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F edera l R eserve Ba n k o f Dallas DALLAS. TEXAS 75222 Circular No. 72-62 March 31, 1972 To the Member and Nonmember Banks of the Eleventh Federal Reserve District and Others Concerned: Enclosed are revised Table of Contents and revised pages 1, 3, U, 9 and 10 of Bulletin 8, "Collection of Cash Items." The enclosures reflect the following uniform changes in the collection bulletins of the Federal Reserve Banks which become effective April 1, 1972: Supplement D has been added which provides for the handling of food certificates by Federal Reserve Banks. Paragraph 6.30 has been revised to permit com munications between this Bank and its member banks regarding the collection of cash items to be made without charge to such banks. Minor changes to Bulletin 9S "Collection of Noncash Items," will also become effective April 1, 1972. This bulletin is now in the process of being reprinted in the new format and will be mailed at a later date. Additional copies of this circular and its enclosures will be furnished upon request. Yours very truly, P. E. Coldwell President Enclosures This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 8 FEDERAL RESERVE BANK OF DALLAS TABLE OF CONTENTS Section 1, GENERAL 1.00 C ollection co n tra ct 1.05 A u th o rity Section 2, DEFINITIONS AND REFERENCES 2.00 Definitions, re feren ce to R egulation J 2.05 R eference to B ulletin 1 Section 3, CASH ITEMS 3.00 Item s w h ic h w ill be h a n d le d as cash item s 3.05 Item s n o t receiv ed from s en d e r 3.10 Item s w h ich will n o t be h an d le d as cash item s 3.15 H an d lin g of n o n co n fo rm in g item s 3.20 D iscretion to re tu rn o r h an d le as n o n c a s h item s 3.25 Item s re ceiv ed from, p ay ab le by sam e b a n k Section 4, TERMS AND CONDITIONS OF COLLECTION 4.00 4.05 4.10 4.15 R egulation J Bulletins Item s pay ab le o u tsid e th is district In d ire ct ro u tin g discouraged Section 5, CASH LETTERS 5.00 P rep a ratio n of cash le tte rs by sen d e rs 5.05 S ep arate sorts, cash letters 5.10 E n d o rse m e n ts 5.15 Item s receiv ed w ith o u t e n d o rs e m e n t Section 6, HANDLING BY THIS BANK 6.00 P re s e n tm e n t for p a y m e n t 6.05 No ag reem en t to p re s e n t early 6.10 U niform in stru ctio n s regarding p ro te s t and advice o f n o n p ay m e n t 6.15 Item s w ith U.S. T re asu ry a n d sim ilar en d o rsem en ts 6.20 Different in s tru c tio n s requ ire n o n c a s h han d lin g 6.25 Protest, w ire advice by o th e r b an k s 6.30 C o m m u n ication s by w ire; costs a n d charges Section 7, AVAILABILITY OF CREDIT 7.00 T im e sch ed ules a n d availability of credit 7.05 A v ailability n o t actual p a y m e n t 7.10 Im m ed iate credit 7.15 D eferred credit 7.20 M ixed ca sh letters Section 8, COLLECTING AND PAYING BANKS Section 9, RETURN ITEMS 9.00 In fo rm atio n to sen d ers regarding re tu r n item s 9.05 R etu rn s w ith o u t en try Section 10, DIRECT SENDING 10.00 D irect sending of cash item s to o th er Federal R eserve bank s 10.05 Right to refu se in terd istrict item s au th o riz ed fo r direct sending 10.10 Direct sending of cash item s to o th er offices of this b a n k 10.15 Right to refu se in trad istrict item s au th o riz ed fo r direct sending 10.20 R eim b u rsem en t o f tra n s p o rta tio n costs for m em b e r b an k s 10.25 Claim s fo r re im b u rse m en t 10.30 M eth o d s of sh ip m ent Section 11, HIGH-SPEED PROCESSING 11.00 S tan d ard izatio n , sorting, routing, a n d m ech an ized processing 11.05 Right to encode, assu m p tio n of risk by sen d er 11.10 D esignation of paying b a n k o r n o n