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F ed er a l r e s e r v e b a n k DALLAS, TEXAS o f D a llas 75222 Circular No. 75-95 June 30, 1975 BULLETIN 15 American Revolution Bicentennial TO A LL BANKS, OTHER FIN AN CIAL ORGANIZATIONS, AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE D IS TR IC T : Enclosed Is a copy of new B ulletin 15 which becomes effective at the Federal Reserve offices in this D is tric t as outlined below. T h is B ulletin pertains to a new procedure reg ard in g Government electronic p ayro ll payments to those members of the U .S . A ir Force particip ating in a program of electronic transfers of funds. It provides the terms and conditions upon which this B ank, as Fiscal Agent of the Government, w ill d is trib u te U .S . A ir Force p ayro ll credits to banks and other financial organizations for c re d it to th e ir depositors' accounts. T h e payro ll credits w ill be d is trib u te d to a receivin g financial organization or its agent in a designated media designed to facilitate electronic processing — magnetic tape or paper lis ting s. Th is sys tem w ill enable a p a rticip ating financial organization or its designated agent to receive cre d it payments no later than 3: 00 p . m . , local time, on the banking day before the payment date. Th e p articip ating financial organization w ill then make the funds a v ailab le for w ith d raw al by the depositor by 9:00 a . m . , local tim e, on the payment date. T h is is an interim B ulletin and is expected to be broadened in the fu tu re p ursuant to a new T re a s u ry Department regulation g overning Federal re c u rrin g payments by means other than check. You w ill be notified of changes should they occur. Implementation of this program w ill re q u ire a series of events callin g for action on the p a rt of banks and other financial organizations, this Bank and its B ranches, and the U .S . A ir Force. A tentative schedule of events for implementation of the new program in the Eleventh Federal Reserve D is tric t was outlined in C irc u la r No. 75-81, w hich was d istrib u te d on June 17, 1975. T h e effective dates for the Eleventh D is tric t offices a re as follows: Office Dallas El Paso San Antonio Houston Effective Date September 30, 1975 October 31, 1975 November 28, 1975 December 31, 1975 If you have any questions re g ard in g this m atter, you may contact eith e r Johnny L. Johnson, Data Services Department (214) 651-6111, or J . W. H arlo w , J r . , Data Processing O fficer (214) 651-6330. Additional copies of B ulletin 15 w ill be furnished upon request to the S ecretary's Office of this Bank. Sincerely yours, T . W. Plant First Vice President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 15 Instructions For The Pilot Project For Checkless Air Force Payroll Credits FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin provides the terms and conditions upon which this Bank, as fiscal agent of the United States, distributes U.S. Air Force payroll credits on media designed to facilitate electronic processing, and upon which banks and other financial organizations receive such payments for credit to their depositors’ accounts. The terms and conditions stated herein are interim provisions intended to govern the phased distribution of electronic government payroll payments to certain members of the U.S. Air Force and are issued for this limited purpose by this Bank as fiscal agent of the United States pursuant to agree ment with the United States Treasury. TABLE OF CONTENTS Section 1, DEFINITIONS 1.00 1.05 1.10 1.15 1.20 1.25 Section 4, WARRANTIES OF FEDERAL RESERVE BANK Credit payment Member Financial organization File Payment date U.S. Government Section 5, WARRANTIES OF FINANCIAL ORGANIZATION Section 6, TIMELINESS OF ACTION Section 7, RIGHT TO AMEND Section 2, SENDING OF CREDIT PAYMENTS Section 3, HANDLING OF CREDIT PAYMENTS BY FINANCIAL ORGANIZATIONS 3.00 Initial processing 3.05 Availability of funds 3.10 Unposted items i 6-30-75 BULLETIN 15 FEDERAL RESERVE BANK OF DALLAS the format and on one of the media designated by a financial organization, set forth in technical specifications available from this Bank. Credit payments will be made available by this Bank to the financial organization or its designated agent no later than 3:00 p.m. local (financial or ganization’s) time on the banking day before the payment date. Receipt by a designated agent shall be deemed receipt by the financial organi zation. Section 1, DEFINITIONS As used in this bulletin, unless the context otherwise requires, the following terms (whether singular or plural) have the meanings indicated: 1.00 Credit payment “Credit payment” means an order for the pay ment of pay or allowances to a member, which is contained in a medium, such as magnetic tape, designed to facilitate electronic processing. This Bank will credit on the payment date the reserve account of the member bank designated by a financial organization with the aggregate amount of all credit payments sent or made available to such financial organization. 1.05 Member “Member” means a uniformed member of the U.S. Air Force who has executed an authoriza tion directing the U.S. Government to initiate credit payments on behalf of such member to a financial organization. Section 3, HANDLING OF CREDIT PAYMENTS BY FINANCIAL ORGANIZATIONS 1.10 Financial organization “Financial organization” means any bank, sav ings bank, savings and loan association or sim ilar institution, or federal or state-chartered credit union. 