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federal
Reserve Bank o f Dallas
DALLAS. TEXA S
7S222
Circular No. 82-82
July 21, 1982
BULLETIN 6
Wire Transfers of Funds
BULLETIN 6B
Fee Schedule For
Transfers of Funds Services
TO ALL FINANCIAL INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The "Notes" portion of Bulletin 6, Wire Transfers of Funds, has been
partially revised effective April 1982. Changes have also been made to Bulletin 6B
reflecting changes in the wire transfer fee schedule effective April 29, 1982.
Revisions to this Bulletin have been made in order to refle ct the following
information.
1.
A new Note 1 has been incorporated to reflect a rental
price of $97.84 per month for Bank-owned dial-up commu
nications term inal equipment.
2.
Note 2 (formerly Note 1) reflects a change in telephone
numbers to be used by depository institutions making
telephone requests for transfers of funds in the territory
served by the El Paso Branch.
3.
Notes 3 and 4 refle ct numbering changes necessitated
by the insertion of a new Note 1. In Note 4 there
has also been a change in the persons to be contacted
when making inquires concerning telephonic notification
for those depository institutions in the Head Office
and El Paso territories.
Questions regarding the changes should be directed to Jonnie Miller, (214)
651-6290 or Bob Boyanton,(214) 698-4346 at the Head Office; Ralph Olivas orJavier
Jimenez a t the
El Paso Branch, (915) 544-4370;
Jan Williams or Rodney Franklin at
the Houston Branch, (713) 659-4433; or Dorothy Jasso or Jack Sprawling at the San
Antonio Branch, (512) 224-2141.
Additional copies of this circular and enclosure will be furnished upon
request to the D epartm ent of Communications, Financial and Community Affairs,
Ext. 6289.
Sincerely yours,
William H. Wallace
First Vice President
Enclosure
B a n k s a n d o t h e r s a r e e n c o u r a g e d to us e t h e f o l lo w in g in c o m i n g W A T S n u m b e r s in c o n t a c t i n g thi s Bank:
1 -80 0 -4 42 -7 14 0 ( in t r a s t a t e ) a n d 1 - 8 0 0 -5 27 -9 20 0 (in te r s t a te ) . F o r c a l ls p l a c e d lo ca lly , p l e a s e us e 651
e x t e n s i o n r e fe rre d to a bo ve.
pl us th e
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
BULLETIN 6
Wire Transfers of Funds
FEDERAL RESERVE BANK OF DALLAS
SCOPE
This bulletin sets forth general information pertaining to transfers of funds through this
Bank. The procedures established are designed to increase the speed and efficiency of such
transactions, and they may be used, among other things, for federal funds transfers and in lieu
of a draft drawn on correspondent institutions to cover anticipated charges to an account on
our books.
BULLETIN 6
FEDERAL RESERVE BANK OF DALLAS
day of receipt.
1. Subpart B of Regulation J {“Regulation J”)
of the Board of Governors of the Federal Reserve
System and this bulletin and time schedule apply
to wire transfers of funds handled by this Bank.
This bulletin is issued pursuant to Sections 4, 13,
14, 16, and 19 of the Federal Reserve Act and
related statutes in conformity with Regulation J. It
is binding on tr a n s f e r o r s , tr a n s f e r e e s ,
beneficiaries, and other parties interested in an
item.
8. A transferor may send a transfer item to us
by electronic means under arrangements with us,
[See Note 1], or, in unusual circumstances and at
our discretion, in other media approved by Sec
tion 210.28 of Regulation J. The transferor must
authenticate a transfer item at the time it is sent
by codes or procedures we prescribe. A transfer
item contained in a letter, memorandum, or
similar writing must be signed by an authorized
officer of the transferor whose signature is on file
with us.
2. Each Reserve Bank has issued a circular,
letter, or bulletin substantially similar to this one.
When we send a transfer item to another Reserve
Bank, that Reserve Bank handles the item under
its operating circular, letter, or bulletin.
TRANSFER REQUESTS
9. A "transfer request,” as defined in Regula
tion J, refers to a transfer of funds initiated by
telephone, and differs from a request for payment
described in paragraph 10A. A transfer request
may be made by telephone under arrangements
with us. [See Note 2] The transferor must authen
ticate a transfer request at the time it is made by
codes or procedures we prescribe. [See Note 3]
We may record a transfer request. We reserve
the right to require a transferor to confirm a
transfer request by a letter of confirmation over
authorized signature(s). We assume no liability
for loss resulting from a transfer of funds based
on a communication that is in the form of a
transfer item and that does not expressly indicate
that it is a confirmation.
3. All terms defined in Regulation J have the
same meaning in this bulletin. Some terms used in
this bulletin, including terms not defined in
Regulation J, have specialized meanings that have
developed through law, custom, and commercial
usage. Unless otherwise stated, all references to
this Bank will include the Head Office and its El
Paso, Houston, and San Antonio Branches.
