

The Chief Operat ing O f f i c e r of
each f i n a n c i a l i n s t i t u t i o n in t h e
Eleventh Federal Reserve D i s t r i c t
SUBJECT
Amended B u l l e t i n 5 - Currency, Coin, and Food Coupons
DETAILS

B u l l e t i n 5 o f t h e Federal Reserve Bank o f D a l l a s (Currency, Coin,
and Food Coupons) has been amended. The Federal Reserve System, in c onj un c­
t i o n with t h e Food and N u t r i t i o n S e r vi c e o f t h e U.S. Department o f A g r i c u l ­
t u r e , has developed m o d i f i c a t i o n s designed t o enhance t h e r e c o n c i l i a t i o n of
food coupons and c or re sp on di ng redemption c e r t i f i c a t e s .
E f f e c t i v e Septem­
ber 1, 1990, t h e proc edure s c o n t ai n ed in Se c ti on 7 o f B u l l e t i n 5, governing
food coupon d e p o s i t s , a r e amended as f ol l o w s :
•

One nonstandard s t r a p (fewer than 100 coupons) and
one nonstandard bundle (fewer than 10 s t an d a r d
s t r a p s ) per denomination may be inc lu de d with each
deposit.
In a d d i t i o n , redemption c e r t i f i c a t e s must
accompany c or re spondi ng food coupons.

•

The value o f redemption c e r t i f i c a t e s on t h e
Food
Coupon Deposit Document must equal t h e t o t a l coupon
amount d e p o s i t e d . Any d i f f e r e n c e s w i l l be brought
t o t h e d e p o s i t i n g i n s t i t u t i o n ’ s a t t e n t i o n , and c o r ­
r e c t i v e a c t i o n w i l l be taken as o u t l i n e d in t he
pr oc edur e.

•

Before d e p o s i t a t t h e Federal Reserve, each redemp­
t i o n c e r t i f i c a t e must be MICR-encoded with an ABA
number, t h e r e t a i l e r i d e n t i f i c a t i o n number, and t h e
redemption c e r t i f i c a t e amount, acc ord ing t o t h e
i n s t r u c t i o n s in t h e a t t a c h e d B u l l e t i n 5.

For additional copies of any circular, please contact the Public Affairs Department at (214) 651-6289. Bankers and others are encouraged to use
the following toll-free number in contacting the Federal Reserve Bank of Dallas: (800) 333-4460.

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

-

2

-

F i n a n c i a l i n s t i t u t i o n s should send t o t h e Federal Reserve a l l food
coupons and redemption c e r t i f i c a t e s in i n v e n t o r y with t h e f i n a l August 1990
d e p o s i t . All subsequent d e p o s i t s should comply with t h e modif ied p r o c e ­
d u r e s . Fi n a n c i a l i n s t i t u t i o n s in t h e D a l la s t e r r i t o r y t h a t p a r t i c i p a t e d in
t h e p i l o t program should c o n t i n u e t o d e p o s i t food coupons a cc or di ng t o t h e
modified g u i d e l i n e s .
Food coupons should be handled as v a l u a b l e s . N e i t h e r t h i s Bank
nor t h e U.S. Department o f A g r i c u l t u r e i s l i a b l e f o r food coupons l o s t in
t r a n s i t t o t h i s Bank. D epositor y i n s t i t u t i o n s may wish t o i n s u r e shipments
or c o n t r a c t with an armored c a r r i e r t o d e l i v e r food coupons t o t h e Federal
Reserve.
ENCLOSURE
Enclosed i s t h e amended B u l l e t i n 5. Pl e as e f i l e i t in your
B u l l e t i n s b i n d e r and d i s c a r d t h e p re vi ous v e r s i o n .
M
ORE INFORMATION
I f you have any q u e s t i o n s or would l i k e a d d i t i o n a l i n f o r m a t i o n ,
p l e a s e c o n t a c t Char les A. Worley, (214) 698-4275, a t t h e D a l la s O f f i c e ;
D i e t e r Sta nc hos, (915) 544-4730, a t t h e El Paso Branch; Onezia Donaldson,
(713) 652-1521, a t t h e Houston Branch; or David B. Sowell, (512) 224-2141,
a t t h e San Antonio Branch. For a d d i t i o n a l c o p ie s o f t h i s c i r c u l a r or
B u l l e t i n 5, p l e a s e c o n t a c t t h e Publi c A f f a i r s Department a t (214) 651-6289.
S i n c e r e l y y o u rs ,

BULLETIN 5

CURRENCY, COIN, and
FOOD COUPONS

FEDERAL RESERVE BANK OF DALLAS

SCOPE
This Bulletin sets forth the general terms and conditions w ith respect to the currency, coin,
and food coupon services provided by this Bank and the procedures that m ust be followed by
depository institutions in their currency, coin, and food coupon transactions w ith us.

