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federal

Reserve Ba n k o f Dallas

DALLAS, TEXAS

75222
C ircu lar No. 81-5 (A )
Ja n u ary 7, 1981

TO THE CHIEF EXECUTIVE OFFICER OF SAVINGS AND
LOAN ASSOCIATIONS SUBJECT TO RESERVE REPORTING AND
MAINTENANCE UNDER THE MONETARY CONTROL ACT OF 1980:
T h e D ep o sito ry In stitu tion s D ereg u lation and Monetary Control A ct of
1980 w en t into effect d u r in g th e fa ll of 1980. R e s e r v e r e p o r tin g u n d er th is Act
w as d efe r r e d for sm aller fin an cial in s titu tio n s . T h o s e in stitu tio n s h a v in g total
d e p o s its b etw e e n $2 and $15 m illion as of D ecem b er 31, 1979 m ust b e g in filin g
q u a rterly r e g u la to r y r e p o r ts on form FR 2900 b e g in n in g in Jan u ary 1981. In sti­
tutions e x c e e d in g th e $15 m illion d ep o sit le v e l on two c o n s e c u tiv e q u a rterly
r e p o r ts w ill b e r e q u ir e d to b e g in filin g w e e k ly r e p o r t s . W eekly r e p o r tin g w ill
b e g in for th e w e e k fo llo w in g th e se c o n d c o n s e c u tiv e q u a rterly r e p o r t in d ic a tin g
total d e p o s its of $15 m illion or m o re. T h e F e d e r a l R e s e r v e 's d efin ition of total
d e p o sits i s in d ic a te d on p a g e s 8-12 of th e e n c lo s e d in stru ctio n b o o k let.
Your s a v in g s and loan a sso c ia tio n sh o u ld com plete a r e s e r v e rep o rt
for the s e v e n - d a y p e r io d , J a n u a ry 1 5-2 1, 1981. E n c lo s e d for yo u r u s e are two
c o p ie s of r e p o r tin g form FR 2900, an in s tr u c tio n b o o k le t, and a p r e - a d d r e s s e d ,
re tu rn e n v e lo p e . C ertain e u r o c u r r e n c y b o r r o w in g s are also su b je c t to r e s e r v e
r e q u ir e m e n ts . A co p y of r e p o r t form FR 2950 is a lso e n c lo s e d , and it sh o u ld be
filed w ith th e F e d e r a l R e s e r v e if y o u r in stitu tio n had rep ortab le e u r o c u r r e n c y
lia b ilit ie s d u r in g th e r e p o r tin g p e r io d . C om pleted r e p o r ts sh o u ld b e m ailed to
re a c h th e F e d e r a l R e s e r v e B ank or B ran ch office b y F r id a y , Jan u ary 23.
If you r s a v in g s and loan h a s r e s e r v e re q u ir e m e n ts on the b a la n ces r e ­
p o rted in J a n u a ry th e y sh o u ld b e m aintained w ith the F e d e ra l R e s e r v e d u rin g the
p e r io d March 19 th ro u g h J u n e 17, 1981. P e r io d ic statem en ts w ill b e p r o v id e d for
in stitu tio n s r e q u ir e d to m aintain r e s e r v e s w ith the F e d e r a l R e s e r v e . After the
F e d e ra l R e s e r v e has com pleted p r o c e s s in g of the Jan u ary r e p o r t s , fin an cial i n s t i ­
tu tion s w ill b e d iv id e d into t h r e e g r o u p s . Each grou p w ill file a r e s e r v e rep ort
for on e w e e k ea c h q u a r te r . T h e re p o r tin g w e e k w ill a lw a y s b e g in on the th ird
T h u r s d a y of a w e e k in th e f i r s t , s e c o n d or th ird month of a q u a r te r . We w ill notify
y ou of you r 1981 r e p o r tin g s c h e d u le b y th e en d of F e b r u a r y . S u b s e q u e n t q u a rterly
r ep o rtin g w ill n ot b e g in u n til March 1981.
We h op e y o u fin d th e e n c lo s e d r e p o r tin g m aterials u s e f u l. If th ere are
any q u e s tio n s r e g a r d in g th e r e p o r t form s or i n s t r u c t io n s , th e y sh o u ld b e d ir e c te d
to th e S tatistical D epartm ent at th e D a lla s Office (214) 651-6294 or 698-4205; or to
the A cco u n tin g D epartm ent at th e Houston Office (713) 659-4433; San Antonio Of­
fice (512) 224-2141; or El P a so Office (915) 544-4730.

E n c lo s u r e s

S in c e r e ly y o u r s ,
R obert H . B oyk in
P r e s id e n t

B a n k s a n d o t h e r s a r e e n c o u r a g e d to u s e th e fo llo w in g in c o m in g W A T S n u m b e r s in c o n t a c t in g th is Bank:
1-800-442 -714 0 (in tr a s t a te ) a n d 1 - 8 00-527 -920 0 (in te r s t a te ) . F o r c a lls p la c e d lo cally, p l e a s e u s e 651 p lu s th e
e x te n s io n r e fe r r e d to ab ove.

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

CORRECTIONS TO TH INSTRUCTIONS FOR THE PREPARATION OF:
E
•Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900)
•Report of Certain Eurocurrency Transactions (FR 2950)
FOR USE BY:
•Building and Loan Associations
•Savings and Loan Associations
Page 22:
(1) The n e x t- t o - l a s t paragraph on the page should be deleted and replaced
with the following paragraph:
All demand balances due to an i n s t i t u t i o n th a t is l i s t e d in 1. above may
be reported net of balances "due from" those i n s t i t u t i o n s (see calculatio ns of
net reciprocal- balances below), except fo r demand deposits due to New York
State Investment Companies. A due from deduction (in item 8 - Demand Balances
Due From Depository I n s titu tio n s ) i s not allowed fo r balances due from New
York State Investment Companies (see page 32). Therefore balances due to New
York State Investment Companies must be reported on gross b a s is . If i t is
burdensome for a reporting i n s t i t u t i o n to report reciprocal balances with the
above i n s t i t u t i o n s on a net b a s is , for purposes of t h i s re p o rt, such balances
may be reported gross. All demand balances due to the i n s t i t u t i o n s l i s t e d in
2. above should be reported gross. Due b i l l s t h a t remain uncollateralized by
a sim ilar security a f t e r three business days th a t are issued to banks should
be reported in item l . a . U ncollateralized due b i l l s are the only primary
o bligations th a t are reported in t h is item, and must be reported gross.
Page 24:
(1) A new paragraph will be in serted on t h i s page before the statement,
"Exclude from t h i s item the balances of a ll D A D DEPOSITS in the form of
EM N
DEPOSITS due to banks included under Report Item l . a . above." The new
paragraph will s ta te :
Due b i l l s th a t remain u n c ollateralized by a sim ilar security a f t e r three
business days t h a t are issued to Other Depository I n s t i tu t i o n s should be
reported in item 1 .b. U ncollateralized due b i l l s are the only primary
o bligations t h a t are reported in t h i s item, and must be reported gross.

Federal
Reserve
Bank of
Dallas

Instructions for the Preparation of:

• Report of Transaction Accounts,
Other Deposits and Vault Cash
(FR 2900)
• Report of Certain Eurocurrency Transactions
(FR 2950)

For Use By:

• Building and Loan Associations
• Savings and Loan Associations

DETAILED INSTRUCTIONS
FOR
PREPARATION OF THE
REPORT OF TRANSACTION ACCOUNTS
OTHER DEPOSITS AND VAULT CASH
(FR 2900)

For Building or Savings and Loan Associations
Mutual Savings Banks; Cooperative Banks;
Homestead Associations; and Savings Banks.

CONTENTS

Instructions for the Report of Transaction Accounts,
Other Deposits and Vault Cash (FR 2900)

INTRODUCTION

...............................................

SECTION 1— GENERAL INSTRUCTIONS............................
Who Must R e p o r t ...........................................
Frequency to Report .......................................
How to R e p o r t .............................................
What Liabilities AreReservableUnder Regulation D . . . .
Deposits as Defined UnderRegulation D ............ . . . .
Treatment of Pass-Through Balances ......................
Treatment of Trust Funds ................................
Treatment of Escrow F u n d s ................................ 13

1
4
4
5
5
8
8
12
13

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS ......................
15
Transaction Accounts
............................. . . .
15
Summary of Transaction Account Classifications............ 16
Demand Deposits ...........................................
17
Demand Deposits Due to DepositoryInstitutions ...........
21
Demand Deposits Due to B a n k s .......................... 22
Demand Deposits Due to OtherDepositoryInstitutions . .
24
U.S. Government Demand Deposits
.........................
25
Other Demand D e p o s i t s .................................... 27
Other Transaction Accounts ..............................
29
ATS Accounts .................................. . . . . .
29
Telephone or Preauthorized Transfer Accounts ............
29
NOW A c c o u n t s .............................................30
D e d u c t i o n s ...............................................31
Demand Balances Due From Depository Institutions.......... 31
Cash Items in Process of Collection...................... 33
Other Savings Deposits ..................................
36
Other Savings Deposits — Personal ......................
38
Other Savings Deposits — Nonpersonal ....................
38
Time D e p o s i t s .............................................39
Time Deposits — P e r s o n a l ................................. 42
Time Deposits — N o n p e r s o n a l ............................. 43
Time Deposits in Denomination of $100,000 or More ........
43
Vault C a s h ...............................................44
Schedule A - Other Reservable Accounts ....................
45
Amounts Outstanding of Funds Obtained Through Issuance
of Obligations of Affiliates and through Use of
Ineligible Acceptances ................................... 45
Amounts Maturing in less than 14 days ..................... 48
Amounts Maturing in 14 days or more— Pers o n a l............ 48
Amounts Maturing in 14 days or More— N o n p e r s o n a l ........ 48
G L O S S A R Y ...................................................G-l

INTRODUCTION

Under the Monetary Control Act of 1980, every depository institu­
tion that has transaction accounts or nonpersonal time deposits is required
to file a Report of Transaction Accounts, Other Deposits and Vault Cash.
Every depository institution that obtains funds from foreign (non-U.S.)
sources or that maintains foreign branches is also required to file with
the Federal Reserve a Report of Certain Eurocurrency Transactions.!/ These
reports are used for the calculation of Federal required reserves and
for construction of the monetary aggregates. Rules governing the reserve
requirment provisions of the Monetary Control Act are contained in
Federal Reserve Regulation D, "Reserve Requirements of Depository
Institutions”.2/
The report forms listed below are provided for the following
institutions:
Report of Transaction Accounts, Other Deposits and Vault Cash
FR 2900— For all commercial banks, Edge Act and Agreement
corporations and their branches, industrial banks, and
U.S. branches and agencies of foreign banks; for
mutual or stock savings banks, cooperative banks,
building or savings and loan associations and homestead
associations; and for credit unions.
Report of Certain Eurocurrency Transactions
FR 2950— For all depository institutions except U.S. branches and
agencies of foreign banks;
FR 2951— For U.S. branches and agencies of foreign banks.
This booklet presents detailed instructions for preparation of
the FR 2900 by the following institutions, regardless of their size:
(1) building or savings and loan associations, (2) mutual savings banks,
(3) cooperative banks, (4) homestead associations, and (5) savings banks.
Separate instruction booklets are provided for commmercial
banks, industrial banks, Edge Act and Agreement corporations, U.S. branches
and agencies of foreign banks, and for credit unions. These booklets
may be obtained upon request from the Federal Reserve Banks.
1/ Any reporting institution that has obtained funds from a foreign (non-U.S.)
source or that has foreign (non-U.S.) offices (excluding those located on
U.S. military facilities outside the U.S.) should contact the Federal
Reserve Bank for the District in which it is located to obtain forms and
instructions for the Report of Certain Eurocurrency Transactions (FR 2950).
2/ The Federal Reserve Board has deferred reporting and reserve requirements
for those depository institutions (other than Edge Act and Agreement corpora­
tions, U.S. branches and agencies of foreign banks and member commercial
banks) with total deposits of less than $1 million as of December 31, 1979.

- 2 -

Subsequent sections of this booklet provide detailed instructions
for preparation of the Report of Transaction Accounts, Other Deposits
and Vault Cash (FR 2900). A glossary, which appears at the end of
the booklet, defines in alphabetic order important terms and phrases that
appear in all CAPITAL LETTERS in this booklet. The booklet has been
printed in looseleaf form to allow for any future changes.
In order to avoid the imposition of unnecessary reserve require­
ments-^ and to provide accurate monetary statistics, the amounts reported
on any one of the above "reserve requirement" reports should not be
reported in any item on the other reports.
Accurate preparation of these reports is an important first step
in the reserve maintenance cycle. Based on the deposit levels that
your depository institution reports each reporting period, the Federal
Reserve calculates the level of reserves that must be maintained at or
passed through to a Federal Reserve Bank on these deposits two weeks later.
Efficient reserve management begins with accurate deposit reporting.
Errors in reporting may result in higher reserve requirements, which
could reduce your institution's potential earnings, or in insufficient
reserves, which may subject your institution to the assessment of penalties.
In addition to their use in the calculation of required reserves,
the data from these reports are basic to the construction of the monetary
aggregates that are used by the Federal Reserve System in the formulation
and conduct of monetary policy. Inaccurate reporting can result in
deterioration in the quality of the monetary aggregate estimates.
This booklet has been designed to facilitate accurate preparation
of the report. The instructions that follow are intended to provide a
comprehensive presentation of applicable regulations, interpretations,
and legal opinions governing the classification of deposits subject to
reserve requirements. Each reporting institution is urged to review this
material carefully and to use it as the basic guide in preparing the report.
The following instructions are based on Regulation D of the Board
of Governors of the Federal Reserve System (12 CFR §204). These instructions
in no way alter or modify the requirements of Regulation D. While every
effort has been made to incorporate all existing regulatory provisions,
applicable regulations, interpretations, and legal opinions governing
the classification of deposits subject to reserve requirements, this
booklet should not be considered the final authority on the deposit status
of all instruments, obligations, or transactions. Final authority rests

3/ As used in this instruction booklet, the terms "reserve" and "reserve
requirement" refer to those amounts maintained directly at or passed
through to a Federal Reserve Bank to satisfy the provisions of the Monetary
Control Act of 1980 and Federal Reserve Regulation D. The Act and Regulation
require that a percentage of total TRANSACTION ACCOUNTS and total NONPERSONAL
TIME DEPOSITS of a DEPOSITORY INSTITUTION be placed or deposited with the
Federal Reserve. The terms do not refer to surplus, undivided profit,
net worth, liquidity, or other similar terms.

- 3 -

with the Board of Governors of the Federal Reserve System. Inquiries
concerning specific instruments, obligations, or transactions, as well
as suggestions for improving the content of this booklet, may be directed
to the Federal Reserve Bank in your District.

- 4 -

INSTRUCTIONS FOR PREPARATION OF REPORT OF TRANSACTIONS ACCOUNTS, OTHER
DEPOSITS AND VAULT CASH (FR 2900)

Section 1 contains general instructions and guidelines which
provide the basic framework for reporting on the Report of Transactions
Accounts, Other Deposits and Vault Cash (FR 2900) and which describe, in
general, the nature of reservable liabilities and the specific procedures
for reporting these liabilities.
Section 2 contains item-by-item instructions for completing the
report. This section describes the coverage of each item to be reported
and specifies the categories of deposits to be included in or excluded
from each item. As these instructions and the associated reporting form
are designed for use by several different types of institutions, not all
items or transactions may be applicable to each reporting institution.
SECTION 1— GENERAL INSTRUCTIONS
A.

Who Must Report.
This report is required from each of the following depository institu­
tions located i j the U.S. that has TRANSACTIONS ACCOUNTS or NONPERSONAL
i
TIME DEPOSITS:4'
A.I. any savings bank or mutual savings bank as defined in section 3
of the Federal Deposit Insurance Act (12 USC 1813(f) and (g));
A.2. any member of a Federal Home Loan Bank as defined in section 2
of the Federal Home Loan Bank Act (12 USC 1422(2)); and
A.3. any institution Insured by or eligible to apply for insurance
from the Federal Savings and Loan Insurance Corporation as defined
in sections 401 and 403 of the National Housing Afct (12 USC
1724(a) and 1726). Institutions eligible to apply for such
insurance include Federally-chartered savings and loan associations;
Federally-chartered mutual savings banks; building and loan,
savings and loan, and homestead associations; and cooperative
banks.

j

4
Terms and phrases appearing in CAPITAL LETTERS are defined and described
in the glossary section of this manual.

- 5 -

B.