ISSUANCE OF TRANSFER ITEMS AND
TRANSFER REQUESTS
4. A transferor maintaining or using an ac
count with an office of this Bank may send a
transfer item to or make a transfer request of that
office. We may refuse to act on, or may impose
conditions to acting on, a transfer item or request
if we have reason to believe that the balance in
the transferor’s account is not sufficient to cover
the item. A transferor, other than a Reserve Bank,
that uses our wire transfer of funds facilities
shall maintain with us a balance of actually and
finally collected funds in accordance with Section
210.31(a) of Regulation J.
10.
We reserve the right to refuse to handle a
transfer item or request under conditions dif
ferent from those imposed by this bulletin or
Regulation J.
REQUESTS FOR PAYMENT
10A. A request for payment is a message sent
by an institution authorized to be a transferee, re
questing an institution authorized to be a
transferor to send a transfer item to the
transferor’s Reserve Bank for credit to the institu
tion requesting the payment. We handle a request
for payment, or a negative response, involving on
ly on-line institutions, subject to our time and fee
schedules, and without transferring funds. A re
quest for payment is not an item and, in itself, im
poses no obligation on the recipient to respond.
5. A transfer item or request must be in the
format prescribed by us.
6. The text of a transfer item may not exceed
380 characters including punctuation, third-party
information, and any other instructions, except
with our approval.
7. We only accept a transfer item or request
that instructs us to transfer funds on our banking
6-82
1
BULLETIN 6
FEDERAL RESERVE BANK OF DALLAS
HANDLING OF TRANSFER ITEMS AND
REQUESTS
11. We will notify a transferor of a significant
delay in executing transfers of funds within a
reasonable time after we learn of the delay.
12. We expect to handle a transfer item or re
quest promptly and to complete a transfer of
funds on the banking day requested if we receive
the item or request before the closing hours
established in our time schedule. We do not
guarantee that we or another Reserve Bank will
complete a transfer of funds on the day re
quested. We are not responsible to the transferor
or to any other person for any loss or delay
resulting from our handling of an item on the
basis of an erroneous routing number or other
designation appearing on the item when we
receive it, whether or not that designation is con
sistent with any other designation appearing on
the item.
CLOSING HOURS
13. Our time schedule shows the latest hours
on each banking day (“closing hours” ) at which
we will accept a transfer item or request.
[Bulletin 6A] If we receive a transfer item or re
quest after the closing hour we may either refuse
to handle it or handle it on the following banking
day, except that we may complete a same-day
transfer on the day of receipt. In the case of an
interoffice transaction received after our closing
hour, completion of the transfer on that day is
also discretionary with the transferee’s Reserve
Bank.
ADVICES OF CREDIT AND DEBIT
14. We provide to a transferee maintaining or
using an account with us, an advice of credit for a
transfer of funds. We give advice of credit by
telephone, telegraph, or other form of electronic
telecommunications when we deem that the
nature of the transaction justifies it or when the
tran sfero r or transferee requests it. The
transferee should ascertain the authenticity of an
advice of credit at the time of its receipt by codes
or procedures we prescribe. [See Note 4] We do
not give telephone advice of credit for a transfer,
identified as a settlement transfer, between
a transferor or transferee for their own accounts,
or for the account of another institution autho
rized to be a transferor, unless the transferee has
made a standing order for advice of all transfers
of funds.
15. The transferee should confirm a telephonic
advice of credit that contains third-party informa
tion or other special instructions, by return
telephone call or other arrangements prior to
making the proceeds of the transfer available for
withdrawal or other use. The transferee assumes
all risk of loss resulting from its failure to make
the confirmation. In addition, if there is a
discrepancy between an advice given by
telephone, telegraph, or other form of electronic
telecommunications and a mailed or delivered ad
vice, the transferee is deemed to approve the
credit reflected in the mailed or delivered advice
unless it sends written objection to us within ten
(10) calendar days following its receipt of the
mailed or delivered advice. The objection should
be sent to the Reserve office at which the
transferee maintains or uses an account.
16. We provide an advice of debit to a
transferor maintaining or using an account with
us. The transferor should carefully examine the
advice on receipt, and promptly report any excep
tion. The transferor is deemed to approve a debit
if it fails to send written objection within ten (10)
calendar days after it receives the advice of debit
to the office of this Bank with which it maintains
or uses an account.
CHARGES
17. Our schedule of charges shows the charges
imposed for wire transfers of funds services.
[Bulletin 6B] We may make the charge to the ac
count of the transferor or transferee requesting
the service.
FINAL PAYMENT; RIGHT TO USE FUNDS;
TRANSFEREE’S AGREEMENT
18. A transfer item is finally paid when the
transferee’s Reserve Bank sends the item or
sends or telephones advice of credit to the
transferee, whichever occurs first.
