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Federal R eserve Bank
OF DALLAS
T O N Y J . SALVA G G IO
f i r s t v ic e

p re s id e n t

March 31, 1993

DALLAS, TEXAS 75222

No t ice 93-41
TO:

The Chief Executive Officer of each
member bank and others concerned in
the Eleventh Federal Reserve District

SUBJECT
Con sol i d a t i o n of U.S. Savings Bond Processing
DETAILS
The U.S. Treasury Department has announced plans to consolidate the
processing of U.S. Savings Bonds into five Federal Reserve Banks. The savings
bond transactions currently processed by the Federal Reserve Bank of Dallas
will be assumed by the Federal Reserve Bank of Kansas City.
This notice is to inform you of the upcoming changes that will occur
over an eight-month period beginning in June 1993. The savings bond work will
be transferred by functions in phases and we will notify savings bond agents
approximately one month before the transition date for each phase. Until such
notification, savings bond agents should continue to send savings bond work to
our Dallas and Houston Offices under current procedures.
Please note that savings bond redemptions submitted through EZ Clear
will not be affected by this consolidation effort. However, all other savings
bond processing will be consolidated.
Efforts have been under way for quite
some time to make this transition as smooth as possible.

ATT ACHME NT
Attached is a copy of Treasury Department’s announcement.

MORE INFORMATION
If you have any questions regarding this effort, please call our
Savings Bond Customer Assistance Section at (800) 627-8266.
For additional copies of this Ba n k ’s notice, please contact the
Public Affairs Department at (214) 922-5254.
Sincerely,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas:
Dallas Office (800) 333-4460; Ei Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162,
Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

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

D E P A R T M E N T OF THE T R E A S U R Y
B U R E A U OF TH E PUBLIC D EB T
W A S H I N G T O N , D.C. 20 2 3 9 -0 0 0 1

March 11, 1993

To Savings Bond Issuing and Paying Agents:
The purpose of this letter is to alert you to an important change
in the role the Federal Reserve System currently plays in
processing U.S. Savings Bonds.
Over the next few years, the
number of Federal Reserve Offices that handle savings bond
transactions will be reduced from 18 to 5 regional processing
centers.
Your servicing Federal Reserve Bank or Branch will
provide you with detailed information about how the change will
affect your institution.
The Treasury Department has introduced this change as part
of its continuing commitment to strengthening management of the
U.S. Savings Bond Program.
During the last several years,
Treasury's goal has been to modernize the Program while reducing
administrative costs and maintaining good customer service.
EZ CLEAR and RDS are two recent examples of Treasury's efforts to
streamline the Program.
Treasury has been very pleased with the high level of service
provided over the years by the Federal Reserve System in support
of the U.S. Savings Bond Program.
Advances in automation and
data communications have made it possible for us to take a fresh
look at the savings bond business and to restructure it in ways
that will make it even more efficient.
The transition to five
regional processing centers will begin in the first quarter of
1993 and conclude in 1996.
The five regional centers and the
Federal Reserve Districts they will service are:
Processing Site

Federal Reserve District

Buffalo Branch,
FRB New York

Boston
New York

Pittsburgh Branch,
FRB Cleveland

Philadelphia
Cleveland

FRB Richmond

Richmond
Atlanta

FRB Minneapolis

Chicago
Minneapolis

FRB Kansas City

St Louis
Kansas City
Dallas
San Francisco.

2
Redeemed bonds processed through EZ CLEAR will NOT be affected by
this change.
Paying agents will continue to use the check
collection system and submit paid bonds to their local Federal
Reserve Bank, Branch or RCPC.
Agent agreements will NOT have to be renewed, and existing
issuing and paying agent agreements will remain in full force and
effect.
Other than sending savings bond issue, reissue, and
exchange transactions to a new location, the change should be
minimal for your institution.
The new Federal Reserve processing
sites will continue to provide service levels consistent with
those you currently receive.
Accounting entries related to
savings bond sales and redemptions will continue to be credited
or debited to your Reserve or correspondent account.
Your institution's support for the U.S. Savings Bond Program is
invaluable and very much appreciated.
As always, we look forward
to your cooperation in making the transition a smooth one.
Sincerely,

Richard L. Gregg
Commissioner


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102