Frequency of Report.
B.l. All depository institutions listed in A above having total deposits
of $5 million and above as of December 31, 1979, shall submit the
Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) each week.
B.2. All depository institutions listed in A above having total deposits
of less than $5 million (except those discussed in B.3 below) shall
file a Report of Transaction Accounts, Other Deposits and Vault Cash
(FR 2900) once each calendar quarter for a seven-day computation
period that begins on the third Thursday of a given month during
the calendar quarter, and maintain reserves on such deposits over
the subsequent three-month period beginning 8 days after the close
of the computation period. Those institutions that have less than
$5 million in total deposits as of December 31, 1979, shall qualify
under this paragraph until they report total deposits of $5 million
or more for two consecutive calendar quarters. An institution that
qualifies under this paragraph may elect at the beginning of a calendar
year to report deposits and maintain reserves on a weekly basis.
The quarterly reporting system will commence in January 1981.
B.3. All depository institutions listed in A above having total deposits
of less than $1 million as of December 31, 1979, have reporting and
reserve requirements temporarily deferred by the Board of Governors
of the Federal Reserve System.

C.

How To Report.
This report shall reflect amounts outstanding as of the close of business
each day during the reserve computation period. The computation period
is the seven-day period that starts on Thursday and ends on the following
Wednesday. If your institution had no outstanding balances of reservable
liabilities during the computation period, please check the box designated
at the top of :
£he reporting form, sign the report and return it to your local
Federal Reserve Bank.
The report should be prepared in accordance with the following procedures.
C.l. Consolidation. A consolidated report must be prepared that combines
all deposits, vault cash, and allowable deductions of the following
entities:
a.

the head office;

b.

all branches located in the 50 states of the United States
or the District of Columbia;

c.

all SERVICE CORPORATION subsidiaries located in the 50 states
of the United States or the District of Columbia; and

d.

all OPERATIONS SUBSIDIARIES located in the 50 states of the
United States or the District of Columbia.

- 6 -

This consolidation may differ from that used on the savings bank
Report of Condition (FDIC 8040/18) or the savings and loan semi-annual
Industry Condition Report (FHLBB 774a, associated sections and monthly
reports).
Preparing a consolidated report involves two steps:
a.

combining all comparable accounts of the individual entitles to
be consolidated on an account-by-account basis; and

b.

eliminating all intra-office transactions that reflect the existence
of debtor-creditor relationships among the entities to be consolidated.

EXAMPLE:
"Checks on hand" received at a reporting institution's
OPERATIONS SUBSIDIARY or SERVICE CORPORATION should be combined with
the reporting institution's "CASH ITEMS in process of collection",
and demand accounts of a reporting institution's OPERATIONS SUBSIDIARY
or SERVICE CORPORATION at institutions other than the parent, should
be combined with the reporting institution's balance "due from other
depository institutions". Similarly, obligations of an OPERATIONS
SUBSIDIARY or SERVICE CORPORATION that meet the definition of "deposits'*
should be included as deposit liabilities of the parent reporting
institution.
C.2. Denomination. Amounts should be rounded and reported to the nearest
thousand U.S. dollars.
C.3. Foreign (NON-U.S.) currency-denominated deposits. Deposits denominated
In NON-U.S. currency should be valued initially in U.S. dollars at
the prevailing exchange rate at the time of deposit and periodically
revalued in accordance with generally accepted accounting principles.
C.4. Overdrafts or negative balances. Unless covered by the exemption
described in the following paragraph, all deposit accounts having a
negative balance as of the close of business each day (whether result­
ing from prearranged or unplanned overdrafts or from operating or
other factors) should be regarded as having a zero balance when
computing deposit totals. Overdrawn deposit accounts of customers
should be regarded as loans made by the reporting institution and
should not be reported as negative deposits.
Similarly, deposit
accounts that the reporting institution maintains at another institu­
tion that have negative balances should be regarded as having a zero
balance when computing "due from” totals and considered a borrowing
(not "due to's") by the reporting institution.
Overdrawn accounts of a depositor who maintains more than one
TRANSACTION ACCOUNT at the reporting institution may be offset by
accounts with positive balances if a bona fide cash management function
is served. For purposes of this report, a bona fide cash management
arrangement must also be evidenced by a prior written agreement
between the reporting institution and the depositor authorizing
transfers between such TRANSACTION ACCOUNTS.

- 7 -

C.5. Record-keeping. The amounts reported for each day should
reflect the amount outstanding at the "close of business" for
that day. The term "close of business" refers to the time
established by the reporting institution as the cut-off time
for posting transactions to its general ledger accounts for
that particular day. The time designated as close of business
should be reasonable and applied consistently. For any day on
which the reporting institution was closed, report the closing
balance as of the preceding day.
For purposes of this report, the reporting institution is open
when both of the following criteria are met:
a.

a majority of all domestic offices are open to conduct
business; and

b.

entries are made to the general ledger accounts of the
reporting institution for that day.

The posting of a transaction to the general ledger account means
that both debit and credit entries must be recorded as of the same
date. Reservable obligations for which settlement is in clearing­
house or uncollected funds should be reported as of the date that
the transaction is executed and not as of the settlement date or
the date that collected funds are to be received. Transactions that
result from prior commitments should be reported on the date that
the transaction is executed, not as of the commitment date. However,
when payment information (such as that contained on magnetic tape,
direct deposit payments, ACH services, paper listings, and similar
items involving automated arrangements) is sent to the reporting
institution prior to the effective payment date, the Institution
may credit its depositors’ accounts one day prior to the effective
payment date in order to ensure that the deposit will be available
to the depositor at the opening of business on the payment date.
When such prior credit to deposit accounts is given in connection
with automated arrangements, the credits should be offset by appro­
priate debit entries to "cash items in process of collection.”
C.6. UNPOSTED DEBITS and CREDITS. UNPOSTED DEBITS consist of cash items
drawn on the reporting institution that have been "paid'* or credited
by the institution and that are chargeable but that have not been
charged against deposits as of the close of business. These items
should be reported as "cash items in process of collection” until
they have been charged to either individual or general ledger deposit
accounts.
UNPOSTED CREDITS consist of items that have been received for
deposit and that are in process of collection but that have not been
posted to individual or general ledger deposit accounts. These
credits should be reported as deposits.

- 8 -

C.7. Rejected items. Rejected items (resulting from mutilated documents,
incorrect account numbers or other factors) that would otherwise
have resulted in credit to deposit accounts should be included in
deposit totals for the day on which offsetting charges have been
posted. Rejected items that represent withdrawals from deposit
accounts and for which corresponding credits have already been
recorded should be deducted from deposits as of the close of business
for that day.
D.

What Liabilities Are Reservable Under Regulation D .
Under the Monetary Control Act of 1980, TRANSACTION ACCOUNTS and NONPERSONAL
TIME DEPOSITS (including NONPERSONAL SAVINGS DEPOSITS) are subject to Federal
reserve requirements. Rules governing reserve requirements are contained in
Federal Reserve Regulation D.
TRANSACTION ACCOUNTS include DEMAND DEPOSITS; NOW ACCOUNTS; ATS ACCOUNTS;
accounts that permit a depositor to make payments to third parties through
automated teller machines, remote service units or by means of a debit card;
accounts under the terms of which a depositor is permitted to make more than
3 PREAUTHORIZED or TELEPHONE TRANSFERS per month; and those obligations
maturing in less than 14 days if they take the form of ineligible acceptances
(see BANKERS ACCEPTANCES) and obligations issued by the reporting institution's
AFFILIATES.
Nonpersonal time deposits include NONPERSONAL SAVINGS and NONPERSONAL
TIME DEPOSITS and those obligations maturing in 14 days or more if they take
the form of ineligible acceptances and obligations issued by the reporting
institution's AFFILIATES.
Detailed instructions defining TRANSACTION ACCOUNTS, NONPERSONAL SAVINGS
DEPOSITS, and NONPERSONAL TIME DEPOSITS can be found in the appropriate
item-by-item instructions. DEPOSITS as defined by Regulation D are described
in paragraph E immediately below. Please note, however, that in addition
to reservable liabilities, certain nonreservable liabilities are also
reported as separate items on the Report of Transaction Accounts, Other
Deposits and Vault Cash.

E.

Deposits as Defined Under Regulation D .
In general, Regulation D defines deposits to include both deposits and
obligations issued. For purpose of these instructions, deposits are divided
into two broad categories of liabilities: DEPOSITS and PRIMARY OBLIGATIONS
that are undertaken as a means of obtaining funds, regardless of the use of
the proceeds.
E.l. DEPOSITS to be reported in Items 1-16 of the Report of Transaction
Accounts, Other Deposits and Vault Cash consist of:
a.

Funds received or held by the reporting institution for which
credit has been given or is obligated to be given to a DEMAND,

NOW, ATS, TELEPHONE or PREAUTHORIZED TRANSFER, or other SAVINGS
or TIME DEPOSIT account.

- 9 -

b.

Funds received or held by the reporting institution (other than
in its trust department) for a special or specific purpose,
such as escrow funds, funds held as security for securities
loaned by the reporting institution, funds deposited as advance
payments or subscriptions to U.S. government securities, and
funds held to meet the reporting institution's acceptances.

c.

Outstanding CERTIFIED, OFFICERS', BANK, TELLERS' AND CASHIERS'
CHECKS, and other DRAFTS (including PAYABLE THROUGH DRAFTS)
issued by the reporting institution in the usual course of
business for any purpose, including payment for services, stock
dividends, or purchases, unless drawn on a deposit account
maintained at another DEPOSITORY INSTITUTION or at a Federal
Reserve Bank.

d. Liabilities arising from the sale of travelers checks and money
orders sold to customers unless the proceeds are remitted daily
to another party under a consignment arrangement.
e.

Funds received or held in connection with LETTERS OF CREDIT
issued to customers, including funds credited to CASH COLLATERAL
ACCOUNTS and similar accounts.

f. Any obligation to pay a check, such as a CERTIFIED CHECK drawn
on the reporting institution, that has been presented for collection
by a third party when the depositor's account at the reporting
institution has already been charged and settlement of the check
has not been made.
g.

Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by the AFFILIATE in
the form of a DEMAND, SAVINGS, or TIME DEPOSIT.

E.2. For purposes of this report, DEPOSITS do not include:
a.

Trust funds received or held by the reporting institution that
it keeps properly segregated as trust funds and apart from its
general assets or which it deposits in another institution to
the credit of itself as trustee or other fiduciary. If trust
funds are deposited with another department of the reporting
institution or otherwise mingled with its general assets, a
deposit liability of the reporting institution is created.

b.

An obligation that represents a conditional, contingent or
endorser's liability.

c.

Obligations, the proceeds of which are not used by the reporting
institution for purposes of making loans, investments, maintaining
liquid assets (such as cash or "due from" DEPOSITORY INSTITUTIONS),
or other similar purposes. An obligation issued for the purpose of
raising funds to purchase business premises, equipment, supplies, or
similar assets is not a deposit.

- 10 -

d.

Accounts payable.

e.

HYPOTHECATED DEPOSITS created by payments on an Installment loan
where (1) the amounts received are not used immediately to reduce
the unpaid balance due on the loan until the sum of payments
equals the entire amount of the loan principal and INTEREST; and
(2) where such amounts are irrevocably assigned to the reporting
institution and cannot be reached by the borrower or creditors of
the borrower. Please note that for purposes of this report,
deposits simply serving as collateral for loans do not constitute
HYPOTHECATED DEPOSITS.

f.

A stock dividend declared by the reporting institution for the
intervening period between the date of the declaration of the
dividend and the date on which it is paid.

E.3. PRIMARY OBLIGATIONS to be reported as deposits in Items 1-16 of
Report of Transaction Accounts, Other Deposits and Vault Cash:

the

a.

Promissory notes (including commercial paper), ACKNOWLEDGEMENTS OF
ADVANCE, and other similar obligations (written or oral) that are
Issued by the reporting institution to NONEXEMPT ENTITIES as a means
of obtaining funds, regardless of the use of the proceeds.
(NOTE:
Purchases of "Federal funds” from NONEXEMPT ENTITIES are PRIMARY
OBLIGATIONS.)

b.

REPURCHASE AGREEMENTS entered into with NONEXEMPT ENTITIES on any
asset other than an obligation of, or fully guaranteed as to principal
and interest by, the U.S. Government or a Federal agency.

c.

Liabilities arising from the issuance of DUE BILLS or similar
instruments that are issued by the reporting institution to any
customer (including another DEPOSITORY INSTITUTION), regardless
of the use of the proceeds, or a debit to an account of the customer
before the securities are delivered, unless collateralized within
three business days from date of issuance by a security similar
to the security purchased by the reporting institution's customer.
A security is similar if it is of the same type and if it is of
comparable maturity to that purchased by the customer. In the
absence of such collateral, DUE BILLS become reservable deposits
beginning on the fourth business day after the date of issuance,
without regard to the purpose of the DUE BILL or to whom issued.

d.

Mortgage-backed securities that are Issued and sold by the reporting
institution to NONEXEMPT ENTITIES and that represent sales of partic­
ipation certificates in pools of one-to-four family mortgages when
the reporting institution retains more than a ten percent interest
in the pool. In such a case, all proceeds from such participation
certificates are reservable, not just the reporting institution's
interest in the pool. Institutions holding a 10 percent or less
interest in such pools shall exclude these obligations from this
report since such securities are not deposits.

- 11 -

e.

Mortgage-backed bonds that are liabilities of the reporting
institution and that are issued and sold by the reporting institution
to NONEXEMPT ENTITIES.

E.4. PRIMARY OBLIGATIONS to be Reported in Schedule A of the Report of Trans­
action Accounts, Other Deposits and Vault Cash:
a.

Any liability of the reporting institution's nondepository AFFILIATE,
on any promissory note (including commercial paper), ACKNOWLEDGEMENT
OF ADVANCE, DUE BILL, or similar obligation (written or oral), with a
maturity of less than 4 years, to the extent that the proceeds are
used to supply or maintain the availability of funds (other than
capital) to the reporting institution, if the AFFILIATE'S liability
would have been regarded as reservable if issued by the reporting
institution, and if the proceeds from the AFFILIATE'S liability
are channeled to the reporting institution in the form of a nonreservable transaction (e.g., a sale of the reporting institution’s
assets to its AFFILIATE).
(NOTE: If the proceeds from the AFFILIATE'S liability (whether
regarded as reservable or nonreservable if Issued by the reporting
institution) are channeled to the reporting institution in the
form of a DEMAND, SAVINGS, or TIME DEPOSIT, such funds are reported
by the reporting institution as a DEMAND, TIME or SAVINGS DEPOSIT
(see Subsection E.l, paragraph (g) above). If the AFFILIATE'S
liability would have been regarded as nonreservable if issued by
the reporting institution, and if the proceeds from the AFFILIATE’S
liability are channeled to the reporting institution in the form
of a nonreservable transaction, such funds are excluded from
the Report of Transaction Accounts, Other Deposits and Vault Cash.)

b.

Liabilities arising from BANKERS ACCEPTANCES that are created
and discounted by the reporting institution and that are sub­
sequently sold to NONEXEMPT ENTITIES, and that are ineligible
for discount at Federal Reserve Banks, including so-called
"finance bills" and "working capital acceptances.”

E.5. PRIMARY OBLIGATIONS to be reported on other "reserve requirement" reports:
Borrowings from NON-U.S. offices of other DEPOSITORY INSTITUTIONS and
from certain designated NON-U.S. entitles. These transactions are reported
on the Report of Certain Eurocurrency Transactions (FR 2950).

E.6. Except for DUE BILLS, PRIMARY OBLIGATIONS issued to EXEMPT ENTITIES
are not subject to reserve requirements. Such obligations are excluded
from both the Report of Transaction Accounts, Other Deposits and Vault
Cash and the Report of Certain Eurocurrency Transactions.

- 12 -

NOTE: Regulations may require certain balances that are not classified as
deposits on other reports to be treated as deposits subject to reserve
requirements and therefore included in this report. For example, certain
debt obligations issued to NONEXEMPT ENTITIES are defined as deposits for
purposes of Regulation D and this report, but are reported as borrowings
on condition reports. Consequently, the deposit balances on this report
may differ from deposit totals reported on your institution's Report of
Condition and on certain other reports submitted to the Federal Reserve,
the Federal Deposit Insurance Corporation, the Federal Home Loan Bank
Board, or state regulators.
In general, funds received by an institution that are immediately
applied to reduce or extinquish a customer's indebtedness to that institution
do not constitute deposits since no liability is incurred. Certain DEALER
RESERVE or DIFFERENTIAL ACCOUNTS, such as those that arise when financing a
merchant's accounts receivable (such as home improvement contractors, auto
dealers, or mobile home dealers), and which provide that the dealer may not
have access to the funds in the account until the installment loans are
repaid, are exempt from reserve requirements until the reporting institution
becomes obligated to the merchant for the full amount or any portion of the
funds. Similarly, funds that have been irrevocably assigned to the reporting
institution and cannot be reached by its customer or by the customer's
creditors, are not subject to reserve requirements. Finally, certain other
liabilities that do not result in a receipt of funds, such as accrued
liabilities and accounts payable, are not regarded as reservable liabilities.
F.