8-9 0

TABLE OF CONTENTS
4.05
4.10
4.15
4.20
4.25

Section 1, DEFINITIONS AND REFERENCES
1.00 Reference to Bulletin 1
1.05 Federal Reserve Act
1.10 Department of the Treasury Circular No. 55
Section 2, GENERAL

Section 5, MISCELLANEOUS CURRENCY
AND COIN

2.00 Agreement to the terms of this Bulletin
2.05 Unnecessary shipm ents to and from
this Bank
2.10 Receipt and distribution of currency
and coin
2.15 Transportation policy
2.20 Money bags
2.25 Packaging material
2.30 Access policy
2.35 Currency verification policy

5.00
5.05
5.10
5.15
5.20

Counterfeit or altered
Foreign
Gold coin and gold certificates
M utilated currency
Uncurrent coin

Section 6, RISK OF LOSS
6.00 Shipments from or to depository
institutions by armored carrier
6.05 Shipments from or to depository
institutions by registered mail
6.10 Exceptions
6.15 Differences
6.20 Payment of losses and subrogation of
rights of recovery by depository
institution

Section 3, SHIPMENTS FROM THIS BANK
3.00 Ordering currency and coin
3.05 Standard units
3.10 Closing hours and transportation
schedules
3.15 Method of shipm ent
3.20 Advice of m oney shipm ent
3.25 Postal limitations
3.30 Verification of shipm ents
3.35 Entries to depository institution account

Section 7, FOOD COUPONS
7.00
7.05
7.10
7.15
8.00

Section 4, SHIPMENTS TO THIS BANK
4.00 Control of shipments

8 -9 0

Preparation of currency shipm ents
Method of shipping currency
Preparation of coin shipm ents
Method of shipping coin
Entries to depository institution account

i

General
Preparation of shipm ents
Entries to accounts
Liability
Right to amend

FEDERAL RESERVE BANK OF DALLAS

Section 1, DEFINITIONS AND REFERENCES
1.00 Reference to Bulletin 1
A num ber of terms used in this Bulletin are defined
in Bulletin 1.
1.05 Federal Reserve Act
Federal Reserve notes are issued in accordance
w ith Section 16 of the Federal Reserve Act.
1.10 Department of the Treasury Circular No. 55
Regulations governing the exchange of coin and
paper currency of the U nited States are set forth in
this circular.
Section 2, GENERAL
2.00 Agreement to the terms of this Bulletin
This Bulletin sets forth m inim um standards and
procedures that should be followed by this Bank
(including its Branches) and its client institutions
during currency, coin, and food coupon transac­
tions. Any depository institution shipping or caus­
ing the shipm ent of currency, coin, or food coupons
to, from, or for the account of this Bank shall, by
such action, be deemed to have agreed to the terms
and conditions set forth in this Bulletin. It is as­
sum ed that in most cases such standards will be
acceptable to all parties. However, if circumstances
arise that make im plem entation of these proce­
dures impracticable, this Bank will review, upon
w ritte n request, the ad o p tio n of alternative
arrangements.
2.05 Unnecessary shipments to and from
this Bank
Because of the high cost of m aintaining cash ser­
vices, the cooperation of depository institutions is
requested to avoid unnecessary shipm ents. It is
suggested that accum ulations of currency or coin
be obtained from other depository institutions in
the com m unity if they are available. Depository in ­

BULLETIN 5

stitutions should anticipate their requirem ents and
refrain from shipping to this Bank currency and
coin fit for further circulation if m oney of the same
denom ination is likely to be needed in the near
future. The interchange of currency and coin by
local depository institutions and the exercise of
care in anticipating requirem ents will reduce ship­
m ents to and from this Bank. This Bank will assist
depository institutions in such coin and currency
arrangements.
2.10 Receipt and distribution of currency
and coin
All United States currency and coin will be received
for credit, redem ption, exchange, or replacement,
subject to the conditions stated herein and appli­
cable federal laws and regulations. This Bank will
supply all available current denom inations of cur­
rency and coin, in accordance w ith the rules of this
Bank and regulations of the Treasury Department.
The am ount of new currency and coin shipped by
this Bank will be governed by the am ount of fit
currency and circulated coin on hand.
2.15 Transportation policy
This Bank does not provide armored carrier ser­
vice for deposits and withdrawals of currency and
coin. All depository institutions in the Eleventh
Federal Reserve District are required to make their
own arrangements for armored carrier service for
the shipm ent of currency and coin. This Bank will
schedule regular delivery dates for the shipm ent of
coin and currency to depository institutions located
in the Eleventh District. Depository institutions are
required to arrange their own arm ored carrier
service to conform to this Bank’s scheduling re­
quirements. Depository institutions m ust notify
this Bank by official correspondence of their
authorized carrier.
2.20 Money bags
This Bank does not furnish m oney bags to deposi­
tory institutions. Bags bearing the name of the
Federal Reserve Bank, the U nited States Mint, or

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

another institution may be used for m oney ship­
m ents to this Bank. Surplus empty bags of this Bank
or other depository institutions should be returned
to this Bank by armored carrier or fourth-class mail.
The sender will be reim bursed for the expense.
Empty bags bearing the nam e of a depository
institution will be returned to that depository
institution at the expense of this Bank.

units, and each strap containing a discrepancy is
returned to the depository institution. Financial
institutions are perm itted to deposit unstrapped
currency in 1,000-piece bundles, provided a Re­
serve Bank’s Letter of Acknowledgment agreement
has been officially signed by the depositing institu­
tion and is on file w ith this Bank.
Section 3, SHIPMENTS FROM THIS BANK

