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FEDERAL RESERVE BANK OF DALLAS DALLAS. TEXAS 75222 Circular No. 78-183 December 29, 1978 REVISION OF BULLETIN 6 (WIRE TRANSFERS OF FUNDS) TO ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: There is enclosed a copy of revised page 3 of Bulletin 6 effective January 1, 1979. The page has been revised to update a portion of p ara g raph 19, Advices of Credit and Debit, in regard to confirmation by the member bank of telephone advices of third party tran sfers. In essence, this revision establishes transferee liability in the event there is no call back on telephone advices. The revised page should be substituted immediately for the cor responding page in your c u rre n t issue of Bulletin 6 dated September 1, 1977. Questions regarding this revision should be directed to Allan Y. Neale of the Head Office, Ext. 6334, or the Manager of the Accounting De partment at our El Paso, Houston, or San Antonio Branches. Additional copies of Bulletin 6 or revised page 3 will be fu r nished upon request to the Secretary's Office of this Bank, Ext. 6267. Sincerely yours, Robert H. Boykin First Vice President Enclosure Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank: 1 -8 00 -492 -440 3 (intrastate) and 1 -8 00 -527 -497 0 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS this Bank deems such action appropriate, or w hen in the judgm ent of this Bank, the nature of the transaction or the am ount involved justi fies such action, advice of credit will be given to such transferee by telephone, telegraph, or other form of electronic telecommunications. A uthentication of an advice of credit should be m ade by the transferee at the time of receipt of the advice in accordance w ith arrangements m ade w ith this Bank. (See Note 3) The transferee is urged to confirm, by return telephone call or by other m eans in accordance w ith such arrange ments, a telephonic advice of credit that contains third party information, or other special instruc tions, prior to making the proceeds of the trans fer available for w ithdraw al or other use. If such a confirmation is not made, the transferee shall assum e all risk of loss resulting from failure to make such confirmation. In addition, in all cases where there is a discrepancy betw een an advice given by telephone, telegraph, or other form of electronic telecomm unications and one given in an advice of credit accompanying or contained in a statem ent mailed or delivered by this Bank, a m em ber bank shall be deemed to have ap proved the credit reflected in the m ailed or de livered advice unless w ritten objection is sent to the office of this Bank w ith which it m aintains or uses an account w ithin 10 calendar days follow ing receipt by the transferee of such m ailed or delivered advice. 20. The office of this Bank w ith w hich the transferor m aintains or uses an account will send to the transferor an advice of debit. Such advice should be carefully examined by the transferor upon receipt, and any exceptions noted should be reported immediately to this Bank. If w ithin 10 calendar days after the trans feror receives an advice of debit, it fails to send to the office of this Bank w ith w hich it m ain tains or uses an account w ritten objection to such debit, the transferor shall be deemed to have approved such debit. FINAL PAYMENT; TRANSFEREE’S RIGHT TO WITHDRAW OR USE FUNDS; TRANSFEREE’S AGREEMENT; NOTICE REQUIREMENT 21. A transfer item is finally paid w hen the transfer item is sent or delivered to the trans feree, or w hen advice of credit is given to the BULLETIN 6 transferee by a Federal Reserve Bank, whichever event occurs first. 22. Upon such final payment, the transferee shall have the right to w ithdraw or use funds which have been credited to its account in con nection w ith a transfer of funds: Provided, That this right is subject to the right of a Federal Re serve Bank to apply transferred funds to an ob ligation owed to it by the transferee. 23. As provided by Section 210.56 of Subpart B, a transferee, receiving from this Bank the am ount of a transfer item w hich designates a beneficiary, shall be deemed to agree: [a] That it will prom ptly credit said bene ficiary’s account or otherw ise make the am ount of the transfer item available to the beneficiary for w ithdraw al or other use; and [b) That, if the transferee is unable to do so, it will give prom pt notice of the facts to the office of this Bank w ith w hich it m aintains or uses an account and that office in turn will give such notice to its transferor. REQUESTS FOR REVOCATION OF TRANSFER ITEMS AND REQUESTS FOR RETURN OF FUNDS 24. A transferor that has issued a transfer item or request for a transfer item to the office of this Bank w ith which it m aintains or uses an account may subsequently issue to such office a request for revocation of such item or request. Such request for revocation m ust be authenticat ed by the use of such codes or procedures as may be prescribed by this Bank. Such office, upon receipt of such a request for revocation, may cancel such item if the request is received at such time and in such m anner as to afford such office a reasonable opportunity to act. If the item is not so cancelled: (a) W here the transferor and transferee maintain or use accounts at the same office of this Bank, such office may, in its discretion, upon request from the trans feror, send a request to the transferee to return the funds previously transferred, or BULLETIN 6 FEDERAL RESERVE BANK OF DALLAS (b) In the case of an interoffice transac tion, such office may, in its discretion, upon request from the transferor, send a request to the Federal Reserve office at which the transferee m aintains or uses an account to request the transferee to return funds previously transferred. 25. To correct an erroneous or otherwise ir regular transfer of funds, this Bank, upon its own initiative or at the request of another Fed eral Reserve Bank, may send a request to the transferee to return funds previously transferred to it. GENERAL 26. Transferors issuing transfer items by elec tronic telecommunications arrangem ent made with this Bank are advised to audit control pro cedures to ascertain that their transfer items have been accepted by this Bank’s telecom m unications and processing equipment. 27. Transferors and transferees should pre vent the disclosure outside of such institution, or w ithin it except on a “need to know ” basis, of any of the codes or other security procedures relating to transfers of funds. If the confidenti ality of such procedures is compromised, the transferor or transferee should notify this Bank immediately. Liability of the Federal Reserve Bank 28. The attention of transferors and trans ferees is directed to Section 210.64 of Subpart B w hich sets forth the limitations on the re sponsibilities and the liability of a Federal Re serve Bank with respect to transfers of funds. Revision of this bulletin 29. The right is reserved to w ithdraw , to add to, or to amend, at any time, as to any or all transferors and transferees, any of the pro visions of this bulletin and of this B ank’s Sched ule of Time Limits.
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