Treatment of Pass-Through Balances.
A DEPOSITORY INSTITUTION may satisfy reserve requirements by holding vault
cash or by holding its required reserve balance at the Federal Reserve.
The Monetary Control Act of 1980 authorizes a DEPOSITORY INSTITUTION that
is not a member of the Federal Reserve System ("respondent”) to hold its
required reserve balance at the Federal Reserve in one of two ways. The
respondent may deposit its required reserve balance directly with the
Federal Reserve Bank or Branch which serves the territory in which it is
located. Alternatively, in accordance with procedures adopted by the
Federal Reserve Board, the respondent may elect to pass its required reserve
balance through a "correspondent." The correspondent may be a Federal
Home Loan Bank, the National Credit Union Administration Central Liquidity
Facility, a DEPOSITORY INSTITUTION which holds a required reserve balance
directly at a Federal Reserve Bank or Branch, or an institution that
has been authorized by the Federal Reserve Board to pass through required
reserve balances. The correspondent shall pass through these required
reserve balances to the Federal Reserve Bank or Branch in the territory in
which the main office of the nonraember respondent institution is located.
The correspondent institution shall exclude from this report all
balances received from nonmember respondent institutions and subsequently
passed through by the correspondent to the appropriate Federal Reserve
Bank or Branch. Respondent institutions shall exclude from this report
all balances that the correspondent passes through to the Federal Reserve
Bank or Branch on behalf of the respondent.

- 13 -

G.

Treatment of Trust Funds.
Trust funds that a reporting Institution receives or holds but keeps
segregated from its general assets and that are not available for general
lending or investment do not constitute deposits and should not be reported
in any item of this report. However, trust funds should be reported as
deposits of the reporting institution when:
G.l. deposited by the trust department of the reporting institution
in the commercial or other department of the reporting institution;
G.2. deposited in the commercial or other department of the reporting
institution by the trust department of another depository institu­
tion; or
G.3. mingled with the general assets of the reporting institution,
regardless of where held.
NOTE: Items such as bonds, stocks, jewelry, coin collections, etc.
that are left with the reporting institution for safekeeping, sometimes
referred to as "special deposits," should not be included as deposits
on this report.

H.

Treatment of Escrow Funds.
Escrow funds consist of funds deposited with a depository institution
under an agreement that requires the depository institution to pay all
or some portion of the funds to a third party at a certain time or upon
fulfillment of certain conditions. The obligations of the reporting
depository institution on the funds maintained may constitute a deposit
liability against which reserves must be held. If escrow funds are
held in the reporting institution's own trust department as part of
the trust department's fiduciary activities, they are to be treated
as trust funds and, for reporting purposes, are subject to the provisions
noted above under "Treatment of Trust Funds."
Escrow funds should be classified as TIME DEPOSITS when deposited
with the reporting institution pursuant to a written agreement that all
funds must remain on deposit for at least 14 days before any payment can
be made. For reporting purposes, however, escrow funds shall be reported
as SAVINGS DEPOSITS if the written agreement provides that payments may
be made after a certain number of deposits have been received during a
period of not less than 3 months, even though some deposits may have
been received within 14 days from the payment date. In addition, when
the escrow agreement provides that a reporting institution may simply
reserve the right to require at least 14 days written notice before a
payment can be made, escrow funds should be classified as SAVINGS
DEPOSITS.

- 14 -

The classification of escrow funds as TIME or SAVINGS DEPOSITS
does not depend on whether or not interest is paid on the funds.
Escrow agreements entered into by depository institutions in states
where the payment of interest on such accounts is required by law
must comply with the notice or maturity provisions applicable to
TIME and SAVINGS DEPOSITS. Agreements that do not meet the specific
conditions stipulated above for TIME and SAVINGS DEPOSITS must be
classified as DEMAND DEPOSITS.

- 15 -

SECTION 2— ITEM-BY-ITEM INSTRUCTIONS
Transaction Accounts (Items 1 through 7)
Items 1 through 7 of the report collect data on TRANSACTION
ACCOUNTS by component. Provided below is a general description of TRANS­
ACTION ACCOUNTS, followed by a summary of transaction account classifica­
tions. These broad descriptions are followed by detailed instructions
for each item to be reported under TRANSACTION ACCOUNTS.
General Description of TRANSACTION ACCOUNTS
Report in these items deposits or accounts from which the depositor
or account holder is permitted to make withdrawals by negotiable or
transferable Instruments, payment orders of withdrawal, telephone transfers,
or other similar devices for the purpose of making payments or transfers
to third parties or others.

Include as TRANSACTION ACCOUNTS:
1.

DEMAND DEPOSITS.

2.

DEPOSITS or accounts subject to withdrawal by CHECK, DRAFT,
negotiable order, SHARE DRAFT, or similar Instrument.

3.

SAVINGS DEPOSITS or accounts from which withdrawals may be
made automatically through payment to the reporting institu­
tion or through transfer of credit to a DEMAND DEPOSIT or
other account in order to cover CHECKS or DRAFTS drawn upon
the institution or to maintain a specified balance in, or
to make periodic transfers to, such accounts.

4.

DEPOSITS or accounts from which payments may be made to third
parties by means of an automated teller machine, remote
service unit or other electronic device.

5.

DEPOSITS or accounts from which payments may be made to third
parties by means of a debit card.

6.

DEPOSITS or accounts under the terms of which, or which by
practice of the reporting institution, the depositor is per­
mitted or authorized to make more than three withdrawals per
month for purposes of transferring funds to another account
or for making a payment to a third party by means of preauthor­
ized or telephone agreement, order or instruction. An account
that permits or authorizes more than three such withdrawals
in a calendar month is a TRANSACTION ACCOUNT whether or not
more than three such withdrawals actually are made in a calendar
month. A PREAUTHORIZED TRANSFER includes any arrangement by
the reporting institution to pay a third party from the account

- 16 -

of a depositor upon written or oral instruction (including an
order received through an automated clearing house (ACH)), or
any arrangement by a depository institution to pay a third party
from the account of the depositor at a perdetermined time or on
a fixed schedule. An account is not a TRANSACTION ACCOUNT by
virtue of an arrangement that permits withdrawals for the
purpose of repaying loans and associated expenses at the same
depository institution (as originator or servicer).
Exclude from TRANSACTION ACCOUNTS those PRIMARY OBLIGATIONS maturing
in less than 14 days if they take the form of ineligible acceptances or of
obligations Issued by the reporting institution's AFFILIATES described in
Section 1, Subsection E.4 (to be reported in Item 1 of Schedule A).
Summary of Transaction Account Classifications
A.

Always Regarded as TRANSACTION ACCOUNTS
1.
2.

NOW ACCOUNTS.

3.

SHARE DRAFT accounts.

4.

ATS ACCOUNTS.

5.

Accounts that permit third party payments through ATMs or RSUs.

6.

B.

DEMAND DEPOSITS.

Accounts that permit third party payments through use of CHECKS,
DRAFTS, negotiable instruments, debit cards or other similar items.

Accounts Regarded as TRANSACTION ACCOUNTS If More Than Three of the
Following Transactions Per Calendar Month Are Permitted To Be Made By
TELEPHONE OR PREAUTHORIZED TRANSFER Order or Instruction
1.
2.

Transfers to another account of the depositor at the same institution.

3.
C.

Payments or transfers or third parties.

Transfers to an account at another DEPOSITORY INSTITUTION.

Not Regarded as TRANSACTION ACCOUNTS (Unless Specified Above)
1.

Accounts that permit TELEPHONE OR PREAUTHORIZED TRANSFERS or
transfers by ATMs or RSUs to repay loans made or serviced
by the same depository institution.

2.

Accounts that permit telephone or preauthorized withdrawals
where the proceeds are to be mailed to or picked up by the depositor.

3.

Accounts that permit transfers to other accounts of the depositor
at the same institution through ATMs or RSUs.

4.

Accounts that permit three or less telephone or preauthorized
payments or transfers to third parties or to other accounts.

- 17 Demand Deposits (Items 1 through 3)

For Items 1, 2, and 3 of the report, DEMAND DEPOSITS include
DEPOSITS described in Section 1, Subsection E.l, and PRIMARY OBLIGATIONS
described in Section 1, Subsection E.3, that are payable immediately on
demand or issued in ORIGINAL MATURITIES of less than 14 days, or that
are payable with less than 14 days notice, or for which the depository
institution does not reserve the right to require at least 14 days written
notice of an intended withdrawal.

Include as DEMAND DEPOSITS:
1.

All checking accounts, including those pledged as collateral
for loans or maintained as compensating balances. However,
do not include NOW ACCOUNTS, which are reported in Item 6.

2.

All DEPOSIT accounts that are subject to immediate withdrawal
by negotiable or TRANSFERABLE instruments for the purpose
of making transfers to third parties and that are noninterestbearing (e.g. NINOW accounts). However, do not include
NOW ACCOUNTS, which are reported in Item 6.

3.

Outstanding CERTIFIED, OFFICERS’, BANK, TELLERS' AND CASHIERS'
CHECKS and DRAFTS (including PAYABLE THROUGH DRAFTS) issued
by the reporting institution (including checks issued by
the reporting institution in payment of stock dividends)
unless drawn on a deposit account maintained at another
DEPOSITORY INSTITUTION or
at a Federal Reserve Bank.

4.

Outstanding travelers checks and money orders sold to customers
unless the proceeds are remitted daily to another party under
a consignment arrangement or unless already booked as a reserv­
able deposit.

5.

Funds received or held in connection with LETTERS OF CREDIT
sold to customers, including funds credited to CASH COLLATERAL
ACCOUNTS and similar accounts.

6.

Withheld taxes, withheld insurance premiums, and other funds
withheld from salaries of the reporting institution's employees

7.

Funds received or held in escrow accounts that may be with­
drawn on demand or within 14 days from the date of deposit,
except escrow funds held as TIME or SAVINGS DEPOSITS. (See
Section 1, Subsection H, for general treatment of escrow funds)

8.

All matured TIME CERTIFICATES OF DEPOSIT, even if interest
is paid after maturity, unless the deposit agreement
specifically provides for automatic renewal (automatically
renewable time deposits remain TIME DEPOSITS until redeemed)
or for conversion to SAVINGS DEPOSITS at maturity.

- 18 -

NOTE: Recent rulings by the Depository Institutions Dereg­
ulation Committee allow DEPOSITORY INSTITUTIONS to continue
paying interest on a TIME DEPOSIT certificate for the
first 7 days following the date of maturity.
9.

All matured TIME DEPOSIT OPEN ACCOUNTS that have not
been
redeemed in conformance with a written notice by the depositor
indicating an intention to withdraw the deposit at the
expiration of the notice period, unless the deposit agreement
specifically provides for the funds to be transferred to a
SAVINGS DEPOSIT.
.

10.

An obligation topay on demand or within 14 days7a check
(or other instrument, device, or arrangement for the transfer
of funds) drawn on the reporting institution, where the account
of the institution's customer already had been debited.

11.

The reporting institution's liability on PRIMARY OBLIGATIONS
described in Section 1, Subsection E.3(a), (b), (d),and (e),
that are issued by the reporting institution in ORIGINAL
MATURITIES of less than 14 days.

12.

DUE BILLS described in Section 1, Subsection E.3(c), that
are issued by the reporting institution in ORIGINAL MATURITIES
of less than 14 days.

•13.

Any funds received by the reporting institution's AFFILIATE
and later channeled to the reporting institution by the
AFFILIATE in the form of a DEMAND DEPOSIT.

Exclude from DEMAND DEPOSITS the following categories of liabilities
that have an ORIGINAL MATURITY of less than 14 days:
1.

HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include DEPOSITS simply serving as collateral
for loans.

2. Funds received and credited to DEALER RESERVE or DEALER
DIFFERENTIAL ACCOUNTS that the reporting institution is not
obligated to make available to either the dealer or the
dealer's creditors. Such funds arise from financing accounts
receivable for a merchant (such as home improvement contractors,
auto dealers, or mobile home dealers).
3. CHECKS or DRAFTS drawn by the reporting Institution on the
Federal Reserve or on a deposit account maintained at
another DEPOSITORY INSTITUTION.
4.

REPURCHASE AGREEMENTS involving obligations of, or fullyguaranteed as to principal and interest by, the U.S. Govern­
ment or a Federal agency.

- 19 -

5.

DUE BILLS issued to any entity that are collateralized within
three business days by securities similiar to the securities
purchased. (See Section 1, Subsection E.3(c)).

6.

Except for DUE BILLS, any PRIMARY OBLIGATION Issued or under­
taken as a means of obtaining funds, regardless of the use
of the proceeds, when transacted with a U.S. office of the
following EXEMPT ENTITIES:
A.

U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;

B.

a U.S. BRANCH OR AGENCY of a bank organized under foreign
(NON-U.S) law (including U.S. BRANCHES AND AGENCIES of FOREIGN
OFFICIAL BANKING INSTITUTIONS);

C.

EDGE ACT and AGREEMENT CORPORATIONS;

D.

mutual and stock savings banks;

E.

building or savings and loan associations and homestead
associations and their SERVICE CORPORATIONS;

F.

cooperative banks;

G.

industrial banks;

H.

credit unions;

I.

the U.S. Government and its agencies and instrumentalities
such as the Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal
Land Banks, Banks for Cooperatives, the Federal Home
Loan Mortgage Corporation, Federal Deposit Insurance
Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Association,
National Credit Union Share Insurance Fund, and the National
Credit Union Administration Central Liquidity Facility;

J.

Export-Import Bank of the U.S.;

K.

Government Development Bank of Puerto Rico;

L.

Minbanc Capital Corporation;

M.

securities dealers, but only when the borrowing (a) has
a maturity of one day, (b) is in IMMEDIATELY-AVAILABLE
FUNDS, and (c) is in connection with the clearance of
securities;

- 20 -

N.

the U.S. Treasury (U.S. TREASURY TAX AND LOAN ACCOUNT
NOTE BALANCES); and

0.

New York State investment companies (chartered under Article
XII of the New York State Banking Code) that perform a BANK­
ING BUSINESS.

7.

Funds obtained from state and municipal housing authorities
under LOAN-TO-LENDER PROGRAMS involving the issuance of tax
exempt bonds and the subsequent lending of the proceeds to the
reporting institution for housing finance purposes.

8.

Borrowings from a Federal Reserve Bank.

9.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting
institution and that are ineligible for discount at Federal
Reserve Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4(b)). These transactions are reported in
Schedule A, Item 1.

10.

Certain obligations issued by the reporting institution's
nondepository AFFILIATES (PRIMARY OBLIGATIONS described in
Section 1, Subsection E.4(a)). These transactions are reported
in Schedule A, Item 1.

NOTE: Unless created as a result of a bona fide cash management
arrangement, overdrafts in DEMAND DEPOSIT accounts are not to
be treated as negative DEMAND DEPOSITS and should not be netted
against positive balances. Overdrafts are properly reflected
on an institution's books as loans.

- 21 Report Item 1— Demand Deposits Due to Depository Institutions.

Report in Item l.a DEMAND DEPOSITS due to banks, EDGE ACT AND
AGREEMENT CORPORATIONS located in both the U.S. and abroad, and U.S.
BRANCHES AND AGENCIES of NON-U.S. BANKS. Report in Item l.b DEMAND
DEPOSITS due to other DEPOSITORY INSTITUTIONS. Except for DUE BILLS,
PRIMARY OBLIGATIONS issued to U.S. DEPOSITORY INSTITUTIONS are not subject
to reserve requirements.
Exclude from both Items l.a and l.b:
1. DEMAND DEPOSITS due to:
A.

Nonmember "respondent" DEPOSITORY INSTITUTIONS to the extent
that such deposits represent reserve balances that your inst­
itution, serving as a pass-through agent or correspondent,
has passed through to the Federal Reserve Bank for "respondents".

B.

Nondeposit and limited purpose trust companies (reported in
Item 3).

C.

Trust departments of the reporting institution and of other
DEPOSITORY INSTITUTIONS (reported in Item 3).

D.

Nondepository AFFILIATES of the reporting institution and
of other DEPOSITORY INSTITUTIONS (reported in Item 3).

E.

the U.S. Government and its agencies and instrumentalities
(reported in Item 2 or 3), such as the Federal Home Loan
Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives,
the Federal Home Loan Mortgage Corporation, Federal Deposit
Insurance Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Assocation,
National Credit Union Share Insurance Fund, the National
Credit Union Administration Central Liquidity Facility,
and the Export-Import Bank of the U.S.

2.

A DEMAND DEPOSIT due to a DEPOSITORY INSTITUTION that is negative
(i.e. overdrawn). The amount of such negative balance should be
regarded as zero when computing the deposit total.

3.

Any negative "due from” balance which results from the reporting
institution overdrawing a deposit account at another DEPOSITORY
INSTITUTION. Such a balance should be classified as a borrowing.

4.

Any PRIMARY OBLIGATIONS issued to NON-U.S. offices of U.S.
DEPOSITORY INSTITUTIONS and of foreign (NON-U.S.) banks (reported
on the Report of Certain Eurocurrency Transactions.

