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F ed e r a l r e s e r v e Ba n k o f D a lla s DALLAS, TEXAS 75222 C i r c u l a r No. 75-38 Mar ch 20, 1975 REVISION OF BULLETIN 6 TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: T h e r e is e n closed a copy of r e v i s e d Bulletin 6 e ntitled " T r a n s f e r s of F u n d s " which is now in effect. T h e re la te d Supplem ent A, effective J u l y 29, 1974, is still c u r r e n t . The Bulletin h a s been r e v is e d in o r d e r to u p d a te all major sections and to allow for the in clu sio n of the Code Word A u thenticatio n Procedure. T h e new Bulletin should b e s u b s tit u te d immediately for the c o r r e s p o n d i n g Bulletin date d J u l y 29, 1974 in y o u r b i n d e r of Bulletins and R egulations is su e d by th is Bank. T h e re la te d S upplem ent A, r e f e r r e d to a b o v e , should be re ta in e d . T h e s u p e r s e d e d Bulletin should be d e s t r o y e d . Questions r e g a r d i n g th e s e r e v is io n s should b e d ir e c te d to e i t h e r E. W. V o rlo p, J r . o r C . L. V i c k a t the Head Office, or any officer at the B r a n c h e s . Sincerely y o u rs , T . W. Plant F ir s t Vice P r e s id e n t E n c losure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BULLETIN 6 Transfers of Funds FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin sets forth general information pertaining to transfers of funds through this Bank. The procedures established are designed to increase the speed and efficiency of such transactions, and they may be used, among other things, for federal funds transfers and in lieu of a draft drawn on correspondent banks to cover anticipated charges to a reserve account. TABLE OF CONTENTS Section 1, DEFINITIONS 3.25 Requests other than telephone 3.30 Member banks without code word listings 3.35 Emergency situations 1.00 Bank balance 1.05 Funds 1.10 Reference to Bulletin 1 Section 4, TIME LIMITATIONS Section 2, TRANSFER OF FUNDS REQUESTS 4.00 Transfers involving only banks within a single territory 4.05 All other transfers 4.10 Requests after closing hours 2.00 Telephone requests 2.05 Persons authorized to make transfer requests 2.10 Transfer of bank balances for and to member banks 2.15 Requests for transfers from on-line member banks Section 5, MAIL ADVICES 5.00 Advice of credit 5.05 Advice of charge Section 3, CODE WORD AUTHENTICATION PROCEDURE 3.00 3.05 3.10 3.15 Section 6, CHARGE AND PAYMENT Purpose Code word listings Use of code words Responsibility for confidentiality 6.00 Authority to charge 6.05 Statements of account Section 7, OUR LIABILITY Section 8, CONTRACT i 3 - 20-75 FEDERAL RESERVE BANK OF DALLAS Section I, DEFINITIONS BULLETIN 6 1.05 Funds few who perform this function on a routine basis. A member bank may designate individuals other than officers to issue telephone transfer instructions, but designations must be evidenced by a resolution of the board of directors of the member bank authorizing the designated indi viduals to request transfers of funds and reliev ing us from any liability when acting upon such instructions. “Funds” means a bank balance or portion there of in a member bank reserve account. 2.10 Transfer of bank balances for and to member banks 1.10 Reference to Bulletin 1 Telegraphic transfers of funds between Federal Reserve Banks of bank balances in any amount of $1,000 or over will be made without charge for member banks to member banks and for member banks to nonmember clearing banks. A charge of $1.50 will be made for such trans fers in amounts of under $1,000. Such telegraphic transfers of bank balances may contain descrip tive third-party information not exceeding four 80-character lines of alphabetical data. While such transfers will be accepted only from mem ber banks and paid only to member banks or nonmember clearing banks, they may be for the use of any bank, individual, firm, or corpo ration through the utilization of descriptive third-party information. 1.00 Bank balance The term “bank balance” shall be construed to mean an accumulation of funds comprising an established account maintained by a member bank with us or with another member bank. 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 2, TRANSFER OF FUNDS REQUESTS 2.00 Telephone requests We will accept collect telephone requests for transfers of funds in accordance with the Code Word Authentication Procedure outlined in Section 3. Such requests by member banks in the Head Office territory may be communi cated directly to the wire transfer division at 214-651-6156 or 214-651-6317 or 214-651-6321. Telephone requests may be communicated by member banks in Branch territories to the Branches as follows: Branch Area Code El Paso 915 544-4730 34 Houston 713 224-4433 52 or 54 San Antonio 800 292-5810 23 Telephone Extension Number Number 2.15 Requests for transfers from on-line member banks Subject to the applicable provisions of this bulle tin, requests for transfers of funds may be made through the use of electronic telecommunica tions facilities by special arrangement with us. Banks requesting transfers by this method must have executed previously agreements detailing the terms and conditions under which such transfers are to be effectuated. Section 3, CODE WORD AUTHENTICATION PROCEDURE 2.05 Persons authorized to make transfer requests 3.00 Purpose A written agreement authorizing specific operat ing officers of the member bank to issue tele phone transfer requests to us should be fur nished us by a member bank. The number of officers authorized should be limited to those A Code Word Authentication Procedure is uti lized between member banks and our offices. It is designed to detect and prevent the processing of unauthorized telephone transfer of funds requests. BU LLETIN 6 FED ERA L RESERV E BA N K O F DA LLA S 3.05 Code word listings 3.25 Requests other than telephone (a) We will furnish each member bank which utilizes our transfer of funds facilities on a reg ular and continuing basis with a three-month supply of code words. Requests for transfers of funds utilizing the mails, Western Union wires, TWX messages, and TELEX messages normally will not be hon ored. Requests utilizing these means of trans mission should not be made and will be accepted only where prior arrangements have been made or in emergency situations. (b) All requests for listings of code words should be in writing and signed by an officer of a member bank whose signature is on file with us. (c) Member banks should promptly acknowl edge receipt of the code word listings. If a member bank does not receive its code word authentication listings within a reasonable pe riod of time after its request, it should imme diately contact our Accounting Department’s manager or assistant manager. 