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F ederal Reserve Bank o f Dallas DALLAS, TEXAS 75222 Circular No. 83-70 May 26, 1983 BULLETIN 6 WIRE TRANSFERS OF FUNDS (Revised Appendix A) TO ALL DEPOSITORY INSTITUTIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: The "Notes" section of Federal Reserve Bank of Dallas Bulletin 6, Wire Transfers of Funds, has been partially revised e ffe c tiv e April 1, 1983. Changes have also been made to Appendix A, Schedule of Time Limits, reflecting the time schedule applicable to requests for payment (subtype code 31) messages sent by on-line financial institutions. Revisions to this Bulletin r e flect the following changes: 1. Note 2 reflects a change in the telephone numbers to be used by depository institutions in making telephone requests for transfers of funds in the territory served by the San Antonio Branch. There has also been a consolidation of intrastate WATS lines dedicated to transfers of funds operations at the Head O ffice. 2. Note 4 reflects a change in the persons to be contacted when making inquiries concerning telephonic notification for depository institutions in the San Antonio o ffic e territory. 3. Appendix A r eflects a change stating that request for payment (subtype code 31) m essages from on-line financial institutions will be accepted until the respective closing hours for interdistrict, intra district and net settlem en t transfer items. It will be the responsi bility of the originator to allow sufficient time for receivers to respond within the tim efram es specified. Enclosed is a revised Appendix A, Schedule of Time Limits, dated May 1983, which should be filed in Volume 1 of your Regulations Binder to replace the old Bulletin 6A. Questions regarding these changes should be directed to Robert L. Whitman, (214) 698-4357 at the Head Office; William L. Wilson, (915) 544-4730 at the El Paso Branch; Sammie C. Clay, (713) 659-4433 at the Houston Branch; or Thomas C. Cole, (512) 224-2141 at the San Antonio Branch. Banks and others are encouraged to use the follow ing incom ing WATS numbers in co n tacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (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 - Additional copies of this circular will be furnished upon request to the Public Affairs Department, Extension 6289. Sincerely yours, William H. Wallace First Vice President Enclosure FEDERAL RESERVE BANK OF DALLAS right to withdraw or use funds that have been credited to its account, subject to the right of a Reserve Bank to apply the funds to an obligation owed to it by the transferee. 20. As provided by Section 210.30 of Regula tion J, a transferee that receives from us a transfer item, or advice of credit of a transfer item, designating a beneficiary, agrees: (a] to credit promptly the beneficiary’s account or otherwise make the amount of the item available to the beneficiary; or (b) to notify promptly the office of this Bank with which it maintains or uses an account if it is unable to do so because of circumstances beyond its control. We will then notify our transferor. REVOCATION OF TRANSFER ITEMS 21. A transferor may ask the office of this Bank to which it has sent a transfer item or request to revoke a transfer item or request. The transferor must authenticate the request for revocation by codes or procedures we prescribe. We may cease acting on the item or request if we receive the re quest for revocation in time as to give us a reasonable opportunity to comply. If the request is received too late, we may, on request from the transferor: (a) ask the transferee to return the transferred funds; or (b) in an interoffice transaction, ask the transferee’s Reserve Bank to ask the transferee to return the funds. 22. To correct an erroneous or irregular BULLETIN 6 transfer of funds, we may, on our own initiative or at the request of another Reserve Bank, ask the transferee to return funds previously transferred. 22A. By requesting a revocation, unless the re quest states “NO INDEMNITY,” the transferor agrees that the transferor will indemnify the transferee for any loss or expense sustained (in cluding attorneys’ fees and expenses of litigation) resulting from the return of the funds by the transferee, except any loss or expense resulting from the transferee’s lack of good faith or failure to exercise ordinary care. SERVICE MESSAGES 22B. We handle for a transferor or transferee a service message in a prescribed format concerning a previously sent or received transfer of funds. GENERAL 23. A transferor sending a transfer item by electronic means should determine that the transfer item has been accepted by our telecom munications and processing equipment. 