- 22 Report Item l.a— Demand Deposits Due to Banks

Include in this item the balance of all DEMAND DEPOSITS in
DEPOSITS due to:

the form of

1. U.S offices of the following institutions:
A.

B.

U.S BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS;
(including BRANCHES AND AGENCIES of FOREIGN OFFICIAL
BANKING INSTITUTIONS);

C.

EDGE ACT and AGREEMENT CORPORATIONS;

D.

industrial banks; and

E.

2.

U.S. commercial banks and trust companies conducting
a commercial BANKING BUSINESS;

New York State investment companies (chartered under
Article XII of the New York State Banking Code) that
perform a BANKING BUSINESS.

NON-U.S. offices of:
A.

U.S banks and EDGE ACT and AGREEMENT CORPORATIONS; and

B.

commercial banks, merchant banks, discount houses,
and similar banking institutions organized under
the laws of a foreign country, Puerto Rico, Guam,
American Samoa, the Virgin Islands or another territory
of the United States.

All demand balances due to an institution that Is listed in 1.
above may be reported net of balances "due from” those institutions (see
calculations of net reciprocal balances below). If it is burdensome for
a reporting institution to report reciprocal balances with the above
institutions on a net basis, for purposes of this report, such balances
may be reported gross. All demand balances due to the institutions
listed in 2. above should be reported gross.
r
Exclude from this item DEMAND DEPOSITS due to mutual and stock savings
banks, credit unions, building or savings and loan associations, homestead
associations, and cooperative banks (reported in Item l.b.).

- 23 -

Calculation of net reciprocal balances:
Reciprocal balances arise when two "institutions” maintain deposit
accounts with each other; that is, each institution has both a "due to”
and a "due from" balance with the other. If the demand balance "due from”
one institution is greater than the demand deposit "due to” that same
institution, the "due to" balance should be subtracted from the "due from",
resulting in a net amount "due from" that institution, which should be
included In Item 8. On the other hand, if the balance "due to” one
institution is greater than the balance "due from" that same institution,
the "due from” balance should be subtracted from the "due to" balance,
resulting in a net amount "due to" that institution. To arrive at the
net reciprocal balance, the net amount "due to” each institution should
be summed, and the sum should be Included in Item l.a.
All net reciprocal balances should be computed only after adjustment is made for overdrawn accounts by placing those accounts at zero
balance.
Example:

A.

Calculation of Net Reciprocal Balances

Institution A
Institution B
Institution C
B.

$ 200,000
$ 500,000
$1,700,000

Net "Due to" Banks
Institution A
Institution B
Institution C

C.

"Due from" Banks

"Due to” Banks

$

0
200,000
0

$1,000,000
$ 300,000
$2,500,000
Net "Due from" Banks
$
$

800,000
0
800,000

Sum of Net Reciprocal Balances
'T)ue flo" Banks
$ 200,000
(Report in Item l.a)

'Due from” Banks
$1,600,000
(Report in Item 8)

- 24 -

Report Item l.b— Demand Deposits Due to Other Depository Institutions
Include in this item DEMAND DEPOSITS, in the form of DEPOSITS, issued to:
1.

mutual and stock savings banks;

2.

building or savings and loan associations, homestead associations
and cooperative banks; and

3.

credit unions.

All reciprocal balances with the above institutions should be reported
gross.
Exclude from this item the balances of all DEMAND DEPOSITS In the form of
DEPOSITS due to banks included under Report Item l.a above.

- 25 Report Item 2— U.S. Government Demand Deposits

Include in this item the balance of all DEMAND DEPOSIT accounts in the
form of DEPOSITS that are designated as FEDERAL PUBLIC FUNDS for which
the reporting institution serves as
depository, such as:
1.

U.S. TREASURY TAX AND LOAN ACCOUNTS, including withheld Federal
income tax deposits, social security tax deposits and other
Federal tax payments, and the proceeds from sales of U.S. Savings
Bonds. (Exclude TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES.)

2.

U.S. TREASURY GENERAL ACCOUNTS and special collection accounts.

3.

U.S. Treasury compensating

4.

balance DEMAND DEPOSIT accounts.

Postmaster's DEMAND DEPOSIT accounts.

5. DEMAND DEPOSITS accounts of the Tennessee Valley Authority and
disbursing officers of the Department of Defense and Department
of the Treasury.
6.

DEMAND DEPOSIT accounts of other public funds that are subject
to control or regulation by the United States Government,
including accounts of military organizations, such as post
exchanges, military clubs and similar entities.

Please note that, for purpose of reporting this item, DEMAND DEPOSITS
include only DEPOSITS held for the credit of the U.S. Government, and
exclude all PRIMARY OBLIGATIONS to the U.S. Government. Such PRIMARY
OBLIGATIONS are exempt from reserve requirements.
Exclude from this Item:
1.

DEMAND DEPOSITS due to U.S. Government agencies and instrumental­
ities, such as the Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, Student
Loan Marketing Association, National Credit Union Share Insurance
Fund, the National Credit Union Administration Central Liquidity
Facility, and the Export-Import Bank of the U.S. (reported in
Item 3).

2.

DEMAND DEPOSITS held for state or local governments or their
political subdivisions (reported in Item 3).

3.

TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES (see below).

4.

PRIMARY OBLIGATIONS.

- 26 -

TREASURY TAX AND LOAN ACCOUNT— Treatment of Note Option and Remittance
Option:
Only the deposits credited to U.S. TREASURY TAX AND LOAN demand
deposit accounts that represent funds received as of the close of business
of the current day should be reported as TREASURY TAX AND LOAN Demand
Deposits. Funds credited to Tax and Loan Demand Deposit Accounts as of
the close of business on previous days should already have been remitted
to the Federal Reserve Bank or automatically converted into open-ended
interest-bearing notes, depending on the option selected by the reporting
institution. Interest-bearing TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES
are exempt from reserve requirements and should not be reported as deposits.

- 27 Item 3— Other Demand Deposits

Include in this item the balance of all other DEMAND DEPOSITS, in the form
of DEPOSITS (including NINOW ACCOUNTS) and PRIMARY OBLIGATIONS, Including:
1.

DEMAND DEPOSITS in the form of DEPOSITS held for:
A.

individuals, partnerships, and corporations, wherever located;

B.

states and local governments and their political subdivisions;

C.

U.S. Government agencies and instrumentalities, such as:
the Federal Home Loan Bank Board, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal Land Banks,
Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation,
Federal National Mortgage Association, Federal Financing
Bank, Student Loan Marketing Association, National Credit
Union Share Insurance Fund, the National Credit Union
Administration Central Liquidity Facility, and the ExportImport Bank of the U.S.;

D.

nondeposit and limited purpose trust companies;

E.

trust departments of the reporting institution and of other
DEPOSITORY INSTITUTIONS (see Section 1, Subsection G, for
"Treatment of Trust Funds");

F.

nondepository AFFILIATES of the reporting institution and
of other DEPOSITORY INSTITUTIONS; and

G.

FOREIGN (NON-U.S.) GOVERNMENTS, both national and regional
and INTERNATIONAL INSTITUTIONS.

2.

Withheld state and local government taxes, Insurance premiums,
and similar items (but not withheld Federal tax payments, which are
reported in Item 2).

3.

Outstanding CERTIFIED, OFFICERS', BANK, TELLERS' AND CASHIERS'
CHECKS and DRAFTS issued by the reporting institution, unless
drawn on an account maintained at another DEPOSITORY INSTITUTION
or at a Federal Reserve Bank.

4.

Outstanding travelers' checks and money orders sold to customers,
unless the proceeds are remitted daily to another party under a
consignment arrangement or unless already booked as a reservable
deposit.

5.

Funds received in connection with LETTERS OF CREDIT issued to
customers, including funds credited to CASH COLLATERAL ACCOUNTS
or similar accounts.

Funds deposited to the credit of the reporting institution's own
trust
department where the funds involved
are utilized to cover
CHECKS or DRAFTS.
Funds
received or held in escrow accounts
that may be withdrawn
on demand or within 14 days from the date of deposit, except escrow
funds held as TIME or SAVINGS DEPOSITS. (See Section 1, Subsection
H,for the general treatment of escrow funds.)
PRIMARY OBLIGATIONS issued to NONEXEMPT ENTITIES, except:
A.

Those issued to FOREIGN NATIONAL GOVERNMENTS, FOREIGN
(NON-U.S.) OFFICIAL BANKING INSTITUTIONS, and INTER­
NATIONAL INSTITUTIONS (to be reported on the Report of
Certain Eurocurrency Transactions).

B.

Funds received from sales of BANKERS ACCEPTANCES that
are created and discounted by the reporting institution
and that are ineligible for discount at Federal Reserve
Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4.b). These transactions are reported
in Schedule A, Item 1.

C.

Certain obligations issued by the reporting institution's
nondepository AFFILIATES (PRIMARY OBLIGATIONS described
in Section 1, Subsection E.4.a). These transactions are
reported in Schedule A, Item 1.

Noninterest-bearing deposits subject to negotiable orders of
withdrawal (NINOWS).

- 29 -

Other Transaction Accounts (Items 4, 5, and 6)
Report as "Other Transaction Accounts" those DEPOSITS authorized
for automatic transfer (ATS), those subject to TELEPHONE TRANSFER or
PREAUTHORIZED TRANSFER, and those subject to negotiable orders of with­
drawal (NOW ACCOUNTS).

Report Item 4— ATS Accounts
Report in Item 4 the balance of all ATS ACCOUNTS. ATS ACCOUNTS are
SAVINGS DEPOSITS of individuals that are authorized for automatic transfer
to DEMAND DEPOSIT or other accounts pursuant to written agreement arranged
in advance between the reporting institution and the depositor.

Report Item 5— Telephone or Preauthorized Transfer Accounts
Report in Item 5 the balance of SAVINGS DEPOSITS, TIME DEPOSITS, or
accounts under the terms of which, or from which, by practice of the reporting
institution, the depositor is permitted or authorized to make more than three
withdrawals per month for purposes of transferring funds to another account
or for making a payment to a third party by means of preauthorized or tele­
phone agreement, order or instruction.
An account that permits or authorizes more than three such withdrawals
in a calendar month is a TRANSACTION ACCOUNT whether or not more than three
such withdrawals actually are made in a calendar month.
A PREAUTHORIZED TRANSFER includes any arrangement by the reporting
institution to pay a third party from the account of a depositor upon
written or oral instruction (including an order received through an
automated clearing house (ACH)), or any arrangement by the reporting
institution to pay a third party from the account of the depositor at a
predetermined time or on a fixed schedule.
Also report in this item the balance of SAVINGS DEPOSITS, TIME DEPOSITS
or accounts in which payments may be made to third parties by means of a
debit card, an automated teller machine, remote service unit or other
electronic device.
An account is not a "TRANSACTION ACCOUNT" merely by virtue of an
arrangement that permits withdrawals for the purpose of repaying loans
and associated expenses, such as insurance or escrow requirements, at
the same reporting institution (as originator or servicer). In addition,
an account is not a TRANSACTION ACCOUNT because withdrawals to be paid
directly to the depositor could be effected by telephone or preauthorized
order.

- 30 -

Exclude from this item those accounts that permit no more than three
telephone or preauthorized transfers a month to another account of the
depositor in the same institution or to a third party, and all DEMAND DEPOSITS,
ATS ACCOUNTS, and NOW ACCOUNTS, even if TELEPHONE OR PREAUTHORIZED TRANSFERS
are permitted from such accounts.
Report Item 6— NOW Accounts
Report the balance of all NOW (Negotiable Order of Withdrawal)
ACCOUNTS. NOW ACCOUNTS represent interest-bearing DEPOSITS that can be
withdrawn or transferred to third parties by issuance of a negotiable or
transferable instrument. NOW ACCOUNTS are authorized by Federal law and
are limited to accounts In which the entire beneficial interest is held
by:
1.

one or more individuals; or

2.

a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for
profit. These include such organizations as churches; pro­
fessional associations; trade associations; labor unions; frater­
nities, sororities and similar social organizations; and non­
profit recreational clubs.

Report Item 7--Total Transaction Accounts
Report in this item the sum of Items l.a, l.b, 2, 3, 4, 5, and 6.

- 31 -

Deductions (Items 8 and 9)
Report Item 8— Demand Balances Due from Depository Institutions
Report in this item all DEMAND DEPOSIT balances in the form of DEPOSITS
(exclude PRIMARY OBLIGATIONS) that are due from U.S. offices of the following
institutions located in the U.S. Do not include in this item any deposits
due from these institutions that are negative (i.e., overdrawn).
1.

U.S. commercial banks and trust companies conducting a commercial
BANKING BUSINESS;

2.

EDGE ACT and AGREEMENT CORPORATIONS;

3.

industrial banks;

4.

U.S. BRANCHES AND AGENCIES OF FOREIGN (NON-U.S.) BANKS (including
U.S. BRANCHES AND AGENCIES of FOREIGN OFFICIAL BANKING INSTITUTIONS);

5.

mutual and stock savings banks;

6.

building or savings and loan associations, homestead associations
and cooperative banks; and

7.

credit unions.

Also include in this item DEMAND DEPOSIT balances due from a correspond­
ent DEPOSITORY INSTITUTION that have not been passed through to the Federal
Reserve by the correspondent institution.
Reporting Instructions: For purposes of this report, the reporting institution
may report reciprocal demand balances with the institutions listed in 1. through
4. of the paragraph above either on a net-by-institution basis or on a gross
basis, whichever method proves to be less burdensome. Those institutions
reporting reciprocal demand balances on a net basis should see the sample
calculation under Reporting Item l.a. All demand balances with the institutions
listed in 5. through 7. of the paragraph above should be reported gross of
balances "due to” those institutions.
Exclude from Item 8:
1.

all balances due from Federal Reserve Banks, including:
A.

your institution's reserve balances held directly with the
Federal Reserve;

B.

your institution’s reserve balances that were passed through
to the Federal Reserve by a correspondent;

C.

reserve balances of another institution for which your institution
is serving as pass-through agent (correspondent) and that were
passed through by your institution to the Federal Reserve;

- 32 -

D.

your institution's clearing balance maintained at a Federal
Reserve Bank.

Note, however, that if your institution passes its reserves to the
Federal Reserve through a correspondent, any DEMAND DEPOSIT balances
that you have at the correspondent that were not passed through by
the correspondent to the Federal Reserve should be reported in this
item.
2. DEMAND DEPOSIT balances due from other DEPOSITORY INSTITUTIONS
that are pledged by the reporting institution
and are not
available for immediate withdrawal.
3.

TIME and SAVINGS DEPOSIT balances held at other DEPOSITORY
INSTITUTIONS.

4.

Trust funds deposited in other DEPOSITORY INSTITUTIONS by the
reporting institution's trust department.

5.

Amounts at other DEPOSITORY INSTITUTIONS that represent balances
that will not be available for immediate withdrawal until a future
date but that have been booked by the reporting institution in
advance.

6.

Cash items in process of collection (reported

in Item 9).

7.

Any deposit account due to a correspondent or
other DEPOSITORY
INSTITUTION that is overdrawn, or amounts that, if charged against
a correspondent account by the reporting institution, would
result in an overdraft in that account.

8.

Any deposit account due from a correspondent or other institution
that is negative (i.e., overdrawn). The amount of such negative
balances should be regarded as zero when computing the deposit
total.

9.

DEMAND DEPOSIT balances that are due from:
A.

any NON-U.S. office of any U.S. DEPOSITORY INSTITUTION;

B.

trust companies that do not conduct a commercial BANKING
BUSINESS;

C.

any NON-U.S. office of any foreign (NON-U.S.) banks; and

D.

N.Y. State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING
BUSINESS.

- 33 -

Report Item 9— Cash Items in Process of Collection
Include as CASH ITEMS in process of collection:
1.

CHECKS or DRAFTS in process of collection that are drawn on
another DEPOSITORY INSTITUTION and that are payable immediately
upon presentation in the U.S. This includes CHECKS or drafts in
the process of collection with:
A.

Federal Reserve Banks;

B.

other DEPOSITORY INSTITUTIONS; or

C.

clearing houses.

2.

CHECKS or DRAFTS on hand that will be presented for payment or
forwarded for collection on the following business day.

3.

CHECKS or DRAFTS drawn on the Treasury of the
that are in process of
collection.

4.

Other items in process of collection that are payable immediately
upon presentation in the U.S. and that are customarily cleared
or collected by DEPOSITORY INSTITUTIONS as CASH ITEMS, such as:

United States

A.

redeemed U.S. savings bonds if shipped for collection at
least every other day;

B.

money orders and travelers checks;

C.

NOW (Negotiable Order of Withdrawal),or NINOW (noninterestbearing NOW) ACCOUNT drafts;

D.

credit union SHARE DRAFTS;

E.

bank DRAFTS and FEDERAL RESERVE DRAFTS;

F.

