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FEDERAL RESERVE BANK OF DALLAS
DALLAS, TEXAS

75222

Circular No. 71-288
Novemb er 30 j 1971

To the Member and Nonmember Banks of the Eleventh
Federal Reserve District and Others Concerned:

Enclosed are revised copies of Bulletin No. 8, "Collec­
tion of Cash Items" and Bulletin No. 10, (formerly Bulletin 8A),
"Time Schedules and Other Information Concerning Cash Items".

These

bulletins have been revised to include this bank's policy of accept­
ing from member banks unsorted immediate and deferred cash items,
outlined in our letter dated October 29,

1971*

as

These revised bulletins

became effective November 1, 1971•
The small size copy of these bulletins, No. 8 and No. 8A, ef­
fective September 1, 1967, should be removed from your binder and may
be destroyed.
Yours very truly,
P. E. Coldwell
President

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

BULLETIN 8

Collection of Cash Items

FEDERAL RESERVE BANK OF DALLAS

SCOPE
This Bulletin describes the terms and conditions under which we will handle cash items
for collection.

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS

TABLE OF CONTENTS
Section 1 G E N E R A L
,

1.00 Collection contract
1.05 Authority
Section 2 DEFINITIONS A N D REFERENCES
,

2.00 Definitions, reference to
Regulation J
2.05 Reference to Bulletin 1
Section 3, CASH ITEMS

3.00 Items which will be handled as
cash items
3.05 Items not received from sender
3.10 Items which will not be handled
as cash items
3.15 Handling of nonconforming items
3.20 Discretion to return or handle
as noncash items
3.25 Items received from, payable by
same bank
Section 4, TERMS AND CONDITIONS OF
COLLECTION

4.00
4.05
4.10
4.15

Regulation J
Bulletins
Items payable outside this district
Indirect routing discouraged

Section 5, CASH LETTERS

5.00 Preparation of cash letters by
senders
5.05 Separate sorts, cash letters
5.10 Endorsements
5.15 Items received without endorsement
Section 6, HANDLING BY THIS BANK

6.00 Presentment for payment
6.05 No agreement to present early
6.10 Uniform instructions regarding
protest and advice of nonpayment
6.15 Items with U.S. Treasury
and similar endorsements
6.20 Different instructions require
noncash handling
6.25 Protest, wire advice by
other banks
6.30 Communications by wire;
costs and charges
Section 7, AVAILABILITY OF CREDIT

7.00 Time schedules and availability
of credit

7.05
7.10
7.15
7.20

Availability not actual payment
Immediate credit
Deferred credit
Mixed cash letters

Section 8 COLLECTING A N D PAYING
,
BANKS
Section 9 R E T U R N ITEMS
,

9.00 Information to senders
regarding return items
9.05 Returns without entry
Section 10, DIRECT SENDING

10.00 Direct sending of cash items to
other Federal Reserve banks
10.05 Right to refuse interdistrict items
authorized for direct sending
10.10 Direct sending of cash items to
other offices of this bank
10.15 Right to refuse intradistrict
items authorized for direct sending
10.20 Reimbursement of transportation
costs for member banks
10.25 Claims for reimbursement
10.30 Methods of shipment
Section 11, HIGH-SPEED PROCESSING

11.00 Standardization, sorting, routing,
and mechanized processing
11.05 Right to encode, assumption of
risk by sender
11.10 Designation of paying bank or non­
bank payor
11.15 Non-machinable items
Section 12, P H O T O G R A P H I C COPIES
Supplement A, G O V E R N M E N T CHECKS

A-1.00
A-2.00
A-3.00
A-4.00

Terms of handling
Immediate credit
Returns
Claims and actions

Supplement B, POSTAL M O N E Y ORDERS

B-1.00 Terms of handling
B-2.00 Immediate credit
B-3.00 Claims, returns
Supplement C, F O O D S T A M P C O U P O N S

C-1.00 General
C-2.00 Terms and conditions
C-3.00 Nonmember banks

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS

Section 1, GENERAL
This bulletin is directed to the member banks of
the Eleventh Federal Reserve District and others
concerned:1
1.00 Collection contract

Regulation J, this bulletin, and our time sched­
ules prescribe the terms and conditions upon
which we will handle cash items for collection.
1.05 Authority

This bulletin, our Bulletin 11, and our time sched­
ules Bulletin 10 are issued pursuant to the pro­
visions of sections 4, 13, 14(e), and 16 of the
Federal Reserve Act and the provisions of re­
lated statutes and in conformity with the pro­
visions of Regulation J.

Section 2, DEFINITIONS AND
REFERENCES
2.00 Definitions, reference to Regulation J

All terms defined in Regulation J and used herein
have the meanings stated in that regulation.
2.05 Reference to Bulletin 1

Several definitions, rules of construction, and
other provisions applicable to this bulletin are
found in our Bulletin 1, General Provisions, and
are incorporated herein by reference.

Section 3, CASH ITEMS
3.00 Items which will be handled as cash items

Except as otherwise provided by this bulletin,
the following items may be sent to this bank
for handling as cash items in accordance with
and subject to the provisions of Regulation J,
of this bulletin, and of our time schedules:
(a) Checks drawn upon any bank included in
the current “Federal Reserve Par List”, which
indicates the banks upon which checks are col­
lectible at par through the Federal Reserve banks
and is furnished from time to time and supple­
mented each month to show changes subsequent
to the last complete list.
instructions pertaining to the handling of cash items by
collecting and paying banks are contained in our Bul­
letin 11, entitled “Instructions to Collecting Banks and
Paying Banks.”