2.25 Packaging material
All currency and coin packaging materials m ust be
uniform and conform to existing ABA color stan­
dards and Federal Reserve packaging requirements.
Information regarding such standards is available
from this Bank.
2.30 Access policy
The Federal Reserve Board has clarified the Federal
Reserve System ’s policy w ith regard to access to
Federal Reserve cash services. The Reserve Bank
should offer to make payments to and receive
deposits from all offices of depository institutions
on an equal and impartial basis, w ithout charge, in
accordance w ith the approved Uniform Cash Ser­
vice Standards for Federal Reserve Banks and con­
sistent w ith their capabilities to provide such
service through m axim um utilization of available
physical facilities. The frequency of access will
norm ally be once per week to each authorized
depository institution or office. Less or more fre­
quent access will be determ ined by volumes or by
cost justifications but m ust be provided on an
impartial basis to all similarly situated depository
institutions.
2.35 Currency verification policy
This Bank utilizes high-speed currency processing
equipm ent to piece-count verify all currency re­
ceipts. Denominations of $1 and $2 are processed
in 1,000-note units. Should a discrepancy be
detected w ithin a 1,000-note unit, all 10 straps are
returned to the depository institution because indi­
vidual strap identity is not available. Denom ina­
tions of $5 and larger are processed in 100-note

3.00 Ordering currency and coin
Orders for currency and/or coin should be subm it­
ted by either the telep h o n e or through the
RESPONSE Network two business days prior to the
delivery date. As orders are received, the message
is recorded. The individual submitting the order is
required to give his name, nam e of depository
institution, depository institution’s ABA number,
and denom inations and amounts of currency and
coin desired. The recorded message provides this
Bank w ith the authority to charge the depository in ­
stitution’s account. Depository institutions order­
ing currency and coin that do not w ish to have their
account charged or credited for currency and coin
transactions m ust request that a letter from their
correspondent depository institution be forwarded
to this Bank authorizing this Bank to charge or
credit the correspondent depository institution’s
account for currency and coin transactions, includ­
ing adjustments. A form for this purpose will be
provided by this Bank upon request.
Depository institutions served by the Eleventh
District, where switching stations will carry a touchtone telephone signal, are required to submit cash
orders through the RESPONSE Network or a voiceresponse system operated by this Bank. The Fed­
eral Reserve Bank Cash Department serving these
institutions may be contacted for further informa­
tion regarding the voice-response system.
3.05 Standard units
CURRENCY
Currency is strapped in standard 100-piece pack­
ages per denomination. Orders for currency m ust

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

comply w ith one of the following guidelines:
A. A n i n s t i tu t io n (a c o rp o ra te e n tity
comprising the head office plus all branch
offices) that orders currency in amounts
exceeding an aggregate of $50,000 per week
may order only the standard currency units as
follows:
Denomination

Dollar Amount

$
$
$
$
$
$
$

Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds

1,000
2,000

5,000
10,000
20,000

5,000
10,000

B. An institution that orders currency weekly
or less frequently in amounts not exceeding
an aggregate of $50,000 per week may order
currency in the following standard units:
Denomination

Dollar Amount

Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds

$
$
$
$
$
$

1,000
200

500
1,000
2,000

5,000
$ 10,000

C. An office (an individual branch or m ain
office of an institution) that orders currency
no more often than once each m onth may
order less than the basic standard units
regardless of the aggregate order of the insti­
tution as a whole. This Bank will establish its
own m inim um order size for each currency
denomination, based on regional needs.

Denomination
Cents
Nickels
Dimes
Quarters
Halves
Dollars—Eisenhower
Dollars—Susan B. A nthony

Dollar Amoi
$
$
$
$
$
$
$

50
200
1,000
1,000
1,000
1,000
2,000

3.10 Closing hours and transportation schedules
This Bank is closed on Saturdays, Sundays, and
official bank holidays as set forth in Supplem ent A
to Bulletin 1. Depository institutions are asked to
keep this in m ind, as well as armored carrier and
registered mail delivery schedules, in anticipating
their cash requirements. Orders for currency and
coin m ust be received at this Bank no later than
2:00 p.m. two business days prior to the delivery
date.
3.15 Method of shipment
Shipm ents of currency and/or coin from this Bank
to depository institutions will be m ade by armored
carrier in accordance w ith the transportation pol­
icy stated in paragraph 2.15 of this Bulletin, by
fourth-class insured mail, or by registered mail,
w hichever m ethod is appropriate under the cir­
cumstances. The actual cost of postage and insur­
ance to ship cash from this Bank, plus a handling
fee, will be charged to the receiving financial
institution.
3.20 Advice of money shipment
A mail advice will be sent to depository institu­
tions covering each shipm ent made by registered
and/or insured mail, and if the shipm ent is not
received promptly, the Reserve Bank office making
the shipm ent should be notified imm ediately by
telephone or telegraph.

COIN
Coin is sacked in standard-sized bags, by de­
nom ination. Orders for coin m ust comply w ith the
following standard units or m ultiples thereof:

8-9 0

In addition, a daily statement will be sent to each
depository institution listing m oney shipments, as
well as all other transactions, w ith this Bank. This
statement should be reconciled by depository insti-

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

tutions on a daily basis to be sure that all shipm ents
have been received and that their account has been
charged correctly.
3.25 Postal limitations
The U.S. Postal Service has im posed certain lim i­
tations and restrictions on the shipm ent of money
to certain towns. Depository institutions affected
have been apprised of these lim itations and restric­
tions, and their cooperation in this respect i$
solicited in placing orders w ith this Bank. Deposi­
tory institutions are also requested, as a practical
measure, to place orders for currency and coin so
that they can be dispatched for arrival and delivery
on a business day. Postal authorities have ruled it
unw ise to perm it the dispatch of m oney that w ould
be held over at the receiving post office w hen the
office is closed.
3.30 Verification of shipments
All currency received from this Bank should be
verified as follows:
A. W ithin three business days of receipt by
depository institutions that are served directly
for their own use more than once a week.
B. W ithin five business days of receipt by
depository institutions that are served directly
for their own use once a week or less fre­
quently.
All coin received from this Bank should be verified
w ithin five business days of receipt.
The m oney shipm ent should be verified by two or
more responsible employees in the presence and
view of one another. Currency should be verified
by piece count, whereas coin may be verified by
piece count, by weight, or by roll count. Until veri­
fied, the currency and coin should be held under
dual control. If a discrepancy is found upon
verification, this Bank should be informed as soon
as possible. If the exception relates to currency, the
package strap and a copy of the shipping advice