PAYABLE THROUGH DRAFTS that have been received by the reporting
institution and that will be forwarded to another DEPOSITORY
INSTITUTION;

G.

BROKERS SECURITY DRAFTS and COMMODITY OR BILL OF LADING DRAFTS
(including arrival drafts) that are payable immediately
upon presentation in the U.S.;

H.

amounts associated with automated payment arrangements in
connection with payroll deposits, Federal recurring
payments, and other items that are credited to a depositor's
account prior to the payment date to ensure that the funds
are available on the payment date;

- 34 -

I.

RETURNED ITEMS drawn on other DEPOSITORY INSTITUTIONS; and

J.

UNPOSTED DEBITS.

NOTE: CHECKS and DRAFTS that have been credited to a DEPOSIT
account are considered CASH ITEMS in process of collection
only when the depositor is given immediate credit by the
forwarding institution, regardless of any right of charge
back or limited availability.
Exclude from this item and from this report:
1.

Items handled as NONCASH ITEMS, whether or not cleared through
Federal Reserve Banks.

2.

Items not payable in the U.S.

3.

Items for which the reporting institution has already received
credit.

4.

COMMODITY OR BILL OF LADING DRAFTS (including arrival drafts) not yet
payable (because the merchandise against which the draft was drawn
has not yet arrived), whether or not deposit credit has been given.

5.

ITEMS PAYABLE THROUGH received by the reporting institution if
acting in the capacity of clearing agent for a nondepository
institution that have not been collected from that nondepository
institution which is the drawer of the draft.

6.

Credit card or debit slips in process of collection, whether or
not deposit credit has been given.

- 35 -

Treatment of CASH ITEMS forwarded to Federal Reserve Banks
CASH ITEMS forwarded to a Federal Reserve Bank for collection and for
credit should continue to be reported as CASH ITEMS until such time as
credit actually has been given by a Federal Reserve Bank in accordance
with the appropriate time schedules established pursuant to Federal
Reserve Bank "Operating Circulars."
CASH ITEMS in process of collection also should reflect the actual
availability of funds received for DIRECT SENT CASH ITEMS.
Adjustment should be made to:
1.

Retain as CASH ITEMS in process of collection the amounts for items
sent directly to Federal Reserve Banks in other districts that will
arrive when those Federal Reserve offices are closed for a local
or regional holiday.

2.

Remove from CASH ITEMS in process of collection
sent directly to Federal Reserve Banks in other
arrive when the reporting institution's Federal
closed. Credit for such items will be given on
by the local Federal Reserve Office.

the amounts for items
districts that will
Reserve offices are
a back-valued basis

- 36 Other Savings Deposits (Items 10 and 11)

For these items, SAVINGS DEPOSITS include DEPOSITS described in Section 1,
Subsection E.l, and PRIMARY OBLIGATIONS described in Section 1, Subsection
E.3., that are not payable on a specified date or after a specified period
of time from the date of deposit, but for which the reporting institution
expressly reserves the right to require at least 14 days written notice
before an intended withdrawal.

Status of SAVINGS DEPOSITS when notice is required. If the reporting insti­
tution exercises its right to require written notice of an intended with­
drawal in connection with a SAVINGS DEPOSIT, the DEPOSIT continues to be
a SAVINGS DEPOSIT and should not be classified as a TIME DEPOSIT. Where
written notice actually is required by the reporting institution and
such notice is received from a depositor, the SAVINGS DEPOSIT becomes a
DEMAND DEPOSIT after expiration of the notice period and should be reported
in Item 1, 2, or 3, as appropriate.
Include as other SAVINGS DEPOSITS:

1.

Interest-bearing and noninterest-bearing SAVINGS DEPOSITS.

2.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFERS
where the depositor is not permitted or authorized to make more than
three withdrawals per month for purposes of transferring funds
to another account or for making a payment to a third party by
means of preauthorized or telephone agreement, order, or instruction.

3.

SAVINGS DEPOSITS maintained as compensating balances or pledged as
collateral for loans. For purposes of this report, such SAVINGS
DEPOSITS are not defined as HYPOTHECATED DEPOSITS.

4.

Escrow deposits where the reporting institution reserves the right
to require at least 14 days written notice before payment can be
made (see Section 1, Subsection H, for the general treatment of
escrow funds).

5. INTEREST paid by crediting SAVINGS DEPOSIT
6.

SAVINGS DEPOSITS in the form of Individual
(IRA) or Keogh Plan Accounts.

accounts.
Retirement Accounts

7.

CLUB ACCOUNTS, such as Christmas, vacation or similar accounts, in
the form of SAVINGS DEPOSITS (CLUB ACCOUNTS in the form of TIME
DEPOSITS are reported in Item 13 or 14).

8.

Any funds received by the reporting institution's AFFILIATE and
later channeled to the reporting institution by its AFFILIATE
in the form of a SAVINGS DEPOSIT.

- 37 -

Exclude from Other SAVINGS DEPOSITS:
1.

NOW (Negotiable Order of Withdrawal) ACCOUNTS (reported in item 6).

2.

NINOW (Noninterest-bearing Negotiable Order of Withdrawal)
ACCOUNTS (reported in Item 3).

3.

ATS ACCOUNTS (reported in Item 4).

4.

SAVINGS DEPOSITS subject to TELEPHONE and PREAUTHORIZED TRANSFER
(reported in Item 5), unless the depositor is not permitted
or not authorized to make more than three withdrawals per month
for purposes of transferring funds to another account or for making
a payment to a third party by means of preauthorized or telephone
agreement, order or instruction.

5.

Special passbook or statement accounts, such as "ninety-day notice
accounts," "golden passbook accounts,” or deposits labeled as
"saving certificates," that have a specified ORIGINAL MATURITY
of 14 days or more (reported in Item 13 or 14).

6.

INTEREST accrued on SAVINGS DEPOSITS but not yet paid or credited
to a deposit account.

7.

HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include deposits serving simply as collateral
for loans.

8. CLUB ACCOUNTS, such as Christmas, vacation, and other similiar
accounts, in the form of TIME DEPOSITS.
9. Funds deposited to the credit of the reporting institution's own
trust department where the funds involved are utilized to cover
CHECKS or DRAFTS. Such funds are TRANSACTION ACCOUNTS and are
reported in Item 3.
10. Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting
institution and that are ineligible for discount at Federal
Reserve Banks (PRIMARY OBLIGATIONS described in Section 1,
Subsection E.4(b)). These transactions are reported in Schedule A.
11.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Section
1, Subsection E.4(a)). These transactions are reported in
Schedule A.

- 38 Report Item 10— Other Savings Deposits— Personal

Report In Item 10 the balance of all SAVINGS DEPOSITS other than those
reported under TRANSACTION ACCOUNTS that represent funds in which the entire
beneficial interest is held by a depositor who is a NATURAL PERSON.
Include as PERSONAL SAVINGS DEPOSITS:
1.

Individual Retirement Accounts (IRA) and Keogh Plan Accounts in
the form of SAVINGS DEPOSITS.

2.

Escrow accounts, such as funds held for tax or insurance payments,
if the depositor is a NATURAL PERSON and other conditions of a
SAVINGS DEPOSIT are met.

3.

Trust funds held in the name of a trustee or other fiduciary,
whether or not a NATURAL PERSON, of the entire beneficial interest
is held by NATURAL PERSONS and other conditions of a SAVINGS
DEPOSIT are met.

4.

CLUB ACCOUNTS, such as Christmas, vacation and similar accounts,
the form of SAVINGS DEPOSITS held by NATURAL PERSONS.

in

Item 11— Other Savings DEPOSITS— Nonpersonal
Report in Item 11 the balance of all SAVINGS DEPOSITS other than those
reported under TRANSACTION ACCOUNTS that represent funds deposited to the
credit of, or in which any beneficial interest is held by, a depositor who
is not a NATURAL PERSON.

Item 12— Total Other Savings Deposits
Report in item 12 the sum of Items 10 and 11.

- 39 Time Deposits (Items 13, 14, 15, and 16)

Include in Items 13, 14, and 15 the balance of all TIME DEPOSITS, in
the form of both DEPOSITS and PRIMARY OBLIGATIONS, that are outstanding
at the close of business each day. Item 13 includes PERSONAL TIME DEPOSITS;
Item 14 NONPERSONAL TIME DEPOSITS; Item 15 is the total of Items 13 and
14; and Item 16 includes all TIME DEPOSITS, whether personal or nonpersonal,
that are in denominations of $100,000 or more.

For these items, TIME DEPOSITS include DEPOSITS described in Section 1,
Subsection E.l, and PRIMARY OBLIGATIONS described in Section 1, Subsection
E.3, that are payable on a specified date, after a specified period of
time from the date of deposit, or after a specified notice period, which
in all cases may not be less than 14 days from the date of deposit.

Reporting of DEPOSITS Issued on a Discount Basis or on Which Interest Is
Prepaid
TIME DEPOSITS issued on a discount basis should be reported initially
on the basis of the amount of funds actually received by the reporting
Institution. For example, if the reporting institution received $96,000
in exchange for a certificate of deposit issued at face value of $100,000,
only the $96,000 received at the time of Issuance should be reported
initially as a TIME DEPOSIT. However, as the institution’s obligation to
the depositor increase over the life of the deposit, representing INTEREST
earned on the deposit, the incremental amounts as credited to the
certificate also should be reported as TIME DEPOSITS.
TIME DEPOSITS for which INTEREST has been prepaid should be reported
on the basis of the face value of the deposit issued by the reporting
institution without deduction for the amount of prepaid INTEREST. For
example, if the reporting institution received $10,000 in exchange for
a certificate of deposit issued at a face value of $10,000 and prepaid
$500 of INTEREST, the Institution should report as a TIME DEPOSIT the
$10,000 received at the time of issuance. For reporting purposes, the
$500 prepaid INTEREST should not be deducted from the face amount of the
certificate.
Include as TIME DEPOSITS:
1.

TIME CERTIFICATES OF DEPOSIT, whether evidenced by negotiable or
nonnegotlable Instruments.

2.

TIME DEPOSITS, OPEN ACCOUNT, evidenced by written contracts.

3.

CLUB ACCOUNTS, such as Christmas, vacation, and other slmlliar
accounts, in the form of TIME DEPOSITS.

- 40 -

4.

Savings certificates, notice accounts, and passbook accounts (but
not SAVINGS DEPOSITS).

5. MONEY MARKET TIME DEPOSITS (certificates).
6.

Funds received or held in escrow accounts that may be withdrawn
after not less than 14 days from the date of deposit or after
not less than 14 days written notice of an intended withdrawal
(see Section 1, subsection H, for the general treatment of
escrow funds).

7. Interest-bearing and noninterest-bearing TIME DEPOSITS.
8. DEPOSITS in time accounts of Individual Retirement Account (IRA)
funds or Keogh Plan Accounts (reported in Item 13).
9.

TIME DEPOSITS maintained as compensating balances or pledged as
collateral for loans.

10. ALL INTEREST paid by crediting TIME DEPOSIT accounts.
11.

The reporting Institution’s liability on PRIMARY OBLIGATIONS
described in Section 1, Subsection E.3(a), (b), (d), and (e),
that are issued in ORIGINAL MATURITIES of 14 days or more to
NONEXEMPT ENTITIES.

12. DUE BILLS described in Section 1, Subsection E.3(c) that are
issued in ORIGINAL MATURITIES of 14 days or more.
13.

Any funds received by the reporting institution's AFFILIATE
and later channeled to the reporting institution by the
AFFILIATE in the form of a TIME DEPOSIT.

Exclude from TIME DEPOSITS the following categories of liabilities
that have an ORIGINAL MATURITY of 14 days or more.
1.

HYPOTHECATED DEPOSITS. For purposes of this report, HYPOTHECATED
DEPOSITS do not include DEPOSITS serving simply as collateral
for loans.

2.

Funds received and credited to DEALER RESERVE OR DEALER DIFFERENTIAL
ACCOUNTS that the reporting institution is not obligated to make
available to either the dealer or the dealer's creditors. Such funds
arise from the financing of accounts receivable for a merchant
(such as home Improvement contractors, auto dealers, or mobile
home dealers).

3.

REPURCHASE AGREEMENTS involving obligations of, or fully guaranteed
as to principal and interest by, the U.S. Government or a Federal
agency.

- 41 -

4.

DUE BILLS issued to any entity that are collateralized within three
business days by securities similar to the securities purchased
(see Section 1, Subsection E.3(c)).

5.

Except for DUE BILLS, any PRIMARY OBLIGATION issued or undertaken
to obtain funds, regardless of the use of the proceeds, when trans­
acted with U.S. offices of EXEMPT ENTITIES.

6.

SUBORDINATED NOTES AND DEBENTURES.

7.

Funds obtained from state and local housing authorities under
LOAN-TO-LENDER PROGRAMS involving the issuance of tax exempt
bonds and the subsequent lending of the proceeds to the reporting
institution for housing finance purposes.

8. Borrowings from a Federal Reserve Bank.
9.

DEPOSITS for which the reporting institution merely reserves
the right to require at least 14 days written notice of an intended
withdrawal.

10. ATS and NOW accounts (reported in Items 4 and 6, respectively).
11.

SAVINGS DEPOSITS or accounts authorized for TELEPHONE OR
PREAUTHORIZED TRANSFER (reported in Item 5, 10 or 11).

12.

Other SAVINGS DEPOSITS reported in Items 10 and 11.

13.

Matured TIME CERTIFICATES OF DEPOSIT, even if INTEREST is paid
after maturity, unless the deposit provides for automatic
renewal at maturity.

14.

INTEREST accrued on TIME DEPOSITS but not yet paid or credited
to a DEPOSIT account.

15.

Funds received from the sale to NONEXEMPT ENTITIES of BANKERS
ACCEPTANCES that are created and discounted by the reporting in­
stitution and that are ineligible for discount at Federal Reserve
Banks (PRIMARY OBLIGATIONS described in Section 1, Subsection
E.4(b)). These transactions are reported in Schedule A.

16.

Certain obligations issued by the reporting institution's non­
depository AFFILIATES (PRIMARY OBLIGATIONS described in Section
1, Subsection E.4(a)). These transactions are reported in
Schedule A.

- 42 -

Report Item 13— Time Deposits— Personal

Report asPERSONAL TIME DEPOSITS, regardless of ORIGINAL MATURITY, funds
in whichtheentire beneficial interest is held
by,
a depositor who is a
a NATURAL PERSON, including:
1.

A TIME DEPOSIT that was issued before October 1, 1980, to
and held by a NATURAL PERSON, regardless of its transferability.

2.

A TIME DEPOSIT that is Issued to and held by a NATURAL PERSON
and that contains a statement on the
document that evidences
the account (whether in certificate, passbook, statement or
book-entry form) that it is not TRANSFERABLE or that it is
TRANSFERABLE only on the books of, or with the permission
of, the reporting institution.

3.

Individual Retirement Account (IRA) and Keogh Plan TIME
DEPOSITS.

4.

Nontransferable TIME DEPOSITS held by a trustee or other
fiduciary, whether or not a NATURAL PERSON, if the entire
beneficial interest in the TIME DEPOSIT is held by a NATURAL
PERSON. A nontransferable TIME DEPOSIT that is an asset of a
pension fund would normally be regarded as a PERSONAL TIME
DEPOSIT since the entire beneficial interest of such funds
normally is held by NATURAL PERSONS.

5.

Escrow accounts, such as funds held for tax or insurance payments,
if the depositor is a NATURAL PERSON, and the other conditions
of a TIME DEPOSIT are met, notwithstanding that the funds
are held by the reporting institution or other organization
as escrow agent.

6.

CLUB ACCOUNTS, such as Christmas, vacation and similar accounts,
held in the form of TIME DEPOSITS.

Report Item 14— Time Deposits— Nonpersonal
Report the outstanding balance of all NONPERSONAL TIME DEPOSITS.
Include as NONPERSONAL TIME DEPOSITS:
1.

Funds in which any beneficial interest is held by a depositor
who is not a NATURAL PERSON, other than a deposit to the credit
of a trustee or other fiduciary if the entire beneficial interest
in the deposit is held by a NATURAL PERSON.

2.

A TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT
issued before October 1, 1980, to or held by a NATURAL PERSON.

- 43 -

3.

A TIME DEPOSIT that is issued on or after October I, 1980, to and
held by a NATURAL PERSON that does not contain on its face a
statement that it is not TRANSFERABLE.

Exclude from this item
on or after October 1,
is not TRANSFERABLE or
the permission of, the

a TIME DEPOSIT issued to and held by a NATURAL PERSON
1980, if it includes on its face a statement that it
if it is TRANSFERABLE only on the books of, or with
reporting institution.

Report Item 14.a.— Original Maturities of less than 4 years
Report in this item the balance of all NONPERSONAL TIME DEPOSITS with
ORIGINAL MATURITIES of 14 days or more but less than 4 years.

Report Item 14.b.— Original Maturities of 4 years or more
Report in this item the balance of all NONPERSONAL TIME DEPOSITS with
ORIGINAL MATURITIES of 4 years or more.

