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Federal Reserve Bank
OF DALLAS
November 13, 1985
DALLAS, TEXAS 75222
Circular 85-133
TO: The Chief Executive Officer of all
depository institutions in the
Eleventh Federal Reserve District
SUBJECT
Revised Bulletin 5 — Currency, Coin and Food Coupons
Summary
The Federal Reserve Bank of Dallas is issuing a revised
Bulletin 5 to reflect changes in our cash transportation services, the
addition of an ORDERECORDER at the Houston Branch and procedural changes to
food coupon regulations.
DETAILS
Bulletin 5 of the Federal Reserve Bank of Dallas has been revised to
reflect this Bank's discontinuance from arranging cash transportation, to
incorporate the remaining procedural changes imposed by Phase II of the Food
and Nutrition Service (FNS) reporting program, and to include the ORDERECORDER
located at the Houston Branch.
Paragraphs 2.15, 3.15, 3.35 and 4.10 have been revised to reflect
this Bank's discontinuance from arranging cash transportation. Paragraph 3.00
has been amended to include the ORDERECORDER access to the RESPONSE network at
the Houston Branch. Paragraphs 7.00, 7.05 and 7.10 have been revised to
incorporate the remaining procedural changes brought about with the Food and
Nutrition Service's Phase II program.
Effective January 1, 1986, the Eleventh Federal Reserve offices will
return all bags of coin at the sender's expense which do not comply with the
ABA color code tagging requirement in paragraph 4.15 of this Bulletin 5.
The bulletin should be inserted in Volume 1 of your Regulations
Binder and the bulletin dated January, 1985, should be removed.
For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are
encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
- 2 -
ATTACHMENTS
The revised Bulletin 5 is attached.
MORE INFORMATION
For more information, please contact Mary M. Rosas (214) 651-6336 at
the Dallas Branch; Robert W. Schultz (915) 544-4730 at the El Paso Branch,
Luke E. Richards (713) 659-4433 at the Houston Branch, or Tony Valencia (512)
224-2141 at the San Antonio Branch.
Sincerely yours,
BULLETIN 5
Currency, Coin and
Food Coupons
FEDERAL RESERVE BANK OF DALLAS
SCOPE
This bulletin sets forth the general term s and conditions with respect to the currency, coin
and food coupon services provided by this Bank and the procedures th at must be followed by
depository institutions in their currency, coin and food coupon transactions with us.
TABLE OF CONTENTS
Section 1, DEFINITIONS AND REFERENCES
1.00
1.05
1.10
Reference to Bulletin 1
Federal Reserve Act
Departm ent of the T reasury
Circular No. 55
Section 2, GENERAL
2.00
2.05
2.10
2.15
2.20
2.25
2.30
2.35
Agreement to the term s of this bulletin
Unnecessary shipments to and from
this Bank
Receipt and distribution of currency
and coin
T ransportation policy
Money sacks
Packaging m aterial
Access policy
Currency verification policy
Section 3, SHIPMENTS FROM THIS BANK
3.00
3.05
3.10
3.15
3.20
3.25
3.30
3.35
Ordering currency and coin
Standard units
Closing hours and transportation
schedules
Method of shipment
Advice of money shipment
Postal limitations
Verification of shipments
Entries to depository institution
account
Section 4, SHIPMENTS TO THIS BANK
4.00
4.05
4.10
4.15
4.20
4.25
Control of shipments
P reparation of currency shipments
M ethod of shipping currency
Preparation of coin shipments
Method of shipping coin
Entries to depository institution
account
Section 5, MISCELLANEOUS CURRENCY AND
COIN
5.00
5.05
5.10
5.15
5.20
Counterfeit or altered
Foreign
Gold coin and gold certificates
M utilated currency
U ncurrent coin
Section 6, RISK OF LOSS
6.00
6.05
6.10
6.15
6.20
Section
7.00
7.05
7.10
Outgoing transportation
Incoming transportation
Exceptions
Differences
Payment of losses and subrogation of
rights of recovery by depository
institutions
7, FOOD COUPONS
General
Preparation of shipments
Entries to accounts
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
Section 1, DEFINITIONS AND REFERENCES
be obtained from other depository institutions in
the community if they a re available. Depository
institutions should anticipate their requirem ents
and refrain from shipping to this Bank currency
and coin fit for further circulation if money of the
same denomination is likely to be needed in the
n e a r future. The interchange of currency and
coin by local depository institutions and the exer
cise of ca re in anticipating requirem ents will
reduce shipments to and from this Bank. This
Bank will assist depository institutions in such
coin and currency arrangem ents.
1.00 Reference to Bulletin 1
A num ber of term s used in this bulletin are de
fined in Bulletin 1.
1.05 Federal Reserve Act
Federal Reserve notes are issued in accordance
with Section 16 of the Federal Reserve Act.
