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F ederal r eser ve b a n k o f Dallas DALLAS, TEXAS 75222 Circular No. 72-127 June 27, 1972 COLLECTION OF NONCASH ITEMS To All Member Banks in the Eleventh Federal Reserve District: Enclosed is a copy of Bulletin 9? "Collection of Noncash Items". This bulletin supersedes and is to be substituted for the current 'bulletin in your binder. The enclosed bulletin has been reprinted in the new style and format which have been developed for the bulletins of this bank. Only minor changes have been made, such as insertion of titles for each paragraph, rearrangement of some material and editing. Additional copies of this circular letter and the revised bulletin will be furnished upon request. Yours very truly, P. E. Coldwell President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 9 Collection of Noncash Items FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin contains the terms and conditions under w hich we will handle noncash items for collection. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS TABLE OF CONTENTS Section 1, GENERAL 1.00 Collection contract 1.05 A uthority Section 2, DEFINITIONS A N D R E F E R E N C E S 2.00 Definitions, reference to Regulation J 2.05 Reference to Bulletin 1 Section 3, NONCASH ITEMS 3.00 Items which will be handled as noncash items 3.05 Time items 3.10 Demand items 3.15 Other demand items 3.20 Items not received from sender 3.25 Items w hich will not be handled as noncash items 3.30 Unm atured time items Section 4, DIRECT SENDING 4.00 Direct sending of noncash items to other Federal Reserve districts 4.05 Right to refuse interdistrict items authorized for direct sending 4.10 Direct sending of noncash items to other offices of this bank 4.15 Right to refuse intradistrict items authorized for direct sending Section 5, TERMS AND CONDITIONS OF COLLECTION 5.00 5.05 5.10 5.15 5.20 Regulation J Bulletins Items payable outside this district Right to classify and require deposits Effect of special instruction Section 6, HANDLING BY THIS BANK 6.00 6.05 6.10 6.15 6.20 Presentm ent for paym ent Procedure Time items and m aturity date Endorsem ents Items w ithout endorsem ent Section 7, COLLECTION LETTERS 7.00 Preparation of collection letters by sender 7.05 Special instructions 7.10 Direct sending urged 7.15 Coupons 7.20 Coupon ownership certificates 7.25 O ther securities Section 8, PROTEST AND ADVICE OF NONPAYMENT 8.00 Uniform instructions 8.05 Items w ith U.S. Treasury and similar endorsem ents 8.10 Responsibility for protest 8.15 Determination of responsibility 8.20 Communications by wire; costs and charges 8.25 Interpretation of term s requesting wire advice Section 9, AVAILABILITY OF PROCEEDS OF NONCASH ITEMS 9.00 Generally 9.05 Bankers’ acceptances and certificates of deposit Section 10, COLLECTION CHARGES 10.00 Generally 10.05 Charges by collecting or paying banks 10.10 Charges by Federal Reserve banks Section 11, RETURN OF NO NCASH ITEMS 11.00 Generally 11.05 Noncash items to be presented for acceptance 11.10 Effect of section 11.05 Section 12, PHOTOGRAPHIC COPIES 12.00 Requirements for handling 12.05 Requirements for handling cash items as noncash items APPENDIX A, Paym ent Vouchers on Letters of Credit A-1.00 A-2.00 A-3.00 A-4.00 Handled as noncash item Effectuation of paym ent Nonpaym ent Claims for refund APPENDIX B, Coupons R eceived for Payment B-1.00 B-2.00 B-3.00 B-4.00 B-5.00 General Procedure Ownership certificate forms Coupons not handled Immediate credit FEDERAL RESERVE BANK OF DALLAS S ection 1, GENERAL This bulletin is directed to the m em ber banks of the Eleventh Federal Reserve District and others concerned: 1.00 Collection contract Regulation J and this bulletin prescribe the terms and conditions upon which we will handle noncash items for collection. 1.05 Authority This bulletin is issued pursuant to the provisions of sections 4, 13, 14(e), and 16 of the Federal Reserve Act and the provisions of related statutes and in conformity w ith the provisions of Regulation J. Section 2, DEFINITIONS A N D REFERENCES 2.00 Definitions, reference to Regulation J All terms defined in Regulation J and used herein have the meanings stated in that regulation. 