11-1-71

(b) Government checks, postal money orders,
and food stamp coupons.2
(cj Such other demand items, collectible at par
in funds acceptable to the Federal Reserve bank
of the district3 in which such items are payable,
as we may be willing to accept as cash items.
3.05 Items not received from sender

Whenever any instrument is accepted by us for
credit to our own account, the account of
another Federal Reserve bank, or any account
on our books, we will handle the instrument as
a cash item if it would have been a cash item
but for the fact that it was not sent to us by a
sender.
3.10 Items which will not be handled as cash
items
This bank will not handle any item as a cash
item if
(a) A passbook, certificate, or any other docu­
ment is attached to the item; or
(b) Special instructions, including requests for
special advice of payment or dishonor, accom­
pany the item; or
(c) The item consists of more than a single
thickness of paper, except as provided in sec­
tion 12 of this bulletin; p ro v id e d , however, that
any mutilated, erroneously-encoded or other
cash item contained in a carrier qualifying under
existing standards for handling by high-speed
check-processing equipment will be handled by
us as a cash item; or
(d) Except as provided in Section 12 of this bul­
letin, the item has not been preprinted, or post­
encoded before its receipt by us, with the rout­
ing symbol and the suffix of the transit number
of the paying bank (or nonbank payor) in mag­
netic ink in E-13B type in the manner prescribed,
and at the location assigned, by the A.B.A.; p ro ­
v id e d , h o w ever, that this bank will handle such
items as cash items when, in our judgment,
special circumstances justify such handling.
Provisions governing the collection of the foregoing cash
items are contained in Supplements A, B, and C, respec­
tively, of this bulletin.
sFor the purposes of this bulletin, the Virgin Islands and
Puerto Rico shall be deemed to be in or of the Second
Federal Reserve District and Guam and American Samoa
shall be deemed to be in or of the Twelfth Federal Re­
serve District. See Regulation J, note 1.

FEDERAL RESERVE BANK OF DALLAS
Such items, if sent to this bank for collection,
should be sent only as noncash items and, if so
sent, will be received by us for collection subject
to all the terms and conditions of Regulation J
and of our bulletin relating to the collection of
noncash items.
3.15 Handling of nonconforming items

In the event that an item which will not be han­
dled as a cash item by virtue of 3.10 of Bulletin
8 is sent to any Federal Reserve bank in a cash
letter, the Federal Reserve bank will treat it as
follows:
(a) An item of $1,000 or over received from a
sender located outside the city of the receiving
Federal Reserve office will be charged back and
entered for collection as a noncash item; and
(b) Any other item will be charged back and
returned.
3.20 Discretion to return or handle as noncash
items

We reserve the right in our discretion, to return
or to handle as a noncash item any item which
has previously been dishonored or if special con­
ditions require that it be handled as a noncash
item, and this bank shall decide whether such
special conditions exist.
3.25 Items received from, payable by same bank

A cash item payable by or through one office of
a bank will not be received from another office
of the same bank for collection as either a cash
or a noncash item by us or by any other Federal
Reserve bank.

Sections 4, TERMS AND CONDITIONS
OF COLLECTION
4.00 Regulation I

Regulation J prescribes terms and conditions
under which all Federal Reserve banks will col­
lect checks and other cash items for the senders
thereof. Such terms and conditions and the
terms and conditions of this bulletin, our Bulle­
tin 11, and of our time schedules will apply to
the handling of all cash items which we accept
for collection thereunder and to the handling of
all bank drafts and other forms of payment or
remittance which we receive for such items.

BULLETIN 8
4.05 Bulletins
Section 210.3 of Regulation J provides that the
provisions of that regulation and of the operat­
ing bulletins of the Federal Reserve banks shall
be binding upon the sender of a cash item and
shall be binding upon each collecting bank, pay­
ing bank and nonbank payor to which the Fed­
eral Reserve bank, or any subsequent collecting
bank, presents, sends, or forwards a cash item
received by the Federal Reserve bank. Section
210.16 of Regulation J provides that each Fed­
eral Reserve bank shall issue operating bulletins
not inconsistent with the provisions of that regu­
lation governing the details of its operations in
the handling of cash items and containing such
other matters as are required by the provisions
of that regulation.
4.10 Items payable outside this district

A cash item payable in any other Federal Re­
serve district and forwarded for collection to the
Federal Reserve bank of such other district by
us or sent direct to such Federal Reserve bank
for our account by a sender which maintains or
uses an account with us will be handled by such
Federal Reserve bank subject to the terms and
conditions of Regulation J and of the applicable
bulletins and time schedules of such Federal
Reserve bank; but we will give credit to the
sender for such item in accordance with our
time schedules.
4.15 Indirect routing discouraged
Under Section 4-204(1) of the Uniform Commer­
cial Code, a collecting bank must send items by
reasonable prompt methods, taking into consid­
eration any relevant instruction, the nature of
the items, the number of such items on hand, the
cost of collection involved, and the methods
generally used by it or others to present such
items. In furtherance of the purpose of this re­
quirement, and in the interests of good banking,
the indirect routing of cash items is discouraged,
and member banks should not send to us or to
other Federal Reserve banks for our account any
items payable in other Federal Reserve districts
which bear the endorsements of banks located
in other Federal Reserve districts, in cases
where it is evident that such items have been
routed indirectly.

Section 5, CASH LETTERS
5.00 Preparation of cash letters by senders

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS
All cash items sent to us, or to another Federal
Reserve bank direct for our account, may be
listed without description. However, each send­
er should bear in mind the importance of main­
taining adequate records to enable it to identify
its depositors or other endorsers on such items,
so that, in the event any such item is lost or de­
stroyed while in transit to a Federal Reserve
bank, or is thereafter lost or destroyed, the
sender may be in a positon to take appropriate
action with respect to the item. All cash letters
and tape listings accompanying such cash letters
should be dated and identified with the name
and the A.B.A. transit number, if any, of the
sender.
5.05 Separate sorts, cash letters

We reserve the right to require such separate
sorts of cash items as we may deem appropriate;
and we reserve the right to require both separate
sorts and deposits in separate cash letters of
Government checks, postal money orders, and
food stamp coupons. Other instructions relative
to sorting and listing of cash items are set forth
in our time schedules.
5.10 Endorsements

All cash items sent to us, or to another Federal
Reserve bank direct for our account, should be
endorsed without restriction to, or to the order
of, the Federal Reserve bank to which sent, or
endorsed to, or to the order of, any bank, banker,
or trust company, or endorsed with equivalent
words or abbreviations thereof. The endorse­
ment of the sender should be dated and should
show the A.B.A. transit number of the sender, if
any, in prominent type on both sides of the en­
dorsement.
5.15 Items received without endorsement

In the event a cash item is received by a Federal
Reserve bank from a sender without the en­
dorsement thereon of such sender, the Federal
Reserve bank may present, send, or forward the
item as if it bore such endorsement or place on
the item the name of such sender and the date of
its receipt by the Federal Reserve bank, or re­
turn the item to the sender for proper endorse­
ment by the sender. This bank makes the war­
ranties stated in Section 210.6(b) of Regulation
J by presenting, sending, or forwarding a cash
item. These warranties arise whether or not such
item bears the endorsement of this bank.

