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F ederal reserve Bank DALLAS, TE X A S of Dallas 75222 C ircular No. 79-128 August 6, 1979 REVISION TO BULLETIN 9 TO ALL BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Effective October 9, 1979, Bulletin No. 9, entitled "Collection of Noncash Item s," is being revised to incorporate the provisions for Cash Processing of matured corporate and municipal coupons. Enclosed is a re p rin t of Bulletin No. 9. Member banks and others that maintain Regulations Binders should file the bulletin in their binders. The bulletin curren tly on file should be removed from your binder and destroyed. Any questions concerning this revision should be directed to Jack A . Clym er, Assistant Vice President of this Bank, Ext. 6384, or the appropriate officer at our El Paso, Houston, or San Antonio Branch. Additional copies of this bulletin w ill be furnished upon re quest to the Secretary's Office, Ext. 6267. Sincerely yours, Robert H . Boykin First Vice President Enclosure Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank: 1-800-492-4403 (intrastate) and 1-800-527-4970 (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) BULLETIN 9 Collection of Noncash Items FEDERAL RESERVE BANK OF DALLAS SCOPE This bulletin contains the terms and conditions under which we will handle noncash items for collection. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS TABLE OF CONTENTS Section 1, GENERAL 1.00 Collection contract 1.05 Authority Section 2, DEFINITIONS AND REFERENCES 2.00 Definitions, references to Regulation J 2.05 References to Bulletin 1 Section 3, NONCASH ITEMS 3.00 Items which will be handled as noncash items 3.05 Time items 3.10 Demand items 3.15 Other demand items 3.20 Items not received from sender 3.25 Items which will not be handled as noncash items 3.30 Unmatured time items Section 4, DIRECT SENDING 4.00 Direct sending of noncash items to other Federal Reserve districts 4.05 Right to refuse interdistrict items authorized for direct sending 4.10 Direct sending of noncash items to other offices of this Bank 4.15 Right to refuse intradistrict items authorized for direct sending Section 5, TERMS AND CONDITIONS OF COLLECTION 5.00 5.05 5.10 5.15 5.20 Regulation J Bulletins Items payable outside this District Right to classify and require deposits Effect of special instructions Section 6, HANDLING BY THIS BANK 6.00 6.05 6.10 6.15 6.20 Presentment for payment Procedure Time items and maturity date Endorsements Items without endorsement Section 7, COLLECTION LETTERS 7.00 Preparation of collection letters by sender 7.05 Special instructions 7.08 Securities sent for collection 7.10 Direct sending urged 7.15 Coupons 7.17 Separation of coupons 7.18 Mixed coupon cash letter 7.20 Coupon envelopes 7.25 Coupon ownership certificates 7.30 Other securities Section 8, PROTEST AND ADVICE OF NONPAYMENT 8.00 Uniform instructions 8.05 Items with U.S. Treasury and similar endorsements 8.10 Responsibility for protest 8.15 Determination of responsibility 8.20 Communications concerning noncash items 8.25 Requesting wire advice Section 9, AVAILABILITY OF PROCEEDS OF NONCASH ITEMS 9.00 9.05 9.10 9.12 9.15 General Bankers’ acceptances Maturing coupons in our safekeeping Coupon cash letter availability Late claims for error adjustments Section 10, COLLECTION CHARGES 10.00 Charges on bonds, debentures, and coupons 10.05 Charges on checks 10.10 Charges b y Federal Reserve Banks Section 11, RETURN OF NONCASH ITEMS 11.00 G eneral 11.05 Noncash items to be presented for acceptance 11.10 Effect of section 11.05 Section 12, PHOTOGRAPHIC COPIES 12.00 Requirements for handling APPENDIX A, Payment Vouchers on Letters of Credit A-1.00 A-2.00 A-3.00 A-4.00 Handled as noncash item Effectuation of payment Nonpayment Claims for refund APPENDIX B, Coupons Received for Payment B-1.00 B-2.00 B-3.00 B-4.00 B-5.00 General Procedure Ownership certificate forms Coupons not handled Immediate credit BULLETIN 9 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: 1.00 Collection contract Regulation J and this bulletin prescribe the terms and conditions upon which we will handle noncash items for collection. 1.05 Authority This bulletin is issued pursuant to the provisions of sections 4, 13, 14(e), and 16 of the Federal Reserve A ct and the provisions of related statutes and in conformity with the provisions of Regulation J. Section 2, DEFINITIONS AND REFERENCES 2.00 Definitions, references to Regulation J All terms defined in Regulation } and used herein have the meanings stated in that regulation. 