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F ederal

reserve

Ban k

DALLAS. TEXAS

of

Dallas

75222

Circular No. 83-129
October 28, 1983

REGULATION Q
INTEREST ON DEPOSITS
(Technical Amendments)
TO ALL MEMBER BANKS
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System has amended
its Regulation Q effective October 1, 1983 to incorporate rules relating to the
payment of interest on deposits adopted by the Depository Institutions
Deregulation Committee (DIDC). The DIDC’s final rules were outlined in our
Circular No. 83-106 dated September 7, 1983.
Attached are copies of the Board’s press release and the material as
submitted for publication in the Federal Register. Questions regarding the
material contained in this circular should be directed to the Legal Department,
Extension 6171.
Additional copies of this circular will be furnished upon request to
the Public Affairs Department, Extension 6289.
Sincerely yours,

William H. Wallace
First Vice President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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.

FEDERALRESERVEpressre^

ii

For immediate release

October 6, 1983

The Federal Reserve Board has amended its Regulation Q (Interest
on Deposits) effective October 1, 1983 to incorporate rules relating to the
payment of interest on deposits adopted by the Depository Institutions
Deregulation Committee.
The DIDC was established by the Depository Institutions
Deregulation Act of 1980, which transferred to the Committee the authority of
the Board (and similar authority of the Federal Deposit
and the Federal

Insurance Corporation

Home Loan Bank Board) to prescribe interest rate ceilings and

other rules relating to the payment of interest on deposits.
The technical

amendments to Regulation Q effectuate DIDC actions

abolishing ceiling interest rates on most time accounts.
interest rate structure for commercial banks,

Account

The resulting

including member banks,

Interest Rate Ceiling

is:

Required
Minimum Deposit

All time deposits
of more than 31 days

None

None

Money Market Deposit Account

None

$2,500

Ceiling-free NOW Accounts

None

$2,500

Time deposits of

7-31 days

None

$2,500

Time deposits of

7-31 days*/

5-1/4%

$0-$2,499

Passbook Sayings

5-1/4%

None

NOW Accounts

5-1/4%

$0-$2,499

_/ Member banks may continue to issue to governmental units time deposits of
less than $2,500 with maturities or required notice periods of 7 to 31
days, subject to the previous ceiling of eight percent in effect for such
depo si ts.

-

2-

The Board also revised its Regulation Q to incorporate DIDC
actions effective October 1,

1983 that reduce penalties for early withdrawals

from contracts entered into, renewed or extended on or after October

1, 1983

as follows:

— For time deposits of 7 to 31 d a y s , a depositor
must forfeit an amount at least equal to the
greater of:

— All interest earned on the amount
withdrawn during the term of the
deposit, or

— All interest that could have been
earned on the amount withdrawn in
half of the maturity or notice period.

— For time deposits of between 32 days and one y e a r ,
a depositor must forfeit an amount at least equal to:

— One month's interest earned, or that
could have been earned, on the amount
withdrawn at the simple interest rate
being paid on the deposit, however
long the funds withdrawn had been on
deposit.

— For a time deposit of more than one y e a r , a depositor
must forfeit an amount at least equal to:

— Three mo nt hs ’ interest earned, or that
could have been earned, on the amount
withdrawn at the simple interest rate
being paid on the deposit, however long
the funds withdrawn had been on deposit.
The Board's notice of its actions is attached.

-

Attachment

0-

FEDERAL

RESERVE

SYSTEM

REGULATION Q
[12

C.F.R.

(Docket

Part

No.

217]

R-0483)

INTEREST ON DEPOSITS
Technical

AGENCY:

B o a r d of

ACTION:

Governors

Technical

of

Amendments

t he F e d e r a l

Reserve

System.

amendments.

SUMMARY:
P u r s u a n t to its a u t h o r i t y u n d e r s e c t i o n 19 of t h e
Federal
R e s e r v e Act ,
as a m e n d e d ,
the
Board has
amended
R e g u l a t i o n Q -- I n t e r e s t on D e p o s i t s
(12 C F R P a r t 217) to
i n c o r p o r a t e r u l e s of t h e D e p o s i t o r y I n s t i t u t i o n s D e r e g u l a t i o n
Committee
( " D I DC " ),
adopted
pursuant
to
the
Depository
I n s t i t u t i o n s D e r e g u l a t i o n A c t o f 1 9 8 0 ( T i t l e II of Pub. L.
96-221).
T h e a m e n d m e n t s to R e g u l a t i o n Q a r e t e c h n i c a l
in
n a t u r e a n d c o n f o r m t h e B o a r d ' s r u l e s to t h o s e of t h e D I D C.
EFFECTIVE:

October

1,

1983.