2.05 Reference to Bulletin 1 Several definitions and rules of construction, and other provisions applicable to this bulletin are found in our Bulletin 1, General Provisions, and are incorporated herein by reference. Section 3, N O N C A SH ITEMS 3.00 Items w hich w ill be handled as noncash item s Except as otherwise provided by this bulletin, we will receive for handling as noncash items in accordance with and subject to Regulation J and this bulletin, the items set out in this section 3 w hich are payable in any Federal Reserve district.1 3.05 Time item s We will handle as noncash items any evidence of indebtedness or order to pay which is not payable on demand and w hich we may be will ing to accept as a noncash item, including but not limited to: ’For the purposes of this bulletin, the Virgin Islands and Puerto Rico shall be deem ed to be in or of the Second Federal Reserve District; Guam and American Samoa shall be deem ed to be in or of the Twelfth Federal Reserve District. See Regulation J, note 1. BULLETIN 9 (a) M aturing notes, acceptances, bankers’ ac ceptances and certificates of deposits. (b) M aturing bonds, debentures, coupons, and other similar securities (other than obligations of the United States and its agencies or instru mentalities and of certain international organi zations).2 3.10 Demand item s W e will handle as noncash items any check collectible at par or other dem and item which would ordinarily be handled as a cash item (a) If a passbook, certificate, or other document is attached to the item; or (b) If special instructions, including requests for special advice of paym ent or dishonor, ac company the item; or special conditions require that the item not be handled as a cash item, and we will decide w hether such special conditions exist; or (c) If the item consists of more than a single thickness of paper, except as provided in sec tions 12.00 and 12.05 of this bulletin; provided, h o w e v e r , t h a t an y m u tila te d , e rro n e o u s ly encoded or other item contained in a carrier qualifying under existing standards for handling by high-speed check-processing equipment will be handled by us as a cash item; or (d) If the item has not been preprinted, or post encoded before its receipt by us, w ith the routing symbol and the suffix of the transit num ber of the paying bank (or nonbank payor) in magnetic ink in E-13B type in the m anner prescribed, and at the location assigned by the A.B.A.; pro vided, however, that we will handle such items as cash items when, in our judgment, special circumstances justify such handling. 3.15 Other demand item s We will handle as noncash items any other dem and item w hich is not collectible as a cash item, including, but not limited to:3 O b ligation s, including coupons of the United States and its agencies or instrum entalities, w hen received by us for collection, are paid by us as fiscal agent of the U nited States or of the agency or instrumentality. Pro visions governing the paym ent of such coupons are con tained A ppendix B of this bulletin. ^Provisions governing the collection of paym ent vouchers on letters of credit for Government grants and contri butions are contained in A ppendix A of this bulletin. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS (i) Drafts not payable by or through a bank. (ii) Bills of exchange and drafts w ith securities, bills of lading, or other documents attached. (iii) Drafts and orders on savings deposits w ith passbooks attached. 3.20 Items not received from sender W henever any instrum ent is accepted by us for credit to our own account, the account of another Federal Reserve bank, or any account on our books, we will handle the instrum ent as a noncash item if it would have been a noncash item but for the fact that it w as not sent to us by a sender. 3.25 Items w hich w ill not be handled as noncash item s This bank will not handle as a noncash item any item described in sections 3.00 through 3.15 of this bulletin if (a) The item is not a check and is payable in the same community in which an office of the sender is located; or (b) The item is payable by or through one office of the sender and has been received from another office of the same sender; or (c) The item is a Government check, postal money order, (United States postal m oney order, United States international postal m oney order, dom estic-international postal m oney order), food coupon, or food certificate; or (d) The item is a check and cannot be collected at par; or (e) The item has previously been dishonored more than twice; or (f) The item is a bill of exchange or draft, has attached thereto stock certificates or other docu m ents (except evidences of indebtedness) repre senting a right in or to stocks, and is not payable by, at, or through a bank. Senders which m aintain or use accounts w ith us are authorized to send, for our account, non cash items payable in other Federal Reserve districts direct to the Federal Reserve banks and branches of the districts in which the items are payable. Since direct sending of such items expedites handling by Federal Reserve offices and is of advantage to senders, senders are urged to send such items direct whenever feasible. 