b a n k p ay o r 11.15 N on-m achinable item s Section 12, PHOTOGRAPHIC COPIES Supplem ent A, GOVERNMENT CHECKS A-1.00 A-2.00 A-3.00 A-4.00 T erm s of h an d lin g Im m ediate credit R etu rn s Claim s a n d actions Supplem ent B, POSTAL MONEY ORDERS B-1.00 T erm s of h an d ling B-2.00 Im m ed iate credit B-3.00 Claims, re tu rn s Supplem ent C, FOOD COUPONS C-1.00 G eneral C-2.00 T erm s an d conditions C-3.00 N o n m em b e r ban k s Supplem ent D, FOOD CERTIFICATES D-1.00 G eneral FEDERAL RESERVE BANK OF DALLAS Section 1, GENERAL T his bulletin is directed to the m em b er b an k s of the E lev en th Federal R eserve District and others co n c ern e d :1 1.00 Collection contract R egulation J, this bulletin, and ou r time sch ed ules p rescrib e the term s an d co n ditions upon w h ich w e will h an d le cash item s for collection. 1.05 Authority This bulletin, our Bulletin 11, an d o ur tim e sch e d ules Bulletin 10 are issu ed p u rs u a n t to the p ro visions of sections 4, 13, 14(e), an d 16 o f the F ederal R eserve A ct and the pro visio n s of re lated s tatu tes and in conform ity w ith th e p ro visions of R egulation J. Section 2, DEFINITIONS A N D REFERENCES 2.00 Definitions, reference to Regulation J All term s defined in R egulation } a n d u sed herein h av e the m eanings s ta te d in th a t regulation. 2.05 Reference to Bulletin 1 Several definitions, rules of co nstruction, and o th e r pro v ision s applicable to this bulletin are fo u n d in o u r Bulletin 1, G eneral P rovisions, an d are in co rp o rated h erein by reference. Section 3, C A SH ITEMS 3.00 Items w hich w ill be handled as cash items E xcept as oth erw ise p ro v id ed by this bulletin, the follow ing item s m ay be sen t to this b a n k for h an d lin g as cash item s in acco rd a n ce w ith a n d su b ject to the p rovisions of R egulation J, of this bulletin, and of o u r tim e schedules: (a) Checks d ra w n u p o n any b a n k inclu d ed in th e cu rren t “Federal R eserve P a r L ist” , w h ich ind icates the b an k s u p o n w h ich checks are col lectible a t p a r th ro u g h the F ed eral R eserve b an k s an d is fu rn ish e d from tim e to tim e a n d su p p le m en ted each m o n th to s h o w changes su b sequ en t to the la s t com plete list. ‘Instructions pertaining to the handling of cash items by collecting and paying banks are contained in our Bul letin 11, entitled "Instructions to Collecting Banks and Paying Banks.” BULLETIN 8 (b) G o v e rn m en t checks, p o stal m o n ey orders, food coupons, and food certificates.2 (c) Such o th er d em a n d items, collectible at p a r in fu n d s acceptable to the F ed eral R eserve b an k of th e d istrict3 in w h ich such item s are payable, as w e m ay be w illing to accep t as cash items. 3.05 Items not received from sender W h e n e v e r any in s tru m e n t is accep ted b y us for cred it to ou r o w n account, th e acco u n t of a n o th e r F ederal R eserve bank, o r any acco u nt on o u r books, w e will h an dle the in stru m en t as a cash item if it w o u ld h av e been a cash item b u t fo r th e fact th a t it w as n o t sen t to u s by a sender. 