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Federal R eserve Bank OF DALLAS ROBERT D. M c T E E R , J R . PRESIDENT AND CHIEF EXECUTIV E O F F IC E R December 26, 1991 DALLAS, TEXAS 75222 Notice 91-109 TO: The Chief Executive Officer of each member bank 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 decrease the basic discount rate by one percentage point. The rate for other extended credit also was decreased by one percentage point. These actions became effective December 20, 1991. Effective January 9, 1992, a flexible rate that takes into account rates on market sources of funds will be applied to seasonal credit. Printed on the reverse of this notice is a copy of Supplement A to Bulletin 2 (Operating Circular 2) that contains the current rate schedule in effect at this Bank. This supplement should be inserted in your Bulletins binder, and the supplement dated November 6, 1991, should be removed. MORE INFORMATION For further information, please contact Jesse D. Sanders or Finlay R. Higgins at (214) 651-6240. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 651-6289. Sincerely yours, 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; El 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) FEDERAL RESERVE BANK OF DALLAS BULLETIN 2 (OPERATING CIRCULAR 2) 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 Basic rate: short-term adjustment credit under 201.3(a) of Regulation A 1. . . . . . . . . . . . 31% A Seasonal credit under 201.3(b)(1) of Regulation A2 Effective Date December 20, 1991 Flexible Rate January 9, 1992 3m December 20, 1991 Other extended credit under 201.3(b)(2) of Regulation A (special circumstances credit and credit for institutions under sustained liquidity pressures)3 First 30 days, Thereafter. . . . . . . . . . . . . . . . . . . . . . . Flexible Rate December 20, 1991 *This 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 that 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 flexible rate that takes into account rates on market sources of funds will A be applied to seasonal credit. The flexible rate will not be lower than the basic rate applicable to adjustment credit. 3 flexible rate that takes into account rates on market sources of funds A 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 Lhis Reserve Bank, the 30-day time period for which the basic rate is charged may be lengthened or shortened. December 20, 1991 A-1
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