Section 6, HANDLING BY THIS BANK
6.00 Presentment for payment

As contemplated by Section 210.7 of Regulation
J, any cash item may be presented for payment
by a Federal Reserve bank or a subsequent col­
lecting bank, may be sent by a Federal Reserve
bank or a subsequent collecting bank for pre­
sentment and payment, or may be forwarded by
a Federal Reserve bank to a subsequent collect­
ing bank with authority to present it for pay­
ment or to send it for presentment and payment.
However, this bank and the other Federal Re­
serve banks reserve the right to return without
presentment any cash item payable by or
through a bank which is not on the “Federal
Reserve Par List” or may have been reported
closed.
6.05 No agreement to present early

We do not by this bulletin, or otherwise, agree
to present any item, or to cause any item to be
presented, earlier than such item is required to
be presented, in the exercise of ordinary care,
under the provisions of applicable State law.
6.10 Uniform instructions regarding protest and
advice of nonpayment

Except as provided in 6.15 of Bulletin 8, all
Federal Reserve banks will receive, handle, and
forward cash items subject to the following uni­
form instructions regarding protest and wire
advice4 of nonpayment, except that Government
checks will be not protested; and any contrary
or special instructions noted on cash letters or
otherwise transmitted with cash items will be
disregarded:
(a) PROTEST any dishonored item of $1,000 or
over:
(i) which appears on its face to have been drawn
at a place which is not within any State5, unless
it bears on its face the A.B.A. no-protest symbol
of a Federal Reserve bank or of a preceding bank
endorser, or

‘For the purposes of this bulletin, the term “w ire” in­
cludes telephone, telegraph, and cable.
B
The term “State” is defined in Section 210.2(n) of Regu­
lation J to mean any State of the United States, the Dis­
trict of Columbia, or Puerto Rico, or any territory, pos­
session or dependency of the United States.

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS
(ii) which bears on its face the legend, “PRO­
TEST REQUIRED”, of a Federal Reserve bank
or of a preceding bank endorser.
(b) DO N O T PROTEST:
(i) any item of less than $1,000, or
(ii) any item of $1,000 or over unless it is protestable under subparagraph (a).
(c) WIRE ADVICE of nonpayment of any item
of $1,000 or over, unless it has not been paid
because of a missing, irregular, or unsatisfactory
endorsement or unless it bears on its face the
legend, “DO N O T WIRE N O N PA YM E N T”, of a
Federal Reserve bank or of a preceding bank
endorser. Include in the advice of nonpayment,
the amount of the item, the reason for non-pay­
ment, the date of our cash letter, the name of the
drawer or maker, and the names of the two en­
dorsers immediately preceding the Federal Re­
serve bank or their A.B.A. transit numbers, if
any.
(d) DO NOT WIRE ADVICE of nonpayment of:
(i) any item of less than $1,000,or
(ii) any item of $1,000 or over unless such ad­
vice is required by subparagraph (c).
6.15 Items with U.S. Treasury and similar en­
dorsements
DO NOT PROTEST A N D DO N O T WIRE A D ­
VICE of nonpayment of any cash item, regard­
less of amount, endorsed by the Treasurer of the
United States, or endorsed for credit to the
Treasurer of the United States, or bearing on its
face or in an endorsement the legend “This
check is in payment of an obligation to the
United States and must be paid at par. N.P. Do
not wire nonpayment” or words of similar im­
port.
6.20 Different instructions require noncash han­
dling

If any sender desires to have any cash item
(other than a Government check, postal money
order, or food stamp coupon) handled by us or
by any other Federal Reserve bank under any
instructions differing from the uniform instruc­
tions given above, it will be necessary for such
sender to forward such item as an individual
noncash item, with the instructions noted in the
letter of transmittal, for collection and credit
when paid, in accordance with the terms of our
current bulletin relating to the collection of non­

11-1-71

cash items.
6.25 Protest, wire advice by other banks

This bank shall have no responsibility for de­
termining whether any other bank has (a) made
or provided for the protest of any cash item
protestable under the provisions of this bulletin
or (b) given any wire advice of nonpayment re­
quired under the provisions hereof.
6.30 Communications by wire; costs and charges

Telegrams pertaining to payment, nonpayment,
or tracing of cash items, or in connection with
receiving or transmitting pertinent information
or instructions, will be sent to the extent prac­
ticable, over the Federal Reserve Leased Wire
System without cost to member banks. The cost
of all such telegrams and cables sent over com­
mercial wires will be charged to the senders
from which the items were received, and com­
mercial wire telegrams and cables to such send­
ers will be sent collect. A Federal Reserve bank
may, in its discretion, use the telephone in lieu
of telegraph or cable for any purpose indicated
by this paragraph.

