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F ederal r eser ve Bank of D allas
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

DALLAS, TEXAS

75222
Circular N o . 6 7-2 5 1
D ec em b e r 19, 196 7

BOOK-ENTRY PROCEDURE FOR
TREASURY SECURITIES
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
T h e T r ea su ry D ep a rtm e n t h as ad opted , effective Jan u ary 1, 1968, an a m en d m en t to its Circular N o.
3 0 0 , “G eneral R eg u la tio n s w ith R e sp e c t to U n ited S ta tes Securities,” p rovid in g for b ook -en try T rea su ry
securities. T h is a m en d m en t as origin ally prop osed w as th e su bject of our circular letter d ated A ugu st
23 , 1967.
E n clo sed h erew ith are cop ies of th e fo llow in g d o cu m en ts relatin g to the b ook-en try procedure:
1. S ub part O of T rea su ry D ep a rtm e n t Circular N o . 3 0 0, effectiv e Ja n u ary 1, 1968, and th e A p p en d ix
th ereto d ea lin g w ith certain record k eep in g requ irem en ts an d other m atters for F ed era l in com e
tax purposes;
2. T h is B a n k ’s F isca l A g en cy O perating Circular N o. 3, effective Jan u ary 1, 1968, en titled “B oo k E n try T rea su ry S ecu rities”;
3. S u p p le m e n t to B u lle tin N o. 7 of th is B ank, “C u sto d y of Securities,” effectiv e Ja n u ary 1, 1968,
ad din g a n e w paragraph d ealin g w ith b ook-en try T reasu ry secu rities ( N o t ap plicab le to n on ­
m em b er b a n k s); and
4. A m e n d m e n t N o . 1 to B u lle tin N o . 12 of th is B an k, “A d v a n ces to and D isc o u n ts for M em b er
B an ks,” effec tiv e Ja n u ary 1, 1968, adding a n ew paragraph d ea lin g w ith b ook -en try T reasu ry
secu rities ( N o t a p plicab le to n on m em b er b a n k s).
U n d er th e b ook -en try procedure, this B an k , as fiscal a gen t of the U n ite d States, is authorized to issue
b o ok -en try T reasu ry secu rities b y m ea n s of en tries on its records w h en ever T reasu ry secu rities are d ep osited ,
u p o n original issue or otherw ise, for a n y of th e follo w in g p u r p o se s:( 1 ) as collateral for ad v an ces b y this
B an k; ( 2 ) as co llateral for T rea su ry T a x and L o an A ccou n ts or for d ep o sits of p u b lic m o n e y s und er
T rea su ry D e p a r tm e n t Circulars N o . 92 or 176, resp ectively, or ( 3 ) for th e so le a ccou n t of a m em ber b an k
o f th is D istrict (in c lu d in g a m em b er bank h a v in g an office in th e central financial district o f D a llas, E l P a so,
H o u sto n or S an A n to n io ) and in lieu of th e safek eep in g of d efinitive T rea su ry secu rities b y th is B ank. W h ile
n o ad d ition a l accou n ts w ill at this tim e b e in clu d ed in th e b ook-en try procedure, the final version o f Sub ­
p art O of T rea su ry D ep a rtm e n t Circular N o . 3 0 0 authorizes this B a n k to in clu d e other accounts. A t such
tim e as w e ta k e a ction under th is authorization, w e w ill ad vise d ep ositors w h o m a y b e affected.
U n d er th e b ook-en try procedure, a n y m em b er b ank or other depositor w h ich h as tran sferab le T rea su ry
bonds, notes, certificates of in d eb ted n ess or b ills on d ep osit w ith this B a n k for a n y of th e foregoing purposes
o n Ja n u ary 1, 1968, w ill b e d eem e d to h a v e au th orized th e con version o f such secu rities into b ook-en try
fo rm and to h a v e agreed to a ll of th e p rovision s of our F isc a l A g en cy O perating Circular N o . 3. A fter such
date, u n less th is B a n k d eterm in es th a t sp ecial circum stances require otherw ise, a n y such secu rities in
d efin itive form d ep osited for a n y o f th e said purposes w ill b e con verted to and h eld b y us in b ook-en try
form , and d ep ositors ten d erin g d efinitive secu rities to u s for a n y o f su ch p urposes w ill b e d eem ed to h a v e
co n sen ted to such conversion.
S ub part O an d our F isc a l A g e n c y O perating Circular N o . 3 m ore c o m p le te ly describ e th e d eta ils of
th e n ew b oo k -en try procedure. T h e a tten tion o f d ep ositors is called in particular to th e p rovisions therein
relatin g to th e deposit, w ithd raw al and transfer of secu rities und er th e b o ok -en try procedure and to th e
p rovision s regarding th e creation o f secu rity interests. D ep o sito rs sh ould also n o te th e p rovisions of the n ew
p rocedu re relatin g to p ossib le ta x con sequ en ces, w h ich are describ ed in so m e d eta il in th e A p p en d ix to
Sub part O. T h e s e p rovisions h a v e b een rev ised since our circular letter d a ted A ugu st 23, 1967.
A dd ition al co p ies of th is circular and its en closures w ill b e su pp lied u p on request.
Y ours v e r y truly,
W atrou s H . Irons
P resid en t

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