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F e d e r a l R eser ve B a n k OF DALLAS Dallas, Texas, November 30,1964 QUESTIONS REGARDING CHANGES IN MAXIMUM INTEREST RATES ON DEPOSITS To All Member Banks in the Eleventh Federal Reserve District: T h e re fo llo w s R e g u la t io n T h e fo llo w in g m a x im u m th e te x t o f th e T im e p e r io d J u ly ra te s d e s ir e d , to 1, 1965, m a y W h ile ra te th e a re in t e n d e d th e b e a r in t e r e s t u p th e to th a t be r e v is e d d a te . am ended N o ve m b e r im p o s e d d e p o s it w i t h m e a n in g 24, b y b y th e T h e new a m a t u r it y o f th e to b e a r Q p a y th a t B o a rd o f G o v e rn o rs r e g a r d in g in on c o n n e c tio n tim e becam e w it h changes in s a v in g s and d e p o s its u n d e r e ffe c tiv e N o ve m b e r 24, th e 1964. th e ra te s a re n o t a t a ra te to up n o t m o re th a n n o t b e a r in te r e s t a t a r a te th a t, if and w he n r e m a in e d v id e a y ie ld s h o u ld S ta te be la w o r in p a y t h e m a x im u m ban ks o n tim e A c t in and a fu ll th a t s a v in g s 2 1 7 .1 o f w it h th e ra te ra te s 1964, ce n t fo r w o u ld in be e ffe c t, a m a tu r it y th e fo r a n y m a t u r in g a n y p e r io d s u b je c t fix e s a a to a n y m a x im u m o f le s s t h a n p r o v is io n s R e g u la t io n “ tim e and, 90 days, o f R e g u la t io n d e p o s it” u n le s s it Q. w it h in m e t th e a d e m a n d d e p o s it u p o n w h ic h c o n s t it u t e th e w h ic h w as in th e b e g in n in g th e b a n k d a te som e in te r e s t S ta te w it h a re th e such p r io r to p r io r to d a te such be b u t m a y 24, a d ju s te d s u b j e c t a ls o ra te s to o f a n y tim e be o r p a id 1964, to p ro p r o v is io n s in t e r e s t ra te s th a t m a y a d d it io n , u n d e r s e c tio n 2 4 o f th e to has d a te , e x c e p t N o ve m b e r th e n th a t b e a r in te r e s t d e p o s it. m a x im u m on la w o f 1964, m a y c a s e s S t a t e - p r e s c r ib e d B o a rd . In n o t p a y b y in s a v in g s d e p o s it p e r io d , in t e r e s t m a y p r e s c r ib e d e p o s its , a n d a u th o r iz e d p e r io d m e m be r b an ks th a t a N o ve m b e r 24, c e n t f o r a n y p e r io d 1 2 -m o n th S ta te C o n s e q u e n tly , a n y p e r c e n t fro m m a y 1, 4y2 p e r o f th e J u ly n o t c o n s t it u t e p r io r to Sy2 p e r r a te s p r e s c r ib e d b y th e h ig h e s t r a t e w o u ld r e t r o a c t iv e . th e re u n d e r n a t io n a l b a n k s o f th e 30 d a ys 1 2 m o n th s d e p o s it, 4 ra te c o n n e c tio n 4 p e r ce n t fo r th a n a m a x im u m d a te d p e r m is s ib le . excess o f fo r m in d r e g u la tio n s th a n excess b a n k o f n o t m o re b o rn e in s a v in g s th e m a y R e s e rv e a th a n in s e c tio n be to n o te d , d e p o s it h a v in g d e p o s it w o u ld n o t in c r e a s e d c e r tific a te S u p p le m e n t p r e v io u s ly re a d o f a la w .) o n a n y tim e d e p o s it, th e a p p lic a b le h e re a fte r S ta te w o u ld m a x im u m new in te r e s t u p (A s lik e p r o v is io n s in te r e s t th e e x a m p le , o f le s s t h a n d e p o s it f o r le s s has q u e s t io n s m a y R e g u la t io n to a p p lic a b le r e m a in e d o n I t is s u e d a n s w e r c e r ta in F o r 1964. S u p p le m e n t, o f a s a v in g s p a y m e n t o f 5. to B o a rd ’s o f in t e r e s t t h a t m a y b e p a id d e f in it io n It in te r p r e ta tio n s S u p p le m e n t m u s t, o f c o u rs e , b e th e 4. o f o f in te r e s t t h a t m e m b e r b a n k s subsequent r e s tr ic tio n s 3. s e r ie s S u p p le m e n t t o s u b s e q u e n t to A a c e r t if ic a t e s o f d e p o s it is s u e d p r i o r t o N o v e m b e r 2 4 , 1 9 6 4 , m a y b e a m e n d e d b y a m e m b e r b a n k, if 2. o f c o m m e n ts p e r m is s ib le r e v is io n 1. th e Q : s a v in g s upon d e p o s its such a t d e p o s its o f th e y be le s s F e d e ra l a ra te b y in S ta te o r t r u s t c o m p a n ie s . s h o u ld m a x im u m be e m p h a s iz e d ra te s M e m b e r b an ks o f a re th a t in te r e s t th e th a t S u p p le m e n t m e m b e r fre e , o f c o u rs e , to p a y to ban ks th e m a y B o a rd ’s p a y R e g u la t io n on lo w e r in t e r e s t r a te s tim e if Q p r e s c r ib e s a n d s a v in g s th e y so o n ly d e p o s its . d e s ir e . Yours very truly, W a tro u s H . Iro n s P r e s id e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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