Section 7, AVAILABILITY OF CREDIT
7.00 Time schedules and availability of credit

Section 210.16 of Regulation J provides that the
Federal Reserve banks may classify cash items,
require separate sorts and cash letters, and pro­
vide different closing times for the receipt of
different classes or types of cash items. In con­
formity with that provision, we publish and fur­
nish to member banks and other senders time
schedules containing further provisions with re­
gard to separate sorts and cash letters and which
indicate when credit for cash items will become
available for withdrawal and other use by the
senders after receipt by us. For all items ac­
cepted as cash items, the senders will be given
immediate credit or deferred credit, in accordanc with such time schedules and as provided in
Regulation J. Credit for cash letters containing
items unsorted as to availability may be deferred
for the longest period of availability prescribed
by the current time schedules of this bank with
respect to any item enclosed.
7.05 Availability not actual payment

Time schedules do not in many instances show

W

FEDERAL RESERVE BANK OF DALLAS
the actual time required for collection, and ad­
vices from us showing the availability of items
cannot be considered as advices of actual pay­
ment on the dates of availability. Credit will in
all instances be subject to receipt of payment
by us in actually and finally collected funds.
7.10 Immediate credit

For all such cash items as are accepted for im­
mediate credit in accordance with our current
time schedules, immediate credit will be given
upon our books at full face value in the reserve
account or other appropriate account upon the
day of receipt, and the proceeds will at once be
counted as reserves for the purposes of Regula­
tion D and become available for withdrawal and
other use by the sender; provided, however, that
we may in our discretion refuse at any time to
permit the withdrawal or other use of credit
given for any item for which we have not yet
received payment in actually and finally col­
lected funds.
7.15 Deferred credit

For all such cash items as are accepted for de­
ferred credit in accordance with our current
time schedules, deferred credit will be entered
upon our books at full face value, but the pro­
ceeds will not be counted as reserve for the
purposes of Regulation D nor become available
for withdrawal or other use by the sender until
the expiration of the time specified in our time
schedules, at which time credit will be transfer­
red from the deferred account to the reserve ac­
count or other appropriate account and will then
be counted as reserve for the purposes of Regu­
lation D and become available for withdrawal
and other use by the sender; provided, however,
that we may in our discretion refuse at any time
to permit the withdrawal or other use of credit
given for any item for which we have not yet
received payment in actually and finally col­
lected funds.
7.20 Mixed cash letters

Mixed cash letters will be accepted for one-day
credit when presented in accordance with the
following provisions:
(a) Any member bank that has for collection a
daily average of not more than 300 immediatecredit and deferred-credit items excluding food
coupons payable outside of the city or town in

BULLETIN 8
which such bank is located may, upon applica­
tion, be permitted to send such cash items to us
unsorted with one cash letter: Provided, That
the items sent to the Federal Reserve bank by
such bank on any one day shall include all such
items processed by it on that day. Credit for
items so sent, when received by the applicable
closing time, will be given one business day after
receipt.
(b) Any member bank that has for collection a
daily average of not more than 2,000 immediatecredit and deferred-credit items excluding food
coupons payable outside of the city or town in
which such bank is located may, upon applica­
tion, be permitted to send such items to us un­
sorted with one cash letter: Provided, That the
dollar amount is encoded on each item in ac­
cordance with the A.B.A. Magnetic Ink Charactre Recognition Program: P rovided further, That
the items sent to the Federal Reserve bank by
such bank on any one day shall include all such
items processed by it on that day. Credit for
items so sent, when received by us in time for
presentment on the day of receipt of all immediate-credit items included with such cash letter,
will be given one business day after receipt.

Section 8, COLLECTING AND
PAYING BANKS
Instructions pertaining to the handling of cash
items by collecting banks and paying banks are
set forth in our Bulletin 11.

Section 9, RETURN ITEMS
9.00 Information to senders regarding return
items

The attention of senders is called to our “In­
structions to Collecting Banks and Paying
Banks” to the effect that (a) each paying bank
which takes or receives a credit or obtains a
refund in respect of a cash item received by it
from or through a Federal Reserve bank war­
rants to such Federal Reserve bank, to a subse­
quent collecting bank, and to the sender and all
prior parties that it took all action necessary to
entitle it to recover such payment within the
times limited therefor; (b) a collecting bank
which returns an unpaid item to a Federal
Reserve bank warrants to such Federal Reserve
bank and to the sender and all prior parties that
its return of the item was timely; (c) no Federal

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS
Reserve bank shall have any responsibility for
determining whether the paying bank took all
action necessary to entitle it to recover such
payment or whether the return of the item to it
by a collecting bank was timely; and (d) if a
paying or collecting bank, in accordance with
applicable State law, makes a direct return to
the depositary bank of an unpaid cash item
which it has received from or through us or any
other Federal Reserve bank, any provisional
credit for the item between such paying or col­
lecting bank and this bank or any other Federal
Reserve bank, between this bank or any other
Federal Reserve bank, and the sender, and be­
tween this bank and any other Federal Reserve
bank shall become and remain final.
9.05 Returns without entry

If a cash item is returned without entry, we will
make refund to the returning bank and charge
the sender only if the latter specifically author­
izes us to do so.

Section 10, DIRECT SENDING
10.00 Direct sending of cash items to other
Federal Reserve banks

Member banks and other senders maintaining or
using accounts with us which have a substan­
tial volume or dollar amount of cash items pay­
able in any other Federal Reserve district which
they wish to collect through the Federal Reserve
banks are required to apply to us for authority
to send such items direct to the Federal Reserve
bank of the district in which such items are pay­
able for collection and credit to us; provided,
however, that we may, in our discretion, with­
draw such authority at any time. Appropriate
instructions will be transmitted to the member
and nonmember clearing banks and other send­
ers which are authorized to send direct.
10.05 Right to refuse interdistrict items author­
ized for direct sending

In the event that any sender maintaining or
using an account with us has, in our judgment,
a sufficient volume or dollar amount of cash
items payable in any other Federal Reserve dis­
trict to justify direct sending and this bank au­
thorizes such sender to send such items direct
to the Federal Reserve bank of such other
Federal Reserve district, we reserve the right

to decline to accept any such items from such
sender.
10.10 Direct sending of cash items to other offices
of this bank

Member banks and other senders maintaining
or using accounts with one office of this bank
which have a substantial volume or dollar
amount of cash items payable in the territory of
any other office of this bank which they wish to
collect through this bank are required to apply
to us for authority to send such items direct to
such other office; provided, however, that we
may, in our discretion, withdraw such authority
at any time. Appropriate instructions will be
transmitted to the member banks and other
senders which are authorized to send direct.
10.15 Right to refuse intradistrict items author­
ized for direct sending