FOR
FURTHER
INFORMATION
CONTACT:
Gilbert
T.
Schwartz,
A s s o c i a t e G e n e r a l C o u n s e l ( 2 0 2 / 4 5 2 - 3 6 2 5 ) , o r P a u l S. P i l e c k i ,
Senior
Counsel
( 2 0 2 / 4 5 2 - 3 281),
Legal
Division,
Board
of
G o v e r n o r s of t he F e d e r a l R e s e r v e S y s t e m , W a s h i n g t o n , D.C. 2 0 5 5 1 .
SUPPLEMENTARY
INFORMATION:
The
Depository
Institutions
D e r e g u l a t i o n A c t of 1 9 8 0 ( T i t l e II of Pub. L. 9 6 - 2 2 1 ) t r a n s f e r s
to t h e D I D C t h e a u t h o r i t y c o n f e r r e d b y s e c t i o n 1 9 (j) of t he
F e d e r a l R e s e r v e A c t (12 U . S . C . § 3 71 b ) u p o n t h e B o a r d (and t h e
similar
authorities
of
t he
Federal
Deposit
Insurance
C o r p o r a t i o n and the Fe deral Home Lo a n Bank Board, w h i c h are
c o n t a i n e d in o t h e r s t a t u t e s ) to e s t a b l i s h r u l e s c o n c e r n i n g th e
p a y m e n t of interest on d e p o s i t accounts.
T h e B o a r d h a s a m e n d e d its R e g u l a t i o n Q
into c o n f o r m i t y w it h a c t i o ns t a k e n b y the DIDC.
table presents
the
regulatory provisions
that
affected by the DIDC's actions:

to b r i n g it
The f ollowing
have been

-

DIDC

2-

Rule

Regulatory

1204.103--Penalty
Withdrawals

for

Early

217.4(d)

1 2 0 4 . 1 2 3 - - P a y m e n t of I n t e r e s t
D e p os i ts Issued on or a f te r
O c t o b e r 1, 1 9 8 3

1204.I2l--Seven

DIDC Rule

to

Provision Amended

on T i m e

217.1(h)/
217.7(a),
(b),
(d),

31-Day TimeDeposits

(h)

217.7(e)

Regulatory Provision
Amended

Repealed

217.6(i )
217.7(f)

1 2 0 4 . 1 0 4 — 26 W e e k M o n e y M a r k e t
T i m e D e p o s i t s of L e s s T h a n

$ 100,000
217.7(g)

1 2 0 4 . 1 0 6 - - T i m e D e p o s i t s of L e s s
Than $100,000 with Maturities
of 2 - 1 / 2 Y e a r s to L e s s T h a n 4 Y e a r s
1 2 04 .1 1 2— Time

Deposits

1204.114— Phaseout

of

1204.116— Tax-Exempt

of

Less

Finders
Savings

Than

$100,000

217.7(b)
217.147

Fees
Certificates

217.3(a)
2 1 7 . 7(i)

1204.118— Individual Retirement Accounts
a n d K e o g h (H.R. 10) P l a n D e p o s i t s of
Less Than $ 10 0, 0 0 0

217.7(e)

1 2 0 4.119— Time
D e p o s i t s of L e s s T h a n
$ 1 0 0 , 0 0 0 w i t h O r i g i n a l M a t u r i t i e s of
3 - 1 / 2 Y e a r s or M o r e

2 1 7 . 7(k)

1204.120— 91-Day Time
Than $100,000.

217.6(i )
217.7(j )

Deposits

of

Less

Because
of
the
technical
nature
of
amendments
c o n f o r m i n g R e g u l a t i o n Q to a c t i o n s of t h e DID C, t h e B o a r d f i n d s
that a p p l i c a t i o n of
the
notice
and public
participation
p r o v i s i o n s o f 5 U . S . C . § 5 5 3 t o t h e s e a c t i o n s is u n n e c e s s a r y
and c o n t r a r y to the p u b l i c interest, and that good cause exists
f or m a k i n g t h e s e a c t i o n s e f f e c t i v e O c t o b e r 1, 1 9 83 .

-

List

of

Subjects

in 12 C F R P a r t

Advertising;
Foreign banking.