2.05 References to Bulletin 1 Several definitions and 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, NONCASH ITEMS 3.00 Items which will be handled as noncash items Except as otherwise provided by this bulletin, we will receive for handling as noncash items in accordance with and subject to Regulation J and this bulletin, the items set out in this sec tion 3 which are payable in any Federal Reserve District.1 3.05 Time items We will handle as noncash items any evidence of indebtedness or order to pay which is not payable on demand and which we may be will ing to accept as a noncash item, including but not limited to: (1) Maturing acceptances and bankers accept ances drawn upon depositors in a Federal Re serve Bank. (2) Maturing bonds, debentures, coupons, and other similar securities (other than obligations of the United States and its agencies or instru mentalities and of certain international organi zations).2 3.10 Demand items We will handle as noncash items any check collectible at par or other demand item which would ordinarily be handled as a cash item: (1) If a passbook, certificate, or other document is attached to the item; or (2) If special instructions, including requests for special advice of payment or dishonor, ac company the item; or special conditions require that the item not be handled as a cash item, and we will decide whether such special conditions exist; or (3) If the item consists of more than a single thickness of paper, except as provided in sec tions 12.00 and 12.05 of this bulletin; provided, how ever, th at any m utilated, erroneouslyencoded, or other 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 (4) If the item has not been preprinted, or post encoded before its receipt by us, with (a) the routing symbol and the suffix of the transit number of the paying bank (or nonbank payor), and (b) the dollar amount of the item, in magnetic ink in E-13B type in the manner prescribed, and at the location assigned, by the ABA; provided, how ever, that we will handle such items as cash items when, in our judgment, special circum stances justify such handling. 3.15 Other demand items We will handle as noncash items any other item drawn upon a depositor in a Federal Reserve Bank which is not collectible as a cash item, including, but not limited to:s 1 For the purposes of this bulletin, the Virgin Islands and Puerto Rico shall be deemed to be in or of the Second Federal Reserve District; Guam and American Samoa shall be deemed to be in or of the Twelfth Federal Reserve Dis trict. See Regulation J, note 1. 2 Obligations, including coupons of the United States and its agencies or instrumentalities, when received by us for collection, are paid by us as fiscal agent of the United States or of the agency or instrumentality. Provisions gov erning the payment of such coupons are contained in Appendix B to this bulletin. “Provisions governing the collection of payment vouchers on letters of credit for Government grants and contri butions are contained in Appendix A to this bulletin. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS (1) Bills of exchange and drafts with securities, bills of lading, or other documents attached. (2] Drafts and orders on savings deposits with passbooks attached. 3.20 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 noncash item if it would have been a noncash item but for the fact that it was not sent to us by a sender. 3.25 Items which will not be handled as noncash items This Bank will not handle as a noncash item any item described in sections 3.00 through 3.15 of this bulletin if: (1) The item is not a check and is payable in the same community in which an office of the sender is located; or (2) The item is payable by or through one office of the sender and has been received from an other office of the same sender; or (3) The item is a Government check, postal money order, (United States postal money order, United States international postal money order, domestic-international postal money order), food coupon;or (4) The item is a check and cannot be collected at par; or (5) Unless this Bank in its discretion elects other-wise, the item has been dishonored two or more times. (6) The item is a note or certificate of deposit; or (7) The item is a draft, whether or not it is ac cepted, which is payable at a bank but which is not drawn upon a bank. 3.30 Unmatured time items Except as provided in section 11.10 hereof, time items will not be handled by this Bank more than 30 days prior to their maturity. Section 4, DIRECT SENDING 4.00 Direct sending of noncash items to other Federal Reserve Districts Senders which maintain or use accounts with us are authorized to send, for our account, non cash items payable in other Federal Reserve Districts direct to the Federal Reserve Banks and Branches of the Districts in which the items are payable. Since direct sending of such items expedites handling by Federal Reserve offices and is of advantage to senders, senders are urged to send such items direct whenever feasible. 4.05 Right to refuse interdistrict items authorized for direct sending We reserve the right to require any sender which maintains or uses an account with us and which has a substantial volume of noncash items pay able in any other Federal Reserve District to send such items direct to the Federal Reserve Bank of the district in which the items are pay able; and we will not accept such items from such sender. 4.10 Direct sending of noncash items to other offices of this Bank Member and nonmember clearing banks and other senders maintaining or using accounts with one office of this Bank are authorized to send noncash items payable in the territory of any other office of this Bank direct to such other office. Since direct sending of such items ex pedites handling by Federal Reserve offices and is of advantage to senders, senders are urged to send such items direct whenever feasible. 