3.00 Initial processing The financial organization or its agent which first processes media directly received from this Bank shall be responsible for verifying control totals for credit payments. If the control totals and the total of individual credit payments re ceived are out of balance or any file received is unreadable or incomplete, the financial organi zation (or its agent) shall reject the unprocess able file containing such credit payments and notify this Bank by telephone of such rejection immediately upon its discovery in order to per mit this Bank to send a remade file to such fi nancial organization (or agent). 1.15 File “File” means a group of credit payments on the media and in the format set forth in technical specifications available from this Bank, asso ciated with a given transmittal register and the control totals set forth thereon. 1.20 Payment date “Payment date” means the date specified in a credit payment on which the funds specified therein are to be available for withdrawal from the account with a financial organization spec ified by the member. 3.05 Availability of funds Except for a credit payment returned in accor dance with the next succeeding paragraph, a fi nancial organization shall make funds specified in a credit payment available for withdrawal in the account specified by the member by the opening of business on the payment date. 1.25 U.S. Government “U.S. Government” means the United States Treasury and the U.S. Air Force. Section 2, SENDING OF CREDIT PAYMENTS 3.10 Unposted items A financial organization which cannot post a credit payment will notify the Air Force Ac counting and Finance Center by telephone by 10:00 a.m. local (financial organization’s) time on the payment date of the financial organization’s routing symbol/transit number, the member’s This Bank, as fiscal agent of the United States, will send or make available credit payments to financial organizations specified in such credit payments or to their designated agents in this District. Credit payments will be furnished in 1 6-30-75 BULLETIN 15 FEDERAL RESERVE BANK OF DALLAS Section 5, WARRANTIES OF FINANCIAL ORGANIZATION account number, the m em ber’s name, the amount, the trace number, and the reason for such inability. The financial organization will also return to this Bank an unposted credit pay ment, in the format and on the media set forth for returned credit payments in technical specifi cations available from this Bank, immediately upon advice from the Air Force Accounting and Finance Center to return such credit payment, and this Bank will debit the reserve account of the member bank designated by the financial organization for the amount of the returned credit payment. Each financial organization which receives a credit payment either directly or indirectly from this Bank in accordance with this bulletin shall be deemed: (1) To warrant to this Bank and to the U.S. Government that it has made funds available for withdrawal in the account specified by the member by the opening of business on the pay ment date in the amount specified in such credit payment and has otherwise acted in conformity with this bulletin with respect to such credit payment, and Section 4, WARRANTIES OF FEDERAL RESERVE BANK (2) To agree to indemnify this Bank and the U.S. Government from and against any and all claims, demands, or liability resulting directly or in directly from any breach of the foregoing war ranty by the financial organization: provided, h o w e ver, that such warranty and indemnity shall not be made with respect to any credit payment rejected in accordance with paragraph 3.00 or returned in accordance w ith paragraph 3.10 above. This Bank warrants to a financial organization that: (1) Each credit payment sent to the financial or ganization or its designated agent by this Bank is timely and in accordance with an authoriza tion executed by a member and is otherwise in conformity with this bulletin; (2) At the time such credit payment is sent to the financial organization, neither this Bank nor the U.S. Government has actual knowledge of the revocation of such authorization by the member; and Section 6, TIMELINESS OF ACTION If, because of interruption of communication facilities, war, emergency conditions or other circumstances beyond its control, any financial organization or this Bank shall be delayed be yond the time limits provided in this bulletin or by the applicable law of any state in taking any action with respect to a credit payment, (includ ing sending such credit payment, returning it, or making funds available for withdrawal in a member’s account], the time, as limited by this bulletin or by the applicable law of any state, for taking or completing the action thereby de layed shall be extended for such time after the cause of the delay ceases to operate as shall be necessary to take or complete the action, pro vided the financial organization or this Bank exercises such diligence as the circumstances require. (3) At the time such credit payment is processed by the financial organization, such authorization has not been terminated, in whole or in part, by operation of law: p r o v id e d , however, that this last warranty shall not be applicable if, at the time of processing such credit payment, such financial organization has actual knowledge of the circumstances giving rise to such termina tion. If this Bank breaches any of the foregoing warranties with respect to any credit payment, it will indemnify the financial organization from and against any and all claims, demands, or liability resulting directly or indirectly from the crediting in accordance with this bulletin of the account specified by the member: provided, h o w e ver, that such indemnity shall not exceed twice the amount of such credit payment. Other wise this Bank shall not have and shall not be deemed to assume any liability except for its own lack of due diligence or failure to exercise ordinary care. Section 7, RIGHT TO AMEND The right is reserved to withdraw, add to, or amend at any time any of the provisions of this bulletin. 2 6-30-75
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