Banks,

3-

217

banking;

Federal

Reserve

System;

P u r s u a n t t o its a u t h o r i t y u n d e r s e c t i o n 19 of t he
F e d e r a l R e s e r v e A c t (12 U . S . C . §§ 461, 371a, a n d 37 1b ), t h e
B o a r d a m e n d s R e g u l a t i o n Q (12 C F R P a r t 217), e f f e c t i v e O c t o b e r
1, 1983, as f o l l o w s :
1.
Section
217.1
is a m e n d e d
in p a r a g r a p h ( b ) ( 1 ) ( i i )
by
r e m o v i n g "217.7(1_)" a n d i n s e r t i n g " 2 1 7 . 7 ( e ) " in i ts p l a c e , in
p a r a g r a p h (e)(4)
by
removing
" 2 1 7 . 7 ( m) "
and
inserting
" 2 1 7 . 7 ( g ) " in its p l a c e , a n d b y r e v i s i n g p a r a g r a p h (h) t o r e a d
as f o l l o w s :
SECTION
*

*

217.1— DEFINITIONS
*

*

*

(h)
O b l i g a t i o n s issued by the p a r e n t b an k h o l d i n g
c o m p a n y of a m e m b e r b a n k .
(1)
F o r p u r p o s e s of t h i s p a rt , th e
" d e p o s i t s " o f a m e m b e r b a n k a l s o i n c l u d e s a n o b l i g a t i o n t h a t is
(i)
r e q u i r e d to b e r e g i s t e r e d w i t h t h e S e c u r i t i e s a n d E x c h a n g e
C o m m i s s i o n u n d e r t h e S e c u r i t i e s A c t o f 193 3;
(ii) i s s u e d or
g u a r a n t e e d in w h o l e or in p a r t as to p r i n c i p a l a n d i n t e r e s t b y
t h e m e m b e r b a n k ' s p a r e n t w h i c h is a b a n k h o l d i n g c o m p a n y u n d e r
t h e B a n k H o l d i n g C o m p a n y A c t of 1956, as a m e n d e d (12 U . S . C .
1841-50),
r e g a r d l e s s of t h e u s e o f p r o c e e d s ;
and
( ii i) (A )
i s s u e d in a d e n o m i n a t i o n of l e s s t h a n $ 1 0 0 , 0 0 0 a n d w i t h a
s t a t e d m a t u r i t y , n o t i c e p e r i o d or r e d e m p t i o n p e r i o d of l e s s
t h a n s e v e n d a y s or (B) i s s u e d in a d e n o m i n a t i o n of l e s s t h a n
$ 2 , 5 0 0 a nd w i t h a s t a t e d m a t u r i t y , n o t i c e p e r i o d , o r r e d e m p t i o n
p e r i o d of seven to t h i r t y - o n e days.
(2)
T he t e r m
"deposits"
does not
include those
o b l i g a t i o n s of a b a n k h o l d i n g c o m p a n y t h a t a r e s u b j e c t to
inter es t rate l im i t a t i o n s i m posed p u r s u a n t to P u b l ic L aw 89-597.
*

*

*

*

*

2.
S e c t i o n 2 1 7 . 3 is a m e n d e d
in p a r a g r a p h
(f) b y
"217.7(1.)" a n d i n s e r t i n g
"217.7(e)"
in its p l a c e
r e v i s i n g the second s e n t e n c e
of p a r a g r a p h
(a)
to
follows:
SECTION
(a)
*
*
disregarded
*

*

217.3— INTEREST ON TIME AND
*
in

SAVINGS

The e f f e ct s of c o m p o u n d i n g
ascertaining
the
rate
of

removing
and by
r e a d as

DEPOSITS

of inter e st m a y
interest
paid.

be

*

3.
Section 217.4
" 2 1 7 . 7 ( 1 ) (2)" a n d

is a m e n d e d
in p a r a g r a p h
(f)
by removing
i n s e r t i n g " 2 1 7 . 7 ( e ) ( 2 ) " in its p l a c e , a n d

-

4-

p a r a g r a p h (d) b y r e v i s i n g s u b p a r a g r a p h ( l ) ( i i i ) , b y a d d i n g
n e w s u b p a r a g r a p h ( l ) ( i v ) / a n d b y r e v i s i n g t h e l a st s e n t e n c e
s u b p a r a g r a p h (6) t o r e a d as f o l l o w s :
SECTION

