Full text of District Notices (Federal Reserve Bank of Dallas) : Amendments to Regulations Q and D

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federal

Re s e r v e

bank

of

Da lla s

DALLAS, TEXA S

January 4, 1962

AMENDMENTS TO REGULATIONS Q AND D

To All Member Banks in the
Eleventh Federal Reserve District:

There is enclosed an amendm ent to §217.1 (e) o f Regulation Q,
issued by the Board o f Governors o f the Federal Reserve System
effective January 15, 1962, defining the term “ savings deposits” .
The purpose o f the amendment is (1) to prevent certain practices
that facilitate the use o f a savings deposit as a regular means fo r
draw ing checks on the depository bank, and (2) to add certain
liberalizing provisions which would perm it payment o f a savings
deposit to anyone holding title to the deposit in a fiduciary capacity
or pursuant to a court order, or as security fo r credit extended to
the depositor.
Also enclosed is a c o p y o f a c o n fo r m in g am en dm ent to
§204.1 (e) o f Regulation D effective January 15, 1962, which
defines “ savings deposits” fo r reserve purposes.
M ember banks are requested to insert these amendments in
their ring binders containing the regulations o f the Board o f
Governors and the Bulletins o f this bank.
Yours very truly,
W atrous H. Irons
President

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

PAYMENT OF INTEREST ON DEPOSITS

AMENDMENT TO REGULATION Q
I ssu ed b y t h e

B oar d o f G o v e r n o r s o f t h e F eder al . R e se r v e S y s t e m

E ffective January 15, 1962, section 2 1 7 .lfe ) is amended to read as
follow s;
SECTION 2 1 7 .1--DEFINITIONS

*
(e)

Savings

*

d ep o sits.—(1)

*
The

*

*

term "sa v in g s

deposit*

means a

deposit
(i) which con sists of funds deposited to the credit of one or
more individuals, or of a corporation, association, or other organi­
zation operated primarily for religious, philanthropic, charitable,
educational, fraternal, or other similar purposes and not operated
for profit; 4 or in which the entire beneficial interest is held by one
or more individuals or by such a corporation, association, or other
organization; and
(ii) with respect to which the depositor is required, or may at
any time be required, by the bank to give notice in writing of an
intended withdrawal not le s s than 30 days before such withdrawal
is made.
(2 )

Subject to the provisions of subparagraph (3) of this paragraph,

a member bank may permit withdrawals to be made from a savings de­
posit only through payment5to the depositor him self (but

not

to

any

other person whether or not acting for the depositor), except
(i)

where the deposit is represented by a pass book, to any

person presenting the pass book; 5

4 D e P ° s i t s in joint a c c o u n ts of two or more in d iv id u a ls m ay be c l a s s i f ie d a s s a v in g s
d e p o s it s if they m eet the other req u irem en ts o f the ab o ve d e fin itio n but d e p o s it s o f a
p artn ership operated for profit may not be so c l a s s i f i e d .
D e p o s it s to the cred it o f an
in d iv id u a l o f funds in w hich any b e n e f ic ia l in te re s t is held b y a corp oration , partner­
s h ip , a s s o c ia t i o n , or other org a n iza tio n operated for p rofit or not operated prim arily for
r e lig io u s , p h ila n th ro p ic, c h a r ita b le , e d u c a tio n a l, fratern al, or other sim ila r p u rp o se s may
not be c l a s s i f ie d a s s a v in g s d e p o s it s .
^ P a ym en t from a s a v in g s d e p o s it or p re sen ta tio n of a p a s s book m ay be made over
the c o u n ter, through the tn a ils , or oth e rw ise .

(O ver)

(ii) to an executor, administrator, trustee,

or other fiduciary

holding the savings deposit as part of a fiduciary estate, or to a
person, other than the bank of deposit, holding a general power o f
attorney granted by the depositor;
(iii) to any person, including the depository bank, that has ex­
tended credit to the depositor on the security of the savings de­
posit, where such payment is made in order to enable the creditor
to realize upon such security;
(iv) pursuant to the order of a court of competent jurisdiction;
(v) upon the death of the depositor, to any person authorized by
law to receive the deposit; or
(v i) with respect to interest paid to a third person pursuant to
written instruction or assignment by the depositor accepted by the
bank, and placed on file therein.
(3) Notwithstanding the provisions of subparagraph (2) of this para­
graph, no withdrawal shall be permitted by a member bank to be made
from a savings deposit after January 15, 1962, through payment to the
bank itse lf or through transfer of credit to a demand or other deposit
account of the same depositor (other than of interest on the savings de­
p o sit) if such payment or transfer is made pursuant to any advertised
plan or any agreement, written or oral,
(i) which authorizes such payments or transfers of credit to be
made as a normal practice in order to cover checks or drafts drawn
by the depositor upon the bank; or
(ii) which provides that such payments or transfers of credit
shall be made at daily, monthly, or other such periodic intervals,
except where made to enable the bank, on the depositor’ s behalf
and pursuant to his written instructions, to effect the payment o f
installments

of principal,

interest,

or other

charges

(including

taxes or insurance premiums) due on a real estate loan or mortgage.
(4) Where a savings deposit is evidenced by a p a ss book, every with­
drawal made upon presentation of the pa ss book shall be entefed in the
p a ss book at the time of withdrawal, and every other withdrawal from
such a deposit shall be entered in the pa ss book as soon as practicable
after the withdrawal is made.

RESERVES OF MEMBER BANKS

AMENDMENT TO REGULATION D
I ssu ed b y t h e

B oard of G o ver n o r s o f t h e

F ed er al R eser ve

System

E ffective January 15, 1962, section 204.16e9 is amended to read as
follow s:
SECTION 2 0 4 .1—DEFINITIONS.

*
(e)

*

*

*

*

Savings deposits.—The term "sa v in g s deposit” means a deposit

(1 ) which co n sists of funds deposited to the credit of one or more
individuals, or of a corporation, association , or other organization oper­
ated

primarily

for

religious,

philanthropic,

charitable,

educational,

fraternal, or other similar purposes and not operated for profit; 4 or in
which the entire beneficial interest is held by one or more individuals
or by such a corporation, association , or other organization; and
(2 ) with respect to which the depositor is required, or may at any
time be required, by the bank to give notice in writing of an intended
withdrawal not le s s than 30 days before such withdrawal is made.

4

D e p o s it s in join t a c c o u n ts o f tw o or more in d iv id u a ls m ay be c l a s s i f i e d a s s a v in g s
d e p o s it s if they m eet the other requirem ents o f the a b o v e d e iin itio n but d e p o s it s o f a
p artn ership operated for p ro fit m ay not be so c l a s s i f i e d .
D e p o s it s to the cred it o f an
in d iv id u a l o f fun ds in w h ich an y b e n e f ic ia l in te re s t is h e ld by a corp oration , partner­
s h ip , a s s o c ia t i o n , or other o rga n ization operated for profit or not op erated prim arily for
r e li g i o u s , p h ila n th ro p ic, c h a r ita b le , e d u c a tio n a l, fratern al, or other s im ila r p u rp o s e s may
not be c l a s s i f i e d a s s a v in g s d e p o s i t s .