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F ederal R e se r v e B ank OF DALLAS W IL LIA M H. WALLACE f i r s t v ic e p re s id e n t A N D C H IE F O P E R A T IN G O F F IC E R September 11, 1987 DALLAS, TEXAS 75222 Circular 87-66 TO: The Chief Executive Officer of all member banks and others concerned in the Eleventh Federal Reserve District SUBJECT Discount Rate Change DETAILS The Board of Governors of the Federal Reserve System approved action by the Board of Directors of the Federal Reserve Bank of Dallas to increaseby one half of one percent the basic discount rate. The rates for temporary seasonal credit and other extended credit also were increased by one half of one percent. These action are effective September 11, 1987. Printed on the reverse of this circular is a copy of Supplement A to Bulletin 2 which contains the current rate schedule in effect at this Bank. This supplement should be inserted in Volume 1 of the Regulations Bindersand the supplement dated July 31, 1987 should be removed. MORE INFORMATION For further information, please contact Jesse D. Sanders or Finlay R. Higgins of this Bank's Loan Department, at (214) 651-6240. Sincerely yours, For additional copies of any circular please c ontact the Public A ffairs D ep artm en t at (214) 6 51 -6 2 8 9 . Banks and others are encouraged to use the follow ing incom ing W A TS numbers in contacting this Bank (800) 4 4 2 -7 1 4 0 (intrastate) and (800) 5 2 7 -9 2 0 0 (interstate). This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 2 FEDERAL RESERVE BANK OF DALLAS Supplement A RATES FOR DISCOUNTS AND ADVANCES The following rates with respect to discounts and advances under the Federal Reserve Act and Regulation A are now in effect at this Bank: Rates on Discounts and Advances Per Annum Effective from Basic rate: short-term adjustment credit under 201.3(a) and regular seasonal credit under 201.3(b) (1) of Regulation A1............................................................... 6% September 11, 1987 Temporary seasonal credit under 201.3(b) (1) of Regulation A ................................................................... 6Vz% September 11, 1987 First 30 d a y s ............................................................... 6% September 11, 1987 T hereafter................................................................... Flexible Rate September 11, 1987 Other extended credit under 201.3(b) (2) of Regulation A (special circumstances credit and credit for institutions under sustained liquidity pressures)2 1This is also the discount rate for 90-day commercial paper and other paper eligible for discount. A rate higher than the basic discount rate will be applied to loans of unusual size which result from a major operating problem at the borrower’s facility, unless the problem is clearly beyond the borrower’s reasonable control. The new rate will be the highest rate within the structure of discount rates at the time in question. 2 A flexible rate that takes into account rates on market sources of funds ordinarily will be applied to any “other extended credit” outstanding for more than 30 days. The flexible rate will not be lower than the basic rate plus one-half percentage point. At the discretion of this Reserve Bank, the 30-day time period for which basic rate is charged may be lengthened or shortened. September 11, 1987 A-l
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