2 1 7 . 4 — P A Y M E N T OF T IM E
*

*

*

DEPOSITS
*

a
of

BEFORE MATURITY

*

(d)
( 1)
(iii)
The fo l l o w i n g m i n i m u m earl y w i t h d r aw al
p e n a l t y s h a l l a p p l y t o t i m e d e p o s i t c o n t r a c t s e n t e r e d into,
r e n e w e d , or e x t e n d e d b e t w e e n J u n e 2, 1980, a n d S e p t e m b e r 30,
1983, a n d t h a t h a v e n o t b e e n r e n e w e d o r e x t e n d e d o n o r a f t e r
O c t o b e r 1, 1 98 3:
(A)

*

*

*

(D)
N o t w i t h s t a n d i n g s u b p a r a g r a p h s (A) a n d (B), w h e r e
a t i m e d e p o s i t in a n a m o u n t o f $ 2 , 5 0 0 to l e s s t h a n $ 1 0 0 , 0 0 0 ,
w i t h a n o r i g i n a l m a t u r i t y of 91 d a ys , or a n y p o r t i o n t h e r e o f ,
is p a i d b e f o r e m a t u r i t y , a d e p o s i t o r s h a l l f o r f e i t a n a m o u n t
e q u a l t o at l e a s t a l l i n t e r e s t e a r n e d o n t h e a m o u n t w i t h d r a w n .
(E)
Notwithstanding
subparagraph
(A),
where
a
n o n n e g o t i a b l e t i m e d e p o s i t s u b j e c t to an i n i t i a l d e p o s i t of
$ 2, 50 0 or more, w i t h an o r i g i n a l m a t u r i t y or r e q u i r e d n o t i ce
p e r i o d of s e v e n t o 31 day s, or a n y p o r t i o n t h e r e o f , is p a i d
b e f o r e m a t u r i t y , a d e p o s i t o r s h a l l f o r f e i t a n a m o u n t e q u a l to
at l e a s t t h e g r e a t e r of
(_1) a l l i n t e r e s t e a r n e d o n t h e a m o u n t w i t h d r a w n f r o m
t h e m o s t r e c e n t d a t e of d e p o s i t , d a t e o f m a t u r i t y , o r d a t e o n
w h i c h n o t i c e o f w i t h d r a w a l w a s g i v e n , or

amount
period

(2 )
all interest that c o u l d h a v e b e e n e a r n e d
w i t h d r a w n d u r i n g a p e r i o d e q u a l to o n e - h a l f th e m a t u r i t y
or r e q u i r e d noti ce period.

on

the

(iv)
The fo l l o w i n g m i n i m u m e a r l y w i t h d r a w a l p e n a l t y
s h a l l a p p l y t o t i m e d e p o s i t c o n t r a c t s e n t e r e d into, r e n e w e d , or
e x t e n d e d o n or a f t e r O c t o b e r 1, 1983:
(A)
W h e r e a time d e p o s i t w i t h an o r i g i n a l m a t u r i t y
r e q u i r e d n o t i c e p e r i o d of s e v e n to 31 d ay s, or a n y p o r t i o n
t h e r e o f , is p a i d b e f o r e m a t u r i t y , a d e p o s i t o r s h a l l f o r f e i t a n
a m o u n t at l e a s t e q u a l to t h e g r e a t e r of (1) a l l i n t e r e s t e a r n e d

o

o n t h e a m o u n t w i t h d r a w n f r o m t h e m o s t r e c e n t o f t h e d a t e of
deposit,
d a t e of m a t u r i t y ,
or d a t e o n w h i c h
n o t i c e of
w i t h d r a w a l w a s g i v e n , or ( 2 ) a l l i n t e r e s t t h a t c o u l d h a v e b e e n
e a r n e d on t h e a m o u n t w i t h d r a w n d u r i n g a p e r i o d e q u a l to
one-half
the m a t u r i t y pe r io d or the re q u i r e d n o t i c e
period.
(B)
W h e r e a t i m e d e p o s i t w i t h a n o r i g i n a l m a t u r i t y or
r e q u i r e d n o t i c e p e r i o d of 32 d a y s to o n e y e a r , o r a n y p o r t i o n
t h e r e o f , is p a i d b e f o r e m a t u r i t y , a d e p o s i t o r s h a l l f o r f e i t a n
a m o u n t at l e a s t e q u a l to o n e m o n t h ' s i n t e r e s t e a r n e d , or t h a t
c o u l d h a v e b e e n e a r n e d , on the a m o u n t w i t h d r a w n at t h e n o m i n a l
( s i m p l e i n t e r e s t ) r a t e b e i n g p a i d o n t h e d e p o s i t , r e g a r d l e s s of
t h e l e n g t h of t i m e t h e f u n d s w i t h d r a w n h a v e r e m a i n e d o n d e p o s i t .
(C)
W h e r e a t i m e d e p o s i t w i t h a n o r i g i n a l m a t u r i t y or
required
n o t i c e p e r i o d of m o r e t h a n o n e y e ar , o r a n y p o r t i o n
t h e r e o f , is p a i d b e f o r e m a t u r i t y , t h e d e p o s i t o r s h a l l f o r f e i t
an a m o u n t at l e a s t e q u a l to t h r e e m o n t h s ' i n t e r e s t e a r n e d , or
t h a t c o u l d h a v e b e e n e a r n e d , o n t h e a m o u n t w i t h d r a w n at t h e
nominal
( s i m pl e)
interest rate b e i n g pa i d on the deposit,
r e g a r d l e s s of t h e l e n g t h o f t i m e t h e f u n d s w i t h d r a w n h a v e
re ma i ne d on deposit.
*

