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F ederal R eserve Bank
OF DALLAS
T O N Y J . SA L V A G G IO
F IR S T V IC E PR E S ID E N T
October 25, 1995
DALLAS, TEXAS
75265-5906
Notice 95-100
TO: The Chief Operating Officer of each
member bank and foreign agency in
the Eleventh Federal Reserve District
SUBJECT
Fedwire Third-Party Access Policy
DETAILS
The Board of Governors of the Federal Reserve System has amended its
Fedwire third-party access policy, effective August 10, 1995. Existing third-party access
arrangements must comply with the revised policy by March 1, 1996.
The Federal Reserve Bank of Dallas developed Appendix 3 to its Operating
Circular 6, "Wire Transfers of Funds," to reflect the changes to the third-party access
policy. The enclosed Appendix is effective immediately.
Please note that the model board of director resolutions attached to the
Appendix as Exhibits 2-4 do not necessarily need to be submitted to this Bank for us to
approve a third-party access arrangement. The Exhibits are merely examples of what
satisfies the requirements for board of director approval in the third-party access policy.
ENCLOSURE
Enclosed is a copy of Appendix 3 to Operating Circular 6, "Wire Transfers of
Funds."
MORE INFORMATION
For more information, please contact Jane Anne Schmoker, Senior Attorney,
at (214) 922-5101. For additional copies of this Bank’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; 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)
A P P E N D IX 3
WIRE TRANSFERS OF FUNDS AND/OR
BOOK-ENTRY SECURITIES
F e d w ir e T h i r d -P a r t y A c c e s s A r r a n g e m e n t s
Sta tem
en t of
A
greem ent
1.
This A ppendix establishes the term s of the agreement under which a depository institution
(Participant) holding an account w ith the Federal Reserve Bank o f Dallas (Reserve Bank) may
designate a Service Provider (and Pass-Through Service Provider, if applicable, collectively
referred to as Service Provider) to perform one or more o f the follo w in g functions: origination,
transm ission, and receipt of a funds transfer, to or from the Participant's account, and/or a
securities transfer to or from the Participant's securities account. A debit/credit related to the
transfer is posted to the account and/or securities account, as the case may be. A Participant or
Service Provider engaged in activities covered by this A ppendix shall com ply w ith the Policy
Statement on Payments System Risk o f the Board of Governors of the Federal Reserve System
(Board).
D e f in it io n s
2.
In this Appendix, the follo w in g definitions apply unless the context requires otherwise:
A.
"A cco u nt" means the reserve and/or clearing account maintained by the Participant at
the Reserve Bank.
B. "A ffilia te d"m e an s that (1) at least 80 percent of the voting stock of both the Participant
and its Service Provider is com m only owned, or (2) either the Participant or its Service
Provider owns at least 80 percent of the voting stock of the other.
C. "C redit lim it" means (1) an individual custom er transfer lim it established fo r a cus
tom er by the Participant and/or (2) a transfer lim it established by the Participant fo r the
Participant's own transfers (bank-to-bank transfers).
D. "F edw ire" is the system operated by the 12 Federal Reserve Banks fo r the electronic
transfer of funds and book-entry securities.
E. "Funds transfer(s)" means a paym ent order or non-value message briginated or
received over Fedwire.
F. "G atew ay" is an electronic connection used to access electronic services in m ultiple
Federal Reserve districts using one physical connection.
G. "G ateway Reserve Bank" is the Reserve Bank that maintains the physical Gateway
connection w ith the Service Provider.
H. "Securities account" means a book-entry securities account maintained by the Partici
pant at a Reserve Bank.
I.
"Securities transfer" means a transfer of book-entry securities over Fedwire.
J. "S ettling Reserve Bank," fo r purposes o f a Gateway arrangement, is the Federal
Reserve Bank at which the Participant maintains the account and securities account.