4.15 Right to refuse intradistrict items authorized for direct sending This Bank reserves the right to require any sender which maintains or uses an account with one office of this Bank and which has a sub stantial volume of noncash items payable in the territory of any other office of this Bank to send such items direct to such other office; and we will not accept such items from such sender. Section 5, TERMS AND CONDITIONS OF COLLECTION 5.00 Regulation J Regulation J prescribes terms and conditions under which all Federal Reserve Banks will collect noncash items for the senders thereof. Such terms and conditions and the terms and conditions of this bulletin will apply to the handling of all noncash items which we accept for collection. The terms and conditons of Regulation J and of our Bulletin No. 8 will apply to the handling of bank drafts and other forms BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS of payment or remittance which we receive for such items and elect to handle as cash items; and the terms and conditions of Regulation J and of this bulletin will apply to the handling of bank drafts and other forms of payment or remittance which we receive for such items and elect to handle as noncash items. 5.05 Bulletins Section 210.3 of Regulation J provides that the provisions of that regulation and of the operating bulletins of the Federal Reserve Banks shall be binding upon the sender of a noncash item and shall be binding upon each collecting bank, pay ing bank, and nonbank payor to which the Federal Reserve Bank, or any subsequent col lecting bank, presents, sends, or forwards a non cash item received by the Federal Reserve Bank. Section 210.16 of Regulation J provides that each Federal Reserve Bank shall issue operating bulletins not inconsistent with the provisions of that regulation governing the details of its opera tions in the handling of noncash items and con taining such other matters as are required by the provisions of that regulation. 5.10 Items payable outside this District A noncash item payable in any other Federal Reserve 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 main tains or uses an account with us will be handled by such Federal Reserve Bank subject to the terms and conditions of Regulation } and of the applicable operating bulletins of such Federal Reserve Bank; but we will give credit to the sender for such item in accordance with this bulletin. 5.15 Right to classify and require deposits We reserve the right to classify noncash items and to require deposits in separate collection letters of such noncash items as we may deem appropriate. 5.20 Effect of special instructions Except as provided in paragraph 16 of this bulle tin, we will handle all noncash items subject to the following instructions: “Do not hold after maturity or for convenience of payor” ; any contrary instructions in the collection letter or otherwise will be disregarded; and we reserve the right, without prior notice to the sender, to recall any noncash item and return it to the sender whenever in our judgment such item is being held contrary to such instructions. Section 6, HANDLING BY THIS BANK 6.00 Presentment for payment In the absence of specific instructions to the contrary, we or any subsequent collecting bank may present to the paying bank (or nonbank payor] for payment, or send for presentment to the paying bank (or nonbank payor) for pay ment, any bond, coupon, debenture, or other similar security with the understanding that pay ment may be deferred without dishonor pending reasonable examination to determine whether the security is properly payable, but that pay ment shall be made or the security returned in any event before the close of the paying bank’s (or nonbank payor’s) business day next follow ing the day of maturity or presentment, which ever is later. We reserve the right, in our dis cretion, to refuse to handle noncash items pay able by a paying bank (or nonbank payor) which has in the past failed to take all action necessary for payment or return of noncash items, pre sented, sent or forwarded to it by or through this Bank, within the times limited therefor. 6.05 Procedure As contemplated by section 210.7 of Regulation J, any noncash 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 payment or to send it for presentment and payment. 6.10 Time items and maturity date Neither we nor any subsequent collecting bank undertake to present noncash items which are time items on the maturity date unless such items are received by us sufficiently in advance of the maturity date to permit timely present ment by us to the paying bank (or nonbank payor) or forwarding to the subsequent collect ing bank for such presentment, utilizing the means which we normally utilize for that purpose. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS 6.15 Endorsements All noncash items other than bonds, coupons, debentures, and other similar securities 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 endorsement of the sender should be dated and should show the ABA transit number of the sender, if any, in prominent type on both sides of the endorse ment. 6.20 Items without endorsement In the event a noncash item other than a bond, coupon, debenture, or other similar security is received by a Federal Reserve Bank from a sender without the endorsement 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 return the item to the sender for proper endorsement by the sender. W e make the warranties stated in section 210.6(b) of Regulation J by presenting, sending, or forwarding a noncash item or an instrument which it handles as a noncash item pursuant to section 3.20 of this bulletin. These warranties arise w hether or not such item bears our endorsement. Section 7, COLLECTION LETTERS 7.00 Preparation of collection letters by sender Except as provided in sections 7.15 and 7.25 of this bulletin, noncash items forwarded for col lection and credit when paid should be trans mitted with a separate collection letter different in form from that in which cash items are listed. The accompanying collection letter should in clude the collection number assigned to the item by the sender; a description of the item; the name of the paying bank or nonbank payor of the item; the place of payment, the maturity, and the amount of the item; and any special instructions with respect to the item. If docu ments are attached to the item, they must be clearly and adequately identified in the accom panying collection letter. 7.05 Special instructions Any special instructions as to handling, includ ing instructions as to protest and advice of pay ment or nonpayment, should be incorporated in the collection letter. Except as otherwise pro vided in sections 8.00 and 8.05 of this bulletin, special instructions noted on or attached to the noncash items themselves and not supported by like instructions in the collection letter will be disregarded. 7.08 Securities sent for collection Senders must separate bonds, debentures and other similar securities, other than coupons, that they send to us for collection into the following classes, with a separate totaled letter for each class: (a) Country Collection Letter — Bonds, deben tures and other similar securities, other than coupons, payable outside the city of the Federal Reserve office where the sender maintains an account. (b) City Collection Letter — Bonds, debentures and other similar securities, other than coupons, payable in the city of the Federal Reserve office where the sender maintains an account. Credit for securities in such collection letters will be given upon receipt of payment in actually and finally collected funds as provided in section 9.00 of this bulletin. 7.10 Direct sending urged Senders are urged to send bonds, debentures, coupons, and other similar securities payable by any one of several paying agents direct to the Federal Reserve Bank of the district in which the paying agent nearest to the sender is located. 7.15 Coupons Coupons sent to us for collection shall be en closed according to issue, series and maturity in separate sealed, window envelopes so that the face of the coupon is visible through a win dow of the envelope. All such envelopes shall conform to specifications prescribed by this Bank. The name of the sender, the name of its depositor, the sender’s collection number, and a brief description of the coupons enclosed, in cluding the number of coupons, denomination value, and total dollar value shall be listed by the sender in the space provided on the enve lope. Such envelopes should be saparately listed and described by collection number on the to taled letter of the sender. Each letter should be accompanied by a completed standard deposit ticket. Senders are advised that the coverage of BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS certain registered mail insurance obtained by Reserve Banks may be conditioned upon verifi cation of the contents of window envelopes when the coupons are enclosed and retention of a record of the description of such coupons by the sender. All sealed window envelopes will be handled as provided in paragraph 7.20 of this bulletin. 7.17 Separation of coupons Senders should separate all coupons that they send to us for collection into the following classes, with a separate totaled letter and com pleted standard deposit ticket for each class and, as to unmatured coupons, for each maturity date: (a) Matured City Coupon Cash Letter — Due or past due coupons payable in the city of the Fed eral Reserve office where the sender maintains an account. (b) Unmatured City Coupon Cash Letter — Cou pons due in the future payable in the city of the Federal Reserve office where the sender main tains an account. (c) Matured Country Coupon Cash Letter — Due or past due coupons payable outside the city of the Federal Reserve office where the sender maintains an account. (d) Unmatured Country Coupon Cash Letter — Coupons due in the future payable outside the city of the Federal Reserve office where the sender maintains an account. For purposes of such classification, maturity should be determined with reference to the date of first receipt by a Federal Reserve Bank. Credit for coupons in cash letters will be given, subject to payment in actually and finally collected funds, as provided in section 9.12 of this bulletin. 