Full text of District Notices (Federal Reserve Bank of Dallas) : Policy Statement on Advertising of "NOW" Accounts, Circular No. 80-189

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Bank

federal reserve

DALLAS, TE X A S

of

Dallas

75222

Circular No. 80-189
October 2, 1980

P O L IC Y

TO

A LL

STA TEM EN T

M EM B ER

A N D

O THERS

The

a c c o u n ts .
th a t

o ffe r

FED ER A L

NOW

to

m a rk e tin g

re c e iv in g

th a t

a ll a d v e rtis e m e n ts

n a tu re

of

be

s e rv ic e

o rd ers

a re

of

m a te ria ls

NOW

to

c o n v e rte d

t h e ir c o n v e rs io n
a c c o u n ts

of

NOW

has

a p p ro v e d

N e g o tia b le

re g u la to rs

to

or

NOW

a

p o lic y

O rd e r

of

s ta te m e n t

W ith d ra w a l

on

(N O W )

F e d e ra l F in a n c ia l In s titu tio n s

of

banks

and

m ay

u n d er F e d e ra l la w , N O W

on

or

Decem ber

31,

on

a fte r

th rift

in s titu tio n s

w h ic h

Any
1980,

a c c o u n t s e rv ic e s

a re

31,

31,

1980.

as to

n e g o tia b le

a d v e rtis e m e n ts

s h o u ld

s h o u ld
th e

A c c o u n ts

im p ly

p rio r
th a t

to
th e

or

tra n s fe ra b le

or

p ro m o tio n a l

p ro m in e n tly

n o t a v a ila b le

th e

d e s c r ib e

c h a ra c te riz e d ,

way

to

a c c o u n ts .

1980,

a c c u ra te ly

be

such

ad h ere

b e a rin g

Decem ber

not

in

upon

m ust

d iv id e n d

Decem ber

s h o u ld

d ra w n .

or

m a te ria ls

o r d e s c r ib e d

a c c o u n ts
be

in s titu tio n s

in te re s t

a u th o r ity

a c c o u n ts

a c c o u n ts

b e fo re

a ll

p ro m o tio n a l

o ffe re d

in te re s t-b e a rin g

is s u e d

to

account

be

as N O W

w ith d ra w a l

a c c o u n ts ,

a p p lic a b le

In s titu tio n s

w ill

B o ard

F ed e ra l

en su re

th a t

D IS T R IC T :

w as re c o m m en d ed by th e

th e

re q u ire m e n ts

th e

A C C O U N TS

a c c o u n ts .

W hen
a d v e rtis in g

"N O W "

TH E

in s titu tio n s

s ta te m e n t

C o u n c il

IN

RESERVE

R e s e rv e

fin a n c ia l

The

E x a m in a tio n

OF

BANKS

F ed e ra l

by

A D V E R T IS IN G

C O N C E R N E D

ELEVENTH

a d v e rtis in g

ON

b e fo re

in d ic a te

th a t,

Decem ber

31,

1980.

P rin te d
and

m a te ria l

on

th e

s u b m itte d

pag es m o re fu lly e x p la in
s ta te m e n t
S u p e rv is io n

s h o u ld
and

be

fo llo w in g
fo r

th e

is a c o p y o f t h e
in

B o a r d 's a c t io n .

d ir e c te d

R e g u la tio n s

pages

p u b lic a tio n

to

th e

th e

p ress r e le a s e

R e g is te r.

A n y q u e s tio n s c o n c e rn in g

Consum er

D e p a rtm e n t,

B o a rd 's

F ed e ra l

E x t.

A ffa irs

S e c tio n

of

These

th e
our

p o lic y
Bank

6169.

S in c e re ly

y o u rs ,

R o b e rt

H.

B o y k in

F ir s t

V ic e

P r e s id e n t

Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.

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

r.-a a r

FEDERAL RESERVE press release

For

im m e d ia te

re le a s e

The

F ed e ra l

s ta te m e n t

c o n c e rn in g

o f W ith d ra w a l

(N O W )

The
In s titu tio n s

and
In

t h r if t
v ie w

M o n e ta ry

o f

S e p te m b e r

R e s e rv e

a d v e rtis in g

In s titu tio n s

C o n tro l

c o n m e rc ia l

banks,

th ro u g h o u t

th e
The

was

E x a m in a tio n

fa c t

a d o p te d

th e

m em ber b an ks

o f

th a t

a tta c h e d

o f

p o lic y

N e g o tia b le

O rd e rs

to

o ffe r

th e

by

th e

F e d e ra l

F ed e ra l

F in a n c ia l

re g u la to rs

NOW a c c o u n t s .

