Full text of District Notices (Federal Reserve Bank of Dallas) : Payment of Interest on Time Certificates of Deposit Renewed Within Ten Days After Maturity

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FE D E R A L R E SE R V E B AN K
OF DALLAS

Dallas, Texas, May 23,1936

PAYM ENT OF INTEREST ON TIME CERTIFICATES OF DEPOSIT
RENEWED WITHIN TEN DAYS AFTER MATURITY

To the Member Bank Addressed:

In our circular letter dated April 17, 1936, we advised you that the
Board of Governors of the Federal Reserve System would offer no objection
to the payment by a member bank of interest on a time certificate of
deposit for the period between its maturity date and the date of its renewal,
provided such certificate is renewed within ten days after maturity and
the certificate is dated back to the date of maturity of the original certifi­
cate.
The Board of Governors, after reconsidering this matter, has reached
the conclusion that, in cases where a member bank pays interest after
maturity on a time certificate of deposit which is renewed within ten days
after maturity, it will not be necessary to date the renewal certificate back
to the date of maturity of the original certificate.

Yours very truly,
B. A. McKINNEY,
President

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