4.05 Right to refuse interdistrict item s authorized for direct sending We reserve the right to require any sender which maintains or uses an account w ith us and which has a substantial volume of noncash items pay able in any other Federal Reserve district to send such items direct to the Federal Reserve bank of the district in which the items are pay able; and we will not accept such items from such sender. 4.10 Direct sending of noncash item s to other offices of this bank Member and nonm em ber clearing banks and other senders maintaining or using accounts with one office of this bank are authorized to send noncash items payable in the territory of any other office of this bank direct to such other office. Since direct sending of such items ex pedites handling by Federal Reserve offices and is of advantage to senders, senders are urged to send such items direct whenever feasible. 4.15 Right to refuse intradistrict item s authorized for direct sending This bank reserves the right to require any sender which m aintains or uses an account w ith one office of this bank and w hich has a sub stantial volume of noncash items payable in the territory of any other office of this bank to send such items direct to such other office; and we will not accept such items from such sender. 3.30 Unmatured time item s Section 5, TERMS A N D CONDITIONS OF COLLECTION Except as provided in section 11.10 hereof, time items will not be handled by this bank more than 30 days prior to their maturity. 5.00 Regulation J S ection 4, DIRECT SENDING 4.00 Direct sending of noncash item s to other Federal Reserve districts Regulation J prescribes terms and conditions under w hich all Federal Reserve banks will collect noncash items for the senders thereof. Such terms and conditions and the terms and conditions of this bulletin will apply to the FEDERAL RESERVE BANK OF DALLAS BULLETIN 9 handling of all noncash items which we accept for collection. The terms and conditions of Regulation J and of our Bulletin No. 8 will apply to the handling of bank drafts and other forms of paym ent or rem ittance which we receive for such items and elect to handle as cash items; and the terms and conditions of Regulation J and of this bulletin will apply to the handling of bank drafts and other forms of paym ent or remittance which we receive for such items and elect to handle as noncash items the following instruction: “Do not hold after m aturity or for convenience of payer” ; any contrary instruction in the collection letter or otherwise will be disregarded; and we reserve the right, w ithout prior notice to the sender, to recall any noncash item and return it to the sender w henever in our judgment such item is being held contrary to such instruction. 5.05 Bulletins 6.00 Presentment for paym ent Section 210.3 of Regulation J provides that the provisions of that regulation and of the operating bulletins of the Federal Reserve banks shall be binding upon the sender of a noncash item and shall be binding upon each collecting bank, pay ing bank and nonbank payor to w hich the Federal Reserve bank, or any subsequent col lecting bank, presents, sends, or forw ards a non cash item received by the Federal Reserve bank. Section 210.16 of Regulation J provides that each Federal Reserve bank shall issue operating bulletins not inconsistent with the provisions of that regulation governing the details of its opera tions in the handling of noncash items and con taining such other m atters as are required by the provisions of that regulation. In the absence of specific instructions to the contrary, we or any subsequent collecting bank may present to the paying bank (or nonbank payor) for payment, or send for presentm ent to the paying bank (or nonbank payor) for payment, any bond, coupon, debenture, or other similar security w ith the understanding that paym ent m ay be deferred w ithout dishonor pending reasonable examination to determine w hether the security is properly payable, but that pay m ent shall be m ade or the security returned in any event before the close of the paying bank’s (or nonbank payor’s) business day next follow ing the day of m aturity or presentment, w hich ever is later. 5.10 Items payable outside this district A noncash item payable in any other Federal Reserve district and forw arded for collection to the Federal Reserve bank of such other district by us or sent direct to such Federal Reserve bank for our account by a sender w hich m ain tains or uses an account w ith us will be handled by such Federal Reserve bank subject to the terms and conditions of Regulation J and of the applicable operating bulletins of such Federal Reserve bank; but we will give credit to the sender for such item in accordance w ith this bulletin. 