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F ederal reserve Bank DALLAS. TE X A S of Dallas 75222 C irc u la r N o . 8 0 -2 2 5 N o v em b er 20, 1980 Q U E ST IO N S R E L A T IN G TO T H E A L L O C A T IO N O F T H E LOW R ESER V E T R A N C H E T O A L L U .S . B R A N C H E S A N D A G E N C I E S O F F O R E IG N B A N K S A N D E D G E A C T A N D A G R E E M E N T C O R P O R A T I O N S IN T H E E LEV EN TH F E D E R A L R E SE R V E D IST R IC T : T he fo llo w in g q u e stio n s and a n sw e rs r e la t e t o th e a llo c a tio n o f th e lo w r e s e r v e t r a n c h e b y U .S . B r a n c h e s an d A g e n c i e s o f F o r e ig n B a n k s an d b y E d g e A c t and A g r e e m e n t C o rp o ra tio n s. Q U E S T IO N : C a n t h e f ir s t o f t h e a n n u a l c h a n g e s in a l l o c a t i o n o f t h e $ 2 5 m illio n lo w r e s e r v e tr a n c h e on tr a n s a c tio n a c c o u n ts fo r b ra n ch es and a g e n c ie s o f a s in g le fo r e ig n bank or fo r o f f i c e o f a n e d g e or a g r e e m e n t c o r p o r a tio n b e m a d e a t th e b e g in n in g o f th e 1 9 8 1 c a le n d a r y e a r ? ANSW ER: Y es, th e a llo c a tio n T h u r s d a y in J a n u a r y 1 9 8 1 . can be changed e ffe c tiv e January 1, t h e fir st Q U E S T IO N : If a n o f f i c e (or g r o u p o f o f f i c e s f ilin g a s in g le a g g r e g a t e d r e p o r t o f d e p o s i t s ) n o w h a s n e t t r a n s a c t i o n a c c o u n t s in e x c e s s o f $ 2 5 m i l l i o n b u t i t i s a n t ic ip a t e d t h a t t h is a m o u n t w ill d ro p b e lo w $ 2 5 m illio n d u r in g s o m e r e s e r v e c o m p u t a tio n p e r io d s, is it n e c e s s a r y t o a l l o c a t e t h e e n t ir e lo w r e s e r v e tr a n c h e to th is o f fic e ? A N S W E R : N o . In s u c h a c a s e , t h e i n i t i a l a l l o c a t i o n o f t h e t r a n c h e s h o u l d t a k e in to a c c o u n t t h e a n t ic ip a t e d m in im u m a m o u n t o f n e t t r a n s a c t io n a c c o u n t s a t e a c h o f f i c e d u r i n g t h e y e a r in o r d e r t o a v o i d l o s i n g a n y p o r t i o n o f t h e l o w reserv e tran ch e. Q U E S T IO N : If t h e lo w r e s e r v e tr a n c h e is n o t b e in g fu lly u tiliz e d by a fo r e ig n bank or a n e d g e or a g r e e m e n t c o r p o r a tio n d u r in g e a c h r e s e r v e c o m p u t a tio n p erio d or is o t h e r w is e h a v in g a n a d v e r s e im p a c t o n o p e r a t io n s , c a n t h e a ll o c a t io n o f th e tra n ch e be ch an ged ? A N S W E R : Y e s . In s u c h a c a s e , a f o r e i g n b a n k o r e d g e o r a g r e e m e n t c o r p o r a t i o n m a y c h a n g e it s tr a n c h e a llo c a t io n e f f e c t i v e t h e r e s e r v e c o m p u ta tio n p erio d b e g i n n i n g t h e f i r s t T h u r s d a y o f a n y m o n t h . A r e q u e s t f o r a c h a n g e in a l l o c a t i o n m u st b e file d (on a fo rm t h a t w ill b e a v a ila b le fro m r e s e r v e b an k s) a t l e a s t o n e w e e k p r io r t o t h e b e g in n in g o f a n y s u c h r e s e r v e c o m p u t a t i o n p e r io d . T h e f o r m s h o u l d b e f i l e d w i t h R e s e r v e B a n k s in a l l d i s t r i c t s i n w h i c h t h e f o r e i g n b a n k o r e d g e a g r e e m e n t c o r p o r a tio n o p e r a te s . Sincerely yours, E rnest T. B aughm an President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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