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Federal Reserve Bank
OF DALLAS

Dallas, Texas, December 31, 1957

PROTEST AND W IR E ADVICE OF NONPAYMENT OF CASH
AND NONCASH ITEMS PAYABLE IN PUERTO RICO

To the Member and Nonmember Gearing Banks
o f the Eleventh Federal Reserve District:

In our circular letter o f December 17, 1957 announcement was made that,
beginning January 1, 1958, we would receive and handle fo r collection cash and
noncash items payable in Puerto Rico. W e have since received advice that the
minimum charge for protesting a dishonored item in Puerto R ico is $15. Added
to the $15 is the amount o f any incidental expense, such as the cost of travel
involved in making presentment, as well as the cost o f sending a cable giving
advice o f nonpayment when such advice is called for by applicable instructions.
In this connection, reference is made to instructions relating to protest and
wire advice o f nonpayment o f cash and noncash items contained in our applica­
ble operating bulletins.
Cash items. — U niform instructions regarding protest and wire advice
o f nonpayment under which we will receive, handle, and forward a cash item
are set forth in paragraph 13 o f our Bulletin No. 8. In accordance with the
provisions o f subparagraph (2 ) o f these uniform instructions, a bank sending
us a cash item o f $500.01 or over payable in Puerto Rico, may, if its depositor
does not require protest, avoid imposition o f protest charges in the event of
dishonor by placing its A .B .A . no protest symbol on the face o f the item. In
addition, in view o f the provisions o f subparagraph (4 ) o f these uniform
instructions, if the item is for $1,000 or over and the depositor does not require
wire advice o f nonpayment, the charge to cable such advice can be avoided by
placing on the face o f the item the instructions “ Do N ot W ire Nonpayment”
with the A .B .A . transit number o f the sending bank.
Noncash items. — Instructions regarding the protest o f noncash items
appear on page 5 o f our Bulletin No. 9, under the topic headed “ Protest Prac­
tice in Absence o f Instructions.” In view o f these provisions, a bank sending
us a noncash item o f $500.01 or over payable in Puerto R ico (except bonds,
debentures, coupons, and other similar securities), may, if its depositor does

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not require protest, avoid imposition o f protest charges in the event o f dis­
honor by instructing us in its collection letter that the item should not be
protested. In accordance with provisions which will be found on page 6 o f our
Bulletin No. 9, under the heading “ Telegraphic Advice,” we will request tele­
graphic advice o f payment or nonpayment o f noncash items only when instructed
to do so by sending banks.
These procedures also will apply with respect to any cash or noncash item
forwarded by our direct sending banks to the Federal Reserve Bank o f New
York.
Yours very truly,
Watrous H . Irons
President