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F ederal
reserve
Ba n k
DALLAS, TEXAS
of
Dallas
75222
Circular No. 83-75
June 7, 1983
RECOVERY OF INTERTERRITORY FLOAT
ASSOCIATED WITH MIXED AND FEDERAL CASH LETTERS
TO ALL DEPOSITORY INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
In March of this year, the Federal Reserve Board approved a program
to reduce or price interterritory check float. This program will be implemented
by each Reserve office on July 1, 1983.
As a part of this program, interterritory check float associated with
mixed or Federal ("other Fed") cash letters deposited with the Federal Reserve
Bank must be recovered. Recovery of this interterritory float by Eleventh District
offices will be accomplished through partial deferment of availability.
This
method of deferment is referred to as the fractional availability method. The
fractional float deferment will only be applied to interterritory checks, not to
local items.
Each Reserve office in the Eleventh District has developed one fraction
which represents the average on-time performance for delivery of our cash letters
to other Reserve Banks.
The fractions that will be utilized at the Eleventh
District offices are as follows:
Office
Fraction
Dallas
El Paso
Houston
San Antonio
96%
96%
95%
94%
To illustrate how this fractional deferment will be applied, assume that
an institution deposits a mixed cash letter at the Houston office at 12:01 a.m.
totaling $31,000 and containing $10,000 in Houston zone immediate credit items,
$10,000 in immediate credit other Fed items, $10,000 in one-day other Fed items,
and $1,000 in rejects. Based upon a fraction of 95% at the Houston office, the
following credit availability would be granted:
(over)
B a n k s a n d o t h e r s a re e n c o u r a g e d to use th e f o llo w in g in c o m in g W A T S n u m b e r s in c o n t a c t in g th is Bank:
1-800-442-7 140 ( in tr a s t a te ) an d 1-800-527-9 200 (in te rs ta te ). Fo r c a lls p la c e d lo cally , p l e a s e us e 651 plus th e
e x te n s io n refe rred to above.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
-
2
-
Two-Day
One-Day
Immediate
$10,000 (Houston zone)
9,500 (Other Fed)
$9,500 (Other Fed)
500 (Deferred amount
to recover float
from other Fed
immediate)
$
$19,500
$ 10, 000
$1,500
500 (Deferred amount to
recover float from
other Fed one-day
1,000 (Total Rejects)
All rejects in mixed and Federal cash letters will be deferred two days.
If you have any questions about this change, please contact Donald L.
Jackson, (214) 651-6115 at the Head Office; Robert W. Schultz, (915) 544-4730 at
the El Paso Branch; Vernon L. Bartee, (713) 659-4433 at the Houston Branch; or
John A. Bullock, (512) 224-2141 at the San Antonio Branch.
Additional copies of this circular will be furnished upon request to the
Public Affairs Department, Extension 6289.
Sincerely yours,
/
ta*K
William H. Wallace
First Vice President
@FedFRASER