K. "T ransfer" means a funds transfer or a securities transfer.
1 0 -95
F e d e r a l R e s e r v e B a n k of D a lla s
Operating
Circular
6
A P P E N D IX 3 (continued)
G
eneral
3.
The Participant shall provide to its Reserve Bank a Letter of Authorization containing the
inform ation described in Exhibit 1 to this Appendix before participating in a third-party access
arrangement covered by this Appendix.
4.
The Participant may authorize a Service Provider to act as the Participant's agent for
initiating, transm itting, and/or receiving a funds transfer of which the Participant is the
transferor or transferee. Any such funds transfer sent by the Service Provider is an authentic
and fu lly authorized funds transfer, as if it were sent in w ritin g and signed by a duly authorized
officer o f the Participant. N otw ithstanding the operational routing of any such funds transfer
through the Service Provider, the Reserve Bank w ill make any debit or credit entry relating to
the funds transfer to the account. Fedwire funds transfers are subject to the requirem ents of the
Board's Regulation J (12 C.F.R. Part 210, Subpart B) and Operating Circular 6 {Wire Transfers o f
Funds) and Operating Circular 16 {Electronic Access). Terms defined in Subpart B o f Regulation
J have the same meaning when used in this Appendix.
5.
The Participant may also authorize the Service Provider to act as the Participant's agent for
initiating, transm itting, and/or receiving a securities transfer to or from the securities account, if
the requirem ents of this Appendix have been com plied w ith. Any debit or credit w ith respect to
a securities transfer w ill be made to the account. Any securities transferred from or received fo r
the Participant w ill be debited or credited, as the case may be, to the securities account. The
provisions of Operating Circular 14 {Book-Entry Securities A ccount Maintenance and Transfer
Services) apply to securities transfer third-party access arrangements.
6.
The Participant may not enter into a third-party access arrangem ent involving a Service
Provider, including a foreign office of the Participant, that is located outside the United States
(foreign Service Provider). Any arrangem ent established prior to August 10, 1995, involving a
foreign Service Provider must be reported prom ptly to the Participant's Reserve Bank.
R e s p o n s ib il it ie s
of the
P a r t ic ip a n t
7.
The Participant shall ensure that the Service Provider complies w ith the provisions of this
A ppendix and any other relevant operating circular(s) of the Reserve Bank, as well as any policy
or regulation o f the Board w ith respect to the w ire transfer of funds, book-entry securities,
electronic access, and payments system risk. However, the use of a third-party access arrange
ment, and the provision o f these services by the Service Provider to the Participant, shall in no
way affect or dim inish any obligation or duty of the Participant to the Reserve Bank.
8.
The Participant shall retain full responsibility fo r management of its account w ith respect
to both its intraday and overnight positions. Any overdraft incurred is a binding obligation of
the Participant to the Reserve Bank. During the business day, the Participant shall tim e ly m oni
to r funds and/or securities transfer activity handled fo r it by a Service Provider.
9.
The Participant shall m aintain an adequate audit program to review any third-party access
arrangem ent at least annually. The audit program should include a review of and a determ ina
tion w hether the transactions handled by a Service Provider meet the requirem ents set forth in
this Appendix.
10. The Participant shall maintain adequate backup facilities and procedures to process
transfers in case of an operating outage or other developm ent affecting the adequacy of the
service. The contingency backup requirem ent can be met through backup procedures and
facilities provided either by the Service Provider or the Participant. The Participant is not re
lieved o f this responsibility because it contracts w ith a Service Provider.
11.
If the Service Provider is not affiliated w ith the Participant, the Participant must be able to
F e d e r a l R e s e r v e B a n k o f D a lla s
1 0 -9 5
A P P E N D IX 3 <continued)
"process transfers if the Participant is unable to continue operating under the third-party access
arrangem ent (for example, if the Reserve Bank or the Participant's prim ary supervisor te rm i
nates the third-party access arrangement). This backup requirem ent can be satisfied (a) by
retaining the capability to perform the functions internally that have been delegated to the
Service Provider; (b) by making arrangements w ith an alternate Service Provider to take over
these functions in the event that the arrangem ent must be term inated; or (c) by another means
acceptable to the Reserve Bank.
