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F ederal

reserve

Ba n k

DALLAS. TEXAS

of

Dallas

75222
C ircu lar No. 79-86
May 14, 1979

REGULATION Q—WAIVER FOR IOWA DEPOSITORS AND AMENDMENT
TO THE RULES REGARDING DELEGATION OF AUTHORITY

TO ALL MEMBER BANKS AND
OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System has
granted temporary suspension of the Regulation Q penalty for early with­
drawal of time deposits from member banks for those depositors affected
by the recent storms in Iowa. The Board's action permits a member bank,
wherever located, to pay a time deposit before maturity without imposing
the penalty upon a showing that the depositor suffered property loss in
the emergency area. The action is valid for deposits withdrawn between
A p ril 6, 1979, and September 30, 1979.
In a related action, the Board amended its Rules Regarding
Delegation of Authority to delegate to the Board's Secretary the power to
perm it member banks to waive the early withdrawal penalty in sim ilar
situations for depositors suffering em ergency-related losses in areas de­
clared an emergency area by the President. The amendment to the Rules
was effective A p ril 26, 1979.
Printed on the reverse of this c irc u la r is a copy of the amend­
ment. Member banks and others that maintain Regulations Binders should
file the amendment in th eir binders. Any questions may be directed to
our Consumer A ffairs Section of the Bank Supervision and Regulations
Department, Ext. 6171.
Additional copies of the amendment w ill be furnished upon re ­
quest to the Secretary's Office, E xt. 6267.
Sincerely yours,
Robert H. Boykin
F irst Vice President
Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-492-4403 (intrastate) and 1-800-527-4970 (interstate). For calls placed locally, please use 651 plus
the extension referred to above.

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

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

RULES REGARDING DELEGATION OF AUTHORITY
AM EN D M EN T!

Effective April 26, 1979, Section 265.2(a), sub­
paragraph (18) is amended to read as follows:
SECTION 265.2 — SP EC IFIC FUNCTIONS
D EL EG A TE D TO BOARD E M PLO Y EES AND
F E D E R A L R E S E R V E BANKS
*

4

*

*

*

(a) The Secretary of the Board (or, in the
Secretary’s absence, the Acting Secretary) is au­
thorized:
4

4

4

4

4

(18) Under the provisions of section 19(j) of
the Federal Reserve Act (1 2 U.S.C. §371b) and
§§217.4(a) and (d) of Regulation Q (12 C .F.R .
§§217.4(a) and(d)) to permit memberbanks
to

waive the penalty for early withdrawal of a
time deposit in §217.4(d) (Regulation Q), if all of
the following conditions are met:
(i) The President of the United States de­
clares an area a major disaster area or an emer­
gency area pursuant to section 301 of the Disaster
Relief Act of 1974 (42 U.S.C. §5141) and Execu­
tive Order No. 11795 of July 11, 1974.
(ii) A waiver is limited in effectiveness to
depositors suffering disaster or emergency-related
losses in the officially designated disaster or emer­
gency area.
(iii) The appropriate Reserve Bank recom­
mends approval.
(iv) All relevant divisions of the Board’s
staff recommend approval.

tFor this publication to be complete as amended effective April 26, 1979, retain:
1 ) Prin ted p am ph let as revised effective Au gust 2, 1978;

2)
3)
4)
5)

Amendment effective October 19, 1978, adding paragraph (7) to Section 265,2(b);
Amendment effective January 1, 1979, Section 265.2;
Amendment effective March 10, 1979, Section 265.2(f); and
This slip sheet.

4-26-79