In the event that any sender maintaining or using
an account with one office of this bank has, in
our judgment, a sufficient volume or dollar
amount of cash items payable in the territory
of another office of this bank to justify direct
sending and this bank authorizes such sender to
send such items direct to such other office of
this bank, we reserve the right to decline to
accept any such items from such sender.
10.20 Reimbursement of transportation costs for
member banks

Each member bank which sends cash items
direct to other Federal Reserve banks will be
reimbursed by us for postage or other transpor­
tation costs, not including insurance, on all such
items sent direct under our authority. Reim­
bursement also is allowable under similar con­
ditions for cash items sent direct to other offices
of this bank. In the interest of expeditious and
economical handling, those direct-sending mem­
ber banks that by arrangement deliver cash items
payable in other Federal Reserve territories to
this bank for consolidated shipment should not
deviate from the arrangement except upon prior
approval of this bank. Transportation costs of
such consolidated shipments will be paid by us.
10.25 Claims for reimbursement

Claims for reimbursement of transportation
costs of direct sendings should be filed with us
by the tenth day of the month following the

FEDERAL RESERVE BANK OF DALLAS
month in which such costs were incurred, using
Form TR-115, a supply of which will be fur­
nished upon request.
10.30 Methods of shipment

Each direct-sending member bank should give
constant attention to methods of shipment and
should change the method in any case in which
shipment can be made by another method at a
lower cost and without loss of time in present­
ment. In cases in which we pay the transporta­
tion costs, we reserve the right to require a
change in method of shipment in any situation
where, by the use of another method, a more
efficient handling by the receiving Federal Re­
serve office will result, or presentment can con­
sistently be made more promptly, or at a lower
cost and without loss of time.

Section 11, HIGH-SPEED PROCESSING
11.00 Standardization, sorting, routing, and
mechanized processing
To facilitate the sorting, routing, and mechan­
ized processing of cash items, and thereby pro­
mote earlier presentment and earlier return of
unpaid items, it is urged that:
(a) In conformity with the A.B.A. Magnetic Ink
Character Recognition Program, the routing
symbol and the suffix of the transit number be
encoded on all cash items in magnetic ink in
E-13B type in the manner prescribed, and at the
location assigned, by the A.B.A.

(b) The appropriate transit number-routing sym­
bol in fractional form be clearly imprinted in
the upper right corner of all cash items payable
by or through all par-remitting banks, preferably
in Gothic type, the face of which measures at
least 8 points vertically or 1/9 of an inch from
the top to the bottom of the individual char­
acters.
(c) Cash items be otherwise conformed to the
standards prescribed by the A.B.A., including a
minimum width of 23/4 inches, a maximum width
of 32 inches, a minimum length of 6 inches, and
/s
a maximum length of 83A inches, and be re­
stricted to a single thickness of card or paper.
11.05 Right to encode, assumption of risk by
sender

If, in our judgment, the processing of any cash
item by us requires the inscription thereon in

BULLETIN 8
magnetic ink, or otherwise, of the A.B.A. transit
number, the routing symbol, or both, of the pay­
ing bank [or nonbank payor) or requires the
inscription thereon in magnetic ink of the
amount of such item, we may so inscribe the
item and present, send, or forward it accord­
ingly; and the sender of such item shall be
deemed to assume the risk of loss resulting from
delay caused by the act of inscribing such
amount or such number, symbol, or both.
11.10 Designation of paying bank or nonbank
payor

This bank may present, send, or forward any
cash item, in accordance with the provisions of
Section 210.6 of Regulation J, on the basis of:
[a) Any A.B.A. transit number or routing symbol
appearing thereon at the time of its receipt by
us, whether inscribed by magnetic ink or by
other means, and whether or not such transit
number or routing symbol is consistent with
each other form of designation of the paying
b a n k [or n o n b a n k payor) th e n ap p ea rin g
thereon; or
[b) Any other form of designation of the paying
bank (or nonbank payor) then appearing thereon,
whether or not consistent with any A.B.A.
transit number or routing symbol then appearing
thereon.
11.15 Non-machinable items
Any cash item which cannot be processed on
our M.I.C.R. high-speed check-processing equip­
ment and which is received by this bank on
Friday or, if that day be a nonbanking day, on
Thursday, may be held over and processed on
the following Monday, or, if that day be a non­
banking day, on the next succeeding banking
day.

Section 12, PHOTOGRAPHIC COPIES
In the event we receive, as a cash item, a prop­
erly prepared photographic copy of a lost or
destroyed item which was eligible for handling
as a cash item, which copy bears a current en­
dorsement of the sender and the following
legend, or one of equivalent effect, signed by or
in behalf of the sender:
“This is a photographic facsimile of the original
check which was endorsed by the undersigned
and reported lost, stolen or destroyed while in
the regular course of bank collection. All prior

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS
and any missing endorsements and the validity
of this facsimile are hereby guaranteed, and
upon payment hereof in lieu of the original
check, the undersigned will hold each collecting
bank and the payor bank harmless from any loss
suffered, provided the original check is unpaid
and payment is stopped thereon.”
We will handle the copy as follows:
(a) We will present or send the copy as a cash
item to the paying bank (or nonbank payor),
subject to all the rules as to remittance for, and
return of, cash items; or
(b) If such paying bank (or nonbank payor)
declines to handle the copy as a cash item but
is willing to handle it as a noncash item, we will
charge back to the sender the amount of the copy
and will present or send the copy to the paying
bank (or nonbank payor) as a noncash item
under the terms of our current bulletin relating
to the collection of noncash items; or
(c) If such paying bank (or nonbank payor)
refuses to handle the copy, we will charge back
the amount of the copy and return the copy to
the sender.