1.10 Department of the Treasury Circular No. 55
2.10 Receipt and distribution of currency and
coin
Regulations governing the exchange of coin and
paper currency of the United States are set forth
in this circular.
All United States currency and coin will be
received for credit, redemption, exchange, or
replacem ent, subject to the conditions stated
herein and applicable Federal law s and regula
tions. This Bank will supply all available current
denominations of currency and coin, in accor
dance with the rules of this Bank and regulations
of the T reasury Departm ent. The amount of new
currency and coin shipped by us will be governed
by the amount of fit currency and circulated coin
on hand.
Section 2, GENERAL
2.00 Agreement to the terms of this bulletin
This bulletin sets forth minimum standards and
procedures which should be followed by this
Bank, (including its Branches), and its client in
stitutions during currency, coin and food coupon
transactions. Any depository institution shipping
or causing the shipment of currency, coin or food
coupons to, from or for the account of this Bank,
shall, by such action, be deemed to have agreed to
the term s and conditions set forth in this bulletin.
It is assum ed th at in most cases such standards
will be acceptable to all parties. However, if cir
cum stances arise which make implementation of
these procedures im practicable, this Bank will
review, upon w ritten request, the adoption of
alternative arrangem ents.
2.15 Transportation policy
As of August 23, 1985, this Bank does not provide
arm ored c a rrie r service for deposits and
w ithdraw als of currency and coin. All depository
institutions in the Eleventh Federal Reserve
District are required to make their own a rran g e
ments for arm ored c a rrie r service for the ship
ment of currency and coin. This Bank will
schedule regular delivery dates for the shipment
of coin and currency to depository institutions
located in the Eleventh District. Depository in
stitutions are required to arran g e their own a r
mored c a rrie r service to conform to this Bank’s
scheduling requirem ents. Depository institutions
must notify this Bank by official correspondence
of their authorized c a rrier.
2.05 Unnecessary shipments to and from this
Bank
Because of the high cost of maintaining cash ser
vices, the cooperation of depository institutions is
requested to avoid unnecessary shipments. It is
suggested th at accum ulations of currency or coin
11-85
1
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
2.20 Money sacks
Section 3, SHIPMENTS FROM THIS BANK
This Bank does not furnish money sacks to
depository institutions. Bags bearing the name of
the Federal Reserve Bank, the United States Mint
or another institution may be used for money
shipments to this Bank. Surplus empty bags of this
Bank or other depository institutions should be re
turned to this Bank by arm ored c a rrie r or fourth
class mail. The sender will be reim bursed for the
expense. Empty sacks bearing the name of a
depository institution will be retu rn ed to that
depository institution at the expense of this Bank.
3.00 Ordering currency and coin
2.25 Packaging material
All currency and coin packaging m aterials must
be uniform and conform to existing ABA color
standards and Federal Reserve packaging re
quirem ents. Information of such standards is
available from this Bank.
2.30 Access policy
The Federal Reserve Board has clarified the
Federal Reserve System’s policy with reg ard to
access to Federal Reserve cash services. The
Reserve Bank should offer to make payments to
and receive deposits from all offices of depository
institutions on an equal and im partial basis,
without charge, in accordance with the approved
Uniform Gash Service Standards for Federal
R eserve Banks and consistent w ith th eir
capabilities to provide such service through m ax
imum utilization of available physical facilities.
The frequency of access will normally be once per
week to each authorized depository institution or
office. Less or more frequent access will be deter
mined by volumes or by cost justifications but
must be provided on an im partial basis to all
similarly situated depository institutions.
2.35 Currency verification policy
This Bank utilizes high speed currency processing
equipment to piece-count verify all currency
receipts. Denominations of $1 and $2 are pro
cessed in 1,000 note units. Should a discrepancy
be detected within a 1,000 note unit, all 10 strap s
a re returned to the depository institution because
individual s tra p identity is not available.
Denominations of $5 and larger are processed in
100 note units and each strap containing a discre
pancy is returned to the depository institution.
O rders for currency and/or coin should be sub
mitted by either the telephone or through the
RESPONSE Network, two business days prior to
the delivery date. As orders are received, the
m essage is recorded. The individual submitting
the order is required to give his name, name of
depository institution, depository institution’s
ABA number, and denominations and amounts of
currency and coin desired. The recorded message
provides this Bank with the authority to charge
the depository institution’s account. Depository
institutions ordering currency and coin th at do
not wish to have their account charged or
credited for currency and coin transactions must
request that a letter from their correspondent
depository institution be forw arded to this Bank
authorizing this Bank to charge or credit the cor
respondent depository institution’s account for
currency and coin transactions, including ad
justments. A form for this purpose will be pro
vided by this Bank upon request.
Depository institutions located within the a re a
served by the head office of this Bank and the
Houston Branch w here switching stations will
ca rry a touch-tone telephone signal, are re
quested to submit cash orders through the
RESPONSE Network or to the ORDERECORDER.