The

o f

a c tio n

banks

was

th e

D e p o s ito ry

In s titu tio n s

D e re g u la tio n

1980

a u th o r iz e s

th e

o f

m u tu a l

n a tio n

reco m n end ed

C o u n c il

th a t

A ct

p o lic y

by

has

1980

a c c o u n ts .

s ta te m e n t

th e

B o ard

25,

s a v in g s

on

Decem ber

s ta te m e n t

#

#

#

banks

and

31,

1980.

a d o p te d

#

#

#

#

by

#

#

is s u a n c e

s a v in g s

th e

B o ard

and

is

ta k e n
and

NOW a c c o u n t s

lo a n

by

a s s o c ia tio n s

a tta c h e d .

P o lic y

S ta te m e n t

A d v e rtis in g

The
In s u ra n c e

C o m p tro lle r
banks

and

o ffe rin g
a d h e re
appear

o f

or

S e c tio n

3 2 9 .8

a ll

Home

S a v in g s

and

a u th o r ity
account

2 1 7 .6

o f

th e

Loan
Loan

F D IC

a g e n c ie s

fo r

th e

to

m is re p re s e n t

th e s e
b e fo re

s h o u ld

s e rv ic e s

not

1980

th a t

n a tu re

of

a ll

th e

s e rv ic e

th a t

to

c o n v e rs io n ,

th e

a c c o u n ts

o rd ers

o f

w ill
a re

to

be

c o m p ly
o f

1/
in
and

w ith

in te re s t

to

th e
on

M o n e ta ry

NOW a c c o u n t

and

d e p o s its .

a re
New

C o n tro l

o ffe r

a

of
In

of

c o n n e c tio n ,
th a t

e tc .)
or

on

,If

a c c o u n ts
no

or

th e

31,

a ll

n a tio n a l

by

or

in s u re d

th e

F e d e ra l

w ith

F S L IC ,

resp ect
or

S y s te m ,
re c e iv in g

NOW a c c o u n t

engage

advance

w ill

in

be

re s p e c t

b e in g

w ith

banks;

F D IC

fo r

th e

th e

c o n v e rte d

a g e n c ie s

m ay b e

2 1 7 .6 )

a ll

o f

re p re s e n ta tio n

d ra w
(e .g .,

to

an

in a c c u ra te

o ffe re d .
th a t

or

F ed e ra l

be

la w ,

to

any

NOW

ad v e r­

in te re s t

or

m is le a d in g

C o n s is te n t

w ill

NOW

s p e c ia l

p ro m o tio n a l m a t e r ia ls

under

w ith
is s u e s

c o n v e rte d

to

NOW a c c o u n t

1980.

a u th o r ity

on

m a te ria ls

a fte r

NOW a c c o u n t s
or

th a t

a c c o u n ts

th a t,

or

m ay

made w i t h

s e rv ic e

s h o u ld
in

31,

not

such

upon w h ic h

Decem ber

31,

a c c u ra te ly

Decem ber

d e s c r ib e d

a c c o u n ts

re m in d e d

th a t,

NOW a c c o u n t
th e

i f

a u th o r iz e d

T itle
1980

e ffe c tiv e

is

a g e n c ie s '

a d d itio n ,

c u rre n tly

Act

1980

CFR

5 6 3 .2 7

Bank

re q u ire m e n ts

(1 2
fo r

m ust

d iv id e n d

CFR 5 6 3 . 2 7 )

in s u re d

Loan

c o m m e rc ia l

a c c o u n ts

or

R e g u la tio n s

in s titu tio n s

31,

p ro m o tio n a l

to

a re

on

J e rs e y .

a u th o r ity ,

th o s e

Q

D e p o s it

th e

in s titu tio n

a d v e rtis in g

3 2 9 .8 )

(1 2

o f

1980.