5.15 Right to classify and require deposits We reserve the right to classify noncash items and to require deposits in separate collection letters of such noncash items as we m ay deem appropriate. 5.20 Effect o f special instruction Except as provided in paragragh 16 of this bulle tin, we will handle all noncash items subject to Section 6, HANDLING BY THIS BANK 6.05 Procedure As contem plated by section 210.7 of Regulation J, any noncash item may be presented for pay m ent by a Federal Reserve bank or a subsequent collecting bank, m ay be sent by a Federal Reserve bank or a subsequent collecting bank for presentm ent and payment, or may be for w arded by a Federal Reserve bank to a subse quent collecting bank w ith authority to present it for paym ent or to send it for presentm ent and payment. 6.10 Time item s and maturity date Neither we nor any subsequent collecting bank undertake to present noncash items w hich are time items on the m aturity date unless such items are. received by us sufficiently in advance of the m aturity date to perm it timely present m ent by us to the paying bank (or nonbank payor) or forw arding to the subsequent collect ing bank for such presentment, utilizing the means which we normally utilize for that purpose. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS 6.15 E ndoisem ents 7.05 Special instructions All noncash items other than bonds, coupons, debentures, and other similar securities sent to us, or to another Federal Reserve bank direct for our account, should be endorsed w ithout restriction to, or to the order of, the Federal Reserve bank to w hich sent, or endorsed to, or to the order of, any bank, banker, or trust company, or endorsed w ith equivalent w ords or abbreviations thereof. The endorsem ent of the sender should be dated and should show the A.B.A. transit num ber of the sender, if any, in prom inent type on both sides of the endorse ment. Any special instructions as to handling, includ ing instructions as to protest and advice of pay m ent or nonpayment, should be incorporated in the collection letter. Except as otherwise pro vided in sections 8.00 and 8.05 of this bulletin, special instructions noted on or attached to the noncash items themselves and not supported by like instructions in the collection letter will be disregarded. S.20 Items w ithout endorsem ent In the event a noncash item other than a bond, coupon, debenture, or other similar security is received by a Federal Reserve bank from a sender w ithout the endorsem ent thereon of such sender, the Federal Reserve bank may present, send, or forw ard the item as if it bore such endorsement, or place on the item the name of such sender and the date of its receipt by the Federal Reserve bank, or return the item to the sender for proper endorsem ent by the sender. We make the w arranties stated in sec tion 210.6(b) of Regulation J by presenting, send ing, o r fo rw a r d in g a n o n c a s h ite m or an instrum ent which it handles as a noncash item pursuant to section 3.20 of this bulletin. These w arranties arise w hether or not such item bears our endorsement. Section 7, COLLECTION LETTERS 7.00 Preparation of collection letters by sender Except as provided in sections 7.15 and 7.25 of this bulletin, noncash items forw arded for col lection and credit w hen paid should be trans m itted w ith a separate collection letter different in form from that in which cash items are listed. The accompanying collection letter should in clude the collection num ber assigned to the item by the sender; a description of the item; the name of the paying bank or nonbank payor of the item; the place of payment, the maturity, and the am ount of the item; and any special instructions w ith respect to the item. If docu ments are attached to the item, they m ust be clearly and adequately identified in the accom panying collection letter. 7.10 Direct sending urged Senders are urged to send bonds, debentures, coupons, and other similar securities payable by any one of several paying agents direct to the Federal Reserve bank of the district in which the paying agent nearest to the sender is located. 