The Cash Departm ent at the head office of
this Bank or the Houston Branch may be con
tacted for further information regarding the
ORDERECORDER.
3.05 Standard units
Currency is strapped in stan d ard packages and
coin is sacked in sta n d a rd bags. O rders for cur
rency or coin must be for the following standard
units or multiples thereof:
Currency
Denomination
Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds
Dollar Amoi
$ 1,000
$ 2,000
$ 5,000
$ 10,000
$ 20,000
$ 5,000
$ 10,000
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
and registered mail delivery schedules in an
ticipating their cash requirem ents. O rders for
currency and coin must be received at this Bank
no later than 2:00 p.m. two business days prior to
the delivery date.
Coin
Denomination
Cents
Nickels
Dimes
Q uarters
Halves
Dollars-Eisenhower
Dollars-Sus an B. Anthony
Dollar Amount
$
$
$
$
$
$
$
50
200
1,000
1,000
1,000
1,000
2,000
3.15 Method of shipment
Shipments of currency and/or coin from this Bank
to depository institutions will be made by arm ored
ca rrie r in accordance with the transportation
policy stated in P aragraph 2.15 of this Bulletin, by
fourth class insured mail, or by registered mail,
whichever method is appropriate under the cir
cumstances. The actual cost of postage and in
surance to ship cash from the Federal Reserve
Bank will be charged to the receiving financial
institution.
The following sta n d a rd units will apply as in
dicated and will be phased in during the next
three years:
(a) An institution {a corporate entity comprising
the head office plus all bran ch offices)
which orders currency in amounts exceed
ing an aggregate of $50,000 per week may
order only the sta n d a rd currency units
listed above.
3.20 Advice of money shipment
A mail advice will be sent to depository institu
tions covering each shipment made by registered
and/or insured mail and, if the shipment is not
received promptly, the Head Office or Branch
making the shipment should be notified im
mediately by telephone or telegraph.
(b) An institution which orders currency weekly
or less frequently in amounts not exceeding
an aggregate of $50,000 per week may order
currency in the following sta n d a rd units:
Denomination
Dollar Amou
Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds
$ 1,000
$
200
$
500
$ 1,000
$ 2,000
$ 5,000
$10,000
In addition, a daily statem ent will be sent to each
depository institution listing money shipments, as
well as all other transactions with this Bank. This
statem ent should be reconciled by depository in
stitutions on a daily basis to insure th at all
shipments have been received and that their ac
count has been charged correctly.
3.25 Postal limitations
(c) An office (an individual bran ch or main
office of an institution) which orders cur
rency no more often than once each month
may order less than the basic stan d ard
units regardless of the aggregate order of
the institution as a whole. The Reserve Bank
will establish its own minimum order size
for each currency denomination based on
regional needs.
The United States Postal Service has imposed c er
tain limitations and restrictions on the shipment
of money to certain towns. Depository institutions
affected have been apprised of these limitations
and restrictions, and their cooperation in this
respect is solicited in placing orders with this
Bank. Depository institutions are also requested,
as a practical m easure, to place orders for cu r
rency and coin so that they can be dispatched for
arrival and delivery on a business day. Postal
authorities have ruled it unwise to perm it the
dispatch of money which would be held over
at the receiving post office when the office is
closed.
3.10 Closing hours and transportation schedules
This Bank is closed on Saturdays, Sundays, and
official bank holidays as set forth in Supplement
A to Bulletin 1. Depository institutions are asked
to keep this in mind as well as arm ored c a rrie r
11-85
3
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
3.30 Verification of shipments
All currency received from this Bank should be
verified as follows:
(a) W ithin three business days of receipt by
those depository institutions served directly for
their own use more th an once a week.
(b) W ithin five business days of receipt for
those depository institutions served directly for
their own use once a week or less frequently.
All coin received from this Bank should be
verified within five business days of receipt.
The money shipment should be verified by two or
more responsible employees in the presence and
view of one another. Currency should be verified
by piece count; w hereas, coin may be verified by
piece count, weight, or by roll count. Until
verified, the currency and coin should be held
under dual control. If a discrepancy is found upon
verification, this Bank should be informed as soon
as possible. If the exception relates to currency,
the package strap and a copy of the shipping ad
vice should be returned to this Bank.
The procedure for reporting discrepancies
located in new currency strapped or packaged by
the Bureau of Engraving and Printing is as
follows:
(a) The reporting depository institution submits
to the Reserve Bank a w ritten explanation, signed
by an official of the reporting institution, describ
ing the procedure used to verify the shipment in
which the discrepancy w as located.