3.10 Items w hich w ill not be handled as cash item s This b an k will n o t h an d le any item as a cash item if (a) A p assbook, certificate, or an y o th e r d o cu m en t is a tta c h e d to th e item ; or (b) Special in stru ction s, including re q u ests for special advice o f p a y m e n t o r dishonor, accom p an y th e item ; or (c) T he item co n sists of m o re th an a single th ick n ess of paper, ex cep t as p ro v id ed in sec tion 12 of this bulletin; provided, h o w ever, th at any m utilated, erro n eou sly -enco d ed o r o th er cash item co n tain ed in a ca rrier qualifying u n d e r existing s ta n d a rd s fo r h an d lin g by high-speed check-processing eq u ip m en t w ill be h a n d le d by us as a cash item; or (d) E x cept as p ro v id ed in S ection 12 of this b u l letin, th e item h a s n o t b ee n p re p rin ted , or p o s t en coded b efore its receipt b y us, w ith th e ro u t ing sym bol and the suffix of the tran sit n u m b er of the paying b a n k (or n o n b a n k payor) in m ag n etic ink in E-13B type in the m a n n e r p rescribed, and at th e location assigned, by th e A.B.A.; pro vided, h o w ev er, th a t this b a n k will h an d le such item s as cash item s w h en, in o u r judgm ent, special circu m stan ces justify such handling. 'Provisions governing the collection of the foregoing cash items are contained in Supplements A, B, C, and D, respectively, of this bulletin. "For the purposes of this bulletin, the Virgin Islands and Puerto Rico shall be deemed to be in or of the Second Federal Reserve District; Guam and American Samoa shall be deemed to be in or of the Twelfth Federal Re serve District. See Regulation J, note 1. BULLETIN 8 FEDERAL RESERVE BANK OF DALLAS Such items, if s en t to this b a n k for collection, sho u ld be sen t only as n o n c a sh item s and, if so sent, will be receiv ed b y us for collection subject to all th e term s a n d conditions of R egulation J an d of o u r b u lletin relating to the collection of n o n ca sh items. 3.15 Handling of nonconforming items In th e ev e n t th a t an item w h ic h will n o t be h a n dled as a cash item by v irtu e of 3.10 o f Bulletin 8 is s en t to an y F ed eral R eserve b a n k in a cash letter, th e Federal R eserve b a n k will tre a t it as follows: (a) A n item of $1,000 or ov er received from a s en d e r lo cated o utsid e th e city of the receiving F ederal R eserve office will be charged b ac k and en te red for collection as a n o n c a s h item ; an d (b) A n y o th e r item will be charged b ac k and retu rn ed . 3.20 Discretion to return or handle as noncash item s W e reserv e th e right in o u r discretion, to re tu rn o r to h an d le as a n o n c a s h item any item w h ich h a s p revio u sly b ee n d ish o n o red o r if special co n ditions require th a t it be h a n d le d as a n o n c a sh item, and this b a n k shall decide w h e th e r such special co n ditions exist. 3.25 Items received from, payable by same bank A cash item pay ab le by o r th ro u g h one office of a b a n k will n o t be received from a n o th e r office of th e sam e b a n k fo r collection as eith er a cash o r a n o n ca sh item by us o r b y an y o th er F ederal R eserve bank. S ection s 4, TERMS A N D CONDITIONS OF COLLECTION 4.00 Regulation J R egulation J p re scrib es term s and conditions u n d e r w h ich all Federal R eserve b an k s w ill col lect checks a n d o th er ca sh item s for th e sen d ers thereof. Such term s an d conditions an d the term s and con d itio n s of this bulletin, o u r Bulle tin 11, an d of o u r tim e sch ed u les will ap ply to the h an d lin g of all ca sh item s w h ich w e accep t fo r collection th e re u n d e r a n d to the h an d lin g of all b a n k d ra fts a n d o th er fo rm s o f p a y m e n t or rem ittan ce w h ic h w e receive fo r such item s. 4.05 Bulletins S ection 210.3 o f Regulation J p ro v id es th a t the p rovisions of th a t regulation an d of the o p erat ing b u lletin s of the Federal R eserve b an k s shall be binding u p o n the send er of a cash item and shall be b inding u p o n each collecting bank, p a y ing b a n k