Supplement A
GOVERNMENT CHECKS
A-1.00 Terms of handling

Government checks drawn on the Treasurer of
the United States will be handled by us as cash
items in accordance with, and subject to, the
provisions of Treasury Department Circular 21
(31 CFR 360). Copies of that Circular will be
furnished upon request. With respect to matters
not covered by that Circular, the terms and con­
ditions of Regulation J applicable to cash items,
of this bulletin, and of our time schedules shall
be applicable to all such Government checks.
A-2.00 Immediate credit

We will give immediate credit, subject to pay­
ment in actually and finally collected funds, for
Government checks as provided in our time
schedules. Such checks will be forwarded by us
to the Treasurer of the United States and shall
be subject in all cases to examination and pay­
ment by the Treasurer. Under Treasury Circular
21, the Treasurer has reserved the right to ex­
amine and to refuse payment of all Government
checks handled by the Federal Reserve banks.

A-3.00 Returns

Section 210.12 of Regulation J, relating to the
return of cash items by paying banks, is not
applicable to Government checks. In the event
that the Treasurer of the United States refuses
payment of any Government check upon first
examination and such check, or photographic
copy thereof, is returned to this bank as outlined
in Treasury Circular 21, the amount of such
check will be charged back to the account of the
sender and simultaneously credited to the ac­
count of the Treasurer. This bank shall have no
responsibility to the sender of any Government
check, or any other owner or holder thereof,
with respect to the nonpayment of any such
check and return by the Treasurer of any such
check or photographic copy thereof.
A-4.00 Claims and actions

The attention of senders is directed to 31 U.S.C.
122 and 129, to the effect that (a) claims on a
Government check which appears of record to
have been paid, must be made within six years
after the date of issuance of the check and (b) an
action to enforce liability upon a forged or un­
authorized signature or endorsement or altera­
tion of any Government check must be com­
menced within six years after the presentment
of the check, or written notice of such a claim
given within that period, provided that, if a
claim given within that period, provided that, if
a claim is made upon an apparently paid check,
the six-year period with respect to the com­
mencement of an action or the giving of written
notice will be extended an additional 180 days.

Supplement B
POSTAL MONEY ORDERS
B-1.00 Terms of handling

Postal money orders (United States postal
money orders; United States international postal
money orders; domestic-international postal
money orders) will be handled by us as cash
items in accordance with an agreement made
by the Postmaster General, in behalf of the
United States, and by the Federal Reserve banks
as depositaries and fiscal agents of the United
States pursuant to authorization of the Secretary
of the Treasury. With respect to matters not
covered by that agreement, the terms and con­
ditions of Regulation J applicable to cash items,

BULLETIN 8

FEDERAL RESERVE BANK OF DALLAS
of this bulletin, and of our time schedules shall
be applicable to all such postal money orders.
B-2.00 Immediate credit

We will give immediate credit for postal money
orders received from a sender maintaining or
using an account with us as provided in our time
schedules. Simultaneously with such credit, we
will debit the amount of such money orders
against the general account of the Treasurer of
the United States under such symbol numbers
as may be assigned by the Treasurer of the
United States; and such credit to the account of
the sender shall then become final as between
us and the sender.
B-3.00 Claims, returns

•

The agreement between the Postmaster General
and the Federal Reserve banks provides, in
effect, that no claim for refund or otherwise
with respect to any postal money order debited
against the general account of the Treasurer of
the United States and delivered to the repre­
sentative of the Post Office Department as pro­
vided in said agreement (other than a claim
based upon the negligence of a Federal Reserve
bank) shall be made against or through any
Federal Reserve bank; that, if the Post Office
Department makes any such claim with respect
to any such money order such money order will
not be returned or sent to a Federal Reserve
bank, but the Post Office Department will deal
directly with the bank or the party against which
such claim is made; and that the Federal Reserve
banks will assist the Post Office Department in
asserting such claim, including making their
records and any relevant evidence in their pos­
session available to the Post Office Department.
Section 210.12 of Regulation J, relating to the
return of cash items by the paying banks is not
applicable to postal money orders.

Supplement C
FOOD STAMP COUPONS
C-1.00 General

Food stamp coupons will be handled by us as
cash items in accordance with an agreement
made by the Secretary of Agriculture, in behalf
of the United States, and by the Federal Reserve
banks as depositories and fiscal agents of the
United States pursuant to authorization of the

11-1-71

Secretary of the Treasury. With respect to mat­
ters not covered by such agreement, the terms
and conditions of Regulation J applicable to cash
items, of this bulletin, and of our time schedules
shall be applicable to such coupons. We will re­
ceive food stamp coupons only from member
banks and nonmember banks which have ar­
ranged with us to send coupons to us for collec­
tion for credit to the account of a member bank
on our books. All such banks sending coupons
to us should follow the instructions set forth in
an outline of procedures for commercial banks
in handling such coupons under the current Food
Stamp Program, prepared by the United States
Department of Agriculture.
C-2.00 Terms and conditions

We will accept food stamp coupons received by
us in accordance with the following terms and
conditions:
(a) Redeemed food stamp coupons should be
forwarded to the office of this bank maintaining
the reserve account to which the proceeds of the
coupons are to be credited. We will give imme­
diate credit for deposits of redeemed food stamp
coupons as provided in our time schedules. Such
credit will not be final and will be subject to
reclamation and adjustment.
(b) Food stamp coupons should be separately
sorted by denominations and should be depos­
ited in a separate cash letter. The sending bank’s
transmittal letter should be clearly stamped or
marked “FOOD STA M P C O U P O N S ” The trans­
mittal letter should show the total number of,
and the total amount of, each denomination of
coupons enclosed. Food stamp coupons should
be forwarded to us by the means ordinarily used
by the sender for checks and other cash items;
such shipments will be at the risk of the Depart­
ment of Agriculture. Sending banks should
retain customers’ deposit slips and any other per­
tinent records which would assist in substan­
tiating reimbursement claims against the Depart­
ment of Agriculture for coupons lost in transit.
(c) In accordance with the regulations of the
United States Department of Agriculture (7 CFR
16), a portion of a food stamp coupon consisting
of less than three-fifths of a whole coupon shall
not be accepted for redemption. Any coupon
accepted for redemption shall show on its back
either (i) the FOOD STA M P A U TH O R IZATIO N
NUMBER or (ii) the name of the authorized retail

FEDERAL RESERVE BANK OF DALLAS
food store and, if involved, the authorized whole­
sale food concern. Each coupon shall also be
cancelled by the first bank which receives it by
indelibly marking “PAID” or “CAN CELLED/’
together with the name of the bank or its A.B.A.
transit number, on the face of the coupon by
means of an appropriate stamp. No coupon
should be endorsed by any bank.
(d) Additional information concerning the col­

BULLETIN 8
lection of food stamp coupons will be furnished
by us upon request.
C-3.00 Nonmember banks
Nonmember banks which have not arranged
with us to deposit food stamp coupons for col­
lection for credit to an account of a member bank
on our books should forward redeemed food
stamp coupons through ordinary collection
channels.