(b) The reporting institution retu rn s to the
Reserve Bank, with the w ritten report, the w ra p
ping, label and package strap involved with the
claim, identification d a ta including the denomina
tion, series, and serial number(s), along with suf
fix letter(s) of the missing note(s) as well as the
date the shipment w as received and the date it
w as verified. (Claims for an entire 100 note
package discrepancy in a brick of new currency
will not be honored unless the entire brick is
returned, intact, to the Reserve Bank.)
(c) The Reserve Bank will forw ard the informa
tion to the appropriate division of the Treasury
Departm ent and will make settlem ent once the
T reasury response is received.
(d) Settlement will not be made for a difference
alleged by an individual (customer) or commercial
entity doing business with a financial institution.
If the exception relates to coin, the attached tag(s)
should be retu rn ed to this Bank. If an exception is
found in a bag of Mint coin, the Mint bag should
be returned to this Bank. W here disbursem ent of
currency or coin is m ade without verification, this
Bank will assume no liability.
These guidelines all assume th at the recipient
depository institution (including its branches)
verify the deposit. Claims by client depository in
stitutions other than the recipient depository in
stitution or its branches will not be honored.
3.35 Entries to depository institution account
We will charge the amount of currency and coin
shipment orders to the account on our books main
tained or used by an ordering depository institu
tion on the anticipated delivery date as deter
mined by us.
Should a shipment of cash from this Bank not be
received, the above charge will not be adjusted.
For shipments debited after shipment by this
Bank, we reserve the right to adjust the time of
debiting when we deem such adjustm ent neces
sary, and we will endeavor to give notice of such
adjustment.
The foregoing provisions do not alter the risk of
loss provisions in this Bulletin.
Section 4, SHIPMENTS TO THIS BANK
4.00 Control of shipments
All shipments will be p rep a re d and verified by
two or more responsible employees of the ship
ping depository institution and the sealed
package should rem ain under the control of the
same two employees until delivered to and
receipted for by the arm ored ca rrie r, or until
deposited and registered at the post office.
4.05 Preparation of currency shipments
All currency included in each shipment m ust be
straightened, sorted and packaged by denomina
tion, face and top up, and be enclosed in stan d ard
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
ABA color coded p ap er currency straps, each
strap containing 100 notes, with the name and
location of the sending depository institution, date
of verification, amount, and identification of the
employee counting the package appearing on
each strap.
Individual strap s must be bound in bundles as
Denomination
Ones
Twos
Fives
Tens
Twenties
Fifties
Hundreds
Number
of Straps
10
10
10
10
10
1 — 10
1— 10
Dollar
Amount
$
$
1 ,0 0 0
2 ,0 0 0
$
5,000
$ 1 0 ,0 0 0
$ 2 0 ,0 0 0
$ 5,000— 50,000
$ 1 0 ,0 0 0 — 1 0 0 ,0 0 0
Currency that cannot be bundled as described in
the table, because of insufficient quantities of
notes, must be retained until enough currency of
the appropriate denomination has been ac
cum ulated to complete stan d ard strap and bundle
units. Currency denominations cannot be mixed
within a strap or bundle.
Unusual circum stances should be referred to this
Bank in writing for authorization and approval.
The following sta n d a rd units will apply to cur
rency deposits and will be phased in during the
next three years:
(a) An institution, (a corporate entity compris
ing the head office plus all bran ch offices)
depositing currency in amounts exceeding an ag
gregate of $50,000 per week may deposit only in
the sta n d a rd units of currency listed above.
(b) An institution depositing currency weekly or
less frequently in amounts not exceeding an ag
gregate of $50,000 per week may deposit curren
cy in the following stan d ard units:
Denomination
Dollar Amou
Ones
$ 1,000
Twos
$
200
Fives
$ 500
Tens
$ 1,000
Twenties
$ 2,000
Fifties
$ 5,000
Hundreds
$10,000
(c) An office (an individual bran ch or main of
fice of an institution) which deposits currency no
more often than once each month may deposit less
than the basic stan d ard units, regardless of the
aggregate deposit of the institution as a whole.
The Reserve Bank will establish its own minimum
deposit size for each denomination based on
regional volumes.
Under no circum stances should rubber bands,
pins, or clips be substituted for p aper straps.
Each unit must be securely tied so as to avoid col
lapse while in transit. W hen shipments a re made
by mail, the weight of all units allowed in one sack
and under one registry is determ ined by postal
regulations. Shipping costs can be reduced by
placing a num ber of units in each sack; however,
the sack should not exceed the weight allowed.
On the date of shipment, if the currency is sent by
registered mail, a notice must be mailed, under
sep ara te cover, to the Cash Departm ent of this
Bank, giving the date, amount, and description of
the shipment. All other copies of the advice, ex
cluding the shipping depository institution’s copy,
must be enclosed with the shipment. If the curren
cy is sent by arm ored carrie r, the original copy of
this notice must be handed to the arm ored c a rrie r
representative. W ith the exception of the ship
ping depository institution’s copy and copy pro
vided the ca rrie r, all other advice copies should
be enclosed with the shipment. A supply of forms
for this purpose will be furnished upon request.
