Full text of District Notices (Federal Reserve Bank of Dallas) : Collection of Items Requiring Special Handling as Noncash Items, Amendments to Regulation G and Bulletins Nos. 8 and 9, Effective January 1, 1964

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F ed er a l Res er v e Ba n k
OF DALLAS

Dallas, Texas, December 2, 1963
COLLECTION OF ITEMS REQUIRING SPECIAL HANDLING AS NONCASH ITEMS
Amendments to Regulation G and Bulletins
Nos. 8 and 9, Effective January 1, 1964
To All Member and Nonmember Banks in the
Eleventh Federal Reserve District:
In a circular letter dated March 1, 1963, we informed you that, effective January 1, 1964, checks,
drafts, or similar instruments that cannot be handled by the Federal Reserve office to which they are
to be first sent in a manner in which such office customarily handles cash items, will be considered
by such Federal Reserve office to be items requiring special handling and must be sent to such
Federal Reserve office as noncash items. (Items requiring special handling are those that cannot be
processed in the customary manner through the low-speed proof machine equipment in use at
Federal Reserve offices.) We further informed you that, on and after the effective date, all such
items which should have been sent as noncash items, but which were sent as cash items, will be
handled by the receiving Federal Reserve office as follows:
(a) Items of less than $1,000 received from banks located outside the city of the receiving
Federal Reserve office will be charged back and returned;
(b) Items of $1,000 or more received from banks located outside the city of the receiving
Federal Reserve office will be charged back and entered for collection as noncash items;
and
(c) Items received from banks located in the same city as the receiving Federal Reserve
office, regardless of amount, will be charged back and returned.
We pointed out that this action was in furtherance of efforts by The American Bankers
Association, individual commercial banks, and the Federal Reserve System to eliminate “headache”
items from the check collection system, and that it is contemplated that as an increasing volume
of items is processed by Federal Reserve offices on high-speed document-handling equipment,
additional instructions with respect to the forwarding of “headache” items, including all envelope
drafts and checks with vouchers attached, may be issued. We also pointed out that changes imple­
menting the action were being made in Regulation G of the Board of Governors of the Federal
Reserve System and in this bank’s Bulletins Nos. 8 and 9, all effective January 1, 1964.
Copies of these amendments to the regulation and bulletins are enclosed, and we shall appre­
ciate your acknowledging receipt of them by signing and returning the attached postal card.
Member banks are requested to file the amendments in the ring binder of regulations of the Board
of Governors and bulletins of this bank. Nonmember banks are asked to place them in the red
binder containing emergency bulletins of this bank.
We again request your cooperation in eliminating items requiring special handling from
entering the check collection system.
Yours very truly,
Watrous H. Irons

President

Enclosures (4)
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

COLLECTION OF NONCASH ITEMS
AMENDMENT TO REGULATION G
(12 CFR Part 207)
I ssued by t h e B oard of G overnors of t h e F ederal R eserve S y s t e m

Effective January 1, 1964, paragraphs (d) through (f) of Section
207.1 are redesignated as paragraphs (e) through (g), respectively, and
the following new paragraph (d) is added:
SECTION 207.1 - DEFINITION OF NONCASH ITEMS
* * * * * *
(d) C hecks, drafts, and other items with special instructions
or requiring special handling.

A m endm ent No. 1
Effective January 1, 1964
to
B ulletin No. 8
dated August 7, 1961

FEDERAL RESERVE BANK
OF DALLAS

COLLECTION OF CASH ITEMS

To the Member and Nonmember Clearing Banks
of the Eleventh Federal Reserve District:
Effective January 1, 1964, paragraph 4 of this bank’s Bulletin No. 8,
dated August 7, 1961, is hereby amended to read as follows:
4. Items with passbook, certificate or any other document attached,
and items with special instructions or requiring special handling must
be sent to us as noncash collections, subject to the terms of our cur­
rent bulletin relating to the collection of noncash items. We reserve
the right to return or to handle as a noncash collection any item which
lias been previously dishonored.
Yours very truly,
Watrous H. Irons

(December 2; 1963)

President

A m endm ent No. 1
Effective January 1, 1964
to
B ulletin No. 9
dated A pril 1, 1962

FEDERAL RESERVE BANK
OF DALLAS

COLLECTION OF NONCASH ITEMS

To the Member and Nonmember Clearing Banks
of the Eleventh Federal Reserve District:
Effective January 1, 1964, paragraph 1 of this bank’s Bulletin No. 9,
dated April 1, 1962, is hereby amended by inserting the following new subparagraph (4) therein and renumbering the present subparagraphs (4), (S),
and (6) as (5), (6), and (7) :
(4) Checks, drafts, and other items with special instructions or requiring
special handling.
Yours very truly,
Watrous H. Irons

(December 2, 1963)

President