7.18 Mixed coupon cash letter A coupon cash letter containing a mixture of matured and unmatured coupons will be re turned to the sender. We reserve the right, in our discretion, to return or handle as a country coupon cash letter any coupon cash letter con taining a mixture of country and city coupons in one cash letter. Postage, insurance, or express or other transportation expenses incurred by this bank in returning a cash letter will be charged to the sender’s account on our books. be handled by us on a “said-to-contain” basis and we will have no responsibility for verifying that such envelopes actually contain the cou pons listed and described on the sender’s collec tion letter or described on the envelopes. 7.25 Coupon ownership certificates Before sending coupons to us for collection, senders should ascertain whether ownership certificates are required to be attached thereto by law or by the issuer of such coupons. If so required, the appropriate ownership certificate forms should be attached to the coupons sent to us for collection. 7.30 Other securities Securities other than coupons sent to us for collection should be sorted according to issue, should be accompanied by the same information as accompanies coupons sent for collection, and should also be listed and described on the sender’s totaled collection letter in the same manner as coupons sent for collection, as pro vided in section 7.15 hereof. Section 8, PROTEST AND ADVICE OF NONPAYMENT 8.00 Uniform instructions In the absence of specific instructions to the contrary in the sender’s collection letter and except as provided in section 8.05 hereof, we will receive, handle, and forward noncash items subject to the following uniform instructions regarding protest: (1] PROTEST any dishonored item of $2,500 or over, except a bond, debenture, coupon, or other similar security: (a) Which appears on its face to have been drawn at a place which is not within any state,4 unless it bears on its face the ABA no-protest symbol of a Federal Reserve Bank or of a pre ceding bank endorser, or (b) Which bears on its face the legend, “PRO TEST REQUIRED,” of a Federal Reserve Bank or of a preceding bank endorser. (2) DO NOT PROTEST: 7.20 Coupon envelopes (a] Any item of less than $2,500, or Coupons contained in sealed, window envelopes as provided in section 7.15 of this bulletin will (b) Any item of $2,500 or over unless it is protestable under subparagraph (1). BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS 8.05 Items with U.S. Treasury and similar en dorsements will be made for wire advices of nonpayment or for messages pertaining to tracing noncash items. DO NOT PROTEST AND DO NOT WIRE ADVICE5 of nonpayment of any check handled as a noncash item, regardless of amount, endorsed by the United States Treasury, or en dorsed for credit to the United States Treasury, or bearing on its face or in an endorsement the legend “This check is in payment of an obliga tion to the United States and must be paid at par. N.P. Do not wire nonpayment” or words of similar import. 8.25 Requesting wire advice 8.10 Responsibility for protest The paying bank, if any, shall be responsible for making or providing for any protest of a non cash item protestable under the provisions of this bulletin, except as may be otherwise pro vided by the rules or practices of any clearing house through which the item was presented or by agreement between us and the paying bank. If there is no paying bank, the responsibility shall be that of the subsequent collecting bank, if any, except as may be otherwise provided by applicable clearing house rules or practices or by agreement between us and such collecting bank. If there is no paying bank or subsequent collecting bank, we will make or provide for any necessary protest. 8.15 Determination of responsibility We have no responsibility for determining whether another bank responsible therefor has: (1] made or provided for the protest of any dis honored noncash item in accordance with spe cific instructions in the sender’s collection letter or in accordance with the provisions of this bulletin, or (2) given any wire advice requested with respect to any noncash item. 8.20 Communications concerning noncash items When instructed to do so by a sender, this Bank will give wire advice5 of credit to such sender without charge for any noncash item in an amount of $1,000 or over; if, when instructed to do so by a sender, this Bank gives wire advice of credit for any noncash item in an amount of less than $1,000, a $1.50 service charge will be made against the sender’s account. No charge The term listed below, when used in instruc tions, advices, or communications, will be un derstood to have the m eaning indicated , as follows: “WIRE FA TE” when wire advice of credit or wire advice of nonpayment is desired. A wire advice of credit message indicates that a credit has been posted to the reserve or other account of the sender of the item; with respect to a bankers’ acceptance drawn upon a depositor in a Federal Reserve Bank, however, when a Fed eral Reserve Bank gives wire advice of credit, it does not necessarily imply that actually