Torn notes should be carefully m ended on the
back with tra n sp a re n t cellophane tape in such a
m anner as to preserve the original design and
visual identification of the face of the notes. Pins,
clips, and other metallic substances, if not re
moved, could cause injury to the handlers and
damage the m achinery used in processing unfit
currency. Failure to comply with the foregoing
reta rd s the process of handling, and may delay
final verification.
The contents of all shipments must be enclosed in
a cloth or canvas bag, and must be well secured
and sealed in a m anner acceptable to the post of
fice, express office, or arm ored c a rrie r at the
place of mailing or dispatch. The seal on the bag
should b ear the identity of the shipping depository
institution.
Only unfit and excess fit currency should be
shipped to this Bank. Depository institutions will
not be allowed to ship fit currency to this Bank
and then order the same denomination of c u rren
cy within five business days. Deposits should be
presorted by strap as to fit and unfit currency.
BULLETIN 5
FEDERAL RESERVE BANK OF DALLAS
4.10 Method of shipping currency
Currency of all denominations shipped by
depository institutions should be forw arded by a r
mored c a rrie r or by registered mail when a r
mored c a rrie r service is not available. Depository
institutions must make their own transportation
arrangem ents. Shipments by registered mail must
only be made when arm ored c a rrie r arra n g e
ments cannot be made.
4.15 Preparation of coin shipments
Coin must be shipped to this Bank loose in heavy
canvas bags, each bag containing coin of only one
denomination. A sta n d a rd ABA color coded tag
should be affixed to each bag showing the name of
the shipping depository institution and denomina
tion of coin. Effective January 1 , 1986, this Bank
will retu rn all bags of coin at the senders expense
which do not comply with the above mentioned re
quirement. In addition, the bags of coin m ust be
securely sealed and the seal should bear the iden
tity of the shipping depository institution. Coin
shipped to this Bank must be sacked as follows:
Denomination
Cents
Nickels
Dimes
Q uarters
Halves
Dollars-Eisenhower
Dollars-Susan B. Anthony
Dollar
Amount
$
$
$
$
$
$
$
50
200
1,000
1,000
1,000
1,000
2,000
institution is not on an arm ored route, shipments
of coin should be made by registered and/or in
sured mail in accordance with existing postal
regulations.
4.25 Entries to depository institution account
In general we will credit the account on our books
m aintained or used by a depository institution on
the day we receive its shipment of currency and
coin. However, for a depository institution which
elects to utilize the Bank’s alternative credit pro
cedures, credit will be given on the day it ships
currency and coin to us if we receive notification
in approved form before 2:00 p.m. th at day. If
notification is received late, we will give credit on
our next banking day. If notification is not given,
we will give credit on the day we receive the cur
rency and coin. In most cases, credit, when
notification is given, benefits only depository in
stitutions which are exempt from reserve re
quirements, or whose vault cash exceeds its
reserve requirem ents.
If a depository institution arranges or contracts
for transportation of a shipment to us, including a
shipment by mail, and we do not receive it on the
anticipated date of delivery as determ ined by us,
the credit will be reversed.
For shipments credited prior to receipt by this
Bank, we reserve the right to adjust the time of
crediting w hen we deem such adjustm ent
necessary, and we will endeavor to give notice of
such adjustment.
The foregoing provisions on credit, do not alter
the risk of loss provisions in this Bulletin.
Section 5, MISCELLANEOUS CURRENCY AND
COIN
On the date of shipment, if the coin is sent by
registered or insured mail, a notice must be
mailed to the Cash Departm ent of this Bank, giv
ing the date, amount, and description of the ship
ment. If the coin is sent by arm ored c a rrier, this
notice must be handed to the arm ored c a rrie r
representative. A supply of forms for this purpose
will be furnished upon request.
5.00 Counterfeit or altered
In accordance with T reasury Departm ent regula
tions, all counterfeit or altered currency and coin
must be delivered to an agent of the United States
Secret Service. Accordingly, all counterfeit cur
rency and coin received by this Bank will be
delivered to a Secret Service Agent whose
receipt, fully describing the counterfeit currency
or coin, will be m ailed to the depositor.
4.20 Method of shipping coin
5.05 Foreign
Foreign currency or coin will not be accepted for
credit and, if received, will be returned to the
shipping depository institution.
Coin of all denominations shipped by depository
institutions should be forw arded by arm ored c a r
rier if this service is available. If a depository
FEDERAL RESERVE BANK OF DALLAS
5.10 Gold coin and gold certificates
The executive order of the President of the United
States requiring the surrender of all gold coin and
gold certificates is still in force, with certain ex
ceptions. Any gold held or received on deposit
should be sent to the Federal Reserve Bank for the
account of the T reasurer of the United States.