12. If a backup arrangem ent involves a Substitute Service Provider, that Substitute Service
Provider must have agreed to the term s of this Appendix.
A
pproval of
In d iv id u a l T
r a n s f e r s / C r e d it
L im i t s
13. A transfer sent by the Service Provider on behalf of the Participant shall either (a) be
individually authorized and approved by the Participant or (b) be sent by the Service Provider
against a credit lim it that has been approved by the Participant and com m unicated to the
Service Provider. The Participant shall periodically review the appropriateness of the estab
lished credit lim its.
14. Where the Participant uses a Service Provider but does not individually authorize and
approve each transfer, the Service Provider must have procedures in place and the operational
capability to ensure that a funds transfer that w ould exceed the established credit lim it is not
perm itted w ith o u t first obtaining the Participant's specific authorization. In the case of a securi
ties transfer, the Service Provider must have the operational capability and procedures in place
to reverse an incom ing securities transfer that exceeds an established credit lim it, unless the
Service Provider notifies the Participant o f the incom ing securities transfer and the Participant
[expressly directs the Service Provider not to reverse the securities transfer.
A
u t h o r iz a t io n f o r
T
h ir d -P a r t y
A
ccess
A
rrangem ent
15. The Participant's board of directors shall authorize the role and responsibilities o f an
unaffiliated Service Provider (see Exhibit 2 to this Appendix fo r an acceptable model). In thirdparty access arrangements using credit lim its, the Participant's board of directors shall approve
(a) the intraday overdraft lim it fo r the activity to be processed by the Service Provider (see
Exhibits 3a and 3b to this Appendix fo r acceptable models) and (b) the credit lim its fo r any
inter-affiliate funds transfer (see Exhibit 4 to this Appendix fo r an acceptable model).
16. If the Participant is a U.S. branch of a foreign bank whose board o f directors has a more
lim ited role in the bank's m anagement than a U.S. board, the role and responsibilities of the
Service Provider should be reviewed by senior management at the foreign bank's head office
that exercises authority over the foreign bank equivalent to the authority exercised by a board
of directors over a U.S. depository institution. Senior management o f this head office should
make the approvals required by paragraph 15.
17. The third-party access arrangement must be consistent w ith the principles of corporate
separateness and must not violate any state or federal law restrictions on branching.
Gatew
•
ay
A
rrangem ent
18. In any Gateway arrangement, the Gateway Reserve Bank shall establish procedures for
maintenance of the Gateway connection. The Gateway Reserve Bank's procedures shall be
provided to each Service Provider and Participant using the Gateway arrangement. The Service
Provider shall com ply w ith the Gateway Reserve Bank's procedures governing maintenance of
the Gateway connection. The Participant and Service Provider shall com ply w ith the settling
Reserve Bank's requirem ents related to any other matters involving the third-party access
arrangement.
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F e d e r a l R e s e r v e B a n k o f D a ll a s
Circular
6
Operating
Circular
6
A P P E N D IX 3 (continued)
19. The law o f the state in which the settling Reserve Bank is located shall apply to a Gateway
arrangement.
M
is c e l l a n e o u s
P r o v is io n s
20. The Service Provider must dem onstrate the capability to separate transfers sent or re
ceived by the Service Provider as the Participant's agent from other transfers sent or received
by the Service Provider fo r itself or fo r any other Participant.
21. The initiation, transm ission, or receipt o f a transfer by the Service Provider constitutes the
initiation, transm ission, or receipt o f the transfer by the Participant fo r purposes of authorizing
the Reserve Bank to debit or credit the account or securities account, as the case may be.
22. A Service Provider participating in an arrangem ent subject to this A ppendix shall be
subject to exam ination by the appropriate federal depository institution regulatory agency(ies).