a n d n o n b a n k p ay o r to w h ic h the Fed eral R eserve bank, or an y s u b seq u e n t collecting bank, p resen ts, sends, or fo rw ard s a cash item received by the F ederal R eserve bank. Section 210.16 of R egulation J pro v id es th a t each F ed eral R eserve b an k shall issue o p erating bulletins n o t in co n sisten t w ith the p ro visions of th a t reg u lation governing the details of its op eratio ns in th e h andling of cash item s and co ntaining such o th er m a tte rs as are req u ired by the p ro visions of th a t regulation. 4.10 Items payable outside this district A cash item pay ab le in an y o th er F ederal R e serve d istrict a n d fo rw a rd e d for collection to the F ederal R eserve b a n k of such o th er d istrict by us or s en t direct to such F ederal R eserve b an k fo r o u r acco u n t by a s en d e r w h ich m ain tain s or u ses an acco u n t w ith u s w ill be h a n d le d by such F ederal R eserve b a n k subject to th e term s an d conditions of R egulation J an d of the applicable bulletins and tim e sch edules of such F ederal R eserve b an k ; b u t w e will give credit to the s en d e r fo r such item in acco rd an ce w ith our tim e schedules. 4.15 Indirect routing discouraged U nd er S ection 4-204(1] of the U niform C om m er cial Code, a collecting b a n k m u st sen d item s by reason ab le p ro m p t m ethods, taking into co n sid eration any re le v an t instruction, the n a tu re of the items, the n u m b er of su ch item s on hand , the cost of collection involved, an d the m eth o d s generally u sed by it or o th ers to p re se n t such item s. In fu rth e ra n c e of the p u rp o se of this re q uirem ent, an d in the in tere sts of good banking, th e in d irec t rou tin g of cash item s is discouraged, a n d m em b er b an k s should n o t sen d to us or to o th er Federal R eserve b an k s fo r our acco u n t any item s pay ab le in o th er Federal R eserve districts w h ich b ea r the en d o rsem en ts of b an k s located in o th e r F ed eral R eserve districts, in cases w h e re it is ev id en t th a t su ch item s h av e been ro u te d indirectly. Section 5, CASH LETTERS 5.00 Preparation o f cash letters by senders FEDERAL RESERVE BANK OF DALLAS All cash item s sen t to us, or to a n o th e r F ed eral R eserve b a n k direct fo r o u r account, m ay be listed w ith o u t d escription. H ow ever, each s e n d er should b e a r in m in d th e im p o rtan ce of m ain taining ad e q u ate reco rd s to enable it to identify its d ep o sito rs or o th e r e n d o rs e rs on such items, so that, in th e ev en t an y su ch item is lost o r d e stro y ed w hile in tra n s it to a Federal R eserve bank, or is th e re a fte r lost or destroyed, the s en d e r m ay be in a p o sito n to tak e ap p ro p riate action w ith re sp ect to th e item. All cash letters a n d tap e listings acco m p an y ing such cash letters should be d ate d and identified w ith th e nam e a n d the A.B.A. tra n s it n um ber, if any, of the sender. 5.05 Separate sorts, cash letters W e re serv e th e right to req u ire such sep arate so rts of cash item s as w e m ay deem ap pro p riate; a n d w e reserv e the right to require b o th sep arate so rts a n d dep o sits in s ep a rate cash letters of G o v e rn m en t checks, p o stal m o n ey orders, food coupons, and food certificates. O th er in s tru c tions relative to sorting an d listing of cash item s are set fo rth in our tim e schedules. 