24. A transferor or transferee must prevent the disclosure outside of it, or within it except on a “need to know” basis, of any of the codes or other security procedures relating to transfers of funds. The transferor or transferee should notify us immediately if the confidentiality of these pro cedures is compromised, and act to prevent any further disclosure. RIGHT TO AMEND 25. We reserve the right to amend this bulletin at any time. FEDERAL RESERVE BANK OF DALLAS BULLETIN 6 NOTES: (3) D e p o s i t o r y i n s t i t u t i o n s s h o u l d p r o m p t l y acknow ledge re ce ip t of th e code w o rd a u th e n tic a tion lists. A list will not be a ctiv ate d by us until w e have re ce iv e d a signed acknow ledgem ent by an officer of a depository institution w hose sig n a tu re is on file w ith us. 1. (Refer to item 8) T he re n ta l p rice for dial-up com m unications term in al equipm ent is $97.84 p e r m onth, excluding tra n s p o rta tion, rigging, d ra y ag e , local telephone b usiness line equipm ent, a n d ta x e s. C ontact the H e a d Office or a p p ro p ria te B ra n c h for fu rth e r details. (c) E ach tra n s f e r s of funds re q u e s t will re q u ire a se p a r a te seq u en ce n u m b er a n d code w o rd a n d these m ust be th e n e x t sequential, u n u se d seq u en ce nu m ber a n d code w o rd show n on the code w o rd a u th e n tic a tio n list. O therw ise, it will not p a ss our code w o rd a u th e n tic a tio n check. 2. (Refer to item 9) (a) W e will a c c e p t telephone re q u e s ts for tra n s f e rs of funds in a c c o rd a n c e w ith the Code W o rd A u th en tica tion P ro c e d u re outlined in note 3. T elephone re q u e sts m ay be com m unicated by depository institutions a s follows: O ffice D allas Area Code Telephone Number Extension Number 800 442-7276* (in tra sta te ) 527-9200* (interstate) 6110 800 El Paso 800 800 (d) At the bottom of e a c h listing, it is noted th a t the list is for a u thorized u se only. Since th e seq u en ce n u m ber a n d code w o rd will be the only m ethod of verifying the au th en ticity of a tra n s f e r re q u est, it is strongly suggested th a t only those individuals a u thorized to tra n s fe r funds a t e a c h depository institution have ac c ess to the code w ords. T his w ill help in su re the con fidentiality of the depository in stitution’s list a n d in tegrity of the a u th e n tic a tio n pro c ed u re . (e) All telephone re q u e sts for tra n s f e rs of funds will be autom atically re c o rd e d on recording devices a n d any depository institution utilizing this m ethod to tra n s f e r funds h e reby consents to the recording of su c h con versations. A w ritte n le tte r confirm ing a tra n s fe r of funds will not be re q u ire d un less specifically re qu ested by this Bank. (f) R equests for tra n s fe r s of funds utilizing the m ails, W e s te rn Union w ires, TW X m essages, a n d TELEX m essages norm ally will not be honored. R equests utilizing these m eans of transm ission should not be m ade a n d will be a c c e p te d only w h e re p rio r a r ra n g em en ts have b e en m ade or in em ergency situations. (g) W e in ten d to verify by call-back se lec ted tr a n s fe rs of fu n d s involving th ir d - p a r ty in fo rm a tio n . Y our cooperation in expediting this verification will facilita te timely processing of su c h tra n s fe rs. (h) T elephone tra n s fe r re q u e s ts not utilizing the Code W o rd A uthentication P ro c e d u re m ay be h a n d le d on a n exception b a sis a t our discretion. Such tra n s fe r re q u e sts will be a u th e n tic a te d on a call-back basis. 4. (Refer to item 14) A depository institution receiving a n d acting on any telephone notification ru n s the risk th a t it is invalid or unau th o rized . A t any tim e d u ring norm al business hours, the m an a g e r or supervisor of the T ra n s fe rs of Funds Division a t the H e a d Office is p re p a re d to c o rro b o ra te any tra n s fe r of funds for w hich telephone notification h a s been given by us a n d received by a depository in stitution. Receiving depository institutions are en couraged to utilize this service, especially for thirdp a rty advices receiv ed by telephone. 