23. If the Participant and the Service Provider are not affiliates, the Participant and the Service
Provider each w arrant that the Service Provider is (a) a depository institution or (b) an indepen
dent com pany subject to exam ination pursuant to the Bank Service Corporation Act (12 U.S.C. §
1876), by virtue of providing bank services.
24. The Participant shall obtain and subm it to the Reserve Bank upon request a w ritten a ffir
m ation from its prim ary supervisor(s) that the supervisor(s) does not object to the third-party
access arrangement.
25. A Service Provider, w hether or not affiliated w ith the Participant, shall
A. initiate, transm it, and receive a transfer w ith o u t altering the term s o f the transfer,
unless the alteration was previously approved by the Participant;
B. verify the completeness and acceptability o f each transfer instruction; and
C.
initiate or input and release each transfer instruction as directed by the Participant.
I n d e m n if ic a t io n
26. The Participant and the Service Provider shall defend, indem nify, and hold this Bank
harmless against any claim, loss, cost, or expense— including, but not lim ited to, attorneys' fees
and expenses of litigation— resulting from the third-party access arrangem ent or the acts or
om issions o f either the Participant or the Service Provider or their agents, except, however, for
any claim, loss, cost, or expense arising solely out of the Reserve Bank's failure to exercise
ordinary care.
T
e r m in a t io n
27. The Service Provider may term inate its participation in a third-party access arrangem ent by
giving 30 days' prior w ritten notice to the Reserve Bank and the other party(ies). The Participant
may term inate its participation in a third-party access arrangem ent at any tim e, provided the
Participant has an alternative processing arrangem ent in place and prior w ritten notice is given
to the Reserve Bank and the other party(ies). The Reserve Bank reserves the right, w ith o u t prior
notice, to term inate any arrangem ent covered by this Appendix.
F e d e r a l R e s e r v e B a n k o f D a lla s
1 0 -9 5
A P P E N D IX 3 (continued)
6
Go v e r n i n g L a w
28. Except as otherwise provided in paragraph 19 relating to a Gateway arrangement, the
term s of this Appendix shall be construed according to and governed by federal law, and the
law of the state o f Texas to the extent such law is not inconsistent w ith federal law.
29. The provisions of this Appendix are binding on the legal representatives, successors, and
assigns of the parties to a third-party access arrangement.
A
mendment
30. The Reserve Bank reserves the right to amend the provisions o f this A ppendix at any tim e
w ith o u t notice. However, the Reserve Bank w ill attem pt to give at least 30 calendar days' prior
notice of any amendment.
1 0 -95
Operating
Circular
F e d e r a l R e s e r v e B a n k o f D a lla s
E X H IB IT 11
LETTER OF AUTHORIZATION
(Date)
Federal Reserve Bank o f Dallas
2200 North Pearl Street
Dallas, Texas 75201
Attention: Manager
[ Transfer o f Funds Division, Securities Departm ent
and/or Securities Division, Securities Department]
We agree to the term s in Appendix 3 to the Reserve Bank's Operating Circular 6 and have com plied
w ith all of its prerequisites to establish a third-party access arrangem ent w ith respect to [w ire transfers o f
funds and/or book-entry securities transfers]. The third-party access arrangement is more fu lly described as
follow s: [Describe how transfers w ill be handled fo r the Participant by each Service Provider, including
procedures to ensure that a Service Provider cannot p e rm it o r initiate a transfer that w ould exceed an
in d ivid ua l custom er credit lim it w ith o u t first obtaining the Participant's perm ission; a description o f the
Service Provider's operational capability to ensure that the aggregate transfer a ctivity o f the Participant
does n ot result in a d aylight overdraft over the Participant's cap; procedures and backup facilities adequate
to cover equipm ent failure o r term ination o f the Service Provider arrangem ent; and procedures by which
the Participant w ill m o n ito r transfers being made on its behalf],
[Name o f Service Provider and Substitute o r Pass-through Service Provider], the Service Provider(s),
[is(are)/is notlare not)] an affiliate of this depository institution, as defined in Appendix 3 to Operating
Circular 6.2 [ If the Service Provider(s) is(are) n ot affiliated w ith the Participant, note the date on which
Participant's board o f directors approved the role and responsibilities o f the Service Provider w ith respect to
this third-party access arrangement.] [If the third-party access arrangem ent involves the use o f credit lim its,
note the date on which the Participant's board o f directors approved the credit limit(s).]