5.10 Endorsements All cash item s s en t to us, or to an o th e r F ederal R eserve b an k direct fo r o u r account, sh o u ld be e n d o rsed w ith o u t restric tio n to, or to the o rd er of, the F ed eral R eserve b a n k to w h ich sent, or e n d o rse d to, o r to the o rd e r of, any bank, banker, or tru st com pany, or e n d o rsed w ith eq u iv alen t w o rd s or ab b rev iatio n s thereof. The e n d o rs e m e n t of th e s en d e r should be d a te d an d should sh o w the A.B.A. tra n s it n u m b e r of th e sender, if any, in p ro m in e n t type on b o th sides of th e e n d o rsem ent. 5.15 Items received w ithout endorsem ent In the ev en t a cash item is received b y a F ederal R eserve b a n k from a s e n d e r w ith o u t the e n d o rse m e n t th ereo n of such sender, th e Federal R eserve b a n k m ay p resen t, send, or fo rw ard the item as if it bore su ch e n d o rsem en t or place on the item the n a m e of su ch s e n d e r a n d th e date of its receip t by th e F ed eral R eserve bank, or re tu rn the item to the s en d e r for p ro p e r e n d o rs e m en t by th e sender. This b a n k m ak es the w a r ran ties stated in S ection 210.6(b) of R egulation J by presenting, sending, o r fo rw ard in g a cash item. T hese w a rra n tie s arise w h e th e r or n o t such item b ears th e e n d o rs e m e n t of this bank. BULLETIN 8 Section 6, HANDLING BY THIS BANK 6.00 Presentment for payment As co n tem p lated by Section 210.7 of R egulation J, any cash item m ay be p re se n te d fo r p ay m e n t by a F ed eral R eserve b an k or a s u b seq u e n t col lecting bank, m ay be sen t by a F ederal R eserve b an k or a s u b seq u e n t collecting b a n k for p re s e n tm e n t an d p aym ent, or m ay be fo rw a rd e d by a Federal R eserve b a n k to a su b se q u e n t collect ing b an k w ith au th o rity to p re se n t it for p a y m en t o r to send it for p re s e n tm e n t and paym ent. H ow ever, this b a n k and the o th er F ederal Re serve b an k s reserv e the right to re tu rn w ith o u t p re sen tm en t any cash item pay ab le by or thro u g h a b an k w h ic h is no t on the “Federal R eserve P a r List” o r m ay h av e been re p o rted closed. 6.05 No agreement to present early W e do n o t by this bulletin, or otherw ise, agree to p re s e n t any item, o r to cause any item to be p re sen ted , earlier th a n such item is re q u ired to be p re sen ted , in the exercise of o rd in ary care, u n d e r the p rovisions of applicable S tate law. 6.10 Uniform instructions regarding protest and advice o f nonpayment E xcept as p ro v id ed in 6.15 of Bulletin 8, all Federal R eserve b an k s will receive, handle, an d fo rw a rd cash item s su b ject to th e follow ing u n i form in stru ctio n s regard in g p ro te s t a n d w ire advice4 of n o n p ay m en t, ex cep t th a t G o v ern m en t checks will be n o t p ro teste d ; an d any co n trary or special in stru ctio n s n o te d on cash letters or o th erw ise tran sm itte d w ith cash item s will be d isregarded: (a) P R O T E S T any d ish o n o red item of $1,000 or over: (i) w h ich ap p e ars on its face to h av e been d ra w n at a p lace w h ic h is n o t w ith in any S ta te 5, u n less it b ea rs on its face the A.B.A. n o -p ro te st sym bol of a F ed eral R eserve b a n k or of a preceding bank endorser, or ‘For the purposes of this bulletin, the term “wire” in cludes telephone, telegraph, and cable. EThe term “State” is defined in Section 210.2(n) of Regu lation J to mean any State of the United States, the Dis trict of Columbia, or Puerto Rico, or any territory, pos session or dependency of the United States. FEDERAL RESERVE BANK OF DALLAS (ii) w h ic h b ea rs on its face th e legend, “ PRO TE ST REQUIRED", of a F ed eral R eserve b an k o r of a p reced ing b a n k