3.10 Use of code words Each transfer of funds request will require a separate code word and it must be the next se quential, unused code word shown on the code word listing. Otherwise, it will not pass our code word authentication check and it will be neces sary both to reconfirm the transfer request by telephone and to reconcile the difference in code words between the member bank and us. 3.15 Responsibility for confidentiality At the bottom of each listing, it is noted that the list is for authorized use only. Since the code word will be the only method of verifying the authenticity of a transfer request, it is strongly suggested that only those individuals authorized to transfer funds at each member bank have access to the code words. This will help insure the confidentiality of the member bank’s list and the integrity of the authentication procedure. 3.30 Member banks w ithout code word listings Member banks not utilizing our transfer of funds facilities on a regular and continuing basis will will not be supplied with code word listings. To request a transfer, such banks should contact, by collect telephone, an officer in charge of the Accounting Department at the Head Office or any officer at the Branches. 3.35 Emergency situations Any member bank in emergency situations or unusual circumstances may use the procedure described in paragraph 3.30. Section 4, TIME LIMITATIONS 4.00 Transfers involving only banks within a single territory In cases involving transfers between banks both located within a single territory, requests for telephone transfers of funds for consummation on day of receipt must be received by 3:00 p.m. local time of our office through which the trans fer is made. 4.05 All other transfers Except for those cases covered by paragraph 4.00 above, requests for telephone transfers of funds for consummation on day of receipt should be sent to us by 3:00 p.m. local time of the office of the Federal Reserve Bank to which the transfer is to be made. Transfers of funds for credit to banks served by us, whether or not from member banks in this District, will be accepted by us until 3:00 p.m. local time. A de tailed schedule of closing hours for this Bank and for other Federal Reserve Banks for trans fers of funds is contained in Supplement A to this bulletin. BULLETIN 6 FED ERA L R E SERV E BA N K O F DA LLA S 4.10 Requests after closing hours Section 6, CHARGE AND PAYMENT Requests received after closing hours may be transmitted, at our discretion, on the day of receipt; however, consummation of the transfer is discretionary with the Federal Reserve Bank to which the transfer is transmitted. Such trans mittals and consummations will be limited to transfers to clear overdrafts and other emer gency situations. 6.00 Authority to charge Section 5, MAIL ADVICES 5.00 Advice of credit Mail advice of credit for all telephone transfers of funds will be given by the Federal Reserve office receiving the transfer to the member bank or nonmember clearing bank receiving credit therefor. In addition, immediate advice of credit by telephone or otherwise will be given when the bank receiving credit or the bank requesting the transfer has asked for such immediate ad vice, or where the nature of the transaction, or the amount involved, indicates that the addi tional expense is justified as to which the re ceiving Federal Reserve office will exercise its discretion. Mail advice will not be given to banks that use terminals connected to our District Switch, since those banks automatically receive an advice of credit as part of their use of these facilities. 5.05 Advice of charge We will confirm each transfer of funds re quested by forwarding a copy of the transfer document to the requesting member bank, ex cept in those cases where requests are received by us directly from banks that use terminals connected to our District Switch. Each advice should be examined carefully and immediately upon receipt for correctness. Any exceptions noted should be reported to us promptly. Requests to transfer funds will be construed as authority to charge the adequate collected balance for the amount of the funds transferred in the reserve account of the requesting mem ber bank. 6.05 Statements of account Transfers of funds functioned by us will be included on the daily Reserve Account State ment which we prepare. These statements will be dispatched to each member bank after the close of business on each business day. It is the responsibility of each member bank to care fully examine the entries relating to its transfers of funds as set forth in such statement of account immediately upon receipt and to promptly report any exceptions to us. Section 7, OUR LIABILITY We will use due diligence and care in the trans fer of funds to the receiving Federal Reserve Bank for credit to the account of the payee bank and in the transfer of funds made on our books for banks within this District, but we will not be responsible for errors or delays caused by circumstances beyond our control. We reserve the right to decline to handle any transfer which, in our opinion, is an abuse of the transfer facilities, or which involves the ful fillment of unusual or extraordinary conditions. Section 8, CONTRACT Any bank requesting, making, or receiving a transfer of funds through the Federal Reserve Bank of Dallas shall by such action be deemed to have agreed to the terms and conditions of this bulletin.