and finally collected funds are in its possession. A Federal Reserve Bank will have no responsi bility for any other instructions given by a sender regarding wire advice of credit or wire advice of nonpayment. Section 9, AVAILABILITY OF PROCEEDS OF NONCASH ITEMS 9.00 General Except as hereinafter provided with respect to bankers’ acceptances and coupons, credit for the proceeds of noncash items will be given as directed in a reserve account, or other appro priate account, upon receipt by us of payment in actually and finally collected funds or upon receipt of advice from another Federal Reserve Bank of such payment. However, if payment or remittance is by bank draft or by check drawn upon a bank other than the paying bank, credit will be given subject to payment in actually and finally collected funds, in accordance with the time schedules issued by us under our operating Bulletin 8 entitled, “Collection of Cash Items.” 9.05 Bankers’ acceptances Credit for bankers’ acceptances drawn upon de positors in a Federal Reserve Bank will be given, subject to payment in actually and finally col lected funds, in accordance with the following schedule, if received by us sufficiently in ad vance to permit forwarding in time to reach the 4The term “state” is defined in section 210.2(n) of Regulation J to mean any state of the United States, the District of Columbia, or Puerto Rico, or any territory, possession or dependency of the United States. 6 For the purposes of this bulletin, the term “wire” includes telephone, telegraph, and cable. BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS 9.15 place of payment at least one banking day be fore maturity. Place Payable Federal Reserve Bank or Branch cities Elsewhere Credit Available On maturity date 1 banking day after maturity 9.10 Maturing coupons in our safekeeping Credit for maturing coupons which are released from our safekeeping will be available, subject to payment in actually and finally collected funds, as follows: Place Payable Member bank located in central financial district of Dallas, El Paso, Houston, or San Antonio Elsewhere Credit Available 1 banking day after maturity, provided our office and place payable are in same city 2 banking days after maturity 9.12 Coupon cash letter availability Section 10, COLLECTION CHARGES Credit for coupons listed to us in a separate totaled coupon cash letter will be given, subject to payment in actually and finally collected funds, in accordance with the following schedule: For due and past due coupons, and future due coupons not received sufficiently in advance of maturity: Place Payable Credit Available The city of the Federal 3 banking days Reserve office where after receipt the sender maintains an account. Elsewhere 8 banking days after receipt For future due coupons, if received by the sec ond banking day prior to maturity: Place Payable Credit Available 10.00 Charges on bonds, debentures, and coupons Except as provided in section 10.10, the Fed eral Reserve Banks make no charge for their services in collecting noncash items. No charge may be made by a bank (or a nonbank payor) in connection with the collection or payment of any bond, debenture, coupon or other similar security received from or through a Federal Re serve Bank. It is recognized that a bank acting as agent to collect any other noncash item ren ders a service in presenting, collecting, and re mitting, for which a reasonable charge may be made if it cares to do so; and when such a charge is made and deducted from the payment or re mittance received by us for the item, we will give credit to the sender for the net proceeds. The city of the Federal 1 banking day Reserve office where after maturity the sender maintains an account. For future due coupons, if received by the sixth banking day prior to maturity: Place Payable Credit Available Outside the city of the 2 banking days Federal Reserve office after maturity w h e re th e se n d e r maintains an account. 10 - 9-79 Late claims for error adjustments We will send to member banks and other de positors maintaining an account on our books statements of account, which may be supported by advices, with respect to entries in such an account made by us in accordance with the provisions of Regulation J and our operating bulletins. If, within one calendar year from the date of an entry in such an account, such a de positor fails to advise us in writing of its objec tion to such an entry, the depositor, and any sender, collecting bank, or paying bank using the account maintained by the depositor which has handled the item to which the entry relates, shall be deemed to have approved the entry and the statement of account shall be deemed finally adjusted. The foregoing shall not relieve such a depositor from the duty of exercising due dili gence to examine statements of account sent to it and of notifying us immediately upon dis covery of any error, nor shall it apply to claims based upon the breach of a warranty in respect of an item to which an entry relates by a Federal Reserve Bank. 10.05 Charges on checks No charge may be made by a paying bank or collecting bank in connection with the collection or payment of any check that may