7.15 Coupons Coupons sent to us for collection should be enclosed in separate envelopes according to issue. The name of the sender, the name of its depositor, the sender’s collection number, and a complete description of the coupons enclosed, including the name of the paying agent thereof, should be visible on or through each envelope containing coupons. Such envelopes should be separately listed and described (either by issue or collection number) on the totaled collection letter of the sender. 7.20 Coupon ownership certificates Before sending coupons to us for collection, senders should ascertain w hether ownership certificates are required to be attached thereto by law or by the issuer of such coupons. If so required, the appropriate ownership certificate forms should be attached to the coupons sent to us for collection. 7.25 Other securities Securities other than coupons sent to us for collection should be sorted according to issue, should be accompanied by the same information as accompanies coupons sent for collection, and should also be listed and described on the sender’s totaled collection letter in the same m anner as coupons sent for collection, as pro vided in section 7.15 hereof. Section 8, PROTEST A N D ADVICE OF NONPAYM ENT FEDERAL RESERVE BANK OF DALLAS 8.00 Uniform instructions In the absence of specific instructions to the contrary in the sender’s collection letter and except as provided in section 8.05 hereof, we will receive, handle, and forw ard noncash items subject to the following uniform instructions regarding protest: (a) PROTEST any dishonored item of $1,000 or over, except a bond, debenture, coupon, or other similar security: (i) which appears on its face to have been draw n at a place which is not w ithin any state,4 unless it bears on its face the A.B.A. no-protest symbol of a Federal Reserve bank or of a preceding bank endorser, or (ii) which bears on its face the legend, “PRO TEST REQUIRED,” of a Federal Reserve bank or of a preceding bank endorser. (b) DO NOT PROTEST: (i) any item of less than $1,000, or (ii) any item of $1,000 or over unless it is protestable under subparagraph (a). 8.05 Items w ith U.S. Treasury and similar en dorsem ents DO NOT PROTEST AND DO NOT WIRE ADVICE5 of nonpaym ent of any check handled as a noncash item, regardless of amount, endorsed by the Treasurer of the United States, or endorsed for credit to the Treasurer of the United States, or bearing on its face or in an endorsem ent the legend “This check is in pay m ent of an obligation to the United States and m ust be paid at par. N.P. Do not wire non paym ent” or w ords of similar import. 8.10 R esponsibility for protest The paying bank, if any, shall be responsible for making or providing for any protest of a non cash item protestable under the provisions of this bulletin, except as may be otherwise pro vided by the rules or practices of any clearing house through which the item w as presented or by agreement betw een us and the paying bank. If there is no paying bank, the responsibility 4The term “state” is defined in section 210.2 (n) of Regulation J to mean any state of the United States, the District of Columbia, or Puerto Rico, or any territory, p ossession or dependency of the United States. *For the purposes of this bulletin, the term "wire” in cludes telephone, telegraph, and cable. BULLETIN 9 shall be that of the subsequent collecting bank, if any, except as may be otherwise provided by applicable clearing house rules or practices or by agreement betw een us and such collecting bank. If there is no paying bank or subsequent collecting bank, we will m ake or provide for any necessary protest. 8.15 Determination of responsibility We have no responsibility for determining w hether another bank responsible therefor has (a) made or provided for the protest of any dis honored noncash item in accordance w ith spe cific instructions in the sender’s collection letter or in accordance w ith the provisions of this bulletin or (b) given any wire advice requested w ith respect to any noncash item. 8.20 Communications by wire; costs and charges W hen instructed to do so by the sender, we will request wire advice of paym ent or nonpaym ent of noncash items and will transm it by wire any information received. A service charge of $1.50 will be made against the sender’s account for each message transm itted over the Federal Re serve Leased W ire System pertaining to pay ment, nonpayment, or tracing of items, an d in connection w ith receiving or transmitting any other information or instructions. The cost of all cables and telegrams transm itted over commericial wire facilities will be charged to the senders from w hich the items were received, and commercial wire telegrams and cables to such senders will be sent collect. A Federal Reserve bank, may, in its discretion use the telephone in lieu of telegraph or cable for any purpose indicated in this paragraph and charge the senders therefor. 