BULLETIN 10

Time Schedules and
Other Information
Concerning Cash Items

FEDERAL RESERVE BANK OF DALLAS

SCOPE
This bulletin sets out certain rules under which credit for cash items sent by member
banks to us for collection will be made available in the reserve accounts of the sending
member banks. It also contains several rules with respect to the sorting and preparation
of cash letters sent to this bank. Supplement A to this bulletin contains the current closing
hours for various categories of cash items.
This bulletin, along with Regulation J and certain other bulletins of this bank, constitutes
a portion of the contract under which cash items are handled for collection by this bank.

TABLE OF CONTENTS
Section 1, DEFINITIONS

1.00 Available and availability
1.05 Day of dispatch
1.10 Day of receipt
1.15 Direct sending
1.20 Immediate and deferred credit items
1.25 Transfer drafts
1.30 Other references
Section 2, IMMEDIATE AND DEFERRED
AVAILABILITY

2.00
2.05
2.10
2.15
2.20

11-1-71

Immediate credit
Deferred credit, availability computation
Deferment of one banking day
Calendar day deferment
Transfer drafts

2.25
2.30
2.35
2.40

Deferment of two banking days
Conflicting holiday schedules
Availability on nonbanking day
Availability table

Section 3, CASH LETTERS

3.00 Sorting
3.05 Unsorted cash letters,
300 items daily average
3.10 Unsorted cash letters,
2,000 items daily average
3.15 Description
3.20 Dating, identification and contents
3.25 Transfer drafts
Supplement A, CLOSING HOURS FOR
CASH ITEMS

FEDERAL RESERVE BANK OF DALLAS

BULLETIN 10

are incorporated herein by reference. In addi­
tion, certain terms used in this bulletin are de­
fined in Regulation J.

Section 1, DEFINITIONS
1.00 Available and availability
“Available” and “availability” refer to the grant­
ing of credit by this bank in the sender’s reserve
account for cash items forwarded to this bank
for collection or handled by direct sending.

Section 2, IMMEDIATE AND
DEFERRED AVAILABILITY

1.05 Day of dispatch

2.00 Immediate credit

“Day of dispatch” means the day a direct send­
ing member bank actually dispatches a direct
sent cash item, or such other day as we direct
under 2.05 of this bulletin.

Cash items entitled to availability on the day of
receipt are shown under the heading “Immediate
credit items” in Supplement A of this bulletin.
2.05 Deferred credit, availability computation

1.10 Day of receipt

Availability for deferred credit items will be
computed from the day of receipt or, in the case
of direct sending, from the day of dispatch. In
certain direct sending situations, we reserve the
right to direct that availability will be computed
from a day other than the day of dispatch, in
which event such day will be treated as the day
of dispatch.

“Day of receipt” means the day a cash item sent
to this bank for collection is received. For cash
items received on our nonbanking days or after
closing hours, the day of receipt is our next
banking day. For cash items to which Saturday
closing hours apply, which are received prior to
such closing hours, Saturday is the day of
receipt.

2.10 Deferment of one banking day

Reference: Supplement A to Bulletin 1 for the
schedule of our banking and nonbanking days;
Supplement A to this bulletin for cash items en­
titled to Saturday closing hours.
“Direct sending” refers to the sending of cash
items direct to a Federal Reserve office other
than that which normally serves the sender, as
provided in section 10 of Bulletin 8.

Deferment of one banking day means that credit
will be available on our first banking day follow­
ing the day of receipt, or in the case of direct
sending, following the day of dispatch. Such
deferment is given for deferred credit items
(most of which bear the immediate credit rout­
ing symbol) collectible through designated Fed­
eral Reserve offices, a current list of which will
be furnished on request. Such deferment is also
given under 3.05 and 3.10 of this bulletin.

1.20 Immediate and deferred credit items

2.15 Calendar day deferment

“Immediate credit item” means a cash item en­
titled to availability on the day of receipt, as set
out in 2.00 of this bulletin. “Deferred credit
item” means any other cash item.
“Transfer draft” means a sender’s own draft on
its commercial bank correspondent.

Calendar day deferment means that credit is
available a certain number of calendar days fol­
lowing the day of receipt or, in the case of direct
sending, following the day of dispatch. Defer­
ment of one or two calendar days is given for
deferred credit items collectible through certain
Federal Reserve offices, a current list of which
will be furnished on request.

1.30 Other references

2.20 Transfer drafts

Several definitions, rules of construction, and
other provisions applicable to this bulletin are
found in our Bulletin 1, General Provisions, and

Availability for transfer drafts will be based on
actual collection time. The use of our wire trans­
fer facilities instead of transfer drafts is sug­

1.15 Direct sending

1.25 Transfer drafts

1
11-1-71

BULLETIN 10

FEDERAL RESERVE BANK OF DALLAS

days or actual collection time if applicable, not­
withstanding the fact that payor banks or other
Federal Reserve offices may observe a different
schedule of banking and nonbanking days.

gested as a means of expediting the transfer of
bank balances without additional cost. See our
Bulletin 6 on Transfer of Funds.
2.25 Deferment of two banking days

2.35 Availability on nonbanking day

Deferment of two banking days means that
credit will be available on our second banking
day following the day of receipt, or in the case
of direct sending, following the day of dispatch.
Such deferment is available for all deferred
credit items not covered by 2.10, 2.15 and 2.20,
above.