endorser. (b) DO N O T PRO TEST: (i) an y item of less th a n $1,000, or (ii) an y item of $1,000 o r ov er u n less it is protestab le u n d e r su b p arag ra p h (a). (c) W IRE ADVICE of n o n p a y m e n t of any item of $1,000 or over, u n less it h as n o t been paid b ec au se o f a missing, irregular, or u n satisfac to ry e n d o rsem en t o r u n less it b ea rs on its face the legend, “ DO N O T W IRE N O N PA Y M EN T” , of a F ed eral R eserve b an k or of a preced ing ban k end o rser. Include in th e advice of n o n p ay m en t, the a m o u n t of th e item, th e re aso n fo r n o n -p a y m ent, th e date of our cash letter, the n am e of the d ra w e r or m aker, a n d th e n am e s of th e tw o e n d o rse rs im m ed iately p reced in g th e Federal R e serve b a n k or th eir A.B.A. tran sit n u m b ers, if any. (d) DO N O T W IRE ADVICE of n o n p a y m e n t of: (i) any item of less th an $ l,000,or (ii) any item of $1,000 o r o v er u nless such a d vice is req uired by su b p arag ra p h (c). 6.15 Items w ith U.S. Treasury and similar en dorsem ents DO N O T PRO TEST AND DO NOT W IRE A D VICE of n o n p a y m e n t of an y cash item, re g ard less of am ount, en d o rse d b y th e T re a s u re r of the U n ited States, or e n d o rse d fo r credit to the T re a s u re r of the U n ited States, o r b earin g on its face o r in an e n d o rs e m e n t the legend “This check is in p a y m e n t of an obligation to the U n ited S ta tes an d m u st b e p aid a t par. N.P. Do n o t w ire n o n p a y m e n t” o r w o rd s of sim ilar im port. 6.20Different instructions require noncash han dling If an y s en d e r desires to h av e any cash item (o ther th an a G o v e rn m en t check, p o stal m o n ey order, food coupon or food certificate) h an d le d by us o r by an y o th er Federal R eserve b an k u n d e r an y in stru ctio n s differing from the u niform in stru ctio n s given above, it will be n ec essary for su ch s e n d e r to fo rw a rd su ch item as an in d iv id u al no n ca sh item, w ith th e in stru ctio n s n o ted in the le tte r of tran sm ittal, for collection an d credit w h e n paid, in acco rd a n ce w ith th e term s of our BULLETIN 8 cu rren t bu lletin relating to the collection o f n o n cash items. 6.25 Protest, w ire advice by other banks This b a n k shall h av e no responsibility for d e term ining w h e th e r an y o th er b a n k h as (a) m ad e o r p ro v id ed for the p ro te s t of any cash item p ro testa b le u n d e r the p ro visions of this bulletin o r (b) given any w ire advice of n o n p ay m e n t re q uired u n d e r the provisions hereof. 6.30 Communications by wire; costs and charges All co m m unications b e tw e e n this b a n k and its m em b er b an k s p ertain in g to paym ent, n o n p a y m ent, or tracing on cash item s or in connection w ith receiving or tran sm ittin g p ertin e n t in fo r m ation or instru ctio n s w ith re sp ect to cash items, will be sent over the F ederal R eserve C om m unications S ystem o r ov er com m ercial telegraphic w ires or cables w ith o u t charge to such m em b er banks. A F ederal R eserve Bank m ay, in its discretion, use the telep h o ne in lieu of com m ercial w ire or cable fo r any p urp o se indicated in this paragraph. S ection 7, AVAILABILITY OF CREDIT 7.00 Time schedules and availability of credit S ection 210.16 of R egulation J p ro v id es th a t the F ederal R eserve b an k s m ay classify cash items, require sep arate sorts and cash letters, an d p ro vide different closing times for th e receipt of different classes or ty p es of cash items. In co n fo rm ity w ith th a t provision, w