8.25 Interpretation of terms requesting w ire advice The term s listed below, w hen used in advices or communications in connection w ith noncash items, will be understood to have the meanings indicated, as follows: (a) “WIRE PAYMENT” w hen it is desired that the collecting bank furnish wire advice that paym ent has been made by the paying bank or nonbank payor. It will be understood that senders requesting “WIRE PAYMENT” w ish to be advised when paym ent has been made to the collecting bank rather than w hen the proceeds are credited to the reserve account or appro FEDERAL RESERVE BANK OF DALLAS priate other account w ith the Federal Reserve bank. W hen a Federal Reserve bank gives such advice of payment, it does not necessarily imply that actually and finally collected funds are in its possession. (b) “WIRE NONPAYMENT” w hen wire advice of dishonor only is desired. (c) “WIRE FATE” or “WIRE PAYMENT OR NONPAYMENT” w hen wire advice of paym ent or nonpaym ent by the paying bank or nonbank payor is desired. (d) “WIRE CREDIT” w hen wire advice of final paym ent and of credit to the reserve account or other appropriate account is desired. Section 9, AVAILABILITY OF PROCEEDS OF N O N C A SH ITEMS 9.00 Generally Except as hereinafter provided w ith respect to bankers’ acceptances and certificates of deposit credit for the proceeds of noncash items, w ith the usual advice, will be given as directed in a reserve account or other appropriate account, upon receipt by us of paym ent in actually and finally collected funds or upon receipt of advice from another Federal Reserve bank of such payment. 9.05 Bankers’ acceptances and certificates of deposit Credit for bankers’ acceptances and certificates of deposit will be given, subject to paym ent in actually and finally collected funds, in accor dance w ith the following schedule, if received by us sufficiently in advance to perm it forw ard ing in time to reach the place of paym ent at least one banking day before m aturity: Place Payable Federal Reserve bank or branch cities Elsewhere Credit Available On m aturity date 1 banking day after m aturity Section 10, COLLECTION CHARGES 10.00 Generally Except as hereinafter provided, the Federal Re serve banks m ake no charge for their services in collecting noncash items. However, it is recog nized that any other bank acting as agent to BULLETIN 9 collect any such item renders a service in presenting, collecting, and remitting, for which a reasonable charge m ay be made if it cares to do so; and w hen such a charge is made and deducted from the paym ent or remittance re ceived by us for the item, we will give credit to the sender for the net proceeds. 10.05 Charges by collecting or paying banks No charge may be made by a paying bank or collecting bank in connection with the collection or paym ent of any check that may be handled as a noncash item; provided, how ever, that a collecting bank or paying bank may make a collection charge in connection w ith such item if such charge reflects expenses actually in curred by it in collecting such check as a non cash item w hich it would not have incurred had the check been handled as a cash item and if such charge is clearly not an exchange charge nor in the nature of a charge for payment. W hen such a charge is made and deducted from the paym ent or rem ittance received by us for the item, we will give credit to the sender for the net proceeds. 10.10 Charges by Federal Reserve banks Items sent to the Federal Reserve banks for collection are subject to the following charges: (a) Charges made by collecting banks or paying banks referred to in sections 10.00 and 10.05 of this bulletin; and (b) Charges made by the Federal Reserve banks: (i) A charge, at their discretion, for handling and collecting securities; (ii) A service charge, a t their discretion, of $.50 per item on all noncash items returned u n paid and unprotested; (iii) Postage, insurance, or express, or other transportation charges incurred in forwarding items; (iv) All telegraph, cable, and telephone charges; and (v) Protest fees. Section 11, RETURN OF N O N C A SH ITEMS 11.00 Generally A noncash item for w hich final paym ent has been received by a Federal Reserve bank cannot FEDERAL RESERVE BANK OF DALLAS be returned to a Federal Reserve bank by a subsequent collecting bank, a paying bank, or nonbank payor for credit or refund. However, such an item may be returned to us w ithout entry and w ith a request that we ask our sender to make refund therefor, in which event we will make refund to the subsequent collecting