Report Item 15— Total Time Deposits
Report in this item the sum of Items 13, 14.a and 14.b.
Report Item 16— Amount of Time Deposits in Denominations of $100,000 or more
(included in Items 13 and 14~)
Report in this item the balance of all TIME DEPOSITS (both PERSONAL and
NONPERSONAL) of $100,000 or more that are reported in Items 13 and 14.
Include:
1.

Negotiable and nonnegotiable, TRANSFERABLE and nontransferable,
CERTIFICATES OF DEPOSIT issued in denominations of $100,000 or
more, and TIME DEPOSITS, 0PEN-ACC0UNT, and other TIME DEPOSITS
having balances of $100,000 or more.

2.

TIME DEPOSITS originally issued in denominations of less than
$100,000 but that, because of INTEREST paid or credited, or
because of additional deposits, now have a balance of $100,000
or more.

3.

The balance of all PRIMARY OBLIGATIONS of $100,000 or more
that are reported in Items 13 and 14.

In determining if a TIME DEPOSIT is $100,000 or more, do not combine
deposits that are represented by separate certificates or accounts, even
if held by the same customer.
Exclude from this item DEMAND DEPOSITS, SAVINGS DEPOSITS, NOW ACCOUNTS,
NIN0W ACCOUNTS, ATS ACCOUNTS, TELEPHONE TRANSFER accounts or PREAUTHORIZED
TRANSFER accounts with balances of $100,000 or more.

-

44

-

Report Item 17— Vault Cash

Include

as vault cash (such as tellers' cash, cash working funds):

1.United States currency and coin owned and held by
the reporting
institution, whether or not held on the premises, that may, at any
any time, be
used to satisfy depositors' claims.
2.

3.

United States currency and coin in transit ^o a Federal Reserve
Bank for which the reporting institution has not yet received
credit, and in transit from a Federal Reserve Bank when the
reporting institution has already been charged.
United States currency and coin in transit Jto a correspondent
DEPOSITORY INSTITUTION if the reporting institution's account
at the correspondent institution has not yet been credited, and in
transit from a correspondent institution if the reporting insti­
tution's account at the correspondent institution has already
been charged.

Exclude from vault cash:
1. Foreign (NON-U.S.) currency and coin.
2.

Silver and gold coin and other currency and coin whose numismatic
or bullion value is in excess of face value.

3.

United Sates currency and coin that the reporting institution
does not have full and unrestricted right to use, such as coin
collections held for safekeeping for customers, currency and coin
pledged as collateral by the reporting institution or by
customers, or currency and coin sold under a REPURCHASE AGREEMENT
or purchased under a resale agreement.

- 45 -

Schedule A— Other Reservable Obligations by Remaining Maturity
This schedule includes a breakdown, by maturity, of amounts outstanding
of funds obtained (1) through the use of ineligible acceptances ("finance bills")
and (2) through the issuance of obligations by AFFILIATES.

Items 1 and 2— Amounts Outstanding of Funds Obtained Through Use
of Ineligible Acceptances and Through Issuance of Obligations by Affiliates
Report the following transactions in this item:
1*

Amounts outstanding of funds obtained through use of ineligible
acceptances ("finance bills"): Report the dollar amounts outstanding
of funds obtained by the reporting institution (or its OPERATIONS
SUBSIDIARIES or SERVICE CORPORATIONS) through its sale of any
ineligible acceptances (acceptances not eligible for discount by
Federal Reserve Banks— see Section 13 of the Federal Reserve Act
[12 U.S.C. 346 and 372]) when the obligation is issued or under­
taken and discounted by the reporting institution (or its SERVICE
CORPORATIONS or OPERATIONS SUBSIDIARIES) as a means of obtaining
funds and is issued to NONEXEMPT ENTITIES. Ineligible acceptances
are sometimes referred to as finance bills. The amounts to be
reported are the funds received, and not necessarily the face amounts
of the ineligible acceptances issued or undertaken. Therefore,
the amounts outstanding reported in this item may differ from the
face amounts of outstanding ineligible acceptances.

2.

Amounts outstanding of funds obtained through issuance of
obligations by affiliates: Report the dollar amounts outstanding
of the funds obtained by the reporting Institution (or its OPERATIONS
SUBSIDIARIES or SERVICE CORPORATIONS) when its nondepository
AFFILIATES use the proceeds of the obligations that they issue to
supply or to maintain the availability of funds to the reporting
institution. Such obligations may be in the form of promissory
notes (including commercial paper), ACKNOWLEDGEMENTS OF ADVANCE,
DUE BILLS, or similar obligations (written or oral), with maturities
of less than 4 years. However, such obligations should be reported
only to the extent that they would have constituted "DEPOSITS" as
described in Section 1, Subsection E.l, or "PRIMARY OBLIGATIONS"
as described in Section 1, Subsection E.3, had they been issued
directly by the reporting institution.
DUE BILLS issued by the reporting institution's AFFILIATES are
reservable deposits without regard to the purpose of the DUE BILLS
or to whom issued unless collateralized within three business days
from the date of issuance by a security similiar to the security pur­
chased from the customer of the reporting institution's AFFILIATE.
The dollar amounts outstanding of DUE BILLS that are not so collat­
eralized are to be reported, depending on their maturity, in Item 1
or 2 of this schedule.

-

46 -

Exclude from Schedule A funds obtained by the reporting institu­
tion through obligations issued by AFFILIATES and deposited at the
reporting institution in the form of DEMAND, SAVINGS, or TIME
DEPOSITS. Such funds should be reported in the body of the
Report of Transaction Accounts, Other Deposits and Vault Cash
as DEMAND, SAVINGS, or TIME DEPOSITS, as appropriate.
If the AFFILIATE’S obligation is determined to be a DEPOSIT or
PRIMARY OBLIGATION to be reported in Schedule A, then the appropriat
maturity category is determined by the shorter of (1) the maturity
of the AFFILIATE'S obligation or (2) the maturity of Che obligation
issued by the reporting institution to the AFFILIATE, or, in the
case of assets purchased from the reporting Institution, the
remaining maturity of the assets purchased.
The following chart summarizes the conditions under which
the proceeds from the issuance of an obligation by an AFFILIATE
would be a DEPOSIT or PRIMARY OBLIGATION, and indicates the
appropriate section of the FR 2900 in which tfhe funds would
be reported.

AFFILIATE'S obligation

Funds received by the
reporting institution
are in the form of a
DEPOSIT or a PRIMARY
OBLIGATION

Funds received by the
reporting institution
are not in the form
of a DEPOSIT or
PRIMARY OBLIGATION

1

AFFILIATE'S obligation—
would have been a DEPOSIT
or a PRIMARY 0BIGATI0N if
Issued by the reporting
institution

To be reported on
FR 2900 as a DEMAND
SAVINGS, or TIME
DEPOSIT, as
appropriate. (See
Example 1 below)

To be reported on
FR 2900, Schedule A.
(See Example 2 below)

2

AFFILIATE’S obligation—
would not have been a
DEPOSIT or a PRIMARY
OBLIGATION if issued by
the reporting institution

To be reported on
FR 2900 as a DEMAND,
SAVINGS, or TIME
DEPOSIT, as
appropriate.
(See
Example 3 below)

To be excluded from
both the body and
Schedule A of the
FR 2900. (See
Example 4 below)

Example 1:
The AFFILIATE issues commercial paper with a maturity of 6 months to
a nonfinancial corporation and immediately supplies the proceeds to the
reporting Institution by buying from the reporting institution a time
certificate of deposit (CD) with an original maturity of one year. While
both the AFFILIATE'S and the reporting institution's obligations are
reservable, reserves need not be maintained against both obligations.

_ 47 _

Thus, reserves should be held against the amount of funds supplied to the
reporting institution, i.e., the dollar amount of the CD. The appropriate
reserve ratio is determined by the shorter of the maturity of the
AFFILIATE'S commmercial paper or the reporting institution's CD. In this
example, reserves would be held for a TIME DEPOSIT with a 6-month maturity.
The funds received by the reporting institution would be reported in Item
14.a (Nonpersonal Time Deposits with an Original Maturity of less than 4
years).
Example 2:
The AFFILIATE issues an unsecured DUE BILL to a NONEXEMPT entity with a
maturity of 3 months and supplies the proceeds to the reporting institution
when the DUE BILL has a remaining maturity of 2 months. The AFFILIATE supplies
the proceeds of the DUE BILL to the reporting institution by purchasing from
the reporting institution assets maturing in 1 month. The AFFILIATE'S obligation
is reservable, but the sale of the assets by the reporting institution to the
AFFILIATE is not. The reporting institution must hold reserves on the transac­
tion because the AFFILIATE'S obligation is subject to reserve requirements.
The maturity category is determined by the remaining maturity of the assets
sold by the reporting institution to the AFFILIATE (1 month), which is shorter
than the remaining maturity of the DUE BILL (2 months). In this example, the
reserve requirement would be on the AFFILIATE'S DUE BILL (a PRIMARY OBIGATION)
and the appropriate maturity would be 1 month, which is the remaining maturity
of the assets purchased. The funds received by the reporting institution
should be reported in Item 2.b. of Schedule A.
Example 3:
The AFFILIATE sells commercial paper with a maturity of 3 months to
a commercial bank and supplies the proceeds to the reporting Institution
by depositing such funds in the reporting institution in a DEMAND DEPOSIT
account. The AFFILIATE'S sale of commercial paper to a commercial bank
is not subject to reserve requirements, but the DEMAND DEPOSIT account
is. Thus, the reporting institution wou]Ld hold reserves on the DEMAND
DEPOSIT account as a TRANSACTION ACCOUNT,, The funds received by the
reporting institution should be reported in Item 3 (Other Demand Deposits).
Example 4:
The AFFILIATE sells U.S. Government securities under an agreement to
repurchase and uses the proceeds to purchase assets from the reporting
institution. Neither the sale of the U.S. Government securities under an
agreement to repurchase nor the purchase of assets is subject to reserve
requirements. Thus, the reporting institution would not hold reserves
against this transaction. The funds received by the reporting institution
should be excluded entirely from the Report of Transaction Accounts,
Other Deposits and Vault Cash.

-

48

-

The maturities to be reported in Items 1 and 2 are the remaining
maturities of the obligations at the time the proceeds are supplied to
the reporting institution.
Item 1— Maturing in less than 14 days
Report in Item 1 the amounts outstanding of funds obtained through the
use of ineligible acceptances and from issuance obligations by AFFILIATES
maturing in less than 14 days.

Item 2— Maturing in 14 days or more but less.than 4 years
Report in Item 2 the amounts outstanding of funds obtained through the use
of ineligible acceptances and from issuance of obligations of AFFILIATES matur­
ing in 14 days or more but less than 4 years.
In Item 2.a, report such funds
that are personal, and in Item 2.b, report those that are nonpersonal.

Item 2.a— Personal
Report in Item 2.a all personal obligations that mature in 14 days or more
but less than 4 years including:
Funds in which the entire beneficial interest is held by a
depositor who is a NATURAL PERSON, including:
1. an obligation that is issued before October 1, 1980 to and
held by a NATURAL PERSON, regardless of its transferability; and
2. an obligation that is issued on or after October 1, 1980, to
or held by a NATURAL PERSON and that contains a statement on
its face that it is not TRANSFERABLE.

Item 2.b— Nonpersonal
Report in Item 2.b all nonpersonal obligations that mature in 14 days
days or more but less than 4 years including:
1.

funds in which any beneficial interest is held by a depositor
who is not a NATURAL PERSON; other than a deposit to the credit
of a trustee or other fiduciary if the entire beneficial interest
in the deposit is held by a NATURAL PERSON;

2.

an obligation that is TRANSFERABLE, except an
issued before October 1, 1980, to and held by
PERSON; and

3.

an obligation that is issued on or after October 1, 1980,
to and held by a NATURAL PERSON that does not
contain on
its face a statement that it is not TRANSFERABLE.

obligation
a NATURAL

G -l

GLOSSARY OF TERMS

This section provides definitions, arranged in alphabetical order, for
terms that appear in all capital letters in Sections 1 and 2 of this manual.
These definitions are used for purposes of the Report of Transaction Accounts,
Other Deposits and Vault Cash. They may differ from definitions that appear
in other rules, regulations, statutes, or reports.
ACKNOWLEDGEMENT OF ADVANCE
A notification by a DEPOSITORY INSTITUTION of its liability for funds that
have been received. Acknowledgements of advance may take the form of a
telegraphic advice, written receipt, issuance of a credit memo or other
documentation, or simply an oral communication confirming the receipt of
funds under a borrowing-lending arrangement. Acknowledgements of advance are
PRIMARY OBLIGATIONS of the issuing DEPOSITORY INSTITUTION.
AFFILIATE
An affiliate is any corporation, association, or other similar organization:
1.

Of which the reporting depository Institution directly or indirectly
owns or controls either a majority of the voting shares or more than
50 percent of the number of shares voted for the election of the
directors, trustees, or other persons exercising similar functions at
the preceeding election, or controls in any manner the election of a
majority of the directors, trustees, or other persons exercising
similar functions; 0 £

2.

Of which control is held directly or indirectly through stock owner­
ship, or in any other manner, by shareholders of the reporting depository
institution who own or control either a majority of the shares of such
depository institution or more than 50 percent of the number of shares
voted for the election of directors of the reporting depository instit­
ution at the preceding election, or by trustees for the benefit of the
shareholders of any such depository institution; o r
j

3.

Of which the majority of its directors, trustees, or other persons
exercising similar functions also are directors of any one depository
Institution; 0£

4.

Which owns or controls directly or indirectly either a majority of the
shares of capital stock of the reporting depository institution or
more than 50 percent of the number of shares voted for the election
of directors, trustees, or other persons exercising similar functions
of the reporting depository institution or controls in any manner the
election of a majority of directors, trustees, or other persons exer­
cising similar functions of the reporting depository institution, or
for the benefit of whose shareholders or members all or substantially
all the capital stock of a depository institution is held by trustees.

G-2

AGENCIES
— See U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS.

AGREEMENT CORPORATION
A state-chartered corporation that has entered into an "agreement"
with the Federal Reserve Board under the provisions of Section 25 of
the Federal Reserve Act to limit its banking activities to those
permitted to an EDGE ACT CORPORATION.

ATS ACCOUNT
A SAVINGS DEPOSIT or account in which the entire beneficial interest
is held by one or more Individuals and that is authorized for automatic
transfer to DEMAND DEPOSIT or other accounts pursuant to written agree­
ment arranged in advance between the reporting institution and the
depositor.

BANKERS ACCEPTANCE
A draft or bill of exchange usually drawn under a LETTER OF CREDIT
issued by the reporting institution to a customer and "accepted" by the
reporting institution— i.e., the reporting institution assumes an obligation
to make payment at maturity. Generally, a bankers acceptance is eligible
for discount by a Federal Reserve Bank if it is used to finance the
export or import of goods, the domestic shipment of goods, and the foreign
or domestic storage of goods and if it has a remaining maturity of 90
days or less (or six months or less If for agricultural purposes).
Bankers acceptances used to finance dollar exchange are also eligible
for discount by a Federal Reserve Bank if the remaining maturity Is 3
months or less. Bankers acceptances issued for other purposes, such as
"finance bills" and working capital acceptances, are Ineligible for
discount at Federal Reserve Banks. (See 12 USC §346.)

BANKING BUSINESS
The business of accepting deposits, making loans, and providing
related services. The banking business does not Include the acceptance
of trust funds.

BILL OF LADING DRAFT
— See COMMODITY OR BILL OF LADING DRAFT.

G-3

BRANCHES
— See U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS.

BROKERS SECURITY DRAFT
A draft with securities or title to securities attached that is drawn
to obtain payment for the securities. This draft is sent to a bank for
collection with instructions to release the securities only on payment
of the draft.

CASH COLLATERAL ACCOUNT
A liability account that is established typically in connection with
the issuance of a commercial LETTER OF CREDIT by the reporting institution.
A cash collateral account appears on the books of the reporting institution,
either through transfer of funds from a customer's DEPOSIT account or a
deposit of cash, in an amount equal to all or some portion of the authorized
amount of the LETTER OF CREDIT. As DRAFTS are drawn under the LETTER OF
CREDIT and presented to the reporting institution for payment, the amounts
of the DRAFTS are charged to the account. After the LETTER OF CREDIT
expires, any balance remaining in the account is paid or credited to the
customer.

CASH ITEM
Any instrument, whether negotiable or not, for the payment of money
which is payable on demand. Cash item includes CHECKS in the process
of collection drawn on a DEPOSITORY INSTITUTION, U.S. Government checks,
and other items that are customarily cleared or collected by DEPOSITORY
INSTITUTIONS as cash items.

CERTIFIED, OFFICERS', BANK, TELLERS' AND CASHIERS' CHECK
An unpaid CHECK or DRAFT, other than a trust department CHECK, drawn
on the reporting depository institution by an authorized person for any
purpose, including repayment of "Federal funds" transactions or the
payment of dividends.