*

*

*

*

(6)
*
*
*
E x c e p t a s p r o v i d e d in s u b p a r a g r a p h s
( l ) ( i i i ) ( E ) a n d ( l ) ( i v ) ( A ) , w h e n a t i m e d e p o s i t is p a y a b l e o n l y
a f t e r n o t i c e , for f u n d s o n d e p o s i t f or at l e a s t t h e n o t i c e
p e r i o d , t he p e n a l t y for e a r l y w i t h d r a w a l s h a l l b e i m p o s e d for
at l e a s t t he n o t i c e p e r i o d .
*

*

*

*

4.
P a r a g r a p h (c)(1) of s e c t i o n 2 1 7 . 5
" 2 1 7 . 7 ( m )" a n d i n s e r t i n g " 2 1 7 . 7 ( g ) " in
5.

Section

217.6

is a m e n d e d

by

*
is a m e n d e d
its p l a c e .

removing paragraph

by

removing

(i).

6.
S e c t i o n 2 1 7 . 7 is a m e n d e d b y r e v i s i n g p a r a g r a p h s (a), (b),
(c), a n d (d); b y r e m o v i n g p a r a g r a p h s (e),
(f), (g), (i), (j)
a n d (k); b y r e d e s i g n a t i n g p a r a g r a p h (m) a s p a r a g r a p h (g) a n d
p a r a g r a p h (h) as p a r a g r a p h (f); r e d e s i g n a t e d p a r a g r a p h (g) is
a m e n d e d in s u b p a r a g r a p h (1) b y r e m o v i n g " ( m ) ( 2 ) " in b o t h p l a c e s
t h a t it a p p e a r s a n d b y i n s e r t i n g " ( g ) ( 2 ) " in its p l a c e , a n d b y
r e d e s i g n a t i n g p a r a g r a p h (1_) as p a r a g r a p h (e) a n d r e v i s i n g it to
read as f o l l o w s :

-

6-

SECTION 217.7— SUPPLEMENT:
M A X I M U M RATE S OF
PAYABLE BY M E M B E R BANKS ON TIME AND SAVINGS
*

*

*

*

INTEREST
DEPOSITS

*

(a )
T i m e d e p o s i t s of $ 1 0 0 , 0 0 0 or m o re ,
or with original
m a t u r i t i e s o r r e q u i r e d n o t i c e p e r i o d s of 32 d a y s or more, or
IBF time d e p o s i t s .
(1)
T h e r e is n o m a x i m u m r a t e of i n t e r e s t
p r e s e n t l y p r e s c r i b e d o n a n y t i m e d e p o s i t o f $ 1 0 0 , 0 0 0 or more,
o r w i t h a n o r i g i n a l m a t u r i t y or r e q u i r e d n o t i c e p e r i o d of 32
days or more, or on IBF time d e p o s i t s i ssued under section