bank, paying bank, or nonbank payor, as the case may be, and charge our sender only if the latter specifically authorizes us to do so. 11.05 Noncash item s to be presented for accep tance We will receive from senders, for presentm ent for acceptance, any non-accepted noncash item which provides that it m ust be presented for acceptance, or w hich is payable elsewhere than at the residence or place of business of the drawee, or the date of paym ent of w hich de pends upon presentm ent for acceptance, sub ject to the following terms and conditions: (a) Noncash items to be presented for accep tance m ust be deposited by senders in a separate collection letter w hich states that such items are to be so presented and sets forth any other instructions of the sender, not inconsistent w ith the provisions of this section and section 11.10 hereof, regarding such items. (b) A Federal Reserve bank or a subsequent collecting bank may present any such item for acceptance in any m anner authorized by law. (c) Any subsequent collecting bank to which this bank forw ards any such item for present m ent for acceptance will give us prom pt notice of acceptance or refusal of the item. (d) No Federal Reserve bank or subsequent collecting bank shall, upon the acceptance of any such item, deliver to the drawee thereof any accompanying documents unless specifically in structed by the sender to do so. 11.10 Effect of section 11.05 A noncash item received by us under section 11.05 hereof will be presented for acceptance by us or by a subsequent collecting bank selected by us. If the item is not accepted, it will be returned to the sender; if accepted and (a) If the item is payable 30 days or less after sight or by its terms m atures 30 days or less after the receipt thereof by us, the item will be held for presentm ent for paym ent by us, by the subsequent collecting bank, or by the drawee BULLETIN 9 if a bank; of, if the sender so requests, the will be returned to the sender; or (b) If the item is payable more than 30 after sight or by its terms m atures more 30 days after the receipt thereof by us, the will be returned to the sender. item days than item S ection 12, PHOTOGRAPHIC COPIES 12.00 Requirements for handling In the event we receive, as a noncash item, a properly prepared photographic copy of a lost or destroyed item w hich was a check or other dem and item w ithout securities, bills of lading or other documents attached and w hich was eligible for handling as a noncash item and the copy bears a current endorsem ent of the sender and the following legend, or one of equivalent effect, signed by or in behalf of the sender: “This is a photographic facsimile of the original item w hich was endorsed by the undersigned and reported lost, stolen or destroyed while in the regular course of bank collection. All prior and any missing endorsem ents and the validity of this facsimile are hereby guaranteed, and upon paym ent hereof in lieu of the original item, the undersigned will hold each collecting bank and the payor bank harm less from any loss suf fered, provided the original item is unpaid and paym ent is stopped thereon.” we will handle the copy as follows: (a] We will present or send the copy, as a non cash item, to the paying bank (or nonbank payor) nam ed on the original item, subject to all the terms and conditions of this bulletin; or (b) If such paying bank (or nonbank payor) re fuses to handle the copy, we will return the copy to the sender. 12.05 Requirements for handling cash item s as noncash item s We will also handle as a noncash item, subject to all the terms and conditions of this bulletin, a properly prepared photographic copy of a cash item which, in accordance w ith section 12 of our Bulletin No. 8, we have charged back to the sender and entered for collection as a noncash item, provided that the paying bank (or nonbank payor) is willing to handle the copy as a noncash item. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS APPENDIX A PAYM ENT VOUCHERS ON LETTERS OF CREDIT A-1.00 Handled as noncash item Payment vouchers on letters of credit for Gov ernm ent grants and contributions will be handled by us as noncash items in accordance w ith an agreement made by the Secretary of the T reas ury and by the Federal Reserve banks as de positaries and fiscal agents of the United States. A-2.00 Effectuation of payment As fiscal agent of the United States, we will effect paym ent of such vouchers by credit to the reserve or other account of the sender which has forw arded the vouchers to us for payment. Simultaneously w ith such credit, we will debit the amount of such paym ent vouchers