The Service Provider(s) shall act as the Participant's agent(s) fo r the purpose of initiating, transm itting,
and receiving transfers where the Participant is the transferor or transferee. Any such transfer constitutes an
authentic and fu lly authorized transfer, as if it were sent in w ritin g and signed by a duly authorized officer of
the Participant.
This third-party access arrangement w ill allow [name o f Participant] to com ply w ith all applicable state
and federal laws and regulations governing the arrangement, including retaining and making accessible
records in accordance w ith the regulations adopted under the Bank Secrecy Act.
This third-party access arrangem ent is consistent w ith the principles o f corporate separateness and
does not violate any state or federal law restrictions on branching.
The Service Provider may term inate this Agreem ent by giving 30 days' prior w ritten or telegraphic
notice to the Participant and the manager of the Reserve Bank's Transfer of Funds Division, and/or Securi
ties Division if book-entry securities transfers are conducted under this arrangement. The Participant may
term inate this Agreem ent at any tim e by w ritten or telegraphic notice to the Service Provider and to the
manager of the Reserve Bank's Transfer of Funds Division, and/or Securities Division, if applicable, which
notice shall be effective as soon as an alternative processing arrangem ent is in place.
1To be typed on the letterhead of the depository institution holding the account.
2Specify here w hether each Service Provider is or is not an affiliate of the institution.
10-95
EXHIBIT 1 (continued)
[Name o f Participant]
[Name o f Service Provider]
B y :________________
B y :_____________________
T itle :.
T itle :.
Date:
Date:
[Name o f Pass-through Service Provider]
[Name o f Substitute Service Provider]
B y :_________________________________
B y :_______________________________
Title:
Title:
Date:
Date:
10-95
EXHIBIT 23
MODEL RESOLUTION
AUTHORIZING OPERATIONAL RELOCATION OF
WIRE TRANSFER OF FUNDS AND/OR
BOOK-ENTRY SECURITIES ACTIVITY
TO A SERVICE PROVIDER
The follo w in g resolutions were duly adopted at a meeting of the [type o f governing body, e.g., board o f
directors] of the [o fficia l name o f institution] (Participant), duly authorized and existing under the laws of
-------------------------------- , which meeting was duly called and held on th e ----------- day o f----------------------------,
19___ _, at which meeting a quorum was present, and that these resolutions are now in full force and effect
and are not in conflict w ith any provisions in the certificate of incorporation or bylaws of the Participant, or
w ith applicable law.
1. RESOLVED, that [title o f authorized officers] o f the Participant, and the ir successors in office, be, and
any [appropriate number] of them, is/are authorized to enter into an arrangem ent w ith [name o f Service
Provider and Pass-through Service Provider, as applicable] (Service Provider(s)) and the Federal Reserve
Bank o f Dallas (Reserve Bank), by which the Service Provider(s) may on behalf of the Participant [originate
and/or receive a funds transfer from o r to the Participant's reserve and/or clearing account] and/or [order
the transfer o f book-entry securities held in the Participant's book-entry securities accounts and/or accept
delivery o f book-entry securities into the Participant's book-entry securities accounts].
2. RESOLVED, that the Participant shall defend, indem nify, and hold the Reserve Bank harmless from any
claim, loss, or expense (including, but not lim ited to, attorney's fees and litigation costs) arising out of or
resulting from the Reserve Bank's handling of funds and/or securities transfers under this arrangement,
other than loss or expense caused solely by the failure o f the Reserve Bank to exercise ordinary care.