Gold coins having a recognized special value to
collectors of ra re or unusual coins, including all
gold coins made prior to April 5, 1933, and
gold certificates of the type issued before January
30, 1934, have been exempted from the surrender
requirem ent, however, and may be retained by
the persons owning them.
5.15 Mutilated currency
A m utilated bill will be received at its face
amount if clearly more th an one half of the
original bill rem ains. Fragments that are not
clearly more than one-half should be sent directly
to the Departm ent of the Treasury, Bureau of
Engraving and Printing, OCS, BEPA Room 344,
P.O. Box 37048, W ashington, D.G., 20013, in ac
cordance with T reasury Departm ent Circular No.
55, copies of which will be furnished upon re
quest. Such fragm ents will be exchanged a t face
value only if the Commissioner, Bureau of Govern
ment Financial Operations, Departm ent of the
Treasury, is satisfied that the missing portions
have been totally destroyed, and his judgment is
based on such evidence of total destruction as he
deems necessary and is final.
5.20 Uncurrent coin
U ncurrent coins, defined in the Treasury Circular
No. 55 as whole United States coin which are
merely worn or reduced in weight by n atu ra l
abrasion yet are readily and clearly recognizable
as to genuineness and denomination and which
a re machine countable, are accepted for face
value at this Bank. For the redem ption of coins
other than current coins or m achine countable
uncurrent coins, refer to T reasury Circular No.
55. Copies of this circular are available from this
Bank upon request.
Section 6, RISK OF LOSS
6.00 Shipments from or to depository institutions
by armored carrier
Except as specifically provided in paragraphs
6.10 and 6.15 A. below, the risk of Loss for
mysterious disappearances of currency or coin
from deposits with this Bank by arm ored c a rrie r
is assum ed as follows:
BULLETIN 5
A. W hen the Bank receives for deposit a bag or
other container th at is damaged, b e ars a broken,
altered, loose, or improper seal, or otherwise
bears signs of tam pering, and currency or coin
has disappeared mysteriously from th a t bag, or
container, the sending depository institution
assumes the risk of loss for th at mysterious disap
pearance and shall resolve the m atter solely with
the arm ored c a rrie r or its agents. In order to
preserve the sending depository institution’s
claim against the arm ored c a rrier, the Bank will
note the condition of the bag or other container
for special processing.
B. W hen the Bank receives a deposit from which
currency or coin has disappeared mysteriously
and all bags or other containers in th at deposit
have been received in a well-secured condition,
bearing proper seals, the sending depository in
stitution assum es the risk of loss for that
mysterious disappearance and shall resolve the
m atter solely with the arm ored c a rrie r or its
agents, unless the Bank receives satisfactory
evidence th at the mysterious disappearance oc
curred after the Bank received the deposit, in
which case the Bank assumes the risk of loss.
Except as specifically provided in paragraphs
6.10 and 6.15 B. below, the risk of loss for
mysterious disappearances of currency or coin
from shipments to depository institutions from the
Bank by arm ored c a rrie r is assum ed as follows:
C. W hen a depository institution receives a ship
ment containing a bag or other container that is
damaged, bears a broken, altered, loose, or im
proper seal, or otherwise b e ars signs of tam per
ing, and currency or coin has disappeared
mysteriously from th at bag or container, the
receiving depository institution assumes the risk
of loss for th at mysterious disappearance and
shall resolve the m atter solely with the arm ored
c a rrie r or its agents. The depository institution
should note that, in order to preserve its right of
a c tio n a g a in s t the a rm o re d c a r r ie r , the
depository institution should establish m anage
ment procedures providing for notice to the a r
m ored c a rr ie r ’s managem ent th at would enable
the p arties to arrange for appropriate handling of
any bag or other container th at bears visible signs
of tampering. Also, the depository institution shall
notify the Bank as soon as possible upon discovery
of a mysterious disappearance of currency or
coin described in this su bparagraph C.
FEDERAL RESERVE BANK OF DALLAS
D. W hen a depository institution receives a ship
ment containing a bag or other container from
w hich cu rre n c y or coin h as d isa p p e a re d
mysteriously and all bags or other containers in
th at shipment have been received in a wellsecured condition, bearing proper seals, the
receiving depository institution assum es the risk
of loss for th at mysterious disappearance and
shall resolve the m atter solely with the arm ored
carrier. The depository institution shall notify the
Bank as soon as possible upon discovery of any
mysterious disappearance of currency or coin,
regardless of w hether the mysterious disap
p earance would cause a loss of the type for which
the Bank assum es the risk. In a case described in
this subparagraph D the Bank assumes no risk of
loss unless the Bank receives satisfactory
evidence th at the mysterious disappearance oc
c u rred before the shipment w as tendered to the
arm ored carrier.