If the day on which credit is to be available is
not a banking day for us, as might happen in the
case of calendar day deferment, credit will be­
come available on our next banking day.
2.40 Availability table

2.30 Conflicting holiday schedules

The table below illustrates typical deferred
availability; however, it does not take account
of holidays observed by this bank.

It should be noted that deferment of availability
is bas-ed on our banking days, or on calendar

Day of receipt or
day of dispatch

If deferred' 1
banking day

If deferred 2
banking days

If deferred 2
calendar days

Credit will become available on the following:
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday

Tuesday
Wednesday
Thursday
Friday
Monday
Monday

Wednesday
Thursday
Friday
Monday
Tuesday
Tuesday

Section 3, CASH LETTERS

3.05 Unsorted cash letters, 300 items daily
average

3.00 Sorting

Any member bank that has for collection a daily
average of not more than 300 immediate credit
and deferred credit items (excluding food cou­
pons) payable outside the city or town in which
such bank is located may, upon application, be
permitted to send such cash items to us unsorted
with one cash letter: P ro vided , That the items
sent to the Federal Reserve bank by such bank
on any one day shall include all such items pro­
cessed by it on that day. Credit for items so sent,
when received by the applicable closing time,
will be given one business day after receipt.

Except as provided in 3.05 and 3.10 of this bulle­
tin, senders should sort items in separate cash
letters for the various deferment categories listed
in Supplement A to this bulletin, and for various
categories of availability deferment (immediate
credit, deferment of one banking day, two bank­
ing days, two calendar days, etc.). For unsorted
cash letters which are subject to the sorting
requirements of this paragraph, availability may
be deferred for the longest period applicable to
any item in the cash letter.

2
11- 1-71

Wednesday
Thursday
Friday
Monday
Monday
Monday

FEDERAL RESERVE BANK OF DALLAS

3.10 Unsorted cash letters, 2,000 items daily
average

Any member bank that has for collection a daily
average of not more than 2,000 immediate credit
and deferred credit items (excluding food cou­
pons) payable outside of the city or town in
which such bank is located may, upon applica­
tion, be permitted to send such items to us un­
sorted with one cash letter: Provided, That the
dollar amount is encoded on each item in ac­
cordance with the American Bankers Associa­
tion Magnetic Ink Character Recognition Pro­
gram: P rovided further, That the items sent to
the Federal Reserve bank by such bank on any
one day shall include all such items processed
by it on that day. Credit for items so sent, when
received by us in time for presentment on the
day of receipt of all immediate credit items in­
cluded with such cash letter, will be given one
business day after receipt.
3.15 Description

Cash items may be deposited with this and other
Federal Reserve banks without description ex­

BULLETIN 10

cept for listing by individual amounts; however,
each sender should maintain adequate records
to enable it to identify its depositors or other
endorsers in the event any such items are lost,
destroyed, or otherwise uncollectible and nonreturnable.
3.20 Dating, identification and contents

Each cash letter and tape listing should be dated
and identified with the name and A.B.A. number
(if any) of the sender. It would be helpful if no
more than 400 items are listed on each machine
tape and no more than 6 such tapes are included
in one cash letter.
3.25 Transfer drafts

Transfer drafts should be sent in separate cash
letters clearly marked “transfer drafts.” For di­
rect sending of transfer drafts, the advice to this
bank should likewise be separate and clearly
marked “transfer drafts.” (See 2.20 of this bul­
letin for an alternative to the use of transfer
drafts.)

BULLETIN 10

FEDERAL RESERVE BANK OF DALLAS

Supplement A
CLOSING HOURS FOR CASH ITEMS

IMMEDIATE CREDIT ITEMS
Banking days (Monday through Friday)

Closing hour

Items drawn on local banks bearing the immediate credit routing symbol
Fort Worth bank drafts on Continental National Bank, First National Bank,
and Fort Worth National Bank

9:00 a.m.
10:30 a.m.
(Dallas only)

Redeemed United States Department of Agriculture food stamp coupons
Drafts on Commodity Credit Corporation payable through this bank (accept­
able for immediate credit only at office through which payable)

2:00 p.m.

Cashier’s checks and expense checks of other Federal Reserve banks (only
when deposited in separate cash letters) subject to final payment after
receipt at the issuing Federal Reserve office
Postal money orders
Checks drawn on the Treasurer of the United States

2:00 p.m.
(El Paso)
2:30 p.m.
(other offices)

Cashier’s checks and expense checks of this bank subject to final payment
after receipt at our issuing office
2:30 p.m.
Drafts on this bank subject to inspection and verification of signatures after
receipt at office on which drawn before payment is final

DEFERRED CREDIT ITEMS
Banking days (Monday through Friday)

Closing hour

Regular items

12:00 Noon
1:30 p.m.

Computer processed items
Items $500 and over MICR encoded as to routing symbol, transit number
and amount

2:00 p.m.
(El Paso)
2:30 p.m.
(other offices)

Computer processed items specially prepared for direct introduction to
high-speed check-handling equipment (contact our Dallas or Houston offices
for specific details)

3:30 p.m.
(Dallas and
Houston only)

Computer processed fine sorted items with listing attached and received
with punched cards (contact our Dallas office for specific details)

5:30 p.m.
(Dallas only)

A-l
11-1-71

BULLETIN 10

FEDERAL RESERVE BANK OF DALLAS

Saturdays*

Closing hour

Regular items

11:00 a.m.

Computer processed items

12:00 Noon

UNSORTED CASH LETTERS
Banking days (Monday through Friday)

Closing hour

Unsorted cash letters with amount-encoded items, with daily average of
2,000 items or less, as provided in 3.10 of Bulletin 10
Unsorted cash letters with daily average of 300 items or less, asprovided
in 3.05 of Bulletin 10
"Except Saturdays which fall on the holidays listed in A-1.00 of Supplement Ato Bulletin
which we have sent advance notification that no items will be processed.

A-2
11-1-71

9:00 a.m.
12:00

Noon

1, and Saturdays as to