against the general account of the Treasurer of the United States under such symbol num bers as may be assigned by the Treasurer of the United States. At that time the paym ent of such pay m ent vouchers shall become final paym ent as betw een us and the sender. A-3.00 Nonpaym ent In the event that we do not pay any paym ent voucher forw arded to us for paym ent by a sender which m aintains or uses an account with us, we will promptly advise such sender of the nonpaym ent thereof, by wire at the cost of the Treasurer of the United States, and will forw ard such voucher and any copy thereof which m ay accompany it, with advice as to the reason for nonpayment, to the Treasury Depart ment; and we will have no further obligation or further liability in respect of such paym ent voucher. A-4.00 Claims for refund The agreement betw een the Secretary of the Treasury and the Federal Reserve banks pro vides, in effect, that no claim for refund or otherwise w ith respect to any paym ent voucher debited against the general account of the Treasurer of the United States shall be made against or through any Federal Reserve bank; that, if any Federal agency makes any such claim with respect to any such paym ent voucher (other than a claim based on the negligence of a Federal Reserve bank) such paym ent voucher will not be returned or sent to a Federal Reserve bank, but such Federal agency will deal directly with the party against which such claim is made; and that, if any Federal Reserve bank shall stamp or otherwise place on any paym ent voucher any endorsem ent or legend containing the words “prior endorsem ent guaranteed” or w ords of similar import, such endorsement, legend, or words will have no effect w hatsoever except to identify the paym ent voucher as having been received by such Federal Reserve bank. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS APPENDIX B COUPONS RECEIVED FOR PAYM ENT B-1.00 General Coupons from obligations of the United States and its agencies and instrumentalities, w hen re ceived by us for collection, are paid by us as fiscal agent of the United States, or of the agency or instrumentality. We will receive such coupons in accordance w ith the following pro cedures. The schedules to be used for such coupons will be furnished by us upon request. B-3.00 Ownership certificate forms Ownership certificate forms, w hen required by law, m ust be attached to coupons from obliga tions of the United States and its agencies and instrum entalities sent to us for collection. Such forms should be obtained by the sender from the nearest District Director of Internal Revenue. B-2.00 Procedure We will receive, from senders who m aintain or use accounts w ith us, coupons listed on sched ules and enclosed in envelopes showing the name of the sender, as follows: (a) Coupons from obligations of the United States should be enclosed in separate envelopes according to current or uncurrent interest due dates and denomination. Only coupons that bear an interest due date of February 15, March 15, May 15, June 15, August 15, Septem ber 15, No vember 15, or December 15 and are presented for paym ent on or before such interest due date or before the next such interest due date will be considered as bearing current interest due dates (for example, if a coupon bearing an interest due date of August 15, 1971, is pre sented not later than September 14, 1971, it should be classified as “current”); and all other coupons will be considered as bearing uncurrent interest due dates. (b) Coupons from obligations of agencies or instrumentalities of the United States should be enclosed in separate envelopes according to issue and denomination. B-4.00 Coupons not handled We will not handle coupons from obligations of the International Bank for Reconstruction and Development and the Inter-American Develop m ent Bank for collection. However, senders w hich m aintain or use accounts w ith us are authorized to send such coupons directly to the Federal Reserve Bank of New York, for paym ent for our account, in accordance w ith the terms and conditions of the operating bulletins of that Federal Reserve bank. We will give credit for such coupons in the reserve or other appropriate account upon advice from the Federal Reserve Bank of New York that such coupons have been paid. B-5.00 Immediate credit Immediate credit, subject to final payment, will be given for due or past due coupons received by us for payment, in the reserve or other appro priate account, if listed in a separate totaled letter and received by us by 2:00 p.m. on any banking day for us.
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