Full text of District Notices (Federal Reserve Bank of Dallas) : Seasonal Borrowing Privilege, Circular No. 75-20

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F e d e r a l r e s e r v e Ba n k o f D a l la s
DALLAS, TEXAS

75222

C i r c u l a r No. 75-20
F e b r u a r y 5, 1975

SEASONAL BORROWING PRIVILEGE

TO THE CHIEF EXECUTIVE OFFICER
OF THE MEMBER BANK ADDRESSED IN
THE ELEVENTH FEDERAL RESERVE DISTRICT:
Two y e a r s ago the Federal R e s e r v e System r e v is e d its
Regulation A for the p u r p o s e of making c r e d i t more re a d ily a v a ila b le to
m em ber b a n k s w hich e x p e r i e n c e seasonal p ro b le m s . T h e major c h an g e
in th is re g u la tio n c o n c e r n s the seasonal b o r r o w i n g p r i v i l e g e .
T h e seasonal b o r r o w i n g p r i v i l e g e is d e s i g n e d to a s s i s t b a n k s
w h ic h h a v e r e c u r r i n g p ro b le m s of fund av ailab ility lasting for e ig h t or
more c o n se c u tiv e w e e k s . A d d ition a lly , e ligib le b a n k s a r e r e q u i r e d to
p r o v id e a portio n of seasonal n e ed s from o th e r r e s o u r c e s ; th is is a nomi­
nal am ount, only 5 p e r c e n t of a v e r a g e total d e p o sits of the p r e c e d i n g c a l ­
e n d a r y e a r . Seasonal n e ed s bey on d th e d e d u c t ib le amount may be met by
b o r r o w i n g from th is R e s e r v e Bank.
O u r a n a ly s is of y o u r b a n k , b a s e d on p a s t movements in d e ­
posits a n d lo ans, in d icates th a t you may q u a lify for seasonal c r e d i t , and
we would like the o p p o rtu n i ty to d i s c u s s th is matter with y o u . We s u g ­
g e s t th at you co ntact th e a p p r o p r i a t e officer a t the Head Office o r B ranch
of this Bank s e r v i n g the t e r r i t o r y in w h ic h y o u r b a n k is located. In o r ­
d e r that we may make n e c e s s a r y a r r a n g e m e n t s , we s u g g e s t that d i s c u s ­
sions c o v e r in g y o u r u s e of the seasonal b o r r o w i n g p r i v i l e g e tak e place
s e v e ra l w e e k s p r i o r to the time fu n d s will be n e e d e d .
A d d itio n a lly, o u r Bulletin 2 p r o v i d e s f u r t h e r information c o v ­
e r i n g all of th e c r e d i t facilities of th is R e s e r v e B ank , a n d we alw ay s w e l­
come y o u r q u e s ti o n s c o n c e r n in g t h e s e o r o th e r a s p e c ts of o u r s e r v i c e s .
S in c e r e ly y o u r s ,
T . W. Plant
F i r s t Vice P r e s i d e n t

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