3. RESOLVED, that the Reserve Bank is authorized to debit/credit the Participant's reserve and/or clearing
account at the Reserve Bank according to instructions received from the Service Provider(s), even if a debit
associated w ith a transfer of [funds o r book-entry securities] results in an overdraft in the Participant's
reserve and/or clearing account. Should any debit to the Participant's reserve and/or clearing account result
in an overdraft, the Participant is hereby authorized to incur the indebtedness and shall be indebted to the
Reserve Bank fo r the overdraft.
4. RESOLVED, that as a part of this arrangement, the Service Provider(s) must agree that [it(they) w ill not
send to the Reserve Bank any transfer o f funds o r book-entry securities that has n ot been individ ua lly
authorized and approved by the Participant] or [it(they) w ill not send to the Reserve Bank any transfer that
w ould exceed the lim its adopted by the Participant from tim e to tim e and com m unicated to the Service
Providers)].*
5. RESOLVED, that these resolutions and all of the powers and authorizations hereby granted or con
firm ed shall continue in full force and effect until w ritten notice of their revocation is given to and received
by the Reserve Bank.
3For use only in an unaffiliated Service Provider consolidation arrangem ent.
4The limits referred to include the sender net debit cap and specific limits on transfers to affiliates, and the specific
custom er credit limits. The sender net debit caps and limits on transfers to affiliates must be approved by the board of
directors in other resolutions. The custom er credit limits m ay be adopted by the board or m ay be established under
the institution's ordinary procedures for establishing credit limits.
EXHIBIT 2 (continued)
IN WITNESS WHEREOF, I have hereunder subscribed my name.
DATED:__________ ___________ 19________
[Signature of certifying official]
[Name and title ]6
5Cashier/comptroller/secretary.
EXHIBIT 3 a 6
MODEL RESOLUTION—DE M IN IM IS CAP
The follo w in g resolutions were duly adopted at a meeting of the [type o f governing body, e.g., board o f
directors o r trustees] of the [o fficia l name o f Participant] (Participant), duly authorized and existing under
the laws o f ____________________ , which meeting was held on th e ______ day o f ----------------------------,
19____ , and that these resolutions are now in full force and effect and are not in conflict w ith any provi
sions in the certificate of incorporation or bylaws of the Participant, or w ith applicable law.
WHEREAS, the Board o f Governors of the Federal Reserve System has a policy o f reducing risks on
paym ent systems that requires each depository institution that incurs daylight overdrafts in its Federal
Reserve account to adopt a net debit cap category; and
WHEREAS, this Participant desires to com ply w ith the Federal Reserve's policy; and
WHEREAS, the board of directors met today and considered the report subm itted by management that
addresses how the Participant plans to com ply w ith the Federal Reserve's policy and makes recommenda
tions regarding a net debit cap category.
NOW, THEREFORE, be it resolved that the board of directors adopts the de m in im is cap as its net debit
cap category.
RESOLVED, that these resolutions and all of the powers and authorizations hereby granted or confirm ed
shall continue in full force and effect until w ritten notice o f the ir revocation is given to and received by the
Reserve Bank or for one year, whichever occurs earlier.
IN WITNESS WHEREOF, I have hereunder subscribed m y name.
DATED:_______________________ 19________
[Signature of certifying official]
[Name and title]
6O n ly re q u ire d fo r th ird -p a rty access a r ra n g e m e n ts u s in g c re d it lim its .
E X H IB IT 3 b 7
MODEL RESOLUTION—SELF-ASSESSMENT CAP
The follo w in g resolutions were duly adopted at a meeting of the [type o f governing body, e.g., board o f
directors o r trustees] of the [o fficia l name o f Participant] (Participant), duly authorized and existing under
the laws o f____________________ , which meeting was held on t h e ----------- day o f --------------------------- ,
1 9 _ __ , and that these resolutions are now in full force and effect and are not in conflict w ith any provi
sions in the certificate of incorporation or bylaws o f the Participant, or w ith applicable law.