e p ub lish and fu r n ish to m em b er b an k s an d o th er sen d ers time sched u les containing fu rth e r provisions w ith re gard to s ep a rate sorts and cash letters and w h ich indicate w h e n credit for cash item s w ill becom e available fo r w ith d ra w a l and o th e r use by the sen d ers afte r receip t by us. For all item s ac cep ted as cash items, th e sen d ers will be given im m ediate credit or d eferred credit, in acco r dance w ith such time schedules and as provided in R egulation J. C redit fo r cash letters containing item s u n s o rte d as to availability m ay be deferred for the longest p eriod of availability prescrib ed by the c u rre n t time schedules of this b a n k w ith re sp ect to an y item enclosed. 7.05 A vailability not actual payment Tim e sch edu les do n o t in m an y in stan ces s h o w BULLETIN 8 FEDERAL RESERVE BANK OF DALLAS of this bulletin, an d of our time sch ed u les shall b e applicable to all such p o stal m o n ey orders. S ecretary o f th e T reasu ry . W ith re sp ect to m a t ters n o t co v ered by such agreem ent, th e term s a n d conditions of R egulation J applicable to cash items, of this bulletin, a n d of ou r time schedules shall be applicable to su ch coupons. W e will re ceive food co upons only from m em b e r b an k s an d n o n m em b er b an k s w h ich have arran g ed w ith us to send co upons to us for collection for credit to the acco u n t of a m em ber b an k on o u r books. All su ch b an k s sending co u pons to us should follow th e in stru ctio n s set fo rth in an outline of p ro c ed u re s for com m ercial b an k s in h an d lin g such coupons u n d e r the cu rren t Food S tam p Program , p re p a re d b y th e U n ited S tates D e p artm en t of A griculture. B-2.00 Immediate credit W e w ill give im m ed iate cred it fo r p o stal m oney o rd ers receiv ed from a s e n d e r m ain tain in g or usin g an acco u n t w ith u s a s p ro v id ed in our tim e schedules. S im u ltan eo u sly w ith su ch credit, w e will deb it th e a m o u n t of such m o n ey o rd ers against the general acco u n t o f th e T re a s u re r of the U n ited S tates u n d e r such sym bol n u m b ers as m ay be assigned b y the T re a s u re r of the U n ited S tates; a n d such cred it to th e acco u n t of the s en d e r shall th en becom e final as b etw e en us an d the sender. C-2.00 Terms and conditions B-3.00 Claims, returns • W e w ill accept food coupons received by us in ac co rdan ce w ith the follow ing term s and c o n d i tions: T he ag reem en t b e tw e e n th e P o stm a ste r G eneral a n d th e F ed eral R eserve b a n k s provides, in effect, th at no claim for re fu n d or o therw ise w ith re sp ect to an y p o stal m o n ey o rd e r d ebited against th e general acco u n t of th e T re a s u re r of th e U n ited S ta tes a n d delivered to the re p re sen tativ e of the U nited S tates Postal Service as p ro v id ed in said agreem ent (other th a n a claim b a se d u p o n the negligence of a F ed eral Reserve bank) shall be m ad e ag ain st o r th ro u g h any Federal R eserve b ank; that, if th e U n ited S tates Postal Service m ak es any such claim w ith resp ect to an y such m oney o rd er such m o n ey o rd e r will not be r e tu rn e d o r sent to a F ederal R eserve bank, bu t the U nited S tates Postal Service will deal directly w ith th e b a n k or th e p a r ty against w h ich such claim is m ade; a n d th a t the Federal R eserve ban k s will assist the U nited S tates Postal Service in assertin g such claim, including m ak in g th eir re co rd s an d a n y re le v an t evidence in th eir p o s session