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federal R eserve Bank o f Dallas D A L L A S, T E X A S 75222 C ircular No. 77-70 June 24, 1977 REMINDER TO ALL BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: In th is B a n k 's C i r c u l a r No. 77-57 d a te d May 12, 1977, you w e r e informed of a r e v i s e d notification p r o c e d u r e for la rg e u n p a id items. T h i s is an a d ditional r e m i n d e r th a t th is c h a n g e in p r o c e d u r e , w hich will become effective J u ly 1, 1977, in v o lv e s F ed eral R e s e r v e B an k s not a s s u m in g a n y r e s p o n s ib il ity for g iv in g w i r e a d v ic e of n o n p a y m e n t on items $2,500 a n d o v e r , u n le s s a w ir e a d v ic e of n o n p a y m e n t r e q u i r e d by th is B a n k 's B ulletin s 8 a n d 11 a r e re c e iv e d from th e p a y in g b a n k or a n y o t h e r b a n k . T h e b a s i s for th is c h a n g e w as a s tu d y of t h e large item notification p r o c e d u r e p e rfo rm e d by the F e d e ra l R e s e r v e Syste m d u r i n g 1976. In th is s t u d y , it was found th a t th e R e s e r v e B ank s r e c e iv e d p r i o r notification for only 52 p e r c e n t of the la rg e items r e q u i r i n g w i r e a d v ic e a n d only abo ut o n e - h a lf of th e b a n k s w e r e initiating a w i r e o r te le p h o n e a d v ic e of n o n p a y m e n t of a la rg e item. E x p e r ience h a s indic a te d th a t the f a ilu r e of th e p a y in g b a n k to initiate the w ir e a d v ic e r e s u l t s in s u c h a sig n ific a n t d e la y in p ro v id i n g a notice of d is h o n o r th a t often the item bein g r e t u r n e d is re c e iv e d b y th e o rig in a l d e p o s it in g b a n k a t the time the notice of d i s h o n o r is r e c e i v e d . We s u g g e s t th a t all b a n k s ex am ine t h e i r p r a c tic e s for g iv in g a d v a n c e notice of d i s h o n o r . If you a r e not p r o v id i n g th is v a lu a b le s e r v i c e to th e d e p o s itin g b a n k s , we e n c o u r a g e you to do so. If you have a n y q u e s ti o n s o r comments c o n c e r n in g th e r e v i s i o n , p le a se c o n ta ct J . A . C ly m e r , A s s i s t a n t Vice P r e s i d e n t , Ext. 6337, o r the a p p r o p r i a t e B ra n c h officer h a v in g r e s p o n s i b i l i t y o v e r th e c h e c k collection fun c tio n. Sincerely y o u rs, R ob ert H . Boykin F i r s t Vice P r e s i d e n t Banks and others are encouraged to use the fo llo w in g t o ll-fr e e incoming WATS numbers in contacting th is Bank: 1-8 0 0-492-4403 (in tra s ta te ) and 1 -8 0 0 -5 2 7 -4 9 7 0 (in te rs ta te ). For c a lls placed loc a lly , p lease 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)
@FedFRASER