be handled as a noncash item; provided, however, that a collecting bank or paying bank may make a collection charge in connection with such item if such charge reflects expenses actually in curred by it in collecting such check as a non cash item which it would not have incurred had 7 BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS the check been handled as a cash item and if such charge is clearly not an exchange charge nor in the nature of a charge for payment. When such a charge is made and deducted from the payment or remittance received by us for the item, we will give credit to the sender for the net proceeds. (1) Noncash items to be presented for accept ance must be deposited by senders in a separate collection letter which states that such items are to be so presented and sets forth any other instructions of the sender, not inconsistent with the provisions of this section and section 11.10 hereof, regarding such items. 10.10 Charges by Federal Reserve Banks (2) A Federal Reserve Bank or a subsequent collecting bank may present any such item for acceptance in any manner authorized by law. (3) Any subsequent collecting bank to which this Bank forwards any such item for present ment for acceptance will give us prompt notice of acceptance or refusal of the item. Items sent to the Federal Reserve Banks for collection are subject to the following charges: (1) Charges made by collecting banks or paying banks referred to in sections 10.00 and 10.05 of this bulletin; and (2) Charges made by the Federal Reserve Banks: (a) A charge, at their discretion, for handling and collecting securities; (b) A service charge, at their discretion, of $.50 per item on all noncash items returned unpaid and unprotested; (c) Postage, insurance, or express, or other trans portation charges incurred in forwarding items; (d) All telegraph, cable, and telephone charges; and (e) Protest fees. Section 11, RETURN OF NONCASH ITEMS 11.00 General A noncash item for which final payment has been received by a Federal Reserve Bank cannot be returned to a Federal Reserve Bank by a subsequent collecting bank, a paying bank, or nonbank payor for credit or refund. However, such an item may be returned to us without entry and with a request that we ask our sender to make refund therefor, in which event we will make refund to the subsequent collecting bank, paying bank, or nonbank payor, as the case may be, and charge our sender only if the latter specifically authorizes us to do so. 11.05 Noncash items to be presented for accept ance We will receive from senders, for presentment for acceptance, any nonaccepted noncash item which provides that it must be presented for acceptance, or which is payable elsewhere than at the residence or place of business of the drawee, or the date of payment of which de pends upon presentment for acceptance, sub ject to the following terms and conditions: (4) No Federal Reserve Bank or subsequent collecting bank shall, upon the acceptance of any such item, deliver to the drawee thereof any accompanying documents unless specifically in structed by the sender to do so. 11.10 Effect of section 11.05 A noncash item received by us under section 11.05 hereof will be presented for acceptance by us or by a subsequent collecting bank selected by us. If the item is not accepted, it will be returned to the sender; if accepted and: (1) If the item is payable 30 days or less after sight or by its terms matures 30 days or less after the receipt thereof by us, the item will be held for presentment for payment by us, by the subsequent collecting bank, or by the drawee bank; or if the sender so requests, the item will be returned to the sender; or (2) If the item is payable more than 30 days after sight or by its terms matures more than 30 days after the receipt thereof by us, the item will be returned to the sender. Section 12, PHOTOGRAPHIC COPIES 12.00 Requirements for handling In the event we receive, as a noncash item, a properly prepared photographic copy of a lost or destroyed item which was a check or other demand item without securities, bills of lading, or other documents attached and which was eligible for handling as a noncash item and the copy bears a current endorsement 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 item which was endorsed by the undersigned BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS We will handle the copy as follows: (1) We will present or send the copy, as a non cash item, to the paying bank (or nonbank payor) named on the original item, subject to all the terms and conditions of this bulletin; or and reported lost, stolen, or destroyed while in the regular course of bank collection. All prior and any missing endorsements and the validity of this facsimile are hereby guaranteed, and upon payment hereof in lieu of the original item, the undersigned will hold each collecting bank and the payor bank harmless from any loss suf fered, provided the original item is unpaid and payment is stopped thereon.” (2) If such paying bank (or nonbank payor) re fuses to handle the copy, we will return the copy to the sender. 