6110 442-7276* (in tra sta te ) 527-9200* (interstate) 6110 6110 H ouston 800 442-7276* (in tra sta te ) 6110 S an Antonio 800 442-7276* (in tra sta te ) 6110 ‘ Toll-free incom ing W ATS num ber. 3. (Refer to item 9) (a) A Code W o rd A uthentication P ro c e d u re is utilized b e tw e e n depository institutions a n d our office. It is designed to d e te c t a n d p re v e n t the processing of u n a u th o riz ed telephone tra n s f e rs of funds req u ests. (b) (1) W e will fu rn ish code w o rd au th e n tic a tio n lists to e a c h depository institution a s the need arises. A re p la ce m en t will be supplied by us a s n e ed e d b a se d upon usage. To in su re th a t code w o rd lists do not becom e o u td ate d through disu se or flu ctu a tion in activity, all code w o rd a u th e n tic a tio n lists, if not e a rlie r e x h au ste d , will becom e null a n d void a t the e n d of ex ac tly six c a le n d a r m onths from the initiation d a te show n on the lists. (2) T he u se by any p e rso n of a code w o rd w hich p a sse s our code w o rd a u th e n tic a tio n check shall be deem ed to be a p e rso n a u th o riz ed by the depository institution to re q u e s t tra n s f e rs of funds on its behalf. 5-83 4 FEDERAL RESERVE BANK OF DALLAS BULLETIN 6 A ppendix A SCHEDULE OF TIME LIMITS (Closing Hours for Telegraphic Transfers o f Funds for Consummation on Day of Receipt) I. Closing Hours A. Interdistrict Transfers We accept interdistrict transfer items (on-line instructions) until 3:30 p.m., and interdistrict transfer requests (telephonic instructions) until 3:00 p.m., Central Time each business day. (For the El Paso Territory of the Eleventh Federal Reserve District, the times are 2:30 p.m. and 2:00 p.m., respective ly, Mountain Time). At our discretion, we may accept interdistrict transfer items and requests after these times, but the completion of such transfers is also at the discretion of the transferee’s Reserve Bank. B. Intradistrict Transfers We accept intradistrict transfer items (on-line instructions) until 3:30 p.m., and intradistrict transfer requests (telephonic instructions) until 3:00 p.m., Central Time each business day. (For the El Paso Territory of the Eleventh Federal Reserve District, the times are 2:30 p.m. and 2:00 p.m., respective ly, Mountain Time). At our discretion, we may accept intradistrict transfer items and requests after these times. C. Requests for Payment We accept requests for payment (subtype code 31) from on-line financial depository institutions until the respective closing hours for interdistrict, intradistrict and net settlement transfer items. Originators of such requests are responsible for allowing sufficient time for receivers to respond within the closing hours specified. II. Settlement Period We accept settlement transfer items (on-line instructions) until 5:30 p.m., and settlement transfer requests (telephonic instructions) until 5:00 p.m., Central Time each business day. (For the El Paso Ter ritory of the Eleventh Federal Reserve District, times are 4:30 p.m. and 4:00 p.m., respectively, Mountain Time). A settlement transfer is a transfer between a transferor and transferee for their own accounts, or for the account of another financial depository institution on the books of the transferor or transferee. A settlement transfer must be identified with type code 16, and may contain third-party information relating only to financial depository institutions. Settlement transfers may be used to adjust for net settle ment transactions. Immediate telephone advice is not provided for settlement transfers. BULLETIN 6 FEDERAL RESERVE BANK OF DALLAS A ppendix B FEE SCHEDULE FOR TRANSFERS OF FUNDS SERVICES (Effective April 29, 1982) WIRE TRANSFER Originators Charge Telephone Advice No Yes Originator On-Line $ .65 $2.90 Originator Off-Line 4.15 6.40 Receivers Charge All receivers will be charged 65<t per transfer. Receivers may elect a “standing order for notifica tion” at an additional charge of $2.25 per advice. NOTE: Requests for payment (Subtype Code 31) referred to under paragraph 10A of Bulletin 6 will incur a charge of 65<p for on-line institutions since they are currently limited to on-line institutions. A transfer of funds in response to a transfer request (Subtype Code 32) will likewise incur a charge of 65<p. A negative response to a Subtype Code 31 message (Subtype Code 33) will incur no charge.
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