Full text of District Notices (Federal Reserve Bank of Dallas) : Renewals of Time Certificates of Deposit

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FEDERAL RESERVE BANK
OF DALLAS

J u ly 17, 1933

RENEWALS OF TIME CERTIFICATES OF DEPOSIT

To th e Member Bank A ddressed:
We have r e c e n t ly r e c e iv e d numerous in q u ir ie s from
member banks as t o th e cou rse which th ey should pursue in connec­
t i o n w ith m aturing c e r t i f i c a t e s o f d e p o s it s , pending th e issu a n ce
o f r e g u la tio n s by the F ederal Reserve Board p r e s c r ib in g maximum
r a t e s o f in t e r e s t which may be paid by member banks on such de­
p o s its .
For your in form a tion and guidance, I quote below c e r ­
t a in e x ce rp ts from a l e t t e r r e c e n t ly addressed by the F ed era l Re­
serv e Board t o a member bank in r e p ly to an in q u ir y on t h is s u b je c t
^Pending the issu a n ce o f r e g u la tio n s on t h i s sub­
j e c t b y th e F ederal R eserve Board, th ere i s no le g a l
reason why your bank may n ot is s u e time c e r t i f i c a t e s
o f d e p o s it and agree t o pay in t e r e s t th ereon at th e
customary and usual r a t e ; p rovid ed th a t such c e r t i f i ­
c a te s comply s t r i c t l y w ith th e d e f i n i t i o n o f tim e c e r ­
t i f i c a t e s o f d e p o s it con tain ed in the F ed eral Reserve
B oard1s R eg u la tion D. In o rd er to a v oid any misunder­
stan d in g w ith your d e p o s it o r s , however, i t would be ad­
v is a b le f o r you to p la c e on each time c e r t i f i c a t e is su e d
s in c e June 16, 1933, a n o ta tio n to the e f f e c t th a t the
r a t e o f in t e r e s t payable on the d e p o s it rep resen ted
th ereb y i s s u b je c t to adjustm ent in accordance w ith
such r e g u la tio n s as the F ed eral R eserve Board may i s ­
su e, pursuant to th e p r o v is io n s o f S e c tio n 19 o f the
F ed era l R eserve A c t, as amended by the Banking Act o f
1 9 3 3 ."
— —

Yours v e r y t r u ly ,

c^ma

-Federal R eserve Agent

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