9 10 - 9-79 BULLETIN 9 FEDERAL RESERVE BANK OF DALLAS APPENDIX A PAYMENT VOUCHERS ON LETTERS OF CREDIT A-1.00 Handled as noncash item Payment vouchers on letters of credit for Gov ernment grants and contributions will be handled by us as noncash items in accordance with an agreement made by the Secretary of the Treas ury and by the Federal Reserve Banks as de positaries and fiscal agents of the United States. A-2.00 Effectuation of payment As fiscal agent of the United States, we will effect payment of such vouchers by credit to the reserve or other account of the sender which has forwarded the vouchers to us for payment. Simultaneously with such credit, we will debit the amount of such payment vouchers against the general account of the United States Treas ury under such symbol numbers as may be assigned by the United States Treasury. At that time the payment of such payment vouchers shall become final payment as between us and the sender. A-3.00 Nonpayment In the event that we do not pay any payment voucher forwarded to us for payment by a sender which maintains or uses an account with us, we will promptly advise such sender of the nonpayment thereof, by wire at the cost of the United States Treasury, and will forward such voucher and any copy thereof which may accompany it, with advice as to the reason for nonpayment, to the Treasury Department; and we will have no further obligation or further liability with respect to such payment voucher. A-4.00 Claims for refund The agreement between the Secretary of the Treasury and the Federal Reserve Banks pro vides, in effect, that no claim for refund or otherwise with respect to any payment voucher debited against the general account of the United States Treasury shall be made against or through any Federal Reserve Bank; that, if any Federal agency makes any such claim with re spect to any such payment voucher (other than a claim based on the negligence of a Federal Reserve Bank) such payment voucher will not be returned or sent to a Federal Reserve Bank, but such Federal agency will deal directly with the party against which such claim is made; and that, if any Federal Reserve Bank shall stamp or otherwise place on any payment voucher any endorsement or legend containing the words “prior endorsement guaranteed” or words of similar import, such endorsement, legend, or words will have no effect whatsoever except to identify the payment voucher as having been received by such Federal Reserve Bank. FEDERAL RESERVE B A N K OF DALLAS BULLETIN 9 APPENDIX B COUPONS RECEIVED FOR PAYMENT The schedules to be used for such coupons will be furnished by us upon request. B-1.00 G eneral Coupons from obligations of the United States and its agencies and instrumentalities, when re ceived by us for collection, are paid by us as fiscal agent of the United States, or for the agency or instrumentality. W e will receive such coupons in accordance with the following pro cedures. B-2.00 Procedure W e will receive, from senders who maintain or use accounts with us, coupons listed on sched ules and enclosed in envelopes showing the name of the sender, as follow s: (a) Coupons from obligations of the United States should be enclosed in separate envelopes according to current or uncurrent interest due dates and denominations. Only coupons that bear an interest due date of February 15, M arch 15, May 15, June 15, August 15, Septem ber 15, No vember 15, or December 15 and are presented for payment on or before such interest due date or before the next such interest due date will be considered as bearing current interest due dates (for example, if a coupon bearing an interest due date of August 15, 1971, is pre sented not later than September 14, 1971, it should be classified as “current”); and all other coupons will be considered as bearing uncurrent interest due dates. (b) Coupons from obligations of agencies or instrum entalities of the United States should be enclosed in separate envelopes according to issue and denomination. B-3.00 O w nership certificate form s Ownership certificate forms, when required by law, must be attached to coupons from obliga tions of the United States and its agencies and instrumentalities sent to us for collection. Such form should be obtained by the sender from the nearest District Director of Internal Revenue. B -4.00 Coupons n ot handled W e will not handle coupons from obligations of the International Bank for Reconstruction and Development and the Inter-American Develop ment Bank for collection. However, senders which maintain or use accounts with us are authorized to send such coupons directly to the Federal Reserve Bank of New York, for payment for our account, in accordance with the terms and conditions of the operating bulletins of that Federal Reserve Bank. W e will give credit for such coupons in the reserve or other appropriate account upon advice from the Federal Reserve Bank of New York that such coupons have been paid. B-5.00 Im m ediate credit Immediate credit, subject to final payment, will be given for due or past due coupons received by us for payment, in the reserve or other appro priate account, if listed in a separate totaled letter and received by us by 2:00 p.m. on any banking day for us.
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