217.1(1.) .
(2)
E x c e p t for I B F t i m e d e p o s i t s , a m e m b e r b a n k
p e r m i t a d d i t i o n a l d e p o s i t s to be made to any time d e p o si t wi t h
a n o r i g i n a l m a t u r i t y or r e q u i r e d n o t i c e p e r i o d of 32 d a y s or
m o r e at a n y t i m e p r i o r to its m a t u r i t y or e x p i r a t i o n o f n o t i c e
p e r i o d w i t h o u t e x t e n d i n g t he m a t u r i t y or r e q u i r e d n o t i c e p e r i o d
of t h e e n t i r e b a l a n c e in t h e a c c o u n t .
(b)
Tim e d e p o s i t s with o r i g i na l m a t u r i t i e s or requi re d notice
p e r i o d s of s e v e n t o 31 d a y s .
N o m e mb e r b a nk shall p ay interest
o n a n y t i m e d e p o s i t o f l e s s t h a n $2, 5 00 w i t h a n o r i g i n a l
m a t u r i t y or r e q u i r e d n o t i c e p e r i o d of 31 d a y s or l e s s at a r a t e
in e x c e s s o f 5 - 1 / 4 p e r c e n t .
(c)
Savings d e p o s i t s .
(1)
E x c e p t as p r o v i d e d in p a r a g r a p h
(g), n o m e m b e r b a n k s h a l l p a y i n t e r e s t at a r a t e in e x c e s s of
5-1/4 p e r c e n t on a n y savings deposit.
*

*

*

*

*

(d)
G o v e r n m e n t a l unit time d e p o s i t s .
E x c e p t as p r o v i d e d in
p a r a g r a p h s (a) a n d (e) a n d n o t w i t h s t a n d i n g p a r a g r a p h (b), n o
m e m b e r bank shall p a y interest on any time d e p os it wh ic h
c o n s i s t s o f f u n d s d e p o s i t e d t o t h e c r e d i t of, or in w h i c h t h e
e n t i r e b e n e f i c i a l i n t e r e s t is h e l d by, t h e U n i t e d S t a t e s , a n y
s t a t e o f t h e U n i t e d S t a t e s , or a n y c o u n t y , m u n i c i p a l i t y , or
p o l i t i c a l s u b d i v i s i o n t h e r e o f , t h e D i s t r i c t of C o l u m b i a ,
th e
C o m m o n w e a l t h o f P u e r t o Ri co ,
the V i r g i n Islands,
American
S a m o a , G u am , or p o l i t i c a l s u b d i v i s i o n t h e r e o f in e x c e s s of 8
percent.
(e )

Seven-

to

31-day

time

deposits

of

$2,500

or m o r e .

(1)
N o t w i t h s t a n d i n g p a r a g r a p h (d), a m e m b e r b a n k m a y
p a y i n t e r e s t at a n y r a t e as a g r e e d to b y t h e d e p o s i t o r o n a n y
t i m e d e p o s i t o f $ 2 , 5 0 0 or m o r e , w i t h a m a t u r i t y o r r e q u i r e d

may

-

7-

n o t i c e p e r i o d o f n o t l e s s t h a n s e v e n d a y s n o r m o r e t h a n 31
days.
H o w e v e r , a m e m b e r b a n k s h a l l n o t p a y i n t e r e s t in e x c e s s
of t h e c e i l i n g r a t e for r e g u l a r s a v i n g s d e p o s i t s o r a c c o u n t s o n
a n y d a y t h e b a l a n c e in a t i m e d e p o s i t
i ssued under this
p a r a g r a p h is l e s s t h a n $ 2 , 5 0 0 .
*

*

*

*

*

(3)
W h e r e all or an y pa r t of a time d e p o s i t
u n d e r t h i s p a r a g r a p h is w i t h d r a w n w i t h i n o n e b u s i n e s s d a y a f t e r
t he m a t u r i t y d a t e o f t h e d e p o s i t o r t h e d a t e o f e x p i r a t i o n of
n o t i c e of w i t h d r a w a l , n o e a r l y w i t h d r a w a l p e n a l t y is r e q u i r e d
to b e a p p l i e d o n t h e a m o u n t w i t h d r a w n .
*
5.

Section

SECTION

217.147

*

*

is r e v i s e d

*

*

to r e a d a s

follows:

2 1 7 . 1 4 7 — P R E M I U M S , F I N D E R S FEES, P R E P A Y M E N T O F
A N D P A Y M E N T O F I N T E R E S T IN M E R C H A N D I S E

INTEREST

For
regulatory provisions
relating
to
premiums,
f i n d e r s fees, p r e p a y m e n t o f i n t e r e s t a n d p a y m e n t o f i n t e r e s t in
m e r c h a n d i s e r e f e r t o 12 C . F . R . 1 2 0 4 . 1 0 9 , 1 2 0 4 . 1 1 0 a n d 1 2 0 4 . 1 1 1 .
By order

of

the B o ar d

of

Governors,

October

3,

1 9 8 3.

(signed) William W. Wiles
W i l l i a m W. W i l e s
S e c r e t a r y of t h e B o a r d

issued