If a mysterious disappearance of currency or coin
or other loss is litigated in a court of competent
jurisdiction, and if the court finds th at the loss
shall be apportioned otherwise than in accor
dance with subparagraphs A through D above,
then the risk of loss shall be assum ed in accor
dance with and in the same proportions as those
stated in the court’s opinion. In case of any such
reapportionm ent of the risk of loss, the parties
shall reim burse each other to the extent
necessary to reflect the reapportionm ent. The
Bank’s decision as to the persuasiveness of
evidence submitted to the Bank under this
p a ra g ra p h shall bind all parties, in the absence of
or until findings as to apportionment of loss are
issued by a court of competent jurisdiction.
6.05 Shipments from or to Depository institutions
by registered mail
A. W hen a depository institution ships currency
or coin to this Bank by registered mail, the institu
tion shall insure the shipment for full face value.
Proceeds of the insurance should be payable to
the sender. The Bank assum es no risk of loss for
shipments of currency or coin to the Bank by
registered mail.
B. On shipments to depository institutions by
BULLETIN 5
registered mail, this Bank will assume the risk of
loss of coin and currency from the time this Bank
delivers the coin and currency to and receives a
receipt from the United States Postal Service until
the coin and currency is delivered to the ad
dressee or its agent or is returned to this Bank.
6.10 Exceptions
This Bank will not assume any risk of loss in any
of the following circum stances:
A. Any loss in excess of $10,000,000 on all
shipments to this Bank by any one office of a
depository institution on any one day.
B. Any loss caused by or resulting from:
(1) hostile or warlike action in time of peace or
w ar, including action in hindering, combating or
defending against an actual, impending or ex
pected attack,
(a) by any government or sovereign power (de
jure or de facto), or by an authority
m aintaining or using military, naval or
air forces; or
(b) by military, naval or air forces; or
(c) by an agent of any such government,
power, authority or forces;
(2) any weapon of w ar employing atomic fission
or radioactive force w hether in time of peace or
w ar;
(3) insurrection, rebellion, revolution, civil w ar,
usurped power, or action taken by governmental
authority in hindering, combating or defending
against such an occurrence, or confiscation by
order of any government or public authority;
(4) nuclear reaction or nuclear ration or
radioactive contamination, all w hether controlled
or uncontrolled and w hether such loss be direct
or indirect, proxim ate or remote, or be in whole or
in p a rt caused by, contributed to, or aggravatedby risks assum ed by this Bank.
G. Any loss caused by any dishonest, fraudulent
or criminal act of an employee, agent, or con
tra c te d arm ored c a rrie r service of any depository
institution, shipping, causing, ordering or receiv
ing the shipment.
D. Any loss to the extent covered by any in
surance, w hether prim ary or excess, c a rrie d by
the depository institution, shipping, causing,
ordering or receiving the shipment.
FEDERAL RESERVE BANK OF DALLAS
E. Any loss on any shipment by any depository in
stitution not made in conformity with the provi
sions of this Bulletin.
F. Any loss on any shipment during any tra n sp o r
tation not contracted for by this Bank.
6.15 Differences
A. This Bank will not be responsible for the
amount by which a shipment of cash received by
this Bank is less than the amount as stated by the
shipping d e p o sito ry in stitu tio n w hen the
depository institution has not followed the
p reparation and shipment procedures in Section
4 of this Bulletin.
B. This Bank will not be responsible for the
amount by which a shipment of cash received by a
depository institution is less than the amount as
stated by this Bank when the depository institu
tion has not followed the verification procedures
in Section 3 of this Bulletin.
6.20 Payment of losses and subrogation of rights
of recovery by depository institution
The amount of any loss, the risk of which is
assum ed by this Bank under the term s of this
Bulletin, will be paid promptly by this Bank upon
receiving from the depository institution sustain
ing the loss, in a form satisfactory to this Bank, a
w ritten proof of loss, receipt, and any other
necessary documents, including, but not limited
to, an assignment of its rights, title, and interest in
the lost property. The depository institution
receiving any such payment shall take all
necessary m easures in behalf and at the risk and
expense of this Bank for the recovery, reissue, or
replacem ent of such property, including the in
stitution of legal proceedings in its own name, if
deemed necessary by this Bank.
Section 7, FOOD COUPONS
7.00 General
This Bank will process food coupons as cash items
in accordance with an agreem ent m ade by the
Secretary of Agriculture, on behalf of the United
States, and by the Federal Reseve Banks as
depositories and fiscal agents of the United States
pursu an t to authorization of the Secretary of the
Treasury. As to m atters th at agreem ent does not
cover, Regulation J, Bulletin 8, and this Bank’s
BULLETIN 5
time schedules apply. This Bank receives food
coupons only from (lj depository institutions that
m aintain accounts with this Bank and th at are in
sured by the Federal Deposit Insurance Corpora
tion (FDIC) or the Federal Savings and Loan In
surance Corporation (FSLIC) and (2) FDIC-orFSLIC-insured depository institutions not having
accounts with this Bank for credit to the account
of a depository institution having an account with
this Bank. Other depository institutions should
forw ard coupons through ordinary collection
channels.