CHECK
A negotiable Instrument drawn on a DEPOSITORY INSTITUTION and signed
by the maker or drawer promising to pay a certain sum of money on demand
to the order of a specified person or bearer.

G-4

CLUB ACCOUNTS
Christmas, vacation, or similar SAVINGS or TIME DEPOSITS for which
there are written contracts providing that no withdrawal can be made
until a certain number of periodic deposits have been made during a
period of not less than three months, even though some of the deposits
are made within 14 days of the end of the period.

COMMODITY OR BILL OF LADING DRAFT
A DRAFT that is issued in connection with the shipment of goods. If
the commodity or bill of lading draft becomes payable only when the ship­
ment of goods against which it is payable arrives, it is an arrival draft.
Arrival drafts are usually forwarded by the shipper to the collecting
DEPOSITORY INSTITUTION with instructions to release the shipping documents
(e.g., bill of lading) conveying title to the goods only upon payment of
the draft. Payment, however, cannot be demanded until the goods have
arrived at the drawee's destination. Arrival drafts provide a means of
insuring payment of shipped goods at the time that the goods are released.

CREDIT BALANCE
A balance booked by the reporting institution as a credit balance or
maintained by the reporting institution and owed to a third party that
is incidental to or that arises from the exercise of banking powers.

DEALER RESERVE OR DEALER DIFFERENTIAL ACCOUNT
An account that arises when a merchant or dealer (such as a home
improvement contractor, mobile home dealer or car dealer) enters into
an arrangement with the reporting institution to furnish the dealer
with financing of installment loans by selling the loans to the reporting
institution at discount. The proceeds of the sale that the dealer receives
from the reporting institution represent only a portion (such as 90 per
cent) of the amount due on the installment loans. Typical accounting
entries by a reporting institution are a debit to "loans" for the principal
amount due on the loans purchased, a credit to the dealer's "DEMAND
DEPOSIT" account for 90 percent of the amount, and a credit to a "dealer
reserve” or a "dealer differential” account for the remaining 10 percent.
Since the dealer does not have access to the funds credited to the reporting
institution's dealer reserve or differential account and may not make
withdrawals from the account, no deposit liability arises until such
time as the reporting Institution becomes liable to the dealer for any
portion of the funds.

DEMAND DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l, or a PRIMARY OBLIGA­
TION described in Section 1, Subsection E.3, that is payable immediately

G-5

on demand or issued in an ORIGINAL MATURITY of less than 14 days, or
that is payable with less than 14 days notice, or for which the reporting
institution does not reserve the right to require at least 14 days written
notice of an intended withdrawal.

DEPOSITORY INSTITUTION
Any of the following institutions that is empowered to perform a
BANKING BUSINESS and that performs this business as a substantial part
of its operations and is insured or is eligible to apply to become insured:
1. U.S. commercial banks:
A. national banks;
B. state-chartered commercial banks;
C. trust companies that perform a commercial BANKING BUSINESS; and
D. private banks or unincorporated banking institutions organized
as partnerships or proprietorships and authorized to perform
commercial BANKING BUSINESS;
2. U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions; and
9. industrial banks, including Morris Plan banks, thrift and loan
companies, and industrial savings banks.
Please note that for purposes of these instructions, U.S. BRANCHES
AND AGENCIES OF FOREIGN (NON-U.S.) BANKS, and EDGE ACT and AGREEMENT
CORPORATIONS are included in the term DEPOSITORY INSTITUTION.
The term DEPOSITORY INSTITUTION excludes the following:
1. a trust company whose principal function is to accept and execute
trust arrangements or act in a purely fiduciary capacity;

G-6

2. a cash depository, cooperative exchange, or similar depository
organization whose principal function is to serve as a safe deposit
institution;
3. a finance company, whether or not empowered to receive deposits or
sell certificates of deposit;
4. U.S. Government agencies and Instrumentalities, such as the Federal
Home Loan Bank Board, Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation, Federal Deposit Insurance
Corporation, Federal National Mortage Association, the Federal
Financing Bank, Student Loan Market Association, National Credit
Union Share Insurance Fund, and the National Credit Union Adminis­
tration Central Liquidity Facility;
5. Export-Import Bank of the U.S;
6. Government Development Bank of Puerto Rico;
7. Minbanc Capital Corporation; and
8. Federal Reserve Banks.

DEPOSITS
— See Section 1, Subsection E.l and E.2, or Section 204.2 (a)
(l)(i through iii)) of Federal Reserve Regulation D.

DIRECT SENT CASH ITEM
A CASH ITEM sent for collection directly by a DEPOSITORY INSTITUTION
in one Federal Reserve District for collection from a Federal Reserve
Bank located in another district.

DRAFT
A instrument signed by the drawer ordering the payment of a certain
sum of money on demand to the order of a specified person or bearer.

DUE BILL
An instrument representing an obligation or promise to sell or deli­
ver at some future date securities, foreign exchange, etc. Due bills
generally are issued in lieu of the item to be sold or delivered at
times when the item is in short supply or otherwise currently unavailable.
The issuance of due bills may give rise to a reservable deposit (see
Section 1, Subsection E.3(c)).

G-7

EDGE ACT CORPORATION
A corporation chartered by the Federal Reserve Board under Section
25(a) of the Federal Reserve Act Co engage In international banking
and financial operations.

EXEMPT ENTITIES
U.S. offices of the following:
1. U.S. commercial banks and trust companies and their OPERATIONS
SUBSIDIARIES;
2. a U.S. BRANCH or AGENCY of a bank organized under foreign (NONU.S.) law;
3. EDGE ACT and AGREEMENT CORPORATIONS;
4. industrial banks;
5. mutual and stock savings banks;
6. mutual or stock building or savings and loan associations and
homestead associations;
7. cooperative banks;
8. credit unions;
9. the U.S. Government and its agencies and instrumentalities, such as the
Federal Reserve Banks, Federal Home Loan Bank Board, Federal Home
Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks,
Banks for Cooperatives, the Federal Home Loan Mortgage Corporation,
Federal Deposit Insurance Corporation, Federal National Mortgage
Association, Federal Financing Bank, Student Loan Marketing Assoc­
iation, National Credit Union Share Insurance Fund, and the National
Credit Union Administration Central Liquidity Facility;
10. Export-Import Bank of Che U.S.;
11. Government Development Bank of Puerto Rico;
12. Minbanc Capital Corporation;
13. securities dealers, but only when the borrowing (a) has a maturity
of one day, (b) is in immediately-available funds, and (c) Is in
connection with the clearance of securities;
14. the U.S. Treasury (TREASURY TAX AND LOAN ACCOUNT NOTE BALANCES); and
15. New York State investment companies (chartered under Article XII
of the New York State Banking Code) that perform a BANKING BUSINESS.

G -8

FEDERAL PUBLIC FUNDS
Funds of the U.S. Government and funds the deposit of which is subject
to the control and regulation of the United States or any of its officers,
agents, or employees.

FEDERAL RESERVE DRAFT
A DRAFT issued by a DEPOSITORY INSTITUTION that is drawn on its account
at a Federal Reserve Bank and that is payable by the Federal Reserve Bank.

FOREIGN (NON-U.S.) BANK
A bank organized under foriegn (NON-U.S.) law. Foreign banks include
commercial banks, merchant banks, discount houses, and similar depository
institutions, including nationalized banks that perform essentially a
BANKING BUSINESS and do not perform, to any significant extent, official
functions of FOREIGN (NON-U.S.) GOVERNMENTS.

FOREIGN (NON-U.S.) GOVERNMENTS
Central, national, state, provincial, and local governments in foreign
(NON-U.S.) countries (including their ministries, departments, and agen­
cies) that perform functions similar to those performed in the United
States by government entities.
Foreign (NON-U.S.) governments also include FOREIGN (NON-U.S.)
OFFICIAL BANKING INSTITUTIONS.

FOREIGN (NON-U.S.) NATIONAL GOVERNMENT
A central or national government that performs functions similar to
those performed by the Federal Government of the United States. State,
provincial, and local governments are not included as foreign national
governments.

FOREIGN (NON-U.S.) OFFICIAL BANKING INSTITUTIONS
Central banks, nationalized banks and other banking institutions in
foreign (NON-U.S.) countries that are owned by central governments and
that have as a significant part of their function activities similar to
those of a treasury, central bank, development bank, exchange control
office, stabilization fund, monetary agency, currency board, etc.

G-9

HYPOTHECATED DEPOSITS
Funds received by the reporting institution that are recorded as
DEPOSITS generally in accordance with state law and that reflect periodic
payments by a borrower on an instalment loan. These payments are accumulated
until the sum of the payments equals the entire amount of principal and
INTEREST on the loan, at which time the loan is considered paid in full.
The amounts received by the reporting institution are not immediately
used to reduce the unpaid balance of the note, but are assigned to the
reporting institution and cannot be reached by the borrower or the borrower's
creditors. Hypothecated deposits are not to be reported as reservable
deposits.
For purpose of this report, hypothecated deposits do not include
DEPOSITS serving simply as collateral for loans.
IMMEDIATELY-AVAILABLE FUNDS
Funds that the reporting institution can either use or dispose of on
the same business day that the transaction giving rise to receipt of the
funds is executed. Such funds are sometimes referred to as "collected,"
"actually collected," "finally collected," or "good" funds.

INTEREST
Any payment to or for the account of a depositor as compensation for
the use of deposit funds. Payments to a depositor that are not related
to the use of deposit funds by the reporting institution are not interest.
For example, if existing depositors are offered monetary or other compen­
sation for attracting new depositors, that compensation does not constitute
interest. Similarly, one-time premiums (whether in the form of merchandise,
credit, or cash) that are used to attract new depositors represent advertising
or promotional expenses rather than a payment of interest, provided that
their wholesale cost does not exceed $5.00 per deposit under $5,000 and
$10 per deposit of $5,000 or more. Finally, interest does not include
the cost of administrative or processing services absorbed by the reporting
institution in relation to deposit accounts. For example, the reporting
institution's payment of state personal property taxes on its deposits
or the market value of an advisory individual account analysis of the
depositor does not constitute interest.

INTERNATIONAL INSTITUTION
(1)
Any international entity of which the United States is a member,
such as the International Bank for Reconstruction and Development (World
Bank), International Monetary Fund, Inter-American Development Bank, and
the United Nations, and (2) other foreign, international, or supranational
entities of which the United States is not a member, such as the African
Development Bank, Central Treaty Organization, European Atomic Energy

G-10

Community, European Economic Community, European Development Fund,
Caribbean Development Bank, Bank for International Settlements, etc.
(See Federal Reserve Regulation Q [12 CFR § 217.126].)

ITEMS PAYABLE THROUGH
— See PAYABLE THROUGH DRAFT.

LETTER OF CREDIT
A letter of advice from a DEPOSITORY INSTITUTION to its agent or
correspondent, requesting that a sum of money be made available to the
person named in the letter under specified conditions.

LOAN-TO-LENDER PROGRAM
A loan-to-lender program involves the issuance of tax-exempt bonds by
a state or local housing authority and the subsequent lending of the pro­
ceeds to a reporting institution with the condition that these funds l e
i
used to make specified types of residential real estate loans. The funds
advanced to institutions under the program are evidenced by a loan agree­
ment and a promissory note issued by the institution to the housing
authority.

>

MONEY MARKET TIME DEPOSIT
A nonnegotiable TIME DEPOSIT that must be Issued in denominations of
$10,000 or more with an ORIGINAL MATURITY of exactly 26 weeks. The maxi­
mum rate of INTEREST which DEPOSITORY INSTITUTIONS may pay on these deposits
is tied to the discount rate (auction average) on the most recently
issued six-month Treasury bills. Compounding of INTEREST is not permitted.

NATURAL PERSON
For purposes of this report, a NATURAL PERSON is an individual or a sole
proprietorship. The term does not mean a corporation owned by an individual,
a partnership or other association.

NINOW ACCOUNT
A deposit or account on which mj INTEREST or dividend is paid and from
which withdrawals are made by negotiable, or TRANSFERABLE instruments for
the purpose of making payments to third parties.

G-ll

NONCASH ITEM
Any item that is not a CASH ITEM.

NONEXEMPT ENTITY
Any entity that is not listed as an EXEMPT ENTITY.

NONPERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that is not a TRANSACTION ACCOUNT and that represents
funds deposited to the credit of, or in which any beneficial interest is
held by, a depositor that is not a NATURAL PERSON or persons.

NONPERSONAL TIME DEPOSIT
NONPERSONAL TIME DEPOSIT means:
(1)

a TIME DEPOSIT representing funds in which any beneficial interest
is held by a depositor that is not a NATURAL PERSON or persons,
other than ' deposit to the credit of a trustee or other fiduciary
a
if the entire beneficial interest in the deposit is held by a
NATURAL PERSON.

(2)

a TIME DEPOSIT that is TRANSFERABLE, except a TIME DEPOSIT issued
before October 1, 1980, to and held by a NATURAL PERSON or persons
or

(3)

a TIME DEPOSIT issued on or after October 1, 1980, to and
held by a NATURAL PERSON or persons that does not contain on its
face a statement that it is not TRANSFERABLE.

NON-U.S.
Any geographic location, Including the Commonwealth of Puerto Rico and
U.S. territories and possessions, outside the 50 states of the United
States and the District of Columbia.

NON-U.S. BANK
— See FOREIGN (NON-U.S.) BANK.

G-12

NOW ACCOUNT
A deposit or account on which INTEREST or dividends are paid and the
customer is allowed to make withdrawals by negotiable or TRANSFERABLE
instruments for the purpose of making transfer to third parties. On or
after December 31, 1980, all DEPOSITORY INSTITUTIONS are authorized to
offer NOW ACCOUNTS. Prior to that date, only DEPOSITORY INSTITUTIONS in
certain states are authorized to offer NOW ACCOUNTS.
NOW ACCOUNTS are authorized by Federal law and are limited to accounts
in which the entire beneficial interest is held by:
1. one or more individuals; or
2. a partnership, corporation, association, or other organization
operated primarily for religious, philanthropic, charitable,
educational, or other similar purpose and not operated for
profit, such as church organizations; professional associations;
trade associations; labor unions; fraternities, sororities and
similar social organizations; and nonprofit recreational clubs.

OPERATIONS SUBSIDIARY
A subsidiary of a DEPOSITORY INSTITUTION (1) that serves in effect
as a separately incorporated department performing functions that the
DEPOSITORY INSTITUTION is empowered to perform at locations where the
DEPOSITORY INSTITUTION is authorized to engage in business and (2) that
satisfies the appropriate regulatory ownership requirements (see 12 CFR
§ 7.7376 and 250.141). Examples include credit card companies, mortgage
companies leasing companies, or safe deposit companies. While similar,
OPERATIONS SUBSIDIARIES do not have the same powers that are granted to
SERVICE CORPORATIONS.

ORIGINAL MATURITY

#

The length of time from the date of deposit to the earliest date that
the funds may be withdrawn at the option of the depositor under the
terms of the deposit agreement. Where a deposit is withdrawable on a
specified date, the maturity is determined by the length of time between
the issue date and the specified maturity date. Where a deposit has no
specified maturity but can be withdrawn after written notice is provided
to the reporting institution, the maturity is determined by the length
of the required notice period. ROLL-OVER CERTIFICATES OF DEPOSIT,
multiple maturity deposits, alternative maturity deposits, or deposits
providing other maturity combinations that permit a depositor the option
of withdrawing the deposit at different dates or periods of time should
be reported on the basis of the earliest allowable withdrawal date.

6-13

PAYABLE THROUGH DRAFT
A DRAFT drawn upon a nonbank payor which states on its face that
it is "payable through" a particular bank.

PERSONAL SAVINGS DEPOSIT
A SAVINGS DEPOSIT that represents funds in which the entire beneficial
interest is held by a depositor who is a NATURAL PERSON.

PERSONAL TIME DEPOSIT
A TIME DEPOSIT that represents funds in which the entire beneficial
interest is held by a NATURAL PERSON; including a TIME DEPOSIT (a) that
was issued before October 1, 1980, to and held by a NATURAL PERSON, regard
less of its transferability, or (b) that is Issued to or held by a
NATURAL PERSON and that contains a statement on its face that it is not
TRANSFERABLE.

PREAUTHORIZED TRANSFERS
— See TELEPHONE and PREAUTHORIZED TRANSFERS.

PRIMARY OBLIGATIONS
— See Section 1, Subsections E.3 through E.6 of these instructions and
Section 204.2, (a)(l)(iv, v, and vii) of Regulation D.

REPURCHASE AGREEMENT
An arrangement Involving the sale of a security or other asset under
a prearranged agreement to repurchase the same or similar security or
asset at a later date.