19. On final payment the transferee has the
FEDERAL RESERVE BANK OF DALLAS
BULLETIN 6
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.
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:
GENERAL
24. 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.
(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.
25. 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.
22. To correct an erroneous or irregular
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.
23. 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)
6-82
RIGHT TO AMEND
26. We reserve the right to amend this bulletin
at any time.
3
BULLETIN 6
FEDERAL RESERVE BANK OF DALLAS
NOTES:
1. (Refer to item 8)
The rental price for dial-up communications terminal
equipment is $97.84 per month, excluding transporta
tion, rigging, drayage, local telephone business line
equipment, and taxes. Contact the Head Office or ap
propriate Branch for further details.
2. (Refer to item 9)
(a) We will accept telephone requests for transfers of
funds in accordance with the Code Word Authentica
tion Procedure outlined in note 3. Telephone requests
may be communicated by depository institutions as
follows:
Office
Dallas
Area
Code
Telephone
Number
Extension
Number
800
442-7276*
(intrastate)
527-9200*
(interstate)
6110
442-7276*
[intrastate)
527-9200*
(interstate)
6110
800
El Paso
800
800
6110
6110
Houston
713
659-4433**
31, 54, or
57
San Antonio
800
292-5810*
435, 436
*Toll-free incoming WATS number.
**Call collect.
3. (Refer to item 9)
(a) A Code Word Authentication Procedure is utilized
between depository institutions and our offices. It is
designed to detect and prevent the processing of
unauthorized telephone transfers of funds requests.
(b) (1) We will furnish code word authentication lists to
each depository institution as the need arises. A
replacement will be supplied by us as needed
based upon usage. To insure that code word lists
do not become outdated through disuse or fluctua
tion in activity, all code word authentication lists,
if not earlier exhausted, will become null and void
at the end of exactly six calendar months from the
initiation date shown on the lists.
(2) The use by any person of a code word which
passes our code word authentication check shall
be deemed to be a person authorized by the
depository institution to request transfers of
funds on its behalf.
(3) D ep o sito ry in stitu tio n s sh ou ld prom ptly
acknowledge receipt of the code word authentica
tion lists. A list will not be activated by us until we
have received a signed acknowledgement by an
officer of a depository institution whose signature
is on file with us.
(c) Each transfers of funds request will require a
separate sequence number and code word and these
must be the next sequential, unused sequence
number and code word shown on the code word
authentication list. Otherwise, it will not pass our
code word authentication check.
(d) At the bottom of each listing, it is noted that the list is
for authorized use only. Since the sequence number
and code word will be the only method of verifying
the authenticity of a transfer request, it is strongly
suggested that only those individuals authorized to
transfer funds at each depository institution have ac
cess to the code words. This will help insure the con
fidentiality of the depository institution’s list and in
tegrity of the authentication procedure.
(e) All telephone requests for transfers of funds will be
automatically recorded on recording devices and any
depository institution utilizing this method to transfer
funds hereby consents to the recording of such con
versations. A written letter confirming a transfer of
funds will not be required unless specifically re
quested by this Bank.
(f) Requests for transfers of funds utilizing the mails,
Western Union wires, TWX messages, and TELEX
messages normally will not be honored. Requests
utilizing these means of transmission should not be
made and will be accepted only where prior ar
rangements have been made or in emergency situa
tions.
(g) We intend to verify by call-back selected transfers of
funds involving third-party information. Your
cooperation in expediting this verification will
facilitate timely processing of such transfers.
(h) Telephone transfer requests not utilizing the Code
Word Authentication Procedure may be handled on
an exception basis at our discretion. Such transfer
requests will be authenticated on a call-back basis.
4. (Refer to item 14)
A depository institution receiving and acting on any
telephone notification runs the risk that it is invalid or
unauthorized. At any time during normal business hours,
we are prepared to corroborate any transfer of funds
for which telephone notification has been given by us
and received by a depository institution. A telephone call
from the receiving depository institution to the manager
or supervisor of the Transfers of Funds Division for
Head Office and El Paso territory inquires; the manager
or assistant manager of the Accounting Department for
Houston or San Antonio territory inquires will be
promptly handled. Receiving depository institutions are
encouraged to utilize this service, especially for thirdparty advices received by telephone.
FEDERAL RESERVE BANK OF DALLAS
BULLETIN 6A
SCHEDULE OF TIME LIMITS
(Gosing Hours for Telegraphic Transfers of Funds
for Consummation on Day of Receipt)
I. Gosing 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.
n. 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 6B
FEDERAL RESERVE BANK OF DALLAS
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<P 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 650 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<D A negative response to a Subtype Code 31
.
message (Subtype Code 33) will incur no charge.
6-82
@FedFRASER