should be returned to this Bank.
The procedure for reporting discrepancies located
in new currency strapped or packaged by the
Bureau of Engraving and Printing is as follows:
A. The reporting depository institution sub­
mits to this Bank a w ritten explanation,
signed by an official of the reporting institu­
tion, describing the procedure used to verify
the shipm ent in w hich the discrepancy was
located.
B. The reporting institution returns to this
Bank, w ith the w ritten report, the wrapping,
label, and package strap involved w ith the
claim; identification data for the missing
note(s), including the denomination, series,
and serial number(s), along w ith suffix let­
ters); and the date the shipm ent was received
and the date it was verified. (Claims for an
entire 100-note package discrepancy in a
brick of new currency will not be honored
unless the entire brick is returned, intact, to
this Bank.)
C. This Bank will forward the information to
the appropriate division of the Treasury De­
partm ent and will make settlement once the
Treasury response is received.
D. Settlement will not be m ade for a differ­
ence alleged by an individual (customer) or
commercial entity doing business w ith a
financial institution.
If the exception relates to coin, the attached tag(s)
should be returned to this Bank. If an exception is
found in a bag of M int coin, the M int bag should be
returned to this Bank. W hen disbursem ent of cur­
rency or coin is made w ithout verification, this
Bank will assume no liability. These guidelines all
assume that the recipient depository institution
(including its branches) verifies the deposit. Claims
by client depository institutions other than the
recipient depository institution or its branches will
not be honored.

FEDERAL RESERVE BANK OF DALLAS

3.35 Entries to depository institution account
This Bank will charge the am ount of currency and
coin shipm ent orders to the account, on the books
of this Bank, m aintained or used by an ordering
depository institution on the anticipated delivery
date as determ ined by this Bank.
Should a shipm ent of cash from this Bank not be
received, the shipm ent charge will not be ad­
justed.
For shipm ents debited after shipm ent by this Bank,
the right is reserved by this Bank to adjust the time
of debiting w hen it is deemed such adjustm ent is
necessary, and this Bank will endeavor to give
notice of such adjustment.
The foregoing provisions do not alter the risk-ofloss provisions in this Bulletin.
Section 4, SHIPMENTS TO THIS BANK
4.00 Control of shipments
All shipm ents will be prepared and verified by two
or more responsible employees of the shipping de­
pository institution. The sealed package should
rem ain under the control of the same two employ­
ees until delivered to and receipted for by the
armored carrier or until deposited and registered at
the post office.
4.05 Preparation of currency shipments
All currency included in each shipm ent m ust be
straightened, sorted, and packaged by denom ina­
tion, face and top up, and be enclosed in standard
ABA color-coded paper currency straps, each strap
containing 100 notes, w ith the name and location
of the sending depository institution, date of veri­
fication, amount, and identification of the em ­
ployee counting the package appearing on each
strap. Each standard package of 100 notes should
be contained in a single, paper currency strap. As
stated in paragraph 2.35 of this Bulletin, financial
institutions are perm itted to deposit unstrapped

BULLETIN 5

currency in 1,000-piece bundles per denom ina­
tion, provided this Bank’s Letter of Acknowledg­
m ent agreement has been officially signed by the
depositing financial institution and is on file w ith
this Bank.
Currency shipm ents to this Bank m ust be bound in
standard 100-piece packages per denomination.
Shipments of currency m ust comply w ith one of
the following:
A. An institution (a corporate entity com pris­
ing the head office plus all branch offices)
depositing currency in amounts exceeding an
aggregate of $50,000 per week may deposit
only the standard units or m ultiples thereof
as follows:

Denomination
Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds

Number
of Straps
10
10
10
10
10
1-10
1-10

Dollar
Amount
$ 1,000
$ 2,000
$ 5,000
$ 10,000
$ 20,000
5,000-50,000
$
$ 10,000-100,000

B. An institution depositing currency weekly
or less frequently in amounts not exceeding
an aggregate of $50,000 per week may deposit
currency in the following standard units or
m ultiples thereof:

