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FEDERA L RESERVE BANK OF DALLAS DALLAS. TEXAS 75222 Circular No. 81-147 July 17, 1981 TO THE CHIEF EXECUTIVE OFFICER OF EACH FINANCIAL INSTITUTION AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: PROCEDURES IN THE EVENT OF A DISRUPTION OF U.S. POSTAL SERVICES The Federal Reserve and the American Bankers Association have developed a Contingency Plan to provide assistance to all financial institutions in the event of disruptions in U.S. Postal Service operations upon expiration of collective bargaining agreements at midnight, Monday, July 20, 1981. Federal Reserve assistance will be provided to all depository institutions on a space available basis. The Federal Reserve will serve as an information clearinghouse for institutions desiring status reports on the availability of services from the U.S. Postal Service and the availability of Federal Reserve services. This information can be obtained also from your State Bankers Association. Consistent with the Monetary Control Act of 1980, the Federal Reserve reserves the right to charge for these services. If normal postal service is interrupted, financial institutions are encouraged to anticipate some delay in delivery of payments instruments and attempt to minimize the impact by exploring alternative transportation arrangements. The Federal Reserve System is prepared to assist financial institutions in exchanging payments documents and, as time and space allow, other related financial documents normally sent by mail. The Federal Reserve will attempt to transport payments instruments by existing consolidated check shipments wherever possible. Some packages of payments documents and all other items may be subject to delivery times exceeding those required for normal delivery of consolidated check shipments if capacities of existing Federal Reserve shipment methods are exceeded. Payments documents include cash items normally exchanged under cover of cash letters, such as checks, drafts, money orders, ACH payments documents, and lockbox packages. Other related items would include financial documents and business communications, such as sales drafts, advices, and legal documents. Other items should be sent via the Federal Reserve only when no other practical method is available and the delivery of such items cannot be delayed for the duration of the postal interruption. Banks and others are encouraged to use the following incoming W A T S 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) - 2- All financial institutions desiring to use this service are requested to observe the following procedures: 1. Advise the Federal Reserve office serving your institution that you intend to use our services. 2. Package payment documents for a specific financial institution separately from all other financial documents for the same institution. 3. Address all packages to the appropriate Federal Reserve office that will receive and forward the package. 4. Mark payments document packages with the words "Payments Documents" in the lower right-hand corner of the package face. 5. Mark all packages in the lower left-hand corner with the name, address, and routing number of the financial institution to which delivery is to be made. 6. Mark all packages with your return address in the upper left-hand corner of the package face. 7. Deliver all packages to the Federal Reserve office serving your institution by any available method, such as bank messenger, courier, or other small package delivery service. Shipments of currency, coin, and negotiable securities to this Bank should continue to be handled in the normal manner, although delays in transit likely will occur in the event of a strike. We will attempt to deliver currency and coin ordered from us by the most expeditious method available. As an additional contingency plan, financial institutions may wish to explore ad hoc arrangements with other institutions to obtain adequate supplies of currency and coin. The Federal Reserve will accept checks deposited with us in the normal course of business. These contingency arrangements may be placed in operation by either a nationwide delivery interruption or a severe localized stoppage and are subject to the conditions set forth in the attached statement. Questions regarding procedures to be followed in the event of a disruption should be directed to the following individuals at the appropriate office: W.D. Basham, Mailing Department Manager Dallas Head Office (651-6278) Robert W. Schultz, Assistant Vice President El Paso Branch (544-4730) Vernon L. Bartee, Assistant Vice President Houston Branch (659-4433) John A. Bullock, Assistant Vice President San Antonio Branch (224-2141) Sincerely yours, William H. Wallace First Vice President Statement of Conditions Under Which Federal Reserve Banks will Handle Certain Mail During a Postal Interruption In view of the extreme emergency conditions which may prevail in the event postal service is interrupted by a work stoppage, this Bank will handle certain mail as previously described for delivery by means of carrier services only under the following conditions: All shipments should comply with regulations which would apply if the shipments were sent by means of the Postal Service. Any and all packages may be refused for any reason and may be returned if refused by any other party. No Federal Reserve Bank shall have any responsibility for any valuables or nonmailable matter sent to it, for any failure on the part of the sender to comply with the Private Express Statutes or any other law, for procuring insurance on any shipment, for any special instructions, or for any neglect, misconduct, mistake, or default of any other person. This Bank, and any other Reserve Bank to which a package may be sent, shall have no liability to any sender or any other person in connection with a shipment handled by it, including without limitation liability for misdelivery, loss or delay, except for its own gross negligence. The sender shall indemnify each Reserve Bank handling a shipment for any loss or expense resulting from such handling except loss resulting from the Reserve Bank's own gross negligence.