RETURNED ITEM
A CHECK or DRAFT that is returned by a drawee institution to the
presenting institution because of certain irregularities that, if waived,
might result in a loss to the drawee institution. The item is returned
so that the presenting institution may correct the defect or take such
other action as may be necessary, such as charging the depositor's account

»

G-14

ROLL-OVER CERTIFICATE OF DEPOSIT
A certificate of deposit transaction (sometimes referred to as a "rolypoly") where a depositor agrees to maintain funds on deposit with a
DEPOSITORY INSTITUTION at a specified rate for a certain period, usually
several years. Instead of receiving one certificate of deposit matur­
ing at the end of the period, however, the depositor agrees to purchase
a series of short-term certificates of deposit. The depositor initially
buys a short-term certificate, and when it matures, is required under the
terms of the deposit agreement to purchase another short-term certifi­
cate. This process continues until the long-term contract period expires.

SAVINGS DEPOSIT
A DEPOSIT described in Section 1, Subsection E.l, a PRIMARY OBLIGATION
described in Section 1, Subsection E.3, that is not payable on a specified
date or after a specified period of time from the date of deposit, but
for which the reporting institution expressly reserves the right to require
at least 14 days written notice before an intended withdrawal. Also see
Section 204.2 of Regulation D.

SERVICE CORPORATION
A subsidiary corporation in which the majority of the capital stock
is owned by one or more institutions of the type insured by the Federal
Savings and Loan Insurance Corporation (more precisely defined in para­
graph 1077c of the Federal Home Loan Bank Board's Annotated Manual
of Statuates and Regulation). These corporations may engage directly or
indirectly in any activities defined in paragraph 847 of the FHLBB's
Manual.

SHARE ACCOUNT
Funds in the form of shares purchased by a member or other approved
depositor which are received or held by the credit union in its usual
course of business and for which the credit union has given, or is
obligated to give, credit to the account of the depositor. This account
Is not payable on a specified date or after a specified period of time.
However, the credit union expressly reserves the right to require at
least 14 days written notice before an intended withdrawal of all or any
portion of the shares in an account.

G-15

SHARE CERTIFICATE ACCOUNT
A TRANSFERABLE or nontransferable instrument or account which provides
on its face or in the underlying agreement that a specified amount of
shares is payable to the bearer or to any specified person:
1.

on a certain date, specified in the instrument or underlying account,
not less than 14 days after the purchase date of shares or the
account is opened; or

2.

at the expiration of a certain specified time not less than 14
days
after the date the instrument is Issued; or

3.

upon notice in writing which actually is required to be given by
the certificate holder not less than 14 days before the date of
repayment.

A share certificate earns a dividend, and a penalty is assessed for
early withdrawal.

SHARE DRAFT
A negotiable or nonnegotiable DRAFT signed by the account holder
directing the credit union on which the draft is drawn to pay a certain
sum of money on demand to the order of a specified person or bearer.
Such drafts are used to withdraw funds from a SHARE DRAFT ACCOUNT.

SHARE DRAFT ACCOUNT
A SHARE ACCOUNT from which funds may be withdrawn or transferred to
third parties by issuance of a negotiable or TRANSFERABLE Instrument or
other order such as a SHARE DRAFT.

SUBORDINATE NOTE AND DEBENTURE
An obligation satisfying all of the following requirements:
1. is not Insured by a Federal agency;
2. is subordinated to the claims of depositors;
3. has an ORIGINAL MATURITY of at least seven years, or, In the case
of an obligation or serial issue that provides for any type of
scheduled repayment of principal, has a weighted average maturity
of all scheduled repayments of at least seven years with no note
having a maturity of less than five years;

G-16

4. is issued by a DEPOSITORY INSTITUTION with the approval or under
the rules and regulations of its primary Federal supervisor.

TELEPHONE AND PREAUTHORIZED TRANSFER
A DEPOSIT or account under the terms of which a depositor is permitted to
make more than three preauthorized or telephone transfers per month
(whether to another account of the depositor or to a third party), and
accounts that permit a depositor to make payments to third parties through
automated teller machines or remote service units. Whether an account is
a TRANSACTION ACCOUNT by virtue of the number of telephone or preauthorized
transfers (excluding loan repayments) permitted is to be determined based
upon the terms of the account contract or by practice of the DEPOSITORY
INSTITUTION and not on the basis of the actual number of transfers made
in a particular calendar month.

TIME CERTIFICATE OF DEPOSIT

7

A DEPOSIT described in Section 1, Subsection E.l, or a PRIMARY OBLIGA­
TION described in Section 1, Subsection E.3, that is payable on a speci­
fied date, after a specified period of time from the date of deposit, or
after a specified notice period, which in all cases may not be less than
14 days from the date of deposit.
A TIME DEPOSIT may be represented by a TRANSFERABLE or nontransferable,
or a negotiable or nonnegotiable, certificate, instrument, passbook or
statement. A nonnegotiable TIME DEPOSIT is distinguished from a non­
transferable TIME DEPOSIT in that the transferee of a nonnegotiable TIME
DEPOSIT would not be a holder in due course and would not have the ability
to cut off certain defenses of an obligor even though an exchange for
value can be made. A nontransferable TIME DEPOSIT allows no exchange for
value to be made.

TIME DEPOSIT, OPEN ACCOUNT
A deposit, other than TIME CERTIFICATE OF DEPOSIT, for which there is
in force a written contract with the depositor that neither the whole nor
any part of such deposit may be withdrawn prior to the date of maturity,
which shall not be less than 14 days after the date of the deposit, or
prior to the expiration of a period of notice which must be given by the
depositor in writing not less than 14 days in advance of withdrawal.

TRANSACTION ACCOUNT
A DEPOSIT or account on which the depositor or account holder is per­
mitted to make withdrawals by negotiable or TRANSFERABLE instrument,

G-17

payment orders of withdrawal, telephone transfers, or other similar
device for the purpose of making payments or transfers to third persons
or others.
"Transaction account" includes:
(1) DEMAND DEPOSITS;
(2)

DEPOSITS or accounts (including NOW, NINOW, and SHARE DRAFT ACCOUNTS)
subject to negotiable orders of withdrawal;

(3)

SAVINGS DEPOSITS or accounts in which withdrawals may
be made
automatically (ATS ACCOUNTS) through payment to the DEPOSITORY
INSTITUTION itself or through transfer of credit to a DEMAND
DEPOSIT or other account in order to cover CHECKS or DRAFTS
drawn upon the institution or to maintain a specified balance
in, or to make periodic transfers to, such accounts; and

(4)

DEPOSITS or accounts in which withdrawals may be made by PRE­
AUTHORIZED TRANSFER or payment, by TELEPHONE TRANSFER or payment,
or by payment to third parties by means of an automated teller
machine, remote service unit or other electronic device. Federal
Reserve Regulation D permits up to three TELEPHONE OR
PREAUTHORIZED
TRANSFERS a month (to another account of the depositor in the same
institution or to a third party) before such accounts are regarded
as TRANSACTION ACCOUNTS. Accounts that permit more than three such
transfers monthly are regarded as TRANSACTION ACCOUNTS even if not
actively used. Transfers authorized in connection with loans made
by the institution holding the deposit do not make the account a
TRANSACTION ACCOUNT.

TRANSFERABLE
The transferee of a transferable TIME DEPOSIT may be a holder in due
course and would have the ability to cut off certain defenses of an
obligor. A TIME DEPOSIT is not considered a transferable TIME DEPOSIT
merely because it can be pledged as collateral for a loan from any
lender, or merely because title or beneficial interest in the DEPOSIT
or account can be passed on in circumstances arising from death, bank­
ruptcy, divorce, marriage, incompetency, attachment or otherwise by
operation of law. In addition, the reissuance of a TIME DEPOSIT by an
institution in the name of another or the addition or subtraction of
names on the TIME DEPOSIT will not be regarded as a transfer.

UNPOSTED CREDITS
Items that have been received for deposit and that are in process of
collection but that have not been posted to individual or general ledger
deposit accounts. These credits should be reported as DEPOSITS.

G-18

UNPOSTED DEBITS
CASH ITEMS drawn on the reporting institution bank that have been "paid"
or credited by the institution and that are chargeable but that have not
been charged against DEPOSITS as of the close of business. These items
should be reported as "cash items in process of collection" until they have
been charged to either individual or general ledger deposit accounts.

U.S.
The 50 states of the United States and the District of Columbia.

U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS
Branches and agencies of foreign (NON-U.S.) banks that operate as a U.S.
office of their foreign (NON-U.S.) parent bank. The branch or agency may
be chartered by the U.S. Government, by any of the 50 states of the U.S.
As defined by the International Banking Act of 1978, a "branch" means
any office or any place of business of a foreign bank located in any state
of the United States at which DEPOSITS are received; an "agency" means any
office or any place of business of a foreign bank located in any state of
of the United States at which CREDIT BALANCES are maintained incidental to
to or arising out of the exercise of banking powers, CHECKS are paid, or
money is lent but at which DEPOSITS may not be accepted from citizens or
residents of the United States.

U.S. TREASURY GENERAL ACCOUNT
A Treasury account maintained at the reporting institution to which
government officers deposit funds obtained in connection with special
collections, such as customs fees or other tax collections.

U.S. TREASURY TAX AND LOAN ACCOUNT
A Treasury DEMAND DEPOSIT account maintained at the reporting DEPOSITORY
INSTITUTION through which the Treasury receives DEPOSITS (receipts),
principally of Federal tax payments and proceeds from the sale of savings
bonds. The account does not include TREASURY TAX AND LOAN ACCOUNT NOTE
BALANCES.

U.S. TREASURY TAX AND LOAN NOTE BALANCE
That balance representing the total amount outstanding of open-ended
interest-bearing notes issued by the reporting DEPOSITORY INSTITUTION to
the U.S. Treasury under the TREASURY TAX AND LOAN ACCOUNT note option
program.

i

A depository authorized to accept U.S. TREASURY TAX AND LOAN ACCOUNT
DEPOSITS may administer such accounts under either of two options:
(1) the remittance option or (2) the note option. Under the remittance
option, depositories must send the previous day's tax and loan account
balances as of the close of business to the Federal Reserve Banks. Under
the note option, depositories will automatically convert the previous
day's close-of—business balance in their tax and loan account to an
Interest-bearing demand note, which must be fully collateralized.

F R 2900

Report of Transaction Accounts, Other Deposits and Vault Cash

You must file a R eport o f Certain Euro­
currency Transactions if your institu tio n
had during the reporting period any foreign
borrowings.

A p p r o v e d b y F e d e r a l R e s e rv e B o a r d —A u g u s t 1 9 8 0

-. -

For the week ended.

19

If your in stitu tio n had no outstanding balances§o f transaction accounts (Item 7),
This report is required by law [12 U.S.C.
248(a) and §461 ]
other nonpersonal savings deposits (Item 11), nonpersonal tim e deposits w ith
original m aturities of less than 4 years (Item 14.a), or ineligible acceptances or
The Federal Reserve System regards the inform ation provided by each respondent
obligations by affiliates maturing in less than 4 years (Schedule A, Items 1 and
as confidential. If it should be determined subsequently that any inform ation
2.b), you need not complete this report. Rather, please check this box, sign the
collected on this form must be released, respondents w ill be notified.
report, and return it to the designated Federal Reserve Bank. □

PLEASE R EA D IN S T R U C T IO N S PRIO R TO C O M P L E T IO N OF T H IS REPO RT
Report all balances as of the close of business each day to the nearest thousand dollars
Item

Column 1

C o lu m n 2

C o lu m n 3

C o lu m n 4

C o lu m n 5

C o lu m n 6

Thursday

F r id a y

S a tu r d a y

Sunday

Monday

Tu e s da y

C o lu m n 8

C o lu m n 7

Code

Wednesday

Items

Mils.

Thous.

M ils .

Thous.

M ils .

Thous.

M ils .

Thous.

M ils .

Thous.

M ils .

Thous.

M ils .

T o ta l

Thous.

M ils .

Thous.

T R A N S A C T IO N A C C O U N T S
Demand Deposits
1.

Due to depository institutions:
a. B a n k s ...................................................................................

2311

b. Other depository institutions.......................................

2312

2.

U.S. G o v e r n m e n t..................................................................

2280

3.

Other d em and ..........................................................................

2340

1a
1b

................. M'

.

3
:• %I

Other Transaction Accounts
4.

A TS ac co u nts..........................................................................

2402

5.

Telephone and preauthorized transfers...........................

2403

............................................

2398

7. Total (must equal sum o f Items 1 through 6 above)...............

4
, .

.

5

[" " ■......... ..

6

2215

6.

NOW Accounts/Share Drafts

2

...

7

D E D U C T IO N S FROM T R A N S A C T IO N ACCO UNTS
8.

Demand balances due from depository institutions
in the U.S...................................................................................

9.

0063

Cash items in process of c o lle c tio n ...................................

0020

O T H E R S A V IN G S A N D T IM E DEPOSITS

il
l!

Other Savings Deposits
10.

Personal ...................................................................................

2368

10

11.

Nonpersonal............................................................................

2369

11

12.

Total (must equal sum of Items 10 and 11) .................

2389

12
Please continue on page 2.

F R 2900
Page 2

Report all balances as o f the close of business each day to the nearest thousand dollars

Item

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

Code

Thursday

Friday

Saturday

Sunday

Monday

Tuesday

Wednesday

Items

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Column 8
Total
Mils.

Thous.

O T H E R S A V IN G S A N D T IM E DEPOSITS (continued)
Tim e Deposits
13.

Personal (regardless of m a tu rity ).......................................

14.

2563

Nonpersonal:............................................................................

••
a. Original m aturity o f less than 4 ye ars.........................

Total (must equal sum o f Items 13 and 14) .................

^

' ^

•
:

;

•

2514

16.

.......... y .....

2558

15.

•

2557

b. Original m aturity o f 4 years or m o r e .........................

• .y.-.y v..

All tim e deposits in denomination of $ 1 0 0 ,0 0 0 or
more (included in Items 13 and 1 4 ) ................................

2604

17. V A U L T C A S H ......................................................................................

0080

If your institution had no ineligible acceptances or obligations by affiliates, please check this box and do not complete Schedule A. □
■

—

S C H E D U L E A: O T H E R R E S E R V A B L E O B L IG A T IO N S BY
•

R E M A IN IN G M A T U R IT Y
Ineligible Acceptances and Obligations by Affiliates
1.

Maturing in less than 14 d a y s ............................................

2.

I

2245

Maturing in 14 days or more but less than 4 years:
a. Personal...............................................................................

2877

b. Nonoersonal.......................................................................

2878

I certify that the information shown on this report is correct

A u th o rized Signature

T itle

Person to be C ontacted Concerning this R ep o rt (please p rin t)

Area Code and Tele p h o n e N u m b e r

PLEASE RETURN BY NO LATER THAN THE THURSDAY AFTER THE REPORT DATE TO:

ACCOUNTING DEPARTMENT, FEDERAL RESERVE BANK BRANCH, HOUSTON, TEXAS 77001

FR 2950
A p p r o v e d b y F e d e ra l R eserv e B o a r d —A u g u s t 1 9 8 0

Report of Certain Eurocurrency Transactions
For All Depository Institutions Other Than U.S. Branches and Agencies of Foreign Banks
For the week ended_____________________________________ 19-----------I f y o u r in s titu tio n had no outstanding balances to report, please check
this box, sign the report, and return to the Federal Reserve Bank
designated below. □

This report is required by law [1 2 U.S.C. § 248(a) and §461 ] .
The Federal Reserve System regards the in fo rm a tio n provided by each
respondent as confidential. I f it should be determ ined subsequently that
any in fo rm a tio n collected on this fo rm must be released, respondents w ill
be n otified.

P L E A S E R E A D IN S T R U C T IO N S P R IO R T O C O M P L E T IO N OF T H IS R E P O R T
Column 2

Column 3

Column 4

Column 5

Gross Balances
Due to Own
Non-U.S. Branches

Gross Balances
Due fro m Own
Non-U.S.Branches

Assets Sold to
and Held by Own
Non-U.S. Branches
Acquired from
U.S. Offices

Credit Extended by
Own Non-U.S.
Branches to
U.S. Residents

Column 1

Day o f
Week

Borrowings fro m
Non-U.S. Offices of
O ther Depository
In stitutions and
fro m Certain
Designated Non-U.S.
Entities

Date

Month

Day

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Mils.

Thous.

Thursday

Friday
Saturday

Sunday
Monday
Tuesday

Wednesday

TOTAL

I ce rtify th at the inform ation shown on this report is correct.
N a m e and A ddress o f In s titu tio n

A u t h o r iz e d S ig n a tu re

Person t o be c o n ta c te d con c e rn in g this re p o rt

A re a C o d e an d T e le p h o n e N u m b e r

P L E A S E R E T U R N BY N O L A TER T H A N T H U R S D A Y
F O L L O W IN G T H E R E P O R T IN G D A TE
TO:

A C C O U N T IN G D E P A R T M E N T
FEDERAL RESERVE BANK BRANCH
H O U S T O N , T E X A S 77001

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