available to the United S tates Postal Service. Section 210.12 of Regulation J, relating to the re tu rn of cash item s b y the paying b an k s is n o t applicable to p ostal m o n ey orders. (a) R ed eem ed food coupons should be fo rw a rd e d to the office of this b a n k m aintaining the reserv e acco u n t to w h ich th e proceed s of the coupons are to be credited. W e will give im m ediate credit fo r deposits of re d eem e d food coupons as p ro v ided in o u r tim e schedules. Such credit will n o t be final an d will be su b ject to reclam ation a n d ad ju stm en t. (b) F ood coupons should be sep arately so rted b y d eno m inatio n s and should be dep o sited in a s ep a rate cash letter. T he sending b a n k ’s tra n s m ittal letter should be clearly stam p ed o r m ark e d “F O O D C O U P O N S . ” T h e t r a n s m i t t a l l e t t e r sh o u ld s h o w the total n u m b er of, an d the total a m o u n t of, each d en o m in atio n of coupons e n closed. Food coupons should be fo rw a rd e d to us by the m ean s ord in arily u sed by the s en d e r for checks an d o th er cash item s; such sh ipm en ts will be at the risk of the D e p artm en t of A gricul ture, only to the e x te n t an d u n d e r the conditions stated in 7CFR 272.5(c). S ending b an k s should re ta in cu s to m e rs ’ d ep o sit slips a n d any o th e r p e r tin e n t reco rd s w h ic h w o u ld assist in s u b s ta n tiating re im b u rse m e n t claim s against the D e p a rt m en t of A g riculture fo r cou pons lost in transit. Supplem ent C FOOD COUPONS C-1.00 General (c) In acco rd a n ce w ith th e reg u lations of th e U n ited S tates D e p artm en t of A g riculture (7 CFR 2), a p o rtio n of a food co upon consisting of less th a n three-fifths of a w h o le co upon shall n o t be ac cep te d fo r red em p tio n . A n y coupon a c cep te d fo r re d em p tio n shall s h o w on its back e ith er (i) the A U T H O R I Z A T I O N N U M B E R or Food co upons will be h an d le d by us as cash item s in ac co rd an ce w ith an ag reem en t m ad e b y the S ecretary of A griculture, in b eh alf of the U nited States, an d by th e F ederal R eserve b an k s as d ep o sito ries a n d fiscal agents o f the U n ited S ta tes p u rs u a n t to au th o riz atio n of the 4-1-72 9 BULLETIN 8 FEDERAL RESERVE BANK OF DALLAS (ii) th e nam e of the au th o riz ed retail food store and, if involved, the au th o rized w h o lesale food concern. Each coupon shall also be cancelled by th e first b a n k w h ic h receives it by indelibly m ark in g “P A ID ” or “CAN CE LLED ,” together w ith th e nam e of th e b a n k or its A.B.A. tran sit n um ber, on the face of the coupon by m ean s of an ap p ro p riate stam p. No coupon should be en d o rsed b y any bank. fo r credit to an acco u n t of a m em b er b a n k on our b o o k s sh o u ld fo rw a rd red eem ed fo o d coupons th ro u g h o rd in ary collection channels. (d) A d d itio n al in fo rm a tio n co n cern in g th e col lection of food coupons w ill be fu rn ish e d by us u p o n re q u est Food certificates will be h an d le d by us on the sam e b asis as food coupons. S en d ers should co n sult 7C FR 26 5 .1 1 (b) fo r in fo rm atio n regarding the ex te n t to w hich, and the conditions u n d e r w hich, the D ep artm en t of A griculture assu m es th e risk of loss of certificates w hile in the course of shipm ent. Supplem ent D FOOD CERTIFICATES D-1.00 General C-3.00 Nonm em ber banks N o n m em b e r b a n k s w h ic h h av e n o t arran g ed w ith us to d ep o sit food co u p o n s for collection 10 4-1-72
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