be

1980

d e s c rib e
In

th is

s h o u ld
th e
re g a rd ,

c h a ra c te riz e d ,

a way

as

n e g o tia b le

to

or

im p ly

p rio r
th a t

tra n s fe ra b le

d raw n *

a ls o

p a id

p ro v is io n s

NOW a c c o u n t s
New Y o r k

be

Home

a d v e rtis e m e n ts

o ffe re d

be

FHLBB,

NOW a c c o u n t ,

NOW a c c o u n t s

m ay

th e

NOW a c c o u n t

in te re s t-b e a rin g

w ith d ra w a l

d iv id e n d s )

be

CFR

S e c tio n

Decem ber

or

c o n v e rte d
as

In s titu tio n s
(o r

re c e iv in g

(1 2

such

(N O W )

in c lu d in g

and

in d ic a te

b e fo re

b a s ic

F ed e ra l

re m in d

in te re s t

R e g u la tio n

R e g u la tio n s

NOW a c c o u n t s

a d v e rtis e m e n ts

a c c o u n ts
th e ir

fo r

a v a ila b le

a

any

These

5 2 6 .6 )

th is

c o n tra c t

p ro m in e n tly

In s titu tio n s
e n s u re

as

a ll

F H L B B 's

re q u ire m e n ts

account

31,

th a t
m ay

w ith d ra w a l
to

th e

F ed e ra l

In

o f

o f

Decem ber

and

re q u ire m e n ts ,

NOW a c c o u n t s
a re

on

such

any

R e s e r v e 's

by

s o lic ita tio n ,

a c c o u n t,
th e

th e

1980.

re g u la to ry

re g u la to ry
Decem ber

o f

to

th a t

R e g u la tio n s

CFR

th e

O ffic e

th e

w is h

o rd er

5 2 6 .6

S y s te m ,
and

a g e n c ie s " )

m em ber b a n k s ,

c h a rte re d

tim e

31,

a n n o u n c e m e n t,
e a rn in g

(1 2

B o ard

ju ris d ic tio n

a p p lic a b le

C o r p o r a tio n 's

p ro g ram s

tis e m e n t,
or

th e

and

re c o g n iz e

f ir s t

Decem ber

S y s te m

R e serve

Bank

NOW a c c o u n t s .

S e c tio n

m em bers

The

"th e

F ed e ra l

R u le s

and

F ed e ra l

n e g o tia b le

th e

S y s te m

a tte n tio n

d iv id e n d

o f

R e g a rd in g

NOW A c c o u n t s

Loan

th e ir

re q u ire m e n ts

in s titu tio n s

o th e rw is e

on

o ffe r

In s u ra n c e

p ro m o tio n a l

a c c o u n ts

under

R e serve

Bank

th e
Home

(h e re a fte r

when m a rk e tin g

F ed e ra l

s a v in g s
a re

to

o f

F ed e ra l

C u rren cy

in s titu tio n s ;

F ed e ra l

w h ic h

th e

a d v e rtis in g

S e c tio n

to

a ll

G o v e rn o rs

in s titu tio n s

a c c o u n ts
in

nonm em ber

o f

p re p a rin g

th e

re s p e ct

to

th e

t h r ift

to

e a rn in g

B o ard

C o rp o ra tio n ,

of

I I I

(P .L .

of

a

s p e c ific

re g u la tio n s

c o n d itio n s

o n ly
th e

9 6 -2 2 1 ,

Decem ber

i f

a d v e rtis e d ,

31,

in

th e

or

94

S ta t.

1980.

charges

New

o f
th e

w ill

E n g la n d

In s titu tio n s
146)

in te re s t

a d v e rtis e m e n ts

re g a rd in g

s ix

D e p o s ito ry

ra te

such

p ro v id e s

m ust

a d v e rtis in g
be

im p o s e d

s ta te s

and

D e re g u la tio n
n a tio n w id e

-

on

th e

a c c o u n t,

m a te ria l.
its
is

c u s to m e r
c o n v e rte d

p a y in g
a

not
to

in te re s t

s ta te d

th a t

fa c t

C o n s is te n t

re tu rn

la te r
a

s h o u ld

w ith
th a n

th e

on
and

th e

tim e
o f

a c c o u n t,

charges

d is c lo s e d

a g e n c ie s '

th e

NOW a c c o u n t ,

be

th a t

th e

a

in

th e

NOW a c c o u n t
m e th o d

be

a d v e rtis e m e n t

re g u la tio n s ,

in c lu d in g
m ay

2-

th a t

is

be

th a t

a g a in s t

or

in s titu tio n

opened,

w ill

c o n d itio n s

assessed

an

or

used

an

p ro m o tio n a l
s h o u ld

e x is tin g

in fo rm
account

in

c o m p u tin g

and

m ust be

s a tis fie d

to

th e

a c c o u n t.

e a rn