7.05 Preparation of shipments
Depository institutions sending coupons should
follow instructions of the United States D epart
ment of Agriculture for handling coupons (7 code
of Federal Regulations, P art 278.5).
(a) All coupons must be detached from booklet
covers.
(b) Any coupon accepted for redemption must
show on its back either (i) the AUTHORIZATION
NUMBER or (ii) the name of the authorized retail
• food store, meal service, and wholesale food con
cern, if any. Each coupon must be cancelled by
the first depository institution th at receives it, by
indelibly marking “PAID” or “CANCELED” and
the depository institution’s name or institutional
identifier on the face of the coupon. No coupon
should be endorsed by a depository institution.
(c) Food coupons must be sorted by denomina
tion, face and top up and enclosed in a paper
strap. Under no circum stances will rubber bands,
pins, or clips be accepted as substitutes for paper
straps.
(d) The name and location of the shipping
depository institution, the amount, the date and
identification of the employee who counted the
coupons must be plainly m arked on each strap.
(e) Coupons must be separately sorted into stan
d a rd strap s of 100 coupons of the same denomina
tion. Odd (less than 100) coupons must be retained
until sta n d a rd stra p s can be assem bled and then
included with a subsequent shipment.
(f) After sorting and strapping as directed
above, the coupons should be assem bled 10 straps
to a bundle, and secured to make a compact bun
dle. Do not mix denominations in a bundle. If the
shipment of sta n d a rd 10-strap bundles presents a
hardship to the shipping depository institution,
FEDERAL RESERVE BANK OF DALLAS
the Cash Departm ent of the office of this Bank
serving your institution should be contacted so
th at other shipment arrangem ents may be made.
Only under unusual conditions and after approval
has been granted by the office of this Bank serv
ing your institution will a shipment of odd straps
be accepted.
(g) W hen submitting food coupons for credit, a
Food Coupon Deposit Document, Form FNS-521,
properly p rep a re d according to the accompany
ing instructions, must accompany the coupons. A
mailing label (available from this Bank) must be
affixed to the outside of the envelope or container
used for shipping coupons to this Bank, along with
the name and address of the shipping depository
institution. Do not include food coupons with any
other m atter sent to this Bank. Food coupons must
be shipped in sealed packages or containers
strong enough to ensure receipt at this Bank in a
reasonably secure condition. A depository institu
tion must verify the amount of the coupons being
redeem ed by recording its count on a Redemption
Certificate (Form FNS 278), and must submit the
com pleted Redemption C ertificate w ith its
deposit. All Redempton Certificates on hand at
the time coupon shipments are p rep a re d are to be
m achine listed, a copy of the listing attached to
the front of the bundle, and forw arded along with
the food coupons to this Bank. The total amount of
the Redemption Certificates being forw arded is to
be listed in the a re a provided on the Food Coupon
Deposit Document, Form FNS-521.
(h) Food coupons should be forw arded as a
se p arate deposit, by the m eans ordinarily used in
forw arding checks and other items and should be
directed to the attention of the Cash Department,
Food Coupons Section. The Form FNS-521 accom
panying a food coupon deposit should show the
total num ber and amount of each denomination of
coupons enclosed. Neither this Bank nor the
Departm ent of Agriculture is liable for food
coupons lost in tran sit to this Bank. Shipping
depository institutions may wish to insure food
coupon shipments and to retain records to assist
in substantiating insurance claims for coupons
lost in transit. No provision is m ade by this Bank
BULLETIN 5
for reim bursing depository institutions for the
cost of shipping food coupons.
(i) In accordance with the regulations of the
United States Departm ent of Agriculture [7 CFR
278.5(a)] a portion of a food coupon consisting of
less than three-fifths of a whole coupon shall not
be accepted for redemption.
7.10 Entries to accounts
Depository institutions should ship redeem ed food
coupons to the office of this Bank that m aintains
the account to which the proceeds are to be
credited. Credit is given for properly prepared,
redeem ed food coupons as provided in this Bank’s
time schedules after the coupons are received
and bulk verified.
Such credit is not final and will be subject to
subsequent verification, and necessary reclam a
tion and adjustments for shortages, overages, or
counterfeits. Credit for food coupons will be made
to the account of the shipping depository institu
tion, or to the account of the designated cor
respondent depository institution. Agreement
forms will be provided by this Bank upon request
for those depository institutions that wish to
designate a correspondent through which credit
will be received.
We furnish additional information about the col
lection of food coupons on request.
@FedFRASER