WHEREAS, the Board o f Governors of the Federal Reserve System has a policy of reducing risks on
paym ent systems that requires each depository institution that incurs daylight overdrafts in its Federal
Reserve account to adopt a net debit cap category; and
WHEREAS, this Participant desires to com ply w ith the Federal Reserve's policy; and
WHEREAS, the board o f directors met today and considered the report subm itted by m anagement that
assesses the Participant's creditworthiness; intraday funds management and controls; custom er credit
policies and controls; operating controls and contingency procedures; and credit policies and procedures
according to the Federal Reserve's guidelines and that makes recom m endations regarding self-assessment
ratings, an overall self-assessment, and a net debit cap category.
NOW, THEREFORE, be it resolved that the board of directors adopts the follo w in g self-assessment
ratings:
Creditworthiness
Intraday funds management and control
Operating controls and contingency procedures
Customer credit policies and controls
Overall assessment
and adopts a daylight overdraft cap category nf
I________________ I
I________________ I
I________________ I
I________________ I
I________________ I
[High, Above Average, Average]___
RESOLVED, that these resolutions and all of the powers and authorizations hereby granted or confirm ed
shall continue in full force and effect until w ritten notice o f their revocation is given to and received by the
Reserve Bank or fo r one year, whichever occurs earlier.
IN WITNESS WHEREOF, I have hereunder subscribed my name.
DATED:_______________________ 19________
[Signature of certifying official]
[Name and title]
7O n ly re q u ire d fo r th ird -p a rty access a rra n g e m e n ts u s in g c re d it lim its .
EXHIBIT 4
MODEL RESOLUTION—INTER-AFFILIATE TRANSFERS
The follo w in g resolutions were duly adopted at a meeting o f the [type o f governing body, e.g., board o f
directors o r trustees] of the [officia l name o f Participant] (Participant), duly authorized and existing under
the laws o f ----------------------------------- , which meeting was held on th e _______day o f ________________ ,
19------- , and that these resolutions are now in full force and effect and are not in conflict w ith any provi
sions in the certificate of incorporation or bylaws o f the Participant, or w ith applicable law.
RESOLVED, that whenever, during the business day o f the Federal Reserve Bank of Dallas (Reserve
Bank), the Participant fails to m aintain a balance of funds in its account at the Reserve Bank sufficient to
cover the am ounts o f funds transfers, or other debits charged to that deposit account, the Participant shall
be indebted to the Reserve Bank to the extent that the balance o f such account is negative, and that the
Participant is hereby authorized to incur such indebtedness.
RESOLVED, that the Participant is authorized to extend credit during the day to [name o f affiliate] by
transferring to [name o f affilia te ]'s account at the Reserve Bank. The aggregate am ount of the credit that
may be extended to [nam e o f affiliate] on any day shall not exceed an am ount equal to the entire balance of
funds in the Participant's account at the Reserve Bank, plus an am ount that is not greater than the
Participant's net debit cap adopted by the Participant and approved by the Reserve Bank under the policy
regarding risks on paym ent systems adopted by the Board of Governors of the Federal Reserve System,
and reduced by the am ount of any outstanding indebtedness of the Participant to the Reserve Bank.
RESOLVED, that these resolutions and all of the powers and authorizations hereby granted or confirm ed
shall continue in full force and effect until w ritten notice of their revocation is given to and received by the
Reserve Bank or fo r one year, w hichever occurs earlier.
IN WITNESS WHEREOF, I have hereunder subscribed my name.
DATED:_______________________ 19________
[Signature of certifying official]
[Name and title]
8O n ly re q u ire d fo r th ir d -p a r ty access a rra n g e m e n ts u s in g c re d it lim its .
@FedFRASER