Denomination
Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds

Number
of Straps
10
1
1
1
1
1
1

Dollar
Amount
$
$
$
$
$
$
$

1,000
200
500
1,000
2,000
5,000
10,000

C. An office (an individual branch or main
office of an institution) depositing cu r­

FEDERAL RESERVE BANK OF DALLAS

rency no more often than once each m onth
may deposit less than the basic standard
units, regardless of the aggregate deposit of
the institution as a whole. This Bank will
establish its own m inim um deposit size for
each denomination, based on regional vol­
umes.
Currency that cannot be bundled as described in
the preceding tables because of insufficient quan­
tities of notes m ust be retained until enough
currency of the appropriate denom ination has been
accum ulated to complete standard strap and/or
bundle units. Currency denom inations cannot be
m ixed w ithin a strap or bundle. Unusual circum ­
stances should be referred to this Bank in writing
for authorization and approval.
U nder no circumstances should rubber bands,
pins, or clips be substituted for paper straps. Each
unit m ust be securely tied so as to avoid collapse
while in transit. W hen shipm ents are made by mail,
the weight of all units allowed in one bag and under
one registry is determ ined by postal regulations.
Shipping costs can be reduced by placing a num ber
of units in each bag; however, the bag should not
exceed the weight allowed.
On the date of shipm ent, if the currency is sent by
registered mail, a notice m ust be mailed, under
separate cover, to the Cash Department of this
Bank, giving the date, amount, and description of
the shipm ent. All other copies of the advice,
excluding the shipping depository institution’s
copy, m ust be enclosed w ith the shipm ent. If the
currency is sent by armored carrier, the original
copy of this notice m ust be handed to the armored
carrier representative. W ith the exception of the
shipping depository institution’s copy and copy
provided the carrier, all other advice copies should
be enclosed w ith the shipment. A supply of forms
for this purpose will be furnished upon request.
Torn notes should be carefully m ended on the back
w ith transparent cellophane tape in such a m anner
as to preserve the original design and visual iden­
tification of the face of the notes. Pins, clips, and

BULLETIN 5

other metallic substances, if not removed, could
cause injury to the handlers and damage the
m achinery used in processing currency. Failure to
comply w ith the foregoing impedes the process of
handling and may delay final verification.
Depository financial institutions are encouraged to
consider the use of innovative means to ship cur­
rency to this Bank, i.e., boxes, trays, trunks, etc.;
however, the use of such means m ust be approved
by this Bank before being implemented. The con­
tents of all shipm ents m ust be enclosed in cloth,
canvas, or plastic bags. Plastic bags should be
of high quality, m inim um thickness of .005 mil,
preferably fractional-melt and low-density poly­
ethylene. To reduce the risk of loss, this Bank
strongly encourages depository financial institu­
tions to place currency bundles in bags, shrink­
wrap or cold-seal, before placing them in the final
shipping bag. Should the depository financial
institution elect not to use shrink-wrap or cold-seal
internal preparation, this Bank strongly encourages
the depository institution to secure the contents of
the sh ip m en t in one bag and place this sealed bag
in a second sealed bag before forwarding the ship­
m ent to this Bank. All bags m ust be well secured
and sealed in a m anner acceptable to this Bank, the
post office, or arm ored carrier at the place of
mailing or dispatch. The seal on the bag should
bear the identity of the shipping depository
institution.
Upon initial receipt of shipm ent at this Bank,
should there be any evidence of a torn, damaged
bag or broken, altered, loose, or im proper seal or
any sign of tampering, the depositing institution
will be contacted immediately for further h a n ­
dling instructions. This Bank reserves the right to
refuse to accept a shipm ent that is improperly
prepared.
Only unfit and excess fit currency should be
shipped to this Bank. Depository institutions will
not be allowed to ship fit currency to this Bank and
then order the same denom ination of currency
w ithin five business days. Deposits should be
presorted by strap as to fit and unfit currency.

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

4.10 Method of shipping currency

4.20 Method of shipping coin

Currency of all denom inations shipped by deposi­
tory institutions should be forwarded by armored
carrier or by registered mail w hen armored carrier
service is not available. Depository institutions
m ust make their own transportation arrangements.
Shipments by registered mail m ust only be made
w hen armored carrier arrangements cannot be
made. This Bank will charge a handling fee for all
shipm ents received by registered mail.

Coin of all denom inations shipped by depository
institutions should be forwarded by armored car­
rier if this service is available. If a depository
institution is not on an arm ored route, shipm ents
of coin should be m ade by registered and/or
insured mail in accordance w ith existing postal
regulations. This Bank will charge a handling fee
for all shipm ents received by registered mail.
4.25 Entries to depository institution account

4.15 Preparation of coin shipments
Coin m ust be shipped to this Bank, loose, in heavy
canvas bags, each bag containing coin of only one
denomination. A standard, ABA color-coded tag
should be affixed to each bag showing the name of
the shipping depository institution and denom ina­
tion of coin. In addition, the bags of coin m ust be
securely sealed, and the seal should bear the
identity of the shipping depository institution.
Coin shipped to this Bank m ust be sacked as
follows:
Denomination
Cents
Nickels
Dimes
Quarters
Halves
Dollars—Eisenhower
Dollars—Susan B. Anthony

Dollar Amount
$
$
$
$
$
$
$

50
200
1,000
1,000
1,000
1,000
2,000

This Bank will return all bags of coin, at the
sender’s expense, that do not comply w ith the
above-mentioned requirem ents and may, also at
the sender’s expense, return bags weighing out of
tolerance. On the date of shipm ent, if the coin is
sent by registered or insured mail, a notice m ust be
mailed to the Cash Department of this Bank, giving
the date, amount, and description of the shipm ent.
If the coin is sent by armored carrier, this notice
m ust be handed to the armored carrier representa­
tive. A supply of forms for this purpose will be
furnished upon request.

In general, this Bank will credit the account on its
books, m aintained or used by a depository institu­
tion, on the day a shipm ent of currency and/or coin
is received. However, for a depository institution
that elects to utilize the Bank’s alternative credit
procedures, credit will be given on the day cur­
rency and coin are shipped to this Bank if notifica­
tion is received in approved form before 2:00 p.m.
that day. If notification is received late, this Bank
will give credit on the next banking day. If notifi­
cation is not given, this Bank will give credit on the
day the deposit is received. In most cases, credit,
w hen notification is given, benefits only deposi­
tory institutions that are exempt from reserve
requirem ents or whose vault cash exceeds their
reserve requirements. Conditional credit is given
for currency shipm ents, subject to subsequent
verification.
If a depository institution arranges or contracts for
transportation of a shipm ent to this Bank, includ­
ing a shipm ent by mail, and the shipm ent is not
received on the anticipated date of delivery as
determ ined by this Bank, the credit will be re­
versed.
For shipm ents credited prior to receipt by this
Bank, this Bank reserves the right to adjust the
time of crediting w hen it deems such adjustment
necessary and will endeavor to give notice of such
adjustment.
The foregoing provisions on credit do not alter the
risk-of-loss provisions in this Bulletin.

FEDERAL RESERVE BANK OF DALLAS

Section 5, MISCELLANEOUS CURRENCY
AND COIN
5.00 Counterfeit or altered
In accordance w ith Treasury Department regula­
tions, all counterfeit or altered currency and coin
m ust be delivered to an agent of the U.S. Secret
Service. Accordingly, all counterfeit currency and
coin received by this Bank will be delivered to a
Secret Service agent, whose receipt, fully describ­
ing the counterfeit currency or coin, will be m ailed
to the depositor.
5.05 Foreign
Foreign currency or coin will not be accepted for
credit and, if received, will be returned to the
shipping depository institution.
5.10 Gold coin and gold certificates
Gold coins having a recognized special value to col­
lectors of rare or unusual coins, including all gold
coins made prior to April 5, 1933, have been
exempted from any surrender requirem ents and
may be retained by the persons owning them. Gold
certificates were w ithdraw n from circulation and
surrendered to the U.S. Treasury under the provi­
sions of the Gold Reserve Act approved January 30,
1934. While today gold certificates are not redeem ­
able in gold, they are redeemable at face value in
Federal Reserve notes.
5.15 Mutilated currency
A m utilated bill will be received at its face amount
if clearly more than one-half of the original bill
remains. Fragments that are not clearly more than
one-half should be sent directly to the Treasury
Department, Bureau of Engraving and Printing,
OCRDS, BEPA Room 344, P.O. Box 37048, W ash­
ington, D.C. 20013, in accordance w ith Treasury
Department Circular No. 55, copies of w hich will
be furnished upon request. Such fragments will be
exchanged at face value only if the Commissioner,
Bureau of G overnm ent Financial Operations,

BULLETIN 5

Department of the Treasury, is satisfied that the
missing portions have been totally destroyed, and
his judgment is based on such evidence of total
destruction as he deems necessary and is final.
5.20 Uncurrent coin
U ncurrent coins, defined in Treasury Circular No.
55 as whole U.S. coins that are merely w orn or
reduced in weight by natural abrasion yet are
readily and clearly recognizable as to genuineness
and denom ination and that are machine-countable,
are accepted for face value at this Bank. For the re­
dem ption of coins other than current coins or
m achine-countable u n c u rre n t coins, refer to
Treasury Circular No. 55. Copies of this circular are
available from this Bank upon request.
Section 6, RISK OF LOSS
6.00 Shipments from or to depository
institutions by armored carrier
Except as specifically provided in paragraphs 6.10
and 6.15 A, below, the risk of loss for mysterious
disappearances of currency or coin from deposits
w ith this Bank by armored carrier is assum ed as
follows:
A. W hen this Bank receives for deposit a bag
or other container that is damaged, bears a
broken, altered, loose, or im proper seal, or
otherwise bears signs of tampering, and cur­
rency or coin has disappeared mysteriously
from that bag or container, the sending de­
pository institution assumes the risk of loss
for that m ysterious disappearance and shall
resolve the matter solely w ith the armored
carrier or its agents. To preserve the sending
depository institution’s claim against the
armored carrier, this Bank will note the
condition of the bag or other container for
special processing.
B. W hen this Bank receives a deposit from
w hich currency or coin has disappeared
mysteriously and all bags or other containers

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

receiving depository institution assumes the
risk of loss for that mysterious disappearance
and shall resolve the matter solely w ith the
armored carrier. The depository institution
shall notify this Bank as soon as possible upon
discovery of any m ysterious disappearance of
currency or coin, regardless of w hether the
m ysterious disappearance would cause a loss
of the type for w hich this Bank assumes the
risk. In a case as described in this subpara­
graph D, this Bank assumes no risk of loss
unless this Bank receives satisfactory evidence
that the mysterious disappearance occurred
before the shipm ent was tendered to the
armored carrier.

in that deposit have been received in a wellsecured condition, bearing proper seals, the
sending depository institution assumes the
risk of loss for that m ysterious disappearance
and shall resolve the matter solely w ith the
armored carrier or its agents, unless the Bank
receives satisfactory evidence that the m ys­
terious disappearance occurred after the Bank
received the deposit, in w hich case this Bank
assumes the risk of loss.
Except as specifically provided in paragraphs 6.10
and 6.15 B, below, the risk of loss for mysterious
disappearances of currency or coin from shipm ents
to depository institutions from this Bank by armored
carrier is assum ed as follows:

If a mysterious disappearance of currency or coin
or other loss is litigated in a court of competent
jurisdiction and if the court finds that the loss shall
be apportioned otherwise than in accordance w ith
subparagraphs A through D, above, then the risk of
loss shall be assum ed in accordance w ith and in the
same proportions as those stated in the court’s
opinion. In case of any such reapportionm ent of the
risk of loss, the parties shall reim burse each other
to the extent necessary to reflect the reapportion­
ment. This Bank’s decision as to the persuasiveness
of evidence submitted to this Bank under this
paragraph shall b in d all parties, in the absence of
or until findings as to apportionm ent of loss are
issued by a court of competent jurisdiction.

C. W hen a depository institution receives a
shipm ent containing a bag or other container
that is damaged, bears a broken, altered, loose,
or im proper seal, or otherwise bears signs of
tampering, and currency or coin has dis­
appeared mysteriously from that bag or con­
tainer, the receiving depository institution
assumes the risk of loss from that mysterious
disappearance and shall resolve the matter
solely w ith the armored carrier or its agents.
The depository institution should note that,
to preserve its right of action against the
armored carrier, the depository institution
should establish m anagem ent procedures
providing for notice to the arm ored carrier’s
m anagement that w ould enable the parties to
arrange for appropriate handling of any bag or
other container that bears visible signs of tam ­
pering. Also, the depository institution shall
notify this Bank as soon as possible upon
discovery of a m ysterious disappearance of
currency or coin described in this subpara­
graph C.

6.05 Shipments from or to depository
institutions by registered mail
A. W hen a depository institution ships cur­
rency or coin to this Bank by registered mail,
the institution shall insure the shipm ent for
full face value. Proceeds of the insurance
should be payable to the sender. This Bank
assumes no risk of loss for shipm ents of
currency or coin to this Bank by registered
mail.

D. W hen a depository institution receives a
shipm ent containing a bag or other container
from w hich currency or coin has disappeared
m ysteriously and all bags or other containers
in that shipm ent have been received in a wellsecured condition, bearing proper seals, the

8 -90

B. On shipm ents to depository institutions
by registered mail, this Bank will assume the
risk of loss of currency and coin from the time

9

FEDERAL RESERVE BANK OF DALLAS

this Bank delivers the currency
and receives a receipt from the
Service until the currency and
livered to the addressee or its
returned to this Bank.

BULLETIN 5

and coin to
U.S. Postal
coin is de­
agent or is

or indirect, proximate or remote, or be in
whole or in part caused by, contributed to,
or aggravated by risks assum ed by this
Bank.

This Bank will not assume any risk of loss in any
of the following circumstances:

C. Any loss caused by any dishonest, fraudu­
lent, or criminal act of an employee, agent, or
contracted arm ored carrier service of any
depository in stitu tio n shipping, causing,
ordering, or receiving the shipment.

6.10 Exceptions

A. Any loss in excess of $10 m illion on all
shipm ents to this Bank by any one office of a
depository institution on any one day.
B. Any loss caused by or resulting from the
following:
1. Hostile or warlike action in time of
peace or war, including action in h inder­
ing, combating, or defending against an
actual, impending, or expected attack
a) By any government or sovereign power
[de jure or do facto) or by an authority
m aintaining or using military, naval, or
air forces; or
b) By military, naval, or air forces; or
c) By an agent of any such government,
power, authority, or forces;
2. Any w eapon of war employing atomic
fission or radioactive force, w hether in
time of peace or war;

D. Any loss to the extent covered by any in ­
surance, w hether prim ary or excess, carried
by the depository institution shipping, caus­
ing, ordering, or receiving the shipment.
E. Any loss on any shipm ent by any deposi­
tory institution not made in conformity with
the provisions of this Bulletin.
F. Any loss on any shipm ent during any trans­
portation not contracted for by this Bank.
6.15 Differences
A. This Bank will not be responsible for the
am ount by w hich a shipm ent of cash received
by this Bank is less than the amount as stated
by the shipping depository institution w hen
the depository institution has not followed
the preparation and shipm ent procedures in
Section 4 of this Bulletin.
B. This Bank will not be responsible for the
am ount by w hich a shipm ent of cash received
by a depository institution is less than the
am ount as stated by this Bank w hen the
depository institution has not followed the
verification procedures in Section 3 of this
Bulletin.

3. Insurrection, rebellion, revolution, civil
war, usurped power, or action taken by
governmental authority in hindering, com ­
bating, or defending against such an occur­
rence, or confiscation by order of any
government or public authority;

6.20 Payment of losses and subrogation of rights
of recovery by depository institution

4. Nuclear reaction or radioactive con­
tam ination, all w hether controlled or u n ­
controlled and w hether such loss be direct

The am ount of any loss, the risk of w hich is
assumed by this Bank under the terms of this Bul­
letin, will be paid prom ptly by this Bank upon

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

receiving from the depository institution sustain­
ing the loss, in a form satisfactory to this Bank, a
w ritten proof of loss, receipt, and any other neces­
sary documents, including but not lim ited to an
assignment of its rights, title, and interest in the lost
property. The depository institution receiving any
such paym ent shall take all necessary measures in
behalf, and at the risk and expense, of this Bank for
the recovery, reissue, or replacem ent of such prop­
erty, including the institution of legal proceedings
in its own name, if deemed necessary by this Bank.
Section 7, FOOD COUPONS
7.00 General
This Bank will handle food coupons as cash items
under an agreement between the Secretary of Agri­
culture, on behalf of the United States, and the
Reserve Banks as depositaries and fiscal agents of
the United States pursuant to authorization of the
Secretary of the Treasury. As to matters that agree­
m ent does not cover, Regulation J, this Bulletin,
and this Bank’s time schedules apply. This Bank re­
ceives food coupons only from (1) depository
institutions that m aintain accounts w ith this Bank
and that are (a) banks or savings associations
insured by the Federal Deposit Insurance Corpora­
tion (FDIC) or (b) institutions insured under the
Federal Credit Union Act and having retail stores
or wholesale food concerns in their field of
m em bership (“eligible credit u n io n s”) and from (2)
FDIC-insured depository institutions and eligible
credit unions that do not m aintain accounts with
this Bank but that have made arrangements to send
coupons to this Bank for crediting to the account of
a depository institution m aintaining an account
with this Bank. Other depository institutions should
forward food coupons through ordinary collection
channels.
Depository institutions sending coupons should
follow instructions of the U.S. Department of
Agriculture for handling coupons (7 Code of Federal
Regulations, part 278.5, August 15, 1984). This
Bank will furnish additional information about the
collection of food coupons on request.

7.05 Preparation of shipments
Depository institutions should send redeem ed food
coupons to the office of this Bank that m aintains
the account to w hich the proceeds are to be
credited. The procedure in preparing food coupons
for shipm ent to this Bank is as follows:
A. All coupons m ust be detached from book­
let covers.
B. Any coupon accepted for redem ption m ust
show on its back either (1) the AUTHORIZA­
TION NUMBER or (2) the name of the autho­
rized retail food store, meal service, or
wholesale food concern, if any. Each coupon
m ust be canceled by the first depository
institution that receives it by indelibly marking
“PAID” or “CANCELED” and the depository
institution’s name or institutional identifier
on the face of the coupon. No coupon should
be endorsed by a depository institution.
C. Food coupons m ust be sorted by denom i­
nation, face and top up, and enclosed in a
paper strap. Under no circumstances will
rubber bands, pins, or clips be accepted as
substitutes for paper straps. Each strap should
contain only food coupons, i.e., it should con­
tain no foreign material such as paper, adding
m achine tapes, etc.
D. The name and location of the shipping de­
pository institution, the amount, the date, and
identification of the employee who counted
the coupons m ust be plainly marked on each
strap.
E. Food coupons are to be assembled into
standard straps and bundles as far as possible.
However, a m axim um of one nonstandard
strap and one nonstandard bundle per de­
nom ination m ay be included in each food
coupon deposit.
F. W hen food coupons are submitted for
credit, a Food Coupon Deposit Document

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

(FCDD), Form FNS-521, properly prepared
according to the accompanying instructions,
m ust accompany the coupons. A mailing
label (available from this Bank) m ust be
affixed to the outside of the envelope or con­
tainer used for shipping coupons to this Bank,
along w ith the name and address of the
shipping depository institution. Do not in ­
clude food coupons w ith any other matter
sent to this Bank. Food coupons m ust be
shipped in tam per-evident sealed packages or
containers strong enough to ensure receipt at
this Bank in a secure condition.
G. The total amount of Redemption Certifi­
cates (RCs), Form 278B, included in each
deposit m ust be equal to the total food coupon
am ount declared on the FCDD. A depository
institution m ust verify the am ount of the
coupons being redeem ed by recording its
count on each Redem ption Certificate and
m ust subm it the com pleted Redem ption Cer­
tificate w ith its deposit. All RCs on hand at the
time coupon shipm ents are prepared are to be
m achine listed, a copy of the listing attached
to the front of the bundle, and forwarded
along w ith the food coupons to this Bank. The
listing order should correspond to the order of
the documents. In cases in w hich an institu­
tion submits more than 500 RCs in a deposit,
these may be broken into smaller bundles of
200 to 300 RCs, w ith a listing for each bundle
and a grand total. All pins, paper clips, rubber
bands, extra adding m achine listings, and
other foreign objects m ust be rem oved from
the RCs prior to shipm ent to the Federal
Reserve.
All food coupon Redemption Certificates must
be encoded (MICR) prior to deposit at the
Federal Reserve. The encoding m ust be done
in accordance w ith standard check encoding
specifications. Steps have been taken to m ini­
mize the am ount of encoding required on the
part of depository institutions. Depository in­
stitutions should plan to encode, at a m ini­
mum, the redeem ed dollar amount on all RCs,

and in some cases, they may also need to
encode the ABA num ber of the Food and
N utrition Service (000001009) and the re­
tailer identification number.
H. Failure to comply w ith these procedures
may result in corrective measures up to and
including refusal or returning of deposits.
I. Food coupons should be forwarded as a
separate deposit, handled as valuables, and
should be directed to the attention of the Cash
Department, Food Coupon Section. No provi­
sion is made by this Bank for reimbursing
depository institutions for the cost of ship­
ping food coupons.
J. In accordance w ith the regulations of the
U.S. Department of Agriculture [7 C.F.R.
278.5(a), August 15,1984], a portion of a food
coupon consisting of less than three-fifths of
a whole coupon shall not be accepted for
redemption.
7.10 Entries to accounts
Conditional credit is given for properly prepared,
redeem ed food coupons provided the deposit is re­
ceived at this Bank office by 2:00 p.m., subject to
subsequent verification. Credit for food coupons
will be made to the account of the shipping
depository institution or to the account of the
designated correspondent depository institution.
Agreement forms will be provided by this Bank
upon request for those depository institutions that
wish to designate a correspondent through w hich
credit will be received.
7.15 Liability
Neither this Bank nor the Department of Agricul­
ture is liable for food coupons lost in transit to this
Bank. Shipping depository institutions may wish
to insure food coupon shipm ents and retain rec­
ords to assist in substantiating insurance claims for
coupons lost in transit.

BULLETIN 5

FEDERAL RESERVE BANK OF DALLAS

--------------------

8.00 Right to amend
This Bank reserves the right to w ithdraw or amend
any of the provisions of